Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false512023-01-01The design, development and manufacture of equipment for use in product packaging.66falsefalsefalse 09981936 2023-01-01 2023-12-31 09981936 2022-01-01 2022-12-31 09981936 2023-12-31 09981936 2022-12-31 09981936 2022-01-01 09981936 1 2023-01-01 2023-12-31 09981936 1 2022-01-01 2022-12-31 09981936 4 2023-01-01 2023-12-31 09981936 4 2022-01-01 2022-12-31 09981936 5 2023-01-01 2023-12-31 09981936 5 2022-01-01 2022-12-31 09981936 d:CompanySecretary1 2023-01-01 2023-12-31 09981936 d:Director1 2023-01-01 2023-12-31 09981936 d:Director2 2023-01-01 2023-12-31 09981936 d:Director3 2023-01-01 2023-12-31 09981936 d:Director4 2023-01-01 2023-12-31 09981936 d:Director5 2023-01-01 2023-12-31 09981936 d:RegisteredOffice 2023-01-01 2023-12-31 09981936 e:Buildings 2023-01-01 2023-12-31 09981936 e:Buildings 2023-12-31 09981936 e:Buildings 2022-12-31 09981936 e:Buildings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09981936 e:Buildings e:ShortLeaseholdAssets 2023-01-01 2023-12-31 09981936 e:Buildings e:ShortLeaseholdAssets 2023-12-31 09981936 e:Buildings e:ShortLeaseholdAssets 2022-12-31 09981936 e:PlantMachinery 2023-01-01 2023-12-31 09981936 e:PlantMachinery 2023-12-31 09981936 e:PlantMachinery 2022-12-31 09981936 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09981936 e:FurnitureFittings 2023-01-01 2023-12-31 09981936 e:FurnitureFittings 2023-12-31 09981936 e:FurnitureFittings 2022-12-31 09981936 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09981936 e:OfficeEquipment 2023-01-01 2023-12-31 09981936 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 09981936 e:Goodwill 2023-12-31 09981936 e:Goodwill 2022-12-31 09981936 e:CurrentFinancialInstruments 2023-12-31 09981936 e:CurrentFinancialInstruments 2022-12-31 09981936 e:Non-currentFinancialInstruments 2023-12-31 09981936 e:Non-currentFinancialInstruments 2022-12-31 09981936 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 09981936 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 09981936 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 09981936 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 09981936 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-12-31 09981936 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-12-31 09981936 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2023-12-31 09981936 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-12-31 09981936 e:UKTax 2023-01-01 2023-12-31 09981936 e:UKTax 2022-01-01 2022-12-31 09981936 e:SharePremium 2023-01-01 2023-12-31 09981936 e:SharePremium 2023-12-31 09981936 e:SharePremium 2022-01-01 2022-12-31 09981936 e:SharePremium 2022-12-31 09981936 e:SharePremium 2022-01-01 09981936 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 09981936 e:RetainedEarningsAccumulatedLosses 2023-12-31 09981936 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 09981936 e:RetainedEarningsAccumulatedLosses 2022-12-31 09981936 e:RetainedEarningsAccumulatedLosses 2022-01-01 09981936 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 09981936 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 09981936 e:TaxLossesCarry-forwardsDeferredTax 2023-12-31 09981936 e:TaxLossesCarry-forwardsDeferredTax 2022-12-31 09981936 d:OrdinaryShareClass1 2023-01-01 2023-12-31 09981936 d:OrdinaryShareClass1 2023-12-31 09981936 d:OrdinaryShareClass1 2022-12-31 09981936 d:FRS102 2023-01-01 2023-12-31 09981936 d:Audited 2023-01-01 2023-12-31 09981936 d:FullAccounts 2023-01-01 2023-12-31 09981936 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 09981936 e:WithinOneYear 2023-12-31 09981936 e:WithinOneYear 2022-12-31 09981936 e:BetweenOneFiveYears 2023-12-31 09981936 e:BetweenOneFiveYears 2022-12-31 09981936 e:MoreThanFiveYears 2023-12-31 09981936 e:MoreThanFiveYears 2022-12-31 09981936 6 2023-01-01 2023-12-31 09981936 e:Goodwill e:OwnedIntangibleAssets 2023-01-01 2023-12-31 09981936 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 09981936







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


PREGIS LIMITED






































img59e0.png                        

 


PREGIS LIMITED
 


 
COMPANY INFORMATION


Directors
K Baudhuin 
D K Lavanway 
J Cox




Company secretary
Broughton Secretaries Limited



Registered number
09981936



Registered office
Richmond House
Walkern Road

Stevenage

Herts

SG1 3QP




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY





 


