Grafitec Holdings Limited
Annual report and Financial Statements
For the year ended 31 December 2023
Grafitec Holdings Limited
Company information
Directors
Mr R G Hogg
Mr C J Barrett
Secretary
Mr R G Hogg
Company number
02652564
Registered office
Grafic House
Tom Dando Close
Normanton Industrial Estate
Normanton
Wakefield
WF6 1TP
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Grafitec Holdings Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10 - 11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 36
Grafitec Holdings Limited
Strategic report
For the year ended 31 December 2023
- 1 -

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

Review of the business

We aim to provide a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

As a binding and finishing machinery supplier, the company continues to deal in the refurbishment and sale of used binding and finishing machines.

 

Turnover has increased by 13.3% this year compared with 2022 to £14,622,626 (2022: £12,907,765). The gross profit percentage this year is 13.2% which is an increase on the prior year (2022: 9.6%). Due to the increase in revenue and the gross profit margin, gross profit has increased by £693,396 to £1,929,904 (2022: £1,236,508). Administrative expenses have increased in comparison to the prior year by £139,118 to £1,532,676 (2022: £1,393,558). The overall profit for the financial year was £210,501 (2022: £134,088).

 

The directors are satisfied to maintain consistent results this year and the financial position at the year end. An annual comprehensive review of costs, margins and expenses is carried out as part of the budget preparation. Changes implemented as a result of this annual review have helped increase the gross profitability of the company in recent years and it is hoped that this trend can be maintained.

 

The business environment in which we operate continues to be challenging. The company faces competition both nationally and globally. We are of course also subject to consumer spending patterns and purchasing policies.

Principal risks and uncertainties

There are a range of risks facing the company and the company seeks to manage its exposure to all forms of risk.

 

Financial instrument risk

The group is exposed to the risk that the financial instruments held by the group impact on its ability to operate effectively and profitably. The risks which are relevant to the group's operations are:

 

Foreign currency risk

The group's transactions are predominantly in Sterling, US Dollar and Euros. Bank accounts are held in these currencies and used to trade in and out in order to minimise exchange risk. Throughout the financial year, the influences of foreign exchange rates has impacted on the group's financial forecasting. Quarterly comparisons across the exchange market, provides confidence that the most beneficial rates are secured.

 

Cashflow risks

The group carefully manages its stock holding and debtor book to ensure that sufficient cash is available to meet operational needs. Credit is not extended to customers, machine sales being paid upon installation, usually with a significant deposit. Overseas transactions are payable in advance, by letter of credit, or upon copy bills of lading, minimising risk.

 

Liquidity risks

The group funds working capital needs through the generation and retention of profits.

Development and performance

The Group have liquidated buildings and land assets in order to become self funding, reducing bank borrowings while increasing buying power for the group to focus on its core business. With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control.

Grafitec Holdings Limited
Strategic report (continued)
For the year ended 31 December 2023
- 2 -
Key performance indicators

The group has several KPIs which are used to analyse current performance and assist with business development. Monthly KPIs are used to monitor financial and operational performance and are used to inform of progress and improvements.

 

We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, turnover growth, gross profit margin, operating profit margin and cash management (cash at bank and in hand).

 

 

                    2023             2022            

Turnover             £14,622,626         £12,907,765        

Gross profit margin             13.2%             9.6%            

Operating profit margin         2.9%             1.3%            

Cash at bank and in hand         £899,032         £1,016,539        

On behalf of the board

Mr C J Barrett
Director
31 July 2024
Grafitec Holdings Limited
Directors' report
For the year ended 31 December 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of supply of binding and folding machinery.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £92,207 (2022 - £91,207). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R G Hogg
Mr A C Barrett
(Resigned 14 November 2023)
Mr C J Barrett
Energy and carbon report
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
165,489
-
- Electricity purchased
60,361
74,649
225,850
74,649
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
44.99
-
44.99
-
Scope 2 - indirect emissions
- Electricity purchased
12.16
15.28
Total gross emissions
57.15
15.28
Intensity ratio
Tonnes CO2e per full-time employee
4.08
1.09
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for Company Reporting

Grafitec Holdings Limited
Directors' report (continued)
For the year ended 31 December 2023
- 4 -
Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per turnover.

