Egeplast UK Limited 11430568 false 2023-01-01 2023-12-31 2023-12-31 2023-12-31 The principal activity of the company is the manufacture of plastic pipe fittings. Digita Accounts Production Advanced 6.30.9574.0 true true true false false false true true true 11430568 2023-01-01 2023-12-31 11430568 2023-12-31 11430568 bus:OrdinaryShareClass1 bus:Consolidated 2023-12-31 11430568 bus:Consolidated 2023-12-31 11430568 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2023-12-31 11430568 core:RetainedEarningsAccumulatedLosses 2023-12-31 11430568 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-12-31 11430568 core:ShareCapital 2023-12-31 11430568 core:ShareCapital bus:Consolidated 2023-12-31 11430568 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-12-31 11430568 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-12-31 11430568 core:HirePurchaseContracts core:CurrentFinancialInstruments bus:Consolidated 2023-12-31 11430568 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-12-31 11430568 core:HirePurchaseContracts core:Non-currentFinancialInstruments bus:Consolidated 2023-12-31 11430568 core:CurrentFinancialInstruments 2023-12-31 11430568 core:CurrentFinancialInstruments bus:Consolidated 2023-12-31 11430568 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 11430568 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-12-31 11430568 core:Non-currentFinancialInstruments 2023-12-31 11430568 core:Non-currentFinancialInstruments bus:Consolidated 2023-12-31 11430568 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 11430568 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2023-12-31 11430568 core:Goodwill bus:Consolidated 2023-12-31 11430568 core:AdditionsToInvestments 2023-12-31 11430568 core:BetweenTwoFiveYears bus:Consolidated 2023-12-31 11430568 core:WithinOneYear bus:Consolidated 2023-12-31 11430568 core:FurnitureFittingsToolsEquipment bus:Consolidated 2023-12-31 11430568 core:LandBuildings bus:Consolidated 2023-12-31 11430568 core:MotorVehicles bus:Consolidated 2023-12-31 11430568 core:DeferredTaxation bus:Consolidated 2023-12-31 11430568 bus:FRS102 bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:Audited bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:FullAccounts bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:RegisteredOffice bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:Director1 2023-01-01 2023-12-31 11430568 bus:Director1 bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:OrdinaryShareClass1 bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:Consolidated 1 2023-01-01 2023-12-31 11430568 bus:Consolidated 1 2023-01-01 2023-12-31 11430568 bus:PrivateLimitedCompanyLtd bus:Consolidated 2023-01-01 2023-12-31 11430568 bus:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 11430568 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 11430568 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-01-01 2023-12-31 11430568 core:ShareCapital 2023-01-01 2023-12-31 11430568 core:ShareCapital bus:Consolidated 2023-01-01 2023-12-31 11430568 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2023-01-01 2023-12-31 11430568 core:Goodwill bus:Consolidated 2023-01-01 2023-12-31 11430568 core:PlantEquipmentUnderOperatingLeases bus:Consolidated 2023-01-01 2023-12-31 11430568 core:FurnitureFittingsToolsEquipment bus:Consolidated 2023-01-01 2023-12-31 11430568 core:LandBuildings bus:Consolidated 2023-01-01 2023-12-31 11430568 core:MotorVehicles bus:Consolidated 2023-01-01 2023-12-31 11430568 core:PlantMachinery bus:Consolidated 2023-01-01 2023-12-31 11430568 core:VehiclesPlantMachinery bus:Consolidated 2023-01-01 2023-12-31 11430568 core:DeferredTaxation bus:Consolidated 2023-01-01 2023-12-31 11430568 core:Subsidiary1 2023-01-01 2023-12-31 11430568 core:Subsidiary1 1 2023-01-01 2023-12-31 11430568 core:UKTax bus:Consolidated 2023-01-01 2023-12-31 11430568 countries:UnitedKingdom bus:Consolidated 2023-01-01 2023-12-31 11430568 2022-12-31 11430568 bus:Consolidated 2022-12-31 11430568 core:RetainedEarningsAccumulatedLosses 2022-12-31 11430568 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-12-31 11430568 core:ShareCapital 2022-12-31 11430568 core:ShareCapital bus:Consolidated 2022-12-31 11430568 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2022-12-31 11430568 core:Goodwill bus:Consolidated 2022-12-31 11430568 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-12-31 11430568 core:LandBuildings bus:Consolidated 2022-12-31 11430568 core:MotorVehicles bus:Consolidated 2022-12-31 11430568 core:DeferredTaxation bus:Consolidated 2022-12-31 11430568 2022-01-01 2022-12-31 11430568 2022-12-31 11430568 bus:OrdinaryShareClass1 bus:Consolidated 2022-12-31 11430568 bus:Consolidated 2022-12-31 11430568 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2022-12-31 11430568 core:HirePurchaseContracts core:CurrentFinancialInstruments 2022-12-31 11430568 core:HirePurchaseContracts core:CurrentFinancialInstruments bus:Consolidated 2022-12-31 11430568 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2022-12-31 11430568 core:HirePurchaseContracts core:Non-currentFinancialInstruments bus:Consolidated 2022-12-31 11430568 core:CurrentFinancialInstruments 2022-12-31 11430568 core:CurrentFinancialInstruments bus:Consolidated 2022-12-31 11430568 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 11430568 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2022-12-31 11430568 core:Non-currentFinancialInstruments 2022-12-31 11430568 core:Non-currentFinancialInstruments bus:Consolidated 2022-12-31 11430568 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 11430568 core:Non-currentFinancialInstruments core:AfterOneYear bus:Consolidated 2022-12-31 11430568 core:Goodwill bus:Consolidated 2022-12-31 11430568 core:BetweenTwoFiveYears bus:Consolidated 2022-12-31 11430568 core:WithinOneYear bus:Consolidated 2022-12-31 11430568 core:FurnitureFittingsToolsEquipment bus:Consolidated 2022-12-31 11430568 core:LandBuildings bus:Consolidated 2022-12-31 11430568 core:MotorVehicles bus:Consolidated 2022-12-31 11430568 bus:Consolidated 2022-01-01 2022-12-31 11430568 bus:Consolidated 1 2022-01-01 2022-12-31 11430568 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 11430568 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2022-01-01 2022-12-31 11430568 core:ShareCapital 2022-01-01 2022-12-31 11430568 core:ShareCapital bus:Consolidated 2022-01-01 2022-12-31 11430568 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated 2022-01-01 2022-12-31 11430568 core:PlantEquipmentUnderOperatingLeases bus:Consolidated 2022-01-01 2022-12-31 11430568 core:Subsidiary1 1 2022-01-01 2022-12-31 11430568 core:UKTax bus:Consolidated 2022-01-01 2022-12-31 11430568 2021-12-31 11430568 bus:Consolidated 2021-12-31 11430568 bus:Consolidated core:PreviouslyStatedAmount 2021-12-31 11430568 core:RetainedEarningsAccumulatedLosses 2021-12-31 11430568 core:RetainedEarningsAccumulatedLosses bus:Consolidated core:PreviouslyStatedAmount 2021-12-31 11430568 core:ShareCapital 2021-12-31 11430568 core:ShareCapital bus:Consolidated core:PreviouslyStatedAmount 2021-12-31 11430568 core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests bus:Consolidated core:PreviouslyStatedAmount 2021-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 11430568