PREGIS LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 29


 


PREGIS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review
 
The directors are pleased to announce a satisfactory result for this year.
2023 was a year filled with continued geopolitical and macroeconomic headwinds, which translated to another challenging sales environment. As the markets still continued to settle following the Covid 19 pandemic and supply chain difficulties, turnover achieved in the year to 31st December 2023 amounted to £13.7m compared to £20.3m in the comparative period. The reduction in revenues of 32.8% reflects the challenges in the marketplace especially in the post Covid market combined with global political and policy changes. There was a drop in sales due to the economic climate, labelled in the UK as the ‘cost of living crisis’.  Whilst the directors acknowledge that this is a fair reflection of the state of the market, they are working on various strategies to increase revenues and margins in the coming period. The directors also see real signs of inflation easing, and in combination with disciplined cost control, they expect to deliver on their commitments.
Gross margin achieved in the year amounted to 45.4% compared with 23.1% in the comparative year. This continues in line with expectations given favourable foreign exchange movements combined with inflationary pressures in the wider market. In order to combat these pressures going forward, the main focus continues on company procurement processes, investment in plant and machinery to drive production efficiencies and exploration of alternative routes to market. In addition, Investments has been made in sustainability and innovation to continue to ensure product and service offered to customer is industry leading. 
The company has generated EBITDA of £3.4m (24.9%) compared to -£1.3m (-6.5%) in the comparative period. The increase in EBITDA reflects the success of cost control in Europe despite the weak economy. The sales volume environment across the industry weakened however strong cost management resulted in the positive results.
The company holds the ISO14001 accreditation, demonstrating its ongoing commitment to the environment. Coupled with the manufacture and distribution of environmentally friendly products, the company has continued to invest resources into quality assurance, further making Pregis Limited the company of choice for cushion void fill  packaging  and allied products.

Principal risks and uncertainties
 
The company's operations continue to expose it to a variety of financial risks that include the effects of changes in commodity market prices, credit risk, liquidity risk, exchange rate risk and interest rate risk. The company has in place a risk management programme continuing from 2023 that seeks to limit the adverse effects on the financial performance of the company by monitoring all levels of the related finance costs.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.
The directors consider that the route to market may continue to present some challenges, but careful forward planning should ensure minimal disruption in the import/export process. The directors will continue to closely monitor margins throughout the coming 12 months to ensure appropriate strategies are put in place to minimise losses and position the organisation on the path to profitability, combined with managing supply chain inefficiencies as appropriate.

Page 1

 


PREGIS LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments
 
In 2023, Pregis accomplished several new product and service innovations, improved data integrity and insights, improved customer retention and managed price effectively. Challenges persist into 2024 as we work to increase overall sales volume and new business acquisition. 2023 also continued to bring uncertainty following significant inflationary pressures globally and supply chain disruption due to the Ukraine crisis. One important point to note is that we have achieved high targets on sustainability, and this has become our most important pillar of growth. In 2023, our major revenue was derived from sustainable products (paper-based, bio-based, made from minimum 30% recycled plastic), therefore making it our competitive advantage.
The directors assert that they have a strong balance sheet that is robust enough to withstand volatility. The  company has strong cash balances, net assets and historically profitable. The directors also feel the ongoing risk mitigation strategies will be adequate in dealing with any new risks that arise from ongoing supply chain related issues and any anticipated geo political disruption. 2024 Growth goal is to increase revenue and profit (EBITDA) by 10% by realising that our path to success lies in our ability to sell deeper and wider into current customers and accelerate new business opportunities, along with leveraging recent CAPEX investments and engaging our talented people.  


This report was approved by the board on 26 July 2024 and signed on its behalf.



................................................
J Cox
Director

Page 2

 


PREGIS LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £94,098 (2022 - loss £3,712,686).

No dividends will be distributed for the year ended 31 December 2023. (2022: £nil)

Directors

The directors who served during the year were:

K Baudhuin 
D K Lavanway 
C J M Oostrom (resigned 1 June 2023) 
J Cox 
L Poppegaai (resigned 1 June 2023) 

Future developments

Details of the Company's 'Principal risks and uncertainties' and 'Future developments'  for the business are disclosed in the Strategic Report on pages 1 and 2.

Disclosure of information to auditors

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

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

Page 3

 


PREGIS LIMITED
 


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

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 26 July 2024 and signed on its behalf.
 





