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Registered number: 00331258










GORDIAN STRAPPING LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
GORDIAN STRAPPING LIMITED
 
 
COMPANY INFORMATION


Directors
A N Cillo 
A W Lea 
T Shimojima 
E L Webber 
P Jackson (appointed 1 December 2023)




Registered number
00331258



Registered office
Gordian House
Brunel Road

Basingstoke

Hampshire

RG21 6XX




Auditors
Shaw Gibbs (Audit) Limited
Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
GORDIAN STRAPPING LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1
Directors' Report
 
 
2 - 3
Independent Auditors' Report
 
 
4 - 7
Statement of Income and Retained Earnings
 
 
8
Statement of Financial Position
 
 
9
Notes to the Financial Statements
 
 
10 - 23


 
GORDIAN STRAPPING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.

Business review
 
The company aims to present a balanced and comprehensive review of its business during the year and its position at the year-end. This review is consistent with the nature and size of the business.

Principal risks and uncertainties
 
The UK market remains a difficult trading environment, with many market sectors continuing to find the impact of high interest rates a significant factor, which is inhibiting growth in their end markets, this is particularly true of the building products sector, a major market sector for Gordian Strapping Ltd (GSL).  Inflation has however reduced significantly, and whilst UK GDP remains weak, it is expected the UK economy will grow in 2024, and this trend will hopefully encourage more investment in capital equipment as companies see an improving trading environment.
It is particularly important that the company continues to follow a strategy of trying to develop sales across a wide spread of markets to increase opportunities for growth in 2024. The company has also increased its number of external salespeople in a bold effort to capitalise on new opportunities in the UK market.

Financial key performance indicators
 
The company considers its key performance indicators to be turnover and profitability. These financial statements show the results of the company's performance for the year ended 31 December 2023, with the comparatives covering the year ended 31 December 2022. The directors can report that sales have increased by 16.3% and this is testament to the business strategy and the improved trading conditions in the post-COVID-19 pandemic period. The profit before tax has significantly increased by 30% to £1,025,157 (2022: £790,428). 
The directors feel that these results are satisfactory given the challenges encountered in trading in the post pandemic period.
The gross profit margin has remained consistent with the previous year. The company continues to control overheads and operating costs at a competitive level to ensure it remains competitive in the marketplace.


This report was approved by the board and signed on its behalf.







A W Lea
Director

Date: 29 April 2024

Page 1

 
GORDIAN STRAPPING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the company continued to be the sale and hire of strapping and packaging equipment, the provision of after-sales machine maintenance and servicing and the supply of consumable strapping materials. The range of equipment available and the activities of the company can be seen on its website at www.gordianstrapping.com.

Results and dividends

The profit for the year, after taxation, amounted to £752,276 (2022 - £600,547).

Directors

The directors who served during the year were:

A N Cillo 
A W Lea 
T Shimojima 
E L Webber 
P Jackson (appointed 1 December 2023)

Page 2

 
GORDIAN STRAPPING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

The business continues to offer a wide range of equipment and services that enhance the offering Gordian Strapping Ltd provides as a leading UK specialist end of production line packaging equipment supplier. Opportunities for growth exist in each area of activity and specific strategies are in place to maximise sales and growth during 2024.  The company has taken specific pricing actions to increase sales revenue across several product areas in an effort to protect profit margins, and develop acceptable full year profits.  The directors will continue to monitor this area through frequent management process and activity and take any necessary steps to ensure the company achieves budgeted annual targets.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsShaw Gibbs (Audit) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 







A W Lea
Director

Date: 29 April 2024

Page 3

 
GORDIAN STRAPPING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDIAN STRAPPING LIMITED
 

Opinion


We have audited the financial statements of Gordian Strapping Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 4

 
GORDIAN STRAPPING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDIAN STRAPPING LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.


Page 5

 
GORDIAN STRAPPING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDIAN STRAPPING LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. 
Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accoutring estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation.


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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 6

 
GORDIAN STRAPPING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GORDIAN STRAPPING LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.







Stephen Morgan FCA (Senior Statutory Auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

1 May 2024
Page 7

 
GORDIAN STRAPPING LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Turnover
16,258,605
13,980,469

Cost of sales
(10,681,985)
(9,163,805)

Gross profit
5,576,620
4,816,664

Administrative expenses
(4,491,847)
(3,962,615)

Operating profit
1,084,773
854,049

Interest receivable and similar income
55,451
-

Interest payable and similar expenses
(115,067)
(63,621)

Profit before tax
1,025,157
790,428

Tax on profit
(272,881)
(189,881)

Profit after tax
752,276
600,547



Retained earnings at the beginning of the year
3,286,150
2,985,603

3,286,150
2,985,603

Profit for the year
752,276
600,547

Dividends declared and paid
(380,000)
(300,000)

Retained earnings at the end of the year
3,658,426
3,286,150
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 10 to 23 form part of these financial statements.