Measures taken to improve energy efficiency

The company is always looking for ways to reduce its carbon footprint.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Strategic report

The company has chosen in accordance with truesection 414C(11) of Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's Strategic Report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

Grafitec Holdings Limited
Directors' report (continued)
For the year ended 31 December 2023
- 5 -
On behalf of the board
Mr C J Barrett
Director
31 July 2024
Grafitec Holdings Limited
Independent auditor's report
To the members of Grafitec Holdings Limited
- 6 -
Opinion

We have audited the financial statements of Grafitec Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Grafitec Holdings Limited
Independent auditor's report (continued)
To the members of Grafitec Holdings Limited
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

Grafitec Holdings Limited
Independent auditor's report (continued)
To the members of Grafitec Holdings Limited
- 8 -

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stacey Parr FCCA (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited
7 August 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Grafitec Holdings Limited
Group statement of comprehensive income
For the year ended 31 December 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
14,622,626
12,818,764
Cost of sales
(12,692,722)
(11,671,257)
Gross profit
1,929,904
1,147,507
Administrative expenses
(1,532,676)
(1,393,558)
Other operating income
21,148
410,619
Operating profit
4
418,376
164,568
Share of profits of associates
13,696
23,742
Interest receivable and similar income
7
11,000
246
Interest payable and similar expenses
8
(55,630)
(36,227)
Amounts written off investments
9
(80,343)
-
Profit before taxation
307,099
152,329
Tax on profit
10
(96,598)
(18,241)
Profit for the financial year
26
210,501
134,088
Other comprehensive income
Revaluation of tangible fixed assets
1,687,447
-
0
Total comprehensive income for the year
1,897,948
134,088
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Grafitec Holdings Limited
Group statement of financial position
As at 31 December 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
5,816
11,221
Tangible assets
13
3,985,061
2,243,600
Investment property
14
492,562
492,562
Investments
15
1,000
67,647
4,484,439
2,815,030
Current assets
Stocks
17
1,625,089
1,953,719
Debtors
18
1,202,523
4,082,310
Cash at bank and in hand
899,032
1,016,539
3,726,644
7,052,568
Creditors: amounts falling due within one year
19
(2,044,481)
(5,041,166)
Net current assets
1,682,163
2,011,402
Total assets less current liabilities
6,166,602
4,826,432
Creditors: amounts falling due after more than one year
20
-
(489,181)
Provisions for liabilities
Deferred tax liability
22
65,839
42,229
(65,839)
(42,229)
Net assets
6,100,763
4,295,022
Capital and reserves
Called up share capital
24
10,000
10,000
Revaluation reserve
25
3,184,422
1,496,975
Profit and loss reserves
26
2,906,341
2,788,047
Total equity
6,100,763
4,295,022

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

Grafitec Holdings Limited
Group statement of financial position (continued)
As at 31 December 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
Mr C J Barrett
Director
Company registration number 02652564 (England and Wales)
Grafitec Holdings Limited
Company statement of financial position
As at 31 December 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
28,962
32,008
Investment property
14
4,297,113
2,674,259
Investments
15
61,100
111,200
4,387,175
2,817,467
Current assets
Debtors
18
508,190
465,246
Cash at bank and in hand
676,124
710,865
1,184,314
1,176,111
Creditors: amounts falling due within one year
19
(109,596)
(141,962)
Net current assets
1,074,718
1,034,149
Total assets less current liabilities
5,461,893
3,851,616
Provisions for liabilities
Deferred tax liability
22
433,702
33,803
(433,702)
(33,803)
Net assets
5,028,191
3,817,813
Capital and reserves
Called up share capital
24
10,000
10,000
Other reserves
2,719,930
1,496,975
Profit and loss reserves
26
2,298,261
2,310,838
Total equity
5,028,191
3,817,813