................................................
J Cox
Director

Page 4

 


PREGIS LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PREGIS LIMITED

Opinion


We have audited the financial statements of Pregis Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 


PREGIS LIMITED


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

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


PREGIS LIMITED


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

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory framework applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006 and UK corporate taxation laws.
We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of board minutes and papers provided by those charged with governance.
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team include: 
 - identifying and assessing the design effectiveness of controls management has in placeto prevent and detect fraud;
 - understanding how those charged with governance considered and addressed the potential for override of controls or other inappropraire influence over the financial reportiing process;
 - challenging assumptions and judgements made by management in its significant accounting estimates;
 - identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and
 - assessing the extent of compliance with relevant laws and regulations.
We have reviewed the financial statements and considered whether they are consistent with out understand of the entity or indicate a previously unrecognised risk of material misstatement that could be due to fraud.


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


Page 7

 


PREGIS LIMITED


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

Use of our report
 

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





Andrew Hookway FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

30 July 2024
Page 8

 


PREGIS LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
13,655,139
20,317,027

Cost of sales
  
(7,456,340)
(15,625,018)

Gross profit
  
6,198,799
4,692,009

Administrative expenses
  
(5,492,126)
(8,467,868)

Operating profit/(loss)
 4 
706,673
(3,775,859)

Interest payable and similar expenses
 8 
(287,782)
(553,227)

Profit/(loss) before tax
  
418,891
(4,329,086)

Tax on profit/(loss)
 9 
(324,793)
616,400

Profit/(loss) for the financial year
  
94,098
(3,712,686)

Other comprehensive income for the year
  

Total comprehensive income for the year
  
94,098
(3,712,686)

The notes on pages 14 to 29 form part of these financial statements.

Page 9

 


PREGIS LIMITED
REGISTERED NUMBER:09981936



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 10 
4,360,266
6,430,351

Tangible assets
 11 
2,924,457
3,535,176

  
7,284,723
9,965,527

Current assets
  

Stocks
 12 
3,180,355
3,725,078

Debtors: amounts falling due within one year
 13 
20,064,234
17,274,147

Cash at bank and in hand
  
285,510
915,918

  
23,530,099
21,915,143

Creditors: amounts falling due within one year
 14 
(9,071,770)
(9,128,690)

Net current assets
  
 
 
14,458,329
 
 
12,786,453

Total assets less current liabilities
  
21,743,052
22,751,980

Creditors: amounts falling due after more than one year
 15 
(18,594,381)
(19,697,407)

  

Net assets
  
3,148,671
3,054,573


Capital and reserves
  

Share premium account
 19 
8,789,780
8,789,780

Profit and loss account
 19 
(5,641,109)
(5,735,207)

  
3,148,671
3,054,573


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 July 2024.




................................................
J Cox
Director

The notes on pages 14 to 29 form part of these financial statements.

Page 10

 


PREGIS LIMITED
 



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


Share premium account
Profit and loss account
Total equity

£
£
£


At 1 January 2022
8,789,780
(2,022,521)
6,767,259


Comprehensive income for the year

Loss for the year
-
(3,712,686)
(3,712,686)
Total comprehensive income for the year
-
(3,712,686)
(3,712,686)


Total transactions with owners
-
-
-



At 1 January 2023
8,789,780
(5,735,207)
3,054,573


Comprehensive income for the year

Profit for the year
-
94,098
94,098
Total comprehensive income for the year
-
94,098
94,098


Total transactions with owners
-
-
-


At 31 December 2023
8,789,780
(5,641,109)
3,148,671


The notes on pages 14 to 29 form part of these financial statements.

Page 11

 


PREGIS LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
94,098
(3,712,686)

Adjustments for:

Amortisation of intangible assets
2,070,085
2,070,085

Depreciation of tangible assets
618,174
385,823

Taxation charge
(4,791)
(6,250)

Decrease in stocks
544,723
1,689,508

Decrease in debtors
2,457,762
1,266,441

(Increase) in amounts owed by groups
(4,773,916)
(1,389,147)

(Decrease)/increase in creditors
(861,157)
104,151

Increase/(decrease) in provisions
329,584
(610,150)

Corporation tax received/(paid)
-
(232,700)

Net cash generated from operating activities

474,562
(434,925)


Cash flows from investing activities

Purchase of tangible fixed assets
(125,740)
(934,089)

Sale of tangible fixed assets
118,285
-

Net cash from investing activities

(7,455)
(934,089)

Cash flows from financing activities

Repayment of loans
(146,408)
(150,517)

Foreign exchange translation of other loans
(951,107)
2,015,991

Net cash used in financing activities
(1,097,515)
1,865,474

Net (decrease)/increase in cash and cash equivalents
(630,408)
496,460

Cash and cash equivalents at beginning of year
915,918
419,458

Cash and cash equivalents at the end of year
285,510
915,918


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
285,510
915,918

285,510
915,918


The notes on pages 14 to 29 form part of these financial statements.