Page 8

 
GORDIAN STRAPPING LIMITED
REGISTERED NUMBER: 00331258

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible fixed assets
  
2,400,891
2,275,305

  
2,400,891
2,275,305

Current assets
  

Stocks
 14 
2,880,305
2,952,497

Debtors: amounts falling due within one year
 15 
2,045,134
2,491,247

Cash at bank and in hand
 16 
1,052,039
1,846,983

  
5,977,478
7,290,727

Creditors: amounts falling due within one year
 17 
(2,404,796)
(4,869,752)

Net current assets
  
 
 
3,572,682
 
 
2,420,975

Total assets less current liabilities
  
5,973,573
4,696,280

Creditors: amounts falling due after more than one year
  
(1,835,077)
(930,060)

Provisions for liabilities
  

Deferred tax
 19 
(135,285)
(135,285)

  
 
 
(135,285)
 
 
(135,285)

Net assets
  
4,003,211
3,630,935


Capital and reserves
  

Called up share capital 
 20 
40,400
40,400

Revaluation reserve
  
304,385
304,385

Profit and loss account
  
3,658,426
3,286,150

  
4,003,211
3,630,935


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 April 2024.






A W Lea
Director

The notes on pages 10 to 23 form part of these financial statements.

Page 9

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Gordian Strapping Limited (00331258) is a private company, limited by shares, registered in England and Wales. The company's registered office is Gordian House, Brunel Road, Basingstoke, Hampshire RG21 6XX. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Strapack UK Limited as at 31 December 2023 and these financial statements may be obtained from Register of Companies.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Income from the manufacture and sale of the tensional strapping and packaging equipment is recognised at the date of invoice (which generally coincides with date of dispatch of goods) net of VAT and trade discounts.
Income from the hired plant and equipment is accounted for over the rental period on a straight line basis.
Income from the maintenance contracts on the hired plant and machinery is accounted for over the contract period on a straight line basis. Income from service call outs not covered by the contract is recognised when the service performance has been approved by the customer.

Page 10

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

  
2.8

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense and the cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 11

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

The current income 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 Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Improvements to property
-
Between 10% and 20% straight line
Long leasehold
-
39 Years Straight Line
Plant and machinery
-
Between 10% and 20% straight line
Motor vehicles
-
20% straight line
Fixtures and fittings
-
20% straight line
Computer equipment
-
20% straight line
Machines on Hire
-
Over the term of lease

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 12

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, less amounts included in the provision. Cost is based on the cost of purchase on a first in, first out basis. Direct purchase costs are recognised at the exchange rate prevailing at the time of order.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 13

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
 
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies 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 unclerlying 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. 
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
 
Critical judgements 
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. 
Stock provision 
The directors have reviewed the year end stock value and based on their knowledge of the business and 
experience of the industry, consider that the provision that has been made, for all stock items not sold within the last four years, is accurate and that no further adjustment is deemed necessary. This is reviewed annually by the directors to ensure that the stock provision remains reasonable. 

Page 14

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods and equipment
13,591,880
11,454,236

Maintenance revenue
2,366,478
2,191,371

Machines on hire revenue
300,247
334,862

16,258,605
13,980,469


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
15,648,521
13,438,525

Rest of Europe
610,084
541,944

16,258,605
13,980,469



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
32,822
12,636

Other operating lease rentals
4,540
-


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
17,500
17,500

Page 15

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,262,967
2,106,448

Social security costs
279,958
268,721

Cost of defined contribution scheme
143,991
121,067

2,686,916
2,496,236


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Engineering
20
18



Distribution
19
20



Administration
12
9

51
47


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
265,723
209,516

Company contributions to defined contribution pension schemes
23,132
24,580

288,855
234,096


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
55,451
-

55,451
-

Page 16

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
31,129
17,707

Other loan interest payable
233
-

Loans from group undertakings
83,705
45,914

115,067
63,621


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
272,881
189,881


Total current tax
272,881
189,881

Deferred tax

Total deferred tax
-
-


Taxation on profit on ordinary activities
272,881
189,881
Page 17

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,025,158
790,428


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
256,290
150,181

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,266
3,234

Capital allowances for year in excess of depreciation
18,865
26,378

Other differences leading to an increase (decrease) in the tax charge
(6,540)
10,088

Total tax charge for the year
272,881
189,881


Factors that may affect future tax charges

There were no factors that may affect future tax charges.




