REGISTERED NUMBER: 03118349 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
INTERKET HOLDINGS UK LTD |
REGISTERED NUMBER: 03118349 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
INTERKET HOLDINGS UK LTD |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 | to | 8 |
Consolidated Income Statement | 9 | to | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 | to | 29 |
INTERKET HOLDINGS UK LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Registered Auditors and |
Chartered Accountants |
123 Wellington Road South |
Stockport |
Cheshire |
SK1 3TH |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
The principal activity of the Group in the year under review was the production of a wide range of self-adhesive labels and laminated materials which are supplied to the Dairy, Office Product and Automotive Industries. |
The UK Group headed by Interket Holdings UK Limited 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. |
During the second half of the year, part of the office products segment of the business was divested. Including the impact from the divestiture, turnover for the full year showed only a slight reduction of 3.2% when compared to 2022. |
When compared to 2022, Gross Margin was up from 14.2% 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 Group 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 including the income from the divested segment of the business showed improved levels compared to 2022, increasing to 9.3% for 2023: |
2023 | 2022 |
£'000 | £'000 |
EBITDA | 1,545 | 967 |
EBITDA as percentage of sales | 9.3% | 5.6% |
The Group 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 Group'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 Group 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 HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
GROUP 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 new premises located in Adlington. Throughout 2024 there will be ongoing investment into the new production facility. |
ON BEHALF OF THE BOARD: |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group'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 group'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: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
INTERKET HOLDINGS UK LTD |
Opinion |
We have audited the financial statements of Interket Holdings UK Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31st 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 Auditors' 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 HOLDINGS UK LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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 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 group's 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
INTERKET HOLDINGS UK LTD |
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 HOLDINGS UK LTD |
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. |
for and on behalf of |
Registered Auditors and |
Chartered Accountants |
123 Wellington Road South |
Stockport |
Cheshire |
SK1 3TH |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 3 | 16,296,633 | 323,974 | 16,620,607 |
Cost of sales | (12,872,912 | ) | (262,656 | ) | (13,135,568 | ) |
GROSS PROFIT | 3,423,721 | 61,318 | 3,485,039 |
Sales and marketing costs | (613,010 | ) | (31,844 | ) | (644,854 | ) |
Administrative expenses | (1,993,088 | ) | (49,141 | ) | (2,042,229 | ) |
817,623 | (19,667 | ) | 797,956 |
Other operating income | 69,698 | - | 69,698 |
OPERATING PROFIT/(LOSS) | 887,321 | (19,667 | ) | 867,654 |
Profit/loss on sale of intangible fixed assets | 5 | - | 200,000 | 200,000 |
887,321 | 180,333 | 1,067,654 |
Interest receivable and similar income | 10,549 | 4,085 | 14,634 |
Interest payable and similar expenses | 6 | (115,513 | ) | - | (115,513 | ) |
PROFIT BEFORE TAXATION | 7 | 782,357 | 184,418 | 966,775 |
Tax on profit | 8 | (216,430 | ) | (41,713 | ) | (258,143 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 708,632 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 3 | 16,578,105 | 599,552 | 17,177,657 |
Cost of sales | (14,316,128 | ) | (423,795 | ) | (14,739,923 | ) |
GROSS PROFIT | 2,261,977 | 175,757 | 2,437,734 |
Sales and marketing costs | (566,000 | ) | (29,252 | ) | (595,252 | ) |
Administrative expenses | (1,506,123 | ) | (89,842 | ) | (1,595,965 | ) |
OPERATING PROFIT | 189,854 | 56,663 | 246,517 |
Interest receivable and similar income | 6,216 | 333 | 6,549 |
Interest payable and similar expenses | 6 | (76,139 | ) | - | (76,139 | ) |
PROFIT BEFORE TAXATION | 7 | 119,931 | 56,996 | 176,927 |
Tax on profit | 8 | (108,352 | ) | (10,829 | ) | (119,181 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 57,746 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 708,632 | 57,746 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
708,632 |
57,746 |
Total comprehensive income attributable to: |
Owners of the parent | 708,632 | 57,746 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | - |
Tangible assets | 12 | 2,710,883 | 2,795,914 |
Investments | 13 | - | - |
2,710,883 | 2,795,914 |
CURRENT ASSETS |
Stocks | 14 | 1,293,827 | 1,721,152 |
Debtors | 15 | 2,850,185 | 3,402,969 |
4,144,012 | 5,124,121 |
CREDITORS |
Amounts falling due within one year | 16 | 2,625,458 | 4,468,425 |
NET CURRENT ASSETS | 1,518,554 | 655,696 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,229,437 |
3,451,610 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(85,510 |
) |
(232,745 |
) |
PROVISIONS FOR LIABILITIES | 21 | (552,262 | ) | (335,832 | ) |
NET ASSETS | 3,591,665 | 2,883,033 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 48,380 | 48,380 |
Retained earnings | 23 | 3,543,285 | 2,834,653 |