Page 12

 


PREGIS LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

915,918

(630,408)

285,510

Debt due after 1 year

(625,846)

151,919

(473,927)

Debt due within 1 year

(149,376)

(5,511)

(154,887)


140,696
(484,000)
(343,304)

The notes on pages 14 to 29 form part of these financial statements.

Page 13

 


PREGIS LIMITED
 


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

1.


General information

Pregis 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. The trading address of Pregis Limited is Arlington Business Park, Unit 1 The Io Centre, Whittle Way, Stevenage SG1 2BD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

  
2.2

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 part transactions with wholly owned subsidiaries within the group.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 


PREGIS LIMITED
 


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

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

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

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

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Finance costs

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

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

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

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

Page 15

 


PREGIS LIMITED
 


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

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

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

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

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

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

 
2.10

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life of 10 years.

 
2.11

Tangible fixed assets

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

Page 16

 


PREGIS LIMITED
 


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

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

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

The estimated useful lives range as follows:

Freehold property
-
40 years
Short-term leasehold property
-
over the term of the lease
Plant and machinery
-
1 - 10 years
Fixtures and fittings
-
4 years
Office equipment
-
3 years

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

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

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.13

Inventories

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

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

 
2.15

Cash and cash equivalents

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

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 17

 


PREGIS LIMITED
 


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

2.Accounting policies (continued)

 
2.16

Creditors

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

 
2.17

Provisions for liabilities

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

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Page 18

 


PREGIS LIMITED
 


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

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 19

 


PREGIS LIMITED
 


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

3.


Turnover

The total turnover of the company for the year has been derived from its principal activities. The directors
believe that it would be seriously prejudicial to the interests of the company to disclose the analysis of
turnover by the class of business and geographical area.


4.


Operating profit/(loss)

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

2023
2022
£
£

Research & development charged as an expense
49,724
48,007

Exchange differences
(910,752)
1,871,082

Other operating lease rentals
720,316
829,693

Depreciation
618,174
385,823

Amortisation
2,070,085
2,070,085

Auditors remuneration
35,000
30,000


5.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
35,000
30,000

Fees payable to the Company's auditors in respect of:

All non-audit services not included above
7,500
5,500

Page 20

 


PREGIS LIMITED
 


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

6.


Employees

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


2023
2022
£
£

Wages and salaries
2,861,216
3,373,312

Social security costs
197,601
218,044

Cost of defined contribution scheme
74,586
109,038

3,133,403
3,700,394


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


        2023
        2022
            No.
            No.







Directors
3
3



Staff
48
63

51
66


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
204,637
205,792

Company contributions to defined contribution pension schemes
10,615
10,373

215,252
216,165


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

The highest paid director received remuneration of £128,937 (2022 - £122,336).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,615 (2022 - £10,373).


8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
47,847
30,132

Other loan interest payable
239,935
523,095

287,782
553,227

Page 21

 


PREGIS LIMITED
 


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

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(4,791)
(5,055)

Adjustments in respect of previous periods
-
(1,195)


(4,791)
(6,250)


Total current tax
(4,791)
(6,250)

Deferred tax


Origination and reversal of timing differences
329,584
(610,150)

Total deferred tax
329,584
(610,150)


Tax on profit/(loss)
324,793
(616,400)
Page 22

 


PREGIS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
418,891
(4,329,086)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
98,439
(822,526)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
486,470
393,316

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
9,228
2,053

Capital allowances for year in excess of depreciation
98,103
(176,907)

Utilisation of tax losses
(464,275)
-

Adjustments to tax charge in respect of prior periods
-
(1,195)

Deferred taxation
329,584
(610,150)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(4,791)
(5,055)

Unrelieved tax losses carried forward
-
604,064

Patent box deduction
(227,965)
-

Total tax charge for the year
324,793
(616,400)

The entity is within the scope of the OECD Pillar Two model rules. Pillar Two legislation was enacted in England the jurisdiction in which the entity is incorporated and will come into effect from 1 January 2025. Since the Pillar Two legislation was not effective at the reporting date, the entity has no related current tax exposure. The entity applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to Section 29 issued in July 2023.
Under the legislation, the group is liable to pay a top-up tax for the difference between the GloBE effective tax rate for each jurisdiction and the 15% minimum rate. All entities within the group have an effective tax rate that exceeds 15%. 
Due to the complexities in applying the legislation and calculating GloBE income, the quantitative impact of the substantively enacted legislation is not yet reasonably estimable.
Therefore, even for those entities with an accounting effective tax rate above 15%, there may still be Pillar Two tax implications. The entity is currently engaged with tax specialists to assist them with applying the legislation.

