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REGISTERED NUMBER: 01290334 (England and Wales)


















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

INTERKET LIMITED

INTERKET LIMITED (REGISTERED NUMBER: 01290334)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15 to 24


INTERKET LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: T J Pattison
C E Parkander
J L Wharmby



REGISTERED OFFICE: Bingswood Industrial Estate
Whaley Bridge
High Peak
Derbyshire
SK23 7SP



REGISTERED NUMBER: 01290334 (England and Wales)



AUDITORS: Allens Accountants Limited
Statutory Auditor and
Chartered Accountants
123 Wellington Road South
Stockport
Cheshire
SK1 3TH



BANKERS: Nordea Bank Finland Plc
8th Floor
City Place House
55 Basinghall Street
London
EC2V 5NB

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

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

The Company remains a key component of the UK Interket Group, which operates as part of the wider European Interket Group.

REVIEW OF BUSINESS
During the year customer demand remained at more even levels than experienced throughout 2022.

This was combined with more stable raw material supply chains and lower fluctuations in other cost areas such as utility and transport costs. These more settled circumstances resulted in lower levels of impact to customer pricing, which in turn resulted in turnover at a comparable level year-over-year.Turnover for the full year showed only a slight reduction of 1.7% when compared to 2022.

When compared to 2022, Gross Margin was up from 13.6% to 21.0%, the main factors contributing to the increased margin were decreases in costs for raw materials along with the positive impact of reduced production waste and efficiency gains.

KEY PERFORMANCE INDICATORS

The Company measures progress by reference to operating efficiencies in terms of Machine Speeds, Production Waste and Downtime hours.

The key performance indicator is Earnings Before Interest, Taxation, Depreciation and Amortisation ('EBITDA') which saw an increase when compared to 2022 at 9.6% for 2023:
2023 2022
£'000 £'000
EBITDA 1,565 910
EBITDA as percentage of sales 9.6% 5.5%

The Company maintained its accreditations to the BRC/IoP Global Standard for Packaging and also Quality Standard BS EN ISO 9001:2015.

PRINCIPAL RISKS AND UNCERTAINTIES
Foreign Exchange:
Approximately 40% of the Company's raw material purchases are denominated in Euro currency. This risk is managed by a combination of the use of forward contracts, and by a natural hedge from Euro denominated sales.

Credit Risk:
The Company is very alert to the risk of customer insolvencies, this risk is managed by a high level focus on the credit control function. Customer payment records are monitored and credit limits are subject to regular review. The Board receives regular reports on amounts overdue and relevant action is taken.

New Customers are screened via a review of filed accounts and the use of credit checks as appropriate.

A Credit Insurance policy remains in place.


INTERKET LIMITED (REGISTERED NUMBER: 01290334)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

OUTLOOK
The Directors expect underlying Turnover and Profitability to be maintained at similar levels in 2024. In 2024 the business will be re-locating its manufacturing operations after securing the lease to a new premises located in Adlington. Throughout 2024 there will be ongoing investment into the new production facility.

ON BEHALF OF THE BOARD:




T J Pattison - Director


27th March 2024

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31st December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the production of a wide range of self-adhesive labels and laminated materials which are supplied to the dairy, office product and automotive industries.

DIVIDENDS
The total distribution of dividends for the year ended 31st December 2023 will be £ 333,437 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

T J Pattison
C E Parkander
J L Wharmby

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programmes though bank borrowings.

The management's objectives are to:
- retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due whilst maximising returns on any surplus funds;
- minimise the company's exposure to fluctuating interest rates when seeking new borrowing;
- match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the company's trading activities; and
- hedge against known exposures in relation to foreign exchange.

Where appropriate, funds are invested in sterling bank accounts and its borrowings where applicable are all obtained from standard bank loan accounts.This is designed to minimise any credit risk associated with not placing funds on deposit with a reputable clearing bank.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the 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 auditors are aware of that information.