Egeplast UK Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

Egeplast UK Limited

Contents

Company Information

1

Strategic Report

2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 7

Consolidated Profit and Loss Account

8

Consolidated Balance Sheet

9

Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Financial Statements

14 to 27

 

Egeplast UK Limited

Company Information

Director

S K Jones

Registered office

Westwood Business Park
Belton Road
Sandtoft
Doncaster
DN8 5BF

Auditors

Forrester Boyd
26 South St. Mary's Gate
Grimsby
North East Lincolnshire
DN31 1LW

 

Egeplast UK Limited

Strategic Report for the Year Ended 31 December 2023

The Director presents his strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the Group is the manufacture of plastic pipe fittings.

Fair review of the business

Operating as part of the egeplast Group, Westwood Pipelines is strengthened by the success of the core business based in Germany. The main products produced by the Company in response to demand from customers is Black P100 Pipe and Blue 9010 Pipe. The establishment of a production line onsite in the UK in 2019 has allowed for the mitigation of import delays and stock out issues resultant from a reliance on sole production in Germany.

In order to further support ongoing growth plans, we are in the process of increasing the workforce. Establishing a more extensive workforce is hoped to increase the production range within the UK and improve the efficiency with which product can be manufactured, sold and delivered to customers.

Westwood Pipelines provides pipe, specialist fabrications and fittings to customers across the UK. There was a marked increase in the number of customers supplied and the volume of product sold during 2023, when held in comparison to 2022.