SHAREHOLDERS' FUNDS | 3,591,665 | 2,883,033 |
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: |
Mr T J Pattison - Director |
J L Wharmby - Director |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 172,266 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 | 48,380 | 2,776,907 | 2,825,287 |
Changes in equity |
Total comprehensive income | - | 57,746 | 57,746 |
Balance at 31st December 2022 | 48,380 | 2,834,653 | 2,883,033 |
Changes in equity |
Total comprehensive income | - | 708,632 | 708,632 |
Balance at 31st December 2023 | 48,380 | 3,543,285 | 3,591,665 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Balance at 31st December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31st December 2023 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,476,266 | 236,171 |
Interest paid | (92,792 | ) | (51,927 | ) |
Interest element of hire purchase payments paid |
(22,721 |
) |
(24,212 |
) |
Tax paid | (10,829 | ) | - |
Net cash from operating activities | 1,349,924 | 160,032 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (629,255 | ) | (65,116 | ) |
Sale of tangible fixed assets | 37,067 | - |
Interest received | 14,634 | 6,549 |
Net cash from investing activities | (577,554 | ) | (58,567 | ) |
Cash flows from financing activities |
Interket loan | 236,777 | (236,778 | ) |
Capital repayments in year | (273,471 | ) | (7,054 | ) |
Net cash from financing activities | (36,694 | ) | (243,832 | ) |
Increase/(decrease) in cash and cash equivalents | 735,676 | (142,367 | ) |
Cash and cash equivalents at beginning of year |
2 |
(1,419,585 |
) |
(1,277,218 |
) |
Cash and cash equivalents at end of year | 2 | (683,909 | ) | (1,419,585 | ) |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED 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 | 966,775 | 176,927 |
Depreciation charges | 714,286 | 720,438 |
Profit on disposal of fixed assets | (37,067 | ) | - |
Finance costs | 115,513 | 76,139 |
Finance income | (14,634 | ) | (6,549 | ) |
1,744,873 | 966,955 |
Decrease/(increase) in stocks | 427,325 | (729,259 | ) |
Decrease/(increase) in trade and other debtors | 316,007 | (670,522 | ) |
(Decrease)/increase in trade and other creditors | (1,011,939 | ) | 668,997 |
Cash generated from operations | 1,476,266 | 236,171 |
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 | (683,909 | ) | (1,419,585 | ) |
Year ended 31st December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | - | 35 |
Bank overdrafts | (1,419,585 | ) | (1,277,253 | ) |
(1,419,585 | ) | (1,277,218 | ) |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Bank overdrafts | (1,419,585 | ) | 735,676 | (683,909 | ) |
(1,419,585 | ) | 735,676 | (683,909 | ) |
Debt |
Finance leases | (504,976 | ) | 273,471 | (231,505 | ) |
(504,976 | ) | 273,471 | (231,505 | ) |
Total | (1,924,561 | ) | 1,009,147 | (915,414 | ) |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Interket Holdings UK Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in Sterling (£). |
Going concern |
After reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements. |
Basis of consolidation |
The Group consolidated financial statements include the financial statements of the Company and all of its subsidiary undertakings made up to 31 December 2023. |
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree plus costs directly attributable to the business combination. |
Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated balance sheet immediately below goodwill. |
All inter-group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries |
Investments in subsidiaries are accounted for at cost less impairment in the individual 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Revenue recognition |
Revenue is measured at the fair value of the consideration receivable and represents the total amount receivable by the company for goods supplied in the normal course of business, excluding value added tax and trade discounts. Revenue from the sale of goods is recognised when goods are delivered and legal title has passed. |
Goodwill |
Goodwill relates to the amount paid in connection with the acquisition of a business in 2008. Following the successful integration of the group's businesses during 2010, the goodwill has been fully amortised.The goodwill was previously being amortised over it's initially estimated useful life of 5 years. |
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. |
Tangible fixed assets |
Long leasehold | - |
Plant & machinery | - |
Fixtures & fittings | - |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
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 Group after deducting all of its liabilities. |
The group 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 group 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. |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 13,850,231 | 14,255,861 |
Europe | 2,691,609 | 2,818,312 |
Rest of the world | 78,767 | 103,484 |
16,620,607 | 17,177,657 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,867,937 | 2,795,320 |
Other pension costs | 129,893 | 122,045 |
2,997,830 | 2,917,365 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production staff | 55 | 60 |
Administrative staff | 8 | 7 |
Sales staff | 6 | 7 |
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. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Profit/loss on sale of intangible fixed assets | 200,000 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 92,792 | 51,927 |
Hire purchase | 22,721 | 24,212 |
115,513 | 76,139 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
7. | PROFIT BEFORE TAXATION |
The 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 | 18,750 | 18,600 |