AUDITORS
The auditors, Allens Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





T J Pattison - Director


27th March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INTERKET LIMITED

Opinion
We have audited the financial statements of Interket Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31st 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INTERKET LIMITED


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 Report of the Directors.

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, 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 Statement of Directors' Responsibilities set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INTERKET LIMITED


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 a Report of the Auditors 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:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for the directors' remuneration, bonus levels and performance targets;
- results of our enquiries of management and the board of directors about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedure to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management and the board of directors concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INTERKET LIMITED

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Paul Wright (Senior Statutory Auditor)
for and on behalf of Allens Accountants Limited
Statutory Auditor and
Chartered Accountants
123 Wellington Road South
Stockport
Cheshire
SK1 3TH

27th March 2024

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 16,296,633 16,578,104

Cost of sales 12,872,912 14,316,127
GROSS PROFIT 3,423,721 2,261,977

Sales and marketing costs 613,010 565,999
Administrative expenses 1,993,089 1,506,125
2,606,099 2,072,124
817,622 189,853

Other operating income 69,698 -
OPERATING PROFIT 5 887,320 189,853

Interest receivable and similar income 10,549 6,216
897,869 196,069

Interest payable and similar expenses 6 115,513 76,139
PROFIT BEFORE TAXATION 782,356 119,930

Tax on profit 7 216,430 108,352
PROFIT FOR THE FINANCIAL YEAR 565,926 11,578

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

565,926

11,578

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 2,710,883 2,795,914
2,710,883 2,795,914

CURRENT ASSETS
Stocks 12 1,293,827 1,677,978
Debtors 13 4,835,778 5,784,214
6,129,605 7,462,192
CREDITORS
Amounts falling due within one year 14 3,018,834 4,738,136
NET CURRENT ASSETS 3,110,771 2,724,056
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,821,654

5,519,970

CREDITORS
Amounts falling due after more than one
year

15

(85,510

)

(232,745

)

PROVISIONS FOR LIABILITIES 19 (552,262 ) (335,832 )
NET ASSETS 5,183,882 4,951,393

CAPITAL AND RESERVES
Called up share capital 20 2,505,000 2,505,000
Share premium 325,000 325,000
Retained earnings 2,353,882 2,121,393
SHAREHOLDERS' FUNDS 5,183,882 4,951,393

The financial statements were approved by the Board of Directors and authorised for issue on 27th March 2024 and were signed on its behalf by:




T J Pattison - Director



J L Wharmby - Director


INTERKET LIMITED (REGISTERED NUMBER: 01290334)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 2,505,000 2,109,815 325,000 4,939,815

Changes in equity
Total comprehensive income - 11,578 - 11,578
Balance at 31st December 2022 2,505,000 2,121,393 325,000 4,951,393

Changes in equity
Dividends - (333,437 ) - (333,437 )
Total comprehensive income - 565,926 - 565,926
Balance at 31st December 2023 2,505,000 2,353,882 325,000 5,183,882

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,340,968 200,666
Interest paid (92,792 ) (51,927 )
Interest element of hire purchase payments
paid

(22,721

)

(24,212

)
Net cash from operating activities 1,225,455 124,527

Cash flows from investing activities
Purchase of tangible fixed assets (629,255 ) (65,116 )
Sale of tangible fixed assets 37,067 -
Interest received 10,549 6,216
Net cash from investing activities (581,639 ) (58,900 )

Cash flows from financing activities
Capital repayments in year (273,471 ) (7,054 )
Group loans repaid / (advanced) 178,060 (183,947 )
Net cash from financing activities (95,411 ) (191,001 )

Increase/(decrease) in cash and cash equivalents 548,405 (125,374 )
Cash and cash equivalents at beginning of
year

2

(1,425,735

)

(1,300,361

)

Cash and cash equivalents at end of year 2 (877,330 ) (1,425,735 )