In the year ended December 2023, the Company was down against budget. The market experienced a reduction in raw material prices compared to the previous year and, as such, Westwood Pipelines managed to deliver an increase in operational margin and outperformed the market.

Westwood Pipelines Limited, operating as egeplast UK Limited, is therefore in a strong position to continue our growth strategy in the UK market and future market sectors.

The Group's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

11,700,691

12,287,539

Turnover (fall) growth

%

(5)

65

Gross profit

£

2,492,435

2,591,478

Gross profit margin

%

21

21

Profit before tax

£

373,542

679,026

Net profit margin

%

3

6

Principal risks and uncertainties

To encourage future growth and stability, the Company must be aware and responsive to the risks and uncertainties that face the industry. Inflation and the cost-of-living crisis is a central concern, as are energy prices.

Raw material supply will also be monitored closely as this presents another uncertainty to the Company going forward. However, the director and senior management team continue to use their experience of the industry to ensure risks are minimised and the Company continue to operate in a smooth and efficient manner.

Approved and authorised by the director on 1 March 2024
 

.........................................
S K Jones
Director

 

Egeplast UK Limited

Director's Report for the Year Ended 31 December 2023

The Director presents his report and the consolidated financial statements for the year ended 31 December 2023.

Director of the Group

The Director who held office during the year was as follows:

S K Jones

Financial instruments

Objectives and policies

Westwood Pipelines objectives include sustainability to grow the business while maintaining culture, employee wellbeing as well as continuing to develop as an employer of choice.

• Policies: Updating Company policies to be aligned with our group policies and objectives.

Price risk, credit risk, liquidity risk and cash flow risk

• Price Risk: Raw material risk in supply and price.
• Credit Risk: Credit risk is covered by Allianz Insurance.
• Liquidity Risk: Liquidity risk is covered by the support from the Egeplast Group and our financial partners.
• Cash Flow Risk: Cash flow is managed on a daily basis by the accounts team with a minimal risk.

Disclosure of information to the auditor

The Director has taken steps that he ought to have taken as a Director in order to make himself aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.

Approved and authorised by the director on 1 March 2024
 

.........................................
S K Jones
Director

 

Egeplast UK Limited

Statement of Director's Responsibilities

The Director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has 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 Director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing these financial statements, the Director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Director is responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Egeplast UK Limited

Independent Auditor's Report to the Members of Egeplast UK Limited

Opinion

We have audited the financial statements of Egeplast UK Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Group's and the parent Company's affairs as at 31 December 2023 and of the Group's 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.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The Director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

 

Egeplast UK Limited

Independent Auditor's Report to the Members of Egeplast UK Limited

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

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

adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent Company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of Director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the Director

As explained more fully in the Statement of Director's Responsibilities [set out on page 4], the Director is 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 Director determines 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 Director is responsible for assessing the Group and 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 Director either intends to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with management, including consideration of known or suspected instances of non-compliance.

Challenging assumptions and judgements made within significant accounting estimates and judgements.

Identification of laws and regulations central to the Group and Parent's operations and review of compliance with such laws.

Testing of journal entries and potential override of systems.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 Group'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 Group'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 Group and the Group's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Egeplast UK Limited

Independent Auditor's Report to the Members of Egeplast UK Limited

......................................
Kevin Hopper BFP FCA (Senior Statutory Auditor)
For and on behalf of Forrester Boyd, Statutory Auditor

26 South St. Mary's Gate
Grimsby
North East Lincolnshire
DN31 1LW

1 March 2024

 

Egeplast UK Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

11,700,691

12,287,539

Cost of sales

 

(9,208,256)

(9,696,061)

Gross profit

 

2,492,435

2,591,478

Administrative expenses

 

(2,013,182)

(1,851,408)

Other operating income

4

-

2,149

Operating profit

5

479,253

742,219

Other interest receivable and similar income

6

3,507

-

Interest payable and similar expenses

7

(113,695)

(67,670)

   

(110,188)

(67,670)

Profit before tax

 

369,065

674,549

Tax on profit

11

(119,722)

(191,711)

Profit for the financial year

 

249,343

482,838

Profit/(loss) attributable to:

 

Owners of the Company

 

249,343

482,838

The Group has no recognised gains or losses for the year other than the results above.