Page 23

 


PREGIS LIMITED
 


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

10.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
11,778,070



At 31 December 2023

11,778,070



Amortisation


At 1 January 2023
5,347,719


Charge for the year on owned assets
2,070,085



At 31 December 2023

7,417,804



Net book value



At 31 December 2023
4,360,266



At 31 December 2022
6,430,351



Page 24

 


PREGIS LIMITED
 


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

11.


Tangible fixed assets





Freehold property
Short-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
1,415,097
606,701
2,676,217
295,385
4,993,400


Additions
-
-
7,455
-
7,455



At 31 December 2023

1,415,097
606,701
2,683,672
295,385
5,000,855



Depreciation


At 1 January 2023
98,503
181,875
952,642
225,204
1,458,224


Charge for the year on owned assets
32,834
52,400
498,983
33,957
618,174



At 31 December 2023

131,337
234,275
1,451,625
259,161
2,076,398



Net book value



At 31 December 2023
1,283,760
372,426
1,232,047
36,224
2,924,457



At 31 December 2022
1,316,594
424,826
1,723,575
70,181
3,535,176

Page 25

 


PREGIS LIMITED
 


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

12.


Inventories

2023
2022
£
£

Raw materials and consumables
1,596,987
1,591,222

Work in progress
218,836
215,792

Finished goods and goods for resale
1,364,532
1,918,064

3,180,355
3,725,078



13.


Debtors

2023
2022
£
£


Trade debtors
1,377,285
3,758,619

Amounts owed by group undertakings
18,019,714
12,447,072

Other debtors
5,318
-

Prepayments and accrued income
62,152
143,898

Tax recoverable
159,846
155,055

Deferred taxation
439,919
769,503

20,064,234
17,274,147



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
154,887
149,376

Trade creditors
213,402
1,388,435

Amounts owed to group undertakings
7,362,245
6,563,519

Other taxation and social security
488,817
326,125

Other creditors
13,134
115,279

Accruals and deferred income
839,285
585,956

9,071,770
9,128,690


Page 26

 


PREGIS LIMITED
 


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

15.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
473,927
625,846

Amounts owed to group undertakings
18,120,454
19,071,561

18,594,381
19,697,407


The following liabilities were secured:

2023
2022
£
£



Bank Loans
628,814
775,222

628,814
775,222

Details of security provided:

The bank loan is secured by way of a fixed and floating charge over the assets of the company.


16.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
154,887
149,376


154,887
149,376

Amounts falling due 1-2 years

Bank loans
166,940
161,006


166,940
161,006

Amounts falling due 2-5 years

Bank loans
306,987
464,840


306,987
464,840


628,814
775,222


Page 27

 


PREGIS LIMITED
 


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

17.


Deferred taxation




2023
2022


£

£






At beginning of year
769,503
159,353


Charged to profit or loss
(329,584)
610,150



At end of year
439,919
769,503

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(29,125)
(123,729)

Tax losses carried forward
469,044
893,232

439,919
769,503


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



3 (2022 - 3) Ordinary shares of $0.01 each
-
-



19.


Reserves

Share premium account

On 8th February 2016, shares were issued at a premium of $12,423,799 (£8,789,780).



20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £106,576 (2022 - £146,148). There were no contributions (2022 - £nil) payable to the fund at the reporting date.

Page 28

 


PREGIS LIMITED
 


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

21.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
474,534
473,493

Later than 1 year and not later than 5 years
1,777,623
1,800,275

Later than 5 years
2,425,005
2,865,915

4,677,162
5,139,683


22.


Controlling party

Pregis Holding Company B.V. is regarded by the directors as being the parent company of Pregis Limited and is the smallest and largest company which includes the company within its consolidated financial statements. These are available at Nijverheidsweg 4, 6422 PD, Heerlen, Netherlands. 
The ultimate controlling party is Warburg Pincus Global Growth Fund, a private equity fund registered in the United States at 450 Lexington Avenue, New York, NY 10017, United States of America.

 
Page 29