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 782,356 119,930
Depreciation charges 714,286 720,438
Profit on disposal of fixed assets (37,067 ) -
Finance costs 115,513 76,139
Finance income (10,549 ) (6,216 )
1,564,539 910,291
Decrease/(increase) in stocks 384,151 (711,780 )
Decrease/(increase) in trade and other debtors 378,220 (672,436 )
(Decrease)/increase in trade and other creditors (985,942 ) 674,591
Cash generated from operations 1,340,968 200,666

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2023
31/12/23 1/1/23
£    £   
Bank overdrafts (877,330 ) (1,425,735 )
Year ended 31st December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents - 35
Bank overdrafts (1,425,735 ) (1,300,396 )
(1,425,735 ) (1,300,361 )


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Bank overdrafts (1,425,735 ) 548,405 (877,330 )
(1,425,735 ) 548,405 (877,330 )
Debt
Finance leases (504,976 ) 273,471 (231,505 )
(504,976 ) 273,471 (231,505 )
Total (1,930,711 ) 821,876 (1,108,835 )

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

1. STATUTORY INFORMATION

Interket Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been 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. The financial statements have been prepared under the historical cost convention.

Going concern
After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses for the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

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

The following judgement has had the most significant effect on amounts recognised in the financial statements.

Stock valuation
A key area involving management judgement and estimate is in determining a stock valuation for old and slow moving stock items.

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

i) the Company has transferred the significant risks and rewards of ownership to the buyer;
ii) the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
iii) the amount of turnover can be measured reliably;
iv) it is probable that the Company will receive the consideration due under the transaction and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible fixed assets
Intangible fixed assets (including patents and licences) are capitalised and amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible fixed assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Long leasehold - over the period of the lease
Plant & machinery - 2-10 years
Fixtures & fittings - 2-5 years

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount.If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of comprehensive income.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the statement of comprehensive income.

Stocks
Stock and work in progress are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. Cost comprises materials, direct labour and a share of production overheads appropriate to the relevant stage of production. For work in progress and finished goods manufactured by the company, cost is taken as production cost, including labour and an appropriate proportion of attributable overheads.

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 rate method, less any impairment.

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

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.

Interest bearing borrowings
Interest bearing borrowing are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method.

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, together with loans to and from related parties.

The company also enters into complex financial instrument transactions such as foreign currency forward contracts. The related financial asset or liability is recognised at fair value at the balance sheet date where material.

Debt instruments (other than those wholly repayable or receivable in one year), including loans and other accounts receivable and payable, are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable in one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration, expected to be paid or received.

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 if impairment is found, an impairment loss is recognised in the statement of comprehensive income.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Dividends
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
UK 13,526,257 13,656,308
Europe 2,691,609 2,818,312
Rest of the world 78,767 103,484
16,296,633 16,578,104

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,768,287 2,646,031
Other pension costs 127,352 118,940
2,895,639 2,764,971

The average number of employees during the year was as follows:
2023 2022

Production staff 53 57
Administrative staff 8 7
Sales staff 6 7
67 71

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

4. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration 226,587 191,621
Directors' pension contributions to money purchase schemes 16,755 15,561

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director for the year ended 31st December 2023 is as follows:
2023
£   
Emoluments etc 118,503
Pension contributions to money purchase schemes 9,500

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 27,308 26,925
Other operating leases 302,735 196,266
Depreciation - owned assets 545,760 551,912
Depreciation - assets on hire purchase contracts 168,526 168,526
Profit on disposal of fixed assets (37,067 ) -
Auditors' remuneration 16,500 16,500
Auditors' remuneration for non audit work 6,000 5,250

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 92,792 51,927
Hire purchase 22,721 24,212
115,513 76,139

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Deferred tax 216,430 108,352
Tax on profit 216,430 108,352

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 782,356 119,930
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

195,589

22,787

Effects of:
Expenses not deductible for tax purposes 29,083 8,678
Capital allowances in excess of depreciation (10,009 ) (3,712 )
Utilisation of tax losses 1,767 -
Change in rate - 80,599
Total tax charge 216,430 108,352

8. DIVIDENDS
2023 2022
£    £   
Interim 333,437 -

9. PENSION COMMITMENTS

The company contributes to a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension charge represents contributions payable by the company to the scheme in the year to 31 December 2023 which amounted to £127,352 (2022: £118,940).