 

Egeplast UK Limited

(Registration number: 11430568)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

713,383

812,924

Tangible assets

13

2,421,344

2,306,780

 

3,134,727

3,119,704

Current assets

 

Stocks

15

1,961,739

1,533,185

Debtors

16

2,071,600

2,350,578

Cash at bank and in hand

 

1,112,646

2,129,013

 

5,145,985

6,012,776

Creditors: Amounts falling due within one year

18

(6,378,286)

(7,052,922)

Net current liabilities

 

(1,232,301)

(1,040,146)

Total assets less current liabilities

 

1,902,426

2,079,558

Creditors: Amounts falling due after more than one year

18

(649,451)

(643,003)

Provisions for liabilities

19

(274,761)

(230,685)

Net assets

 

978,214

1,205,870

Capital and reserves

 

Called up share capital

21

1,501,000

1,501,000

Retained earnings

22

(522,786)

(295,130)

Equity attributable to owners of the company

 

978,214

1,205,870

Shareholders' funds

 

978,214

1,205,870

Approved and authorised by the director on 1 March 2024
 

.........................................
S K Jones
Director

 

Egeplast UK Limited

(Registration number: 11430568)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

14

2,513,001

2,513,001

Current assets

 

Debtors

16

271,945

-

Cash at bank and in hand

 

632

1,057

 

272,577

1,057

Creditors: Amounts falling due within one year

18

(1,275,000)

(2,123,818)

Net current liabilities

 

(1,002,423)

(2,122,761)

Net assets

 

1,510,578

390,240

Capital and reserves

 

Called up share capital

21

1,501,000

1,501,000

Retained earnings

9,578

(1,110,760)

Shareholders' funds

22

1,510,578

390,240

As permitted under section 408 of the Companies Act 2006, no separate Holding Company income statement has been prepared. The company made a profit after tax for the financial year of £1,597,338 (2022 - loss of £40,405).

Approved and authorised by the director on 1 March 2024
 

.........................................
S K Jones
Director

 

Egeplast UK Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2023

1,501,000

(295,129)

1,205,871

1,205,871

Profit for the year

-

249,343

249,343

249,343

Dividends

-

(477,000)

(477,000)

(477,000)

At 31 December 2023

1,501,000

(522,786)

978,214

978,214

Share capital
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2022

1,501,000

(777,968)

723,032

723,032

Profit for the year

-

482,838

482,838

482,838

At 31 December 2022

1,501,000

(295,130)

1,205,870

1,205,870

 

Egeplast UK Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

1,501,000

(1,110,760)

390,240

Profit for the year

-

1,597,338

1,597,338

Dividends

-

(477,000)

(477,000)

At 31 December 2023

1,501,000

9,578

1,510,578

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

1,501,000

(1,070,355)

430,645

Loss for the year

-

(40,405)

(40,405)

At 31 December 2022

1,501,000

(1,110,760)

390,240

 

Egeplast UK Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

249,343

482,838

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

192,346

176,719

Profit on disposal of tangible assets

(43,156)

-

Finance income

6

(3,507)

-

Finance costs

7

105,621

66,664

Income tax expense

11

119,722

191,711

 

620,369

917,932

Working capital adjustments

 

(Increase)/decrease in stocks

15

(428,554)

640,102

Decrease/(increase) in trade debtors

16

278,978

(737,836)

(Decrease)/increase in trade creditors

18

(748,467)

1,308,111

Decrease in deferred income, including government grants

 

(2,000)

(2,000)

Net cash flow from operating activities

 

(279,674)

2,126,309

Cash flows from investing activities

 

Interest received

3,507

-

Acquisitions of tangible assets

(172,441)

(90,910)

Proceeds from sale of tangible assets

 

57,730

-

Net cash flows from investing activities

 

(111,204)

(90,910)

Cash flows from financing activities

 

Interest paid

7

(105,621)

(66,664)

Repayment of bank borrowing

 

(10,579)

(34,902)

Payments to finance lease creditors

 

(32,289)

(22,973)

Dividends paid

(477,000)

-

Net cash flows from financing activities

 

(625,489)

(124,539)

Net (decrease)/increase in cash and cash equivalents

 

(1,016,367)

1,910,860

Cash and cash equivalents at 1 January

 

2,129,013

218,153

Cash and cash equivalents at 31 December

 

1,112,646

2,129,013

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital incorporated in United Kingdom and the company registration number is 11430568.