Auditors' remuneration for non audit work | 6,000 | 5,250 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 41,713 | 10,829 |
Deferred tax | 216,430 | 108,352 |
Tax on profit | 258,143 | 119,181 |
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 | 966,775 | 176,927 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
241,694 |
33,616 |
Effects of: |
Capital allowances in excess of depreciation | (10,009 | ) | (3,712 | ) |
Non deductible expenses | 29,082 | 8,678 |
Rate changes | (2,624 | ) | 80,599 |
Total tax charge | 258,143 | 119,181 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
10. | PENSION COMMITMENTS |
The group contributes to a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. |
The pension charge represents contributions payable by the group to the scheme in the year to 31 December 2023 which amounted to £129,894 (2022: £122,045). |
At the balance sheet date, amount owing to the pension scheme included within accruals amounted to £21,601 (2022: £21,802). |
11. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
and 31st December 2023 | (81,780 | ) | 1,615 | (80,165 | ) |
AMORTISATION |
At 1st January 2023 |
and 31st December 2023 | (81,780 | ) | 1,615 | (80,165 | ) |
NET BOOK VALUE |
At 31st December 2023 | - | - | - |
At 31st December 2022 | - | - | - |
12. | TANGIBLE FIXED ASSETS |
Group |
Long | Plant & | Fixtures |
leasehold | machinery | & fittings | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2023 | 411,277 | 6,768,076 | 637,173 | 7,816,526 |
Additions | - | 620,463 | 8,792 | 629,255 |
Disposals | - | (1,122,439 | ) | (5,250 | ) | (1,127,689 | ) |
At 31st December 2023 | 411,277 | 6,266,100 | 640,715 | 7,318,092 |
DEPRECIATION |
At 1st January 2023 | 322,864 | 4,098,428 | 599,320 | 5,020,612 |
Charge for year | 49,049 | 640,127 | 25,110 | 714,286 |
Eliminated on disposal | - | (1,122,439 | ) | (5,250 | ) | (1,127,689 | ) |
At 31st December 2023 | 371,913 | 3,616,116 | 619,180 | 4,607,209 |
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 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
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 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
The following were subsidiary undertakings of the company: |
Name |
Country of Incorporation |
Class of Shares |
Holding |
Principal Activity |
Folderbirch Limited | England and Wales | Ordinary | 100% | Dormant |
Tasco Distributors Limited * | England and Wales | Ordinary | 100% | Label retailer |
Stampiton Holdings Limited * | England and Wales | Ordinary | 100% | Dormant |
Interket Limited ** | England and Wales | Ordinary | 100% | Label manufacturer |
* Subsidiary of Folderbirch Limited |
** Subsidiary of Stampiton Holdings Limited |
The registered office for all the above companies is Bingswood Industrial Estate, Whaley Bridge, High Peak, SK23 7SP. |
14. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 773,361 | 1,327,038 |
Work-in-progress | 38,012 | 33,703 |
Finished goods | 482,454 | 360,411 |
1,293,827 | 1,721,152 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 2,149,515 | 2,819,563 |
Amounts owed by group undertakings | - | 236,777 |
Other debtors | 97,100 | 6,137 |
Prepayments and accrued income | 603,570 | 340,492 |
2,850,185 | 3,402,969 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 683,909 | 1,419,585 |
Hire purchase contracts (see note 19) | 145,995 | 272,231 |
Trade creditors | 1,122,137 | 2,058,533 |
Amounts owed to group undertakings | - | - |
Corporation Tax | 41,713 | 10,829 |
Social security and other taxes | 86,179 | 81,283 |
VAT | 357,108 | 462,428 |
Other creditors | - | 22,489 |
Accruals and deferred income | 188,417 | 141,047 |
2,625,458 | 4,468,425 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 19) | 85,510 | 232,745 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 683,909 | 1,419,585 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
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 HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
19. | LEASING AGREEMENTS - continued |
Group |
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 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank overdrafts | 683,909 | 1,419,585 |
Hire purchase contracts | 231,505 | 504,976 |
915,414 | 1,924,561 |
The bank overdrafts and loan are secured by a guarantee given by Interket A/S and a debenture given by Interket Holdings UK Limited and Interket Limited. |
The hire purchase creditor is secured against the assets to which it relates. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 552,262 | 335,832 |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 335,832 |
Provided during year | 216,430 |
Profit and loss account |
Balance at 31st December 2023 | 552,262 |
INTERKET HOLDINGS UK LTD (REGISTERED NUMBER: 03118349) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
'A' Ordinary | £1 | 35,639 | 35,639 |
'B' Ordinary | £1 | 9,676 | 9,676 |
'C' Ordinary | £1 | 3,065 | 3,065 |
48,380 | 48,380 |
The shares carry differential rights to dividends, but in all other respects they rank pari passu. |
23. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st January 2023 | 2,834,653 |
Profit for the year | 708,632 |
At 31st December 2023 | 3,543,285 |
Company |
Retained |
earnings |
£ |
At 1st January 2023 |
Profit for the year |
At 31st December 2023 |
24. | ULTIMATE PARENT COMPANY |
The company is a subsidiary of Interket A/S, a company registered in Denmark. The accounts of this company can be obtained from c/o F.E. Bording A/S, Ejby Industrivej 91, 2600 Glostrup, Denmark. |
25. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ 243,342 (2022 - £ 207,182 ) was paid. |