At the balance sheet date, amount owing to the pension scheme included within accruals amounted to £21,601 (2022: £21,802).

10. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1st January 2023
and 31st December 2023 1,795
AMORTISATION
At 1st January 2023
and 31st December 2023 1,795
NET BOOK VALUE
At 31st December 2023 -
At 31st December 2022 -

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

11. TANGIBLE FIXED ASSETS
Long Plant & Fixtures
leasehold machinery & fittings Totals
£    £    £    £   
COST
At 1st January 2023 412,466 8,901,262 1,047,246 10,360,974
Additions - 620,463 8,792 629,255
Disposals - (1,122,439 ) - (1,122,439 )
At 31st December 2023 412,466 8,399,286 1,056,038 9,867,790
DEPRECIATION
At 1st January 2023 324,053 6,231,614 1,009,393 7,565,060
Charge for year 49,049 640,127 25,110 714,286
Eliminated on disposal - (1,122,439 ) - (1,122,439 )
At 31st December 2023 373,102 5,749,302 1,034,503 7,156,907
NET BOOK VALUE
At 31st December 2023 39,364 2,649,984 21,535 2,710,883
At 31st December 2022 88,413 2,669,648 37,853 2,795,914

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant &
machinery
£   
COST
At 1st January 2023 1,685,269
Transfer to ownership (98,308 )
At 31st December 2023 1,586,961
DEPRECIATION
At 1st January 2023 349,922
Charge for year 168,526
Transfer to ownership (44,239 )
At 31st December 2023 474,209
NET BOOK VALUE
At 31st December 2023 1,112,752
At 31st December 2022 1,335,347

12. STOCKS
2023 2022
£    £   
Raw materials and consumables 773,361 1,283,864
Work-in-progress 38,012 33,703
Finished goods and goods for resale 482,454 360,411
1,293,827 1,677,978

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,149,515 2,817,932
Amounts owed by group undertakings 2,053,897 2,624,113
Other debtors 28,796 2,657
Prepayments and accrued income 603,570 339,512
4,835,778 5,784,214

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 877,330 1,425,735
Hire purchase contracts (see note 17) 145,995 272,231
Trade creditors 1,122,045 2,054,580
Amounts owed to group undertakings 256,895 315,614
Social security and other taxes 86,179 81,283
VAT 354,696 427,987
Other creditors - 22,489
Accruals and deferred income 175,694 138,217
3,018,834 4,738,136

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 17) 85,510 232,745

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 877,330 1,425,735

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 145,995 272,231
Between one and five years 85,510 232,745
231,505 504,976

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

17. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2023 2022
£    £   
Within one year 634,188 216,788
Between one and five years 1,766,857 207,525
In more than five years 4,024,011 -
6,425,056 424,313

18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 877,330 1,425,735
Hire purchase contracts 231,505 504,976
1,108,835 1,930,711

The bank overdraft and loan is secured by guarantee given by the company's ultimate parent company, Interket A/S, and a debenture given by the company.

The hire purchase creditor is secured against the assets to which it relates.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 552,262 335,832

Deferred
tax
£   
Balance at 1st January 2023 335,832
Provided during year 216,430
Balance at 31st December 2023 552,262

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2,505,000 Ordinary £1 2,505,000 2,505,000

INTERKET LIMITED (REGISTERED NUMBER: 01290334)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

21. ULTIMATE PARENT COMPANY

The company's parent company in the UK is Interket Holdings UK Limited, for which group accounts are prepared, company number 3118349. The ultimate parent company is Interket A/S, a company registered in Denmark. The accounts of the ultimate parent company can be obtained from c/o F.E. Bording A/S, Ejby Industrivej 91, 2600 Glostrup, Denmark.

22. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 243,342 (2022 - £ 207,182 ) was paid.