The address of its registered office is:
Westwood Business Park
Belton Road
Sandtoft
Doncaster
DN8 5BF

These financial statements were authorised for issue by the director on 1 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company and are rounded to the nearest pound.

Summary of disclosure exemptions

The Parent company has taken advantage of the reduced disclosure exemption from preparing a cash flow statement as described in section 1.12 of FRS 102.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December 2023.

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Company. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Company’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

The Directors have made a number of judgements in applying the Company's accounting policies, the most significant of which is in relation to depreciation charges and stock valuation. The measurement and recognition of amounts is closely controlled by the Directors' and involves judgements made using the years of experience and knowledge of the industry held.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the Group.

The Group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the functional currency rate prevailing at the date of the transaction. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the Group. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Tangible assets

Tangible assets, other than land and buildings, are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Land and buildings are stated in the statement of financial position under the revaluation model. These assets are held at fair value at the date of valuation less accumulated depreciation and impairment losses and revaluations are made with sufficient regularity to ensure carrying values do not differ materially to the fair value of assets at the balance sheet date.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and Machinery

15% straight line

Fixture, fittings & equipment

25% straight line

Motor Vehicles

20% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the Group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

11,677,691

12,265,539

Rental income from investment property

21,000

20,000

Grants received

2,000

2,000

11,700,691

12,287,539

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Other operating income

The analysis of the Group's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

2,149

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

92,804

77,177

Amortisation expense

99,542

99,542

Operating lease expense - plant and machinery

293,056

278,537

Profit on disposal of property, plant and equipment

(43,156)

-

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

3,507

-

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

49,125

23,081

Interest on obligations under finance leases and hire purchase contracts

4,038

(165)

Interest expense on other finance liabilities

52,458

43,748

Foreign exchange gains

8,074

1,006

113,695

67,670

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Staff costs

The aggregate payroll costs (including Director's remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,174,925

953,923

Social security costs

120,556

96,042

Pension costs, defined contribution scheme

64,643

41,127

1,360,124

1,091,092

The average number of persons employed by the Group (including the Director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

19

14

Administration and support

11

10

Other departments

7

7

37

31

9

Director's remuneration

The Director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

103,000

149,448

Contributions paid to money purchase schemes

6,000

6,000

109,000

155,448

10

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

16,500

14,000


 

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

75,646

-

Deferred taxation

Arising from origination and reversal of timing differences

44,076

191,711

Tax expense in the income statement

119,722

191,711

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

369,065

674,549

Corporation tax at standard rate

86,804

128,164

Effect of expense not deductible in determining taxable profit (tax loss)

4,556

2,049

Tax increase/(decrease) from effect of capital allowances and depreciation

2,338

(3,425)

Tax increase from other short-term timing differences

26,024

64,923

Total tax charge

119,722

191,711

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Deferred tax

Group

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

274,761

-

274,761

2022

Asset
£

Liability
£

Accelerated capital allowances

-

230,685

-

230,685

12

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

995,418

995,418

At 31 December 2023

995,418

995,418

Amortisation

At 1 January 2023

182,493

182,493

Amortisation charge

99,542

99,542

At 31 December 2023

282,035

282,035

Carrying amount

At 31 December 2023

713,383

713,383

At 31 December 2022

812,924

812,924

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

2,029,449

718,035

101,528

2,849,012

Additions

873

122,120

98,948

221,941

Disposals

-

(71,088)

(44,287)

(115,375)

At 31 December 2023

2,030,322

769,067

156,189

2,955,578

Depreciation

At 1 January 2023

-

482,702

59,529

542,231

Charge for the year

-

64,164

28,640

92,804

Eliminated on disposal

-

(68,384)

(32,417)

(100,801)

At 31 December 2023

-

478,482

55,752

534,234

Carrying amount

At 31 December 2023

2,030,322

290,585

100,437

2,421,344

At 31 December 2022

2,029,448

235,333

41,999

2,306,780

Included within the net book value of land and buildings above is £2,030,322 (2022 - £2,029,448) in respect of freehold land and buildings.
 

Revaluation

The fair value of the Group's Land and buildings was revalued on 31 December 2020 by an independent valuer.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,642,438 (2022 - £1,641,565).
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor Vehicles

67,829

26,039

     

The carrying amounts have been pledged as security for the liability to which the asset relates.