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,302,585 (2022 - £281,480 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
Mr C J Barrett
Director
Company registration number 02652564 (England and Wales)
Grafitec Holdings Limited
Group statement of changes in equity
For the year ended 31 December 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
10,000
1,741,781
2,500,360
4,252,141
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
134,088
134,088
Dividends
11
-
-
(91,207)
(91,207)
Transfers
-
(244,806)
244,806
-
Balance at 31 December 2022
10,000
1,496,975
2,788,047
4,295,022
Year ended 31 December 2023:
Profit for the year
-
-
210,501
210,501
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,687,447
-
1,687,447
Total comprehensive income
-
1,687,447
210,501
1,897,948
Dividends
11
-
-
(92,207)
(92,207)
Balance at 31 December 2023
10,000
3,184,422
2,906,341
6,100,763
Grafitec Holdings Limited
Company statement of changes in equity
For the year ended 31 December 2023
- 14 -
Share capital
Fair value reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
10,000
1,741,781
1,875,760
3,627,541
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
281,479
281,479
Dividends
11
-
-
(91,207)
(91,207)
Transfers
-
(244,806)
244,806
-
Balance at 31 December 2022
10,000
1,496,975
2,310,838
3,817,813
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,302,585
1,302,585
Dividends
11
-
-
(92,207)
(92,207)
Transfers
-
1,222,955
(1,222,955)
-
Balance at 31 December 2023
10,000
2,719,930
2,298,261
5,028,191
Grafitec Holdings Limited
Group statement of cash flows
For the year ended 31 December 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
795,077
(1,067,106)
Income taxes paid
(46,144)
(41,297)
Net cash inflow/(outflow) from operating activities
748,933
(1,108,403)
Investing activities
Purchase of tangible fixed assets
(161,110)
(3,000)
Proceeds from disposal of tangible fixed assets
57,501
1,667
Proceeds from disposal of investment property
-
1,200,000
Interest received
11,000
246
Net cash (used in)/generated from investing activities
(92,609)
1,198,913
Financing activities
Repayment of borrowings
(332,254)
-
Proceeds from new bank loans
-
250,000
Repayment of bank loans
(197,752)
(52,248)
Payment of finance leases obligations
-
(19,792)
Interest paid
(55,630)
(36,227)
Dividends paid to equity shareholders
(92,207)
(91,207)
Net cash (used in)/generated from financing activities
(677,843)
50,526
Net (decrease)/increase in cash and cash equivalents
(21,519)
141,036
Cash and cash equivalents at beginning of year
708,646
567,610
Cash and cash equivalents at end of year
687,127
708,646
Relating to:
Cash at bank and in hand
899,032
1,016,539
Bank overdrafts included in creditors payable within one year
(211,905)
(307,893)
Grafitec Holdings Limited
Notes to the group financial statements
For the year ended 31 December 2023
- 16 -
1
Accounting policies
Company information

Grafitec Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Grafic House, Tom Dando Close, Normanton Industrial Estate, Normanton, Wakefield West Yorkshire, WF6 1TP.

 

The group consists of Grafitec Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, with the exception of the investment properties and land and buildings which are revalued. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Grafitec Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 18 -
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Not depreciated
Leasehold land and buildings
20% on cost
Plant and equipment
10% on net book value, 15% on cost, 20% on net book value
Fixtures and fittings
10% on net book value, 15% on net book value, 25% on net book value
Computers
33% on cost
Motor vehicles
25% on net book value,

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 19 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 20 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 23 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

 

 

 

 

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
UK
7,427,202
6,687,402
EEC
1,390,702
1,238,416
Rest of the world
5,804,722
4,892,946
14,622,626
12,818,764
2023
2022
£
£
Other revenue
Interest income
11,000
246
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
25,007
(1,043)
Depreciation of owned tangible fixed assets
48,155
92,536
Loss on disposal of tangible fixed assets
1,440
432
Profit on disposal of investment property
-
0
(124,924)
Amortisation of intangible assets
5,405
5,408
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 24 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,827
7,800
Audit of the financial statements of the company's subsidiaries
32,249
27,500
45,076
35,300
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and office
16
11
-
-
Warehouse staff
5
12
-
-
Total
21
23
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
679,344
663,500
-
0
-
0
Social security costs
58,451
54,696
-
-
Pension costs
89,520
88,992
-
0
-
0
827,315
807,188
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
11,000
246
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 25 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
41,809
18,396
Interest on finance leases and hire purchase contracts
13,821
17,308
Other interest
-
523
Total finance costs
55,630
36,227
9
Amounts written off investments
2023
2022
£
£
Loss on disposal of investments held at fair value
(80,343)
-
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
56,267
18,241
Deferred tax
Origination and reversal of timing differences
40,331
-
0
Total tax charge
96,598
18,241
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
10
Taxation
(Continued)
- 26 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
307,099
152,329
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
76,775
28,943
Tax effect of expenses that are not deductible in determining taxable profit
12,547
(23,212)
Unutilised tax losses carried forward
-
0
801
Change in unrecognised deferred tax assets
-
0
8,445
Effect of change in corporation tax rate
(3,789)
182
Permanent capital allowances in excess of depreciation
-
0
12,273
Amortisation on assets not qualifying for tax allowances
1,351
1,028
Deferred tax adjustments in respect of prior years
21,980
-
0
Deferred tax not recognised
(15,620)
(5,708)
Enhanced capital allowances
(1,283)
-
0
Share of associates profits
4,137
(4,511)
Adjustments on consolidation
500
-
0
Taxation charge
96,598
18,241
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
92,207
91,207
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
54,076
Amortisation and impairment
At 1 January 2023
42,855
Amortisation charged for the year
5,405
At 31 December 2023
48,260
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
12
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 December 2023
5,816
At 31 December 2022
11,221
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 28 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
2,365,000
67,921
238,542
119,069
10,100
225,305
3,025,937
Additions
-
0
-
0
-
0
8,380
292
152,438
161,110
Disposals
-
0
-
0
-
0
-
0
(237)
(96,335)
(96,572)
Revaluation
1,439,550
-
0
-
0
-
0
-
0
-
0
1,439,550
At 31 December 2023
3,804,550
67,921
238,542
127,449
10,155
281,408
4,530,025
Depreciation and impairment
At 1 January 2023
247,897
67,921
229,735
76,356
9,283
151,145
782,337
Depreciation charged in the year
-
0
-
0
1,172
7,097
369
39,517
48,155
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(237)
(37,394)
(37,631)
Revaluation
(247,897)
-
0
-
0
-
0
-
0
-
0
(247,897)
At 31 December 2023
-
0
67,921
230,907
83,453
9,415
153,268
544,964
Carrying amount
At 31 December 2023
3,804,550
-
0
7,635
43,996
740
128,140
3,985,061
At 31 December 2022
2,117,103
-
0
8,807
42,713
817
74,160
2,243,600
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 29 -
Company
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
121,099
37,806
158,905
Depreciation and impairment
At 1 January 2023
114,791
12,106
126,897
Depreciation charged in the year
476
2,570
3,046
At 31 December 2023
115,267
14,676
129,943
Carrying amount
At 31 December 2023
5,832
23,130
28,962
At 31 December 2022
6,308
25,700
32,008