12.


Dividends

2023
2022
£
£


Dividends
380,000
300,000

380,000
300,000

Page 18

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Improvements to property
Long leasehold
Plant and machinery
Machines on hire
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
164,792
1,495,208
383,116
1,080,479
3,123,595


Additions
-
-
262,255
158,272
420,527


Disposals
-
-
-
(251,559)
(251,559)



At 31 December 2023

164,792
1,495,208
645,371
987,192
3,292,563



Depreciation


At 1 January 2023
40,486
25,505
170,487
611,813
848,291


Charge for the year on owned assets
29,350
38,257
85,611
141,723
294,941


Disposals
-
-
-
(251,559)
(251,559)



At 31 December 2023

69,836
63,762
256,098
501,977
891,673



Net book value



At 31 December 2023
94,956
1,431,446
389,273
485,215
2,400,890



At 31 December 2022
124,307
1,469,703
212,629
468,666
2,275,305

The Long leasehold property and the Improvements to property were last revalued in 2022 by an independent valuer using market based evidence for similar properties sold in the local area. The carrying amount that would have been recognised as at 31st December 2023 had the Long leasehold property and the Improvements to property been carried under the cost model is £1,140,042 and £67,764 respectively.


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
2,880,305
2,952,497

2,880,305
2,952,497


Included within finished goods and goods for resale is a stock provision of £423,706 (2022 - £368,849). 

Page 19

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

2023
2022
£
£


Trade debtors
2,008,065
2,437,282

Other debtors
4,679
4,100

Prepayments and accrued income
32,390
49,865

2,045,134
2,491,247



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,052,039
1,846,983

1,052,039
1,846,983



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
61,819
58,994

Other loans
28,658
30,277

Trade creditors
920,280
2,311,610

Amounts owed to group undertakings
91,698
1,143,000

Corporation tax
71,848
115,106

Other taxation and social security
309,891
412,029

Other creditors
17,452
2,568

Accruals and deferred income
903,150
796,168

2,404,796
4,869,752


Page 20

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
61,819
58,994

Loan from parent undertaking
28,658
30,277


90,477
89,271


Amounts falling due 2-5 years

Bank loans
965,897
630,895

Loan from parent undertaking
131,737
131,431


1,097,634
762,326

Amounts falling due after more than 5 years

Bank loans
596,050
-

Loan from parent undertaking
141,393
167,734

737,443
167,734

1,925,554
1,019,331


Bank loans are secured by a legal charge over the property known as Gordian House, Brunel Road, 
Basingstoke, Hampshire, RG22 6XX.
The bank loan was initially for £1,007,500, with a repayment period of 15 years and an annual interest rate of 2.4%. This was refinanced in the year ended 2022 to a loan of £718,131, with a repayment period of 5 years and an annual interest rate of 4.7%.
The original loan from parent undertakings was for £500,000, with a repayment period of 15 years and an annual interest rate of 1.10%. 

Page 21

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Deferred taxation




2023


£






At beginning of year
(135,285)



At end of year
(135,285)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(135,285)
(135,285)

(135,285)
(135,285)


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



40,400 (2022 - 40,400) Ordinary shares shares of £1.00 each
40,400
40,400



21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £143,990 (2022 - £94,574). Contributions totalling £nil (2022 - £nil) were payable to the fund at the reporting date and are included in creditors.

Page 22

 
GORDIAN STRAPPING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
63,740
48,076

Later than 1 year and not later than 5 years
53,073
-

116,813
48,076

Lessor
At the reporting end date the company had contracted with customers for the following minimum lease payments receivable in connection with the hire of machines as detailed in note 13. The hire arrangement with the customer is deemed to be an operating lease. Current year

2023
2022

£
£


Not later than 1 year
309,417
285,129

Later than 1 year and not later than 5 years
1,179,675
1,024,811

Later than 5 years
210,348
69,155

1,699,440
1,379,095


23.


Related party transactions

The company has taken advantage of the exemption in FRS 102 from the requirement to disclose transactions with wholly owned group companies and fellow subsidiaries, on the basis that consolidated financial statements are prepared by the immediate parent company. 


24.


Controlling party

The immediate parent company is Strapack UK Limited, a company registered in England and Wales. The consolidated accounts of Strapack UK Limited are available from Companies House. Crown Way, Cardiff, CF14 3UZ. 
The ultimate parent company and controlling party is Strapack Corporation, a company incorporated and registered in Japan. 

 
Page 23