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

14

Investments

Company

2023
£

2022
£

Investments in subsidiaries

2,513,001

2,513,001

Subsidiaries

£

Cost or valuation

Additions

2,513,001

Provision

Carrying amount

At 31 December 2023

2,513,001

At 31 December 2022

2,513,001

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the Company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Westwood Pipelines Limited

Westwood Business Park, Belton Road, Sandtoft, South Yorkshire, DN8 5BF

Ordinary shares

100%

100%

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Raw materials and consumables

193,563

163,160

-

-

Finished goods and goods for resale

1,768,176

1,370,025

-

-

1,961,739

1,533,185

-

-

16

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

2,018,155

2,322,553

-

-

Amounts owed by related parties

26

-

-

271,945

-

Other debtors

 

10,993

-

-

-

Prepayments

 

42,452

28,025

-

-

   

2,071,600

2,350,578

271,945

-

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

17

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

517

238

-

-

Cash at bank

1,112,129

2,128,775

632

1,057

1,112,646

2,129,013

632

1,057

18

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

23

68,196

68,011

-

-

Trade creditors

 

646,990

813,081

-

-

Amounts due to related parties

26

4,514,203

5,549,744

1,275,000

2,123,818

Social security and other taxes

 

358,282

497,942

-

-

Outstanding defined contribution pension costs

 

5,132

3,532

-

-

Other payables

 

595,672

-

-

-

Accruals

 

33,146

37,593

-

-

Corporation tax liability

11

75,646

-

-

-

Deferred income

 

81,019

83,019

-

-

 

6,378,286

7,052,922

1,275,000

2,123,818

Due after one year

 

Loans and borrowings

23

649,451

643,003

-

-

19

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 January 2023

230,685

230,685

Additional provisions

44,076

44,076

At 31 December 2023

274,761

274,761

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

20

Pension and other schemes

Defined contribution pension scheme

The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £64,643 (2022 - £41,127).

Contributions totalling £5,132 (2022 - £3,532) were payable to the scheme at the end of the year and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

1,501,000

1,501,000

1,501,000

1,501,000

         

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Normal voting and participation rights

22

Reserves

Group

Called Up Share Capital

Called up share capital comprises of the value of issued share capital at par.

Retained Earnings

The profit and loss account consists of profits made by the group attributable to the shareholders of the group.

Company
Called Up Share Capital
Called up share capital comprises of the value of issued share capital at par.

Retained Earnings
The profit and loss account consists of profits made by the company attributable to the shareholders of the company.

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

23

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

607,273

618,964

-

-

Hire purchase contracts

42,178

24,039

-

-

649,451

643,003

-

-

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

40,019

38,907

-

-

Hire purchase contracts

28,177

29,104

-

-

68,196

68,011

-

-

Company

Bank borrowings
Within bank borrowings is a loan with balances which is denominated in sterling and of which interest is charged at 2% per annum over the Base Rate. The carrying amount at the year end is £647,292 (2022: £657,871).

Of the total amount outstanding, £447,196 (2022 - £463,335) is due to be repaid after 5 years. These amounts are secured by way of a fixed and floating charge on the property at Westwood Business Park, Belton Road, Sandtoft.


Other borrowings
Assets purchased under hire purchase and finance lease agreements is denominated in sterling. The carrying amount at year end is £70,356 (2022: £53,143).

These amounts are secured on the assets they finance.

 

Egeplast UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

24

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

193,239

320,217

Later than one year and not later than five years

33,354

59,081

226,593

379,298

The amount of non-cancellable operating lease payments recognised as an expense during the year was £293,056 (2022 - £278,537).

25

Analysis of changes in net debt

Group

At 1 January 2023
£

Financing cash flows
£

New finance leases
£

At 31 December 2023
£

Cash and cash equivalents

Cash

2,129,013

(1,016,367)

-

1,112,646

Borrowings

Long term borrowings

618,964

(11,691)

-

607,273

Short term borrowings

38,907

1,112

-

40,019

Lease liabilities

53,143

(32,286)

49,500

70,357

711,014

(42,865)

49,500

717,649

 

2,840,027

(1,059,232)

49,500

1,830,295

26

Related party transactions

The company has taken advantage of the exemption in section 33 of FRS 102 'Related Party Disclosures' from disclosing transactions with other members of the group in which any subsidiary which is a party to the transaction wholly owned by the group.

27

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Egeplast International GMBH, incorporated in Germany. Egeplast International GMBH is the company's controlling related party by virtue of its 95% shareholding interest in the company.