Land and buildings with a carrying amount of £2,117,103 were revalued at May 2024 by Arundel, Williams and Surplice, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The historical cost of the properties is £1,241,505.

14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023
492,562
2,674,259
Net gains or losses through fair value adjustments
-
1,622,854
At 31 December 2023
492,562
4,297,113

The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors.The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
60,100
60,100
Investments in associates
-
0
66,647
-
0
50,100
Unlisted investments
1,000
1,000
1,000
1,000
1,000
67,647
61,100
111,200
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
15
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
66,647
1,000
67,647
Share of profit/(loss)
(16,547)
-
(16,547)
Disposals
(50,100)
-
(50,100)
At 31 December 2023
-
1,000
1,000
Carrying amount
At 31 December 2023
-
1,000
1,000
At 31 December 2022
66,647
1,000
67,647
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
110,200
1,000
111,200
Disposals
(50,100)
-
(50,100)
At 31 December 2023
60,100
1,000
61,100
Carrying amount
At 31 December 2023
60,100
1,000
61,100
At 31 December 2022
110,200
1,000
111,200
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Grafitec PLC
1
Binding and folding machinery
Ordinary shares
100.00
Grafitec Web Ltd
2
Label printing presses
Ordinary shares
100.00
European Graphic Machinery Ltd
1
Dormant
Ordinary shares
100.00
Albion Machinery Ltd
1
Binding and folding machinery
Ordinary shares
100.00
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
16
Subsidiaries
(Continued)
- 31 -

Registered office addresses (all UK unless otherwise indicated):

1
Grafitec House, Tom Dando Close, Normanton Industrial Estate, Wakefield, West Yorkshire, WF6 1TP
2
Web House, Green Lane Industrial Park, Featherstone Pontefract, West Yorkshire, WF7 6TA

Subsidiary audit exemption

 

The following subsidiaries are claiming exemption from audit under Section 479A of the Companies Act 2006:

 

Albion Machinery Limited - Company number 03620828

17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,625,089
1,953,719
-
0
-
0
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
924,393
2,852,971
3,525
47,524
Amounts owed by group undertakings
-
-
503,917
416,239
Other debtors
93,147
199,358
-
0
-
0
Prepayments and accrued income
183,015
1,011,293
748
1,483
1,200,555
4,063,622
508,190
465,246
Amounts falling due after more than one year:
Deferred tax asset (note 22)
1,968
18,688
-
0
-
0
Total debtors
1,202,523
4,082,310
508,190
465,246
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 32 -
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
211,905
443,163
-
0
-
0
Trade creditors
1,044,203
2,670,494
93
5,633
Corporation tax payable
56,267
46,143
23,656
-
0
Other taxation and social security
21,220
142,734
9,267
8,669
Other creditors
272,024
320,173
70,000
120,000
Accruals and deferred income
438,862
1,418,459
6,580
7,660
2,044,481
5,041,166
109,596
141,962

Net obligations under hire purchase contracts are secured on the fixed assets they relate to.

 

The bank overdraft in Grafitec Web Ltd is secured by way of a cross guarantee and debenture between itself, Grafitec Holdings Limited and Grafitec Public Limited Company.

 

Included within other creditors in Grafitec Web Ltd is a stocking loan of £Nil (2022 - £66,667) which is secured against stock.

20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
-
0
62,482
-
0
-
0
Other borrowings
21
-
0
332,254
-
0
-
0
Other creditors
-
0
94,445
-
0
-
0
-
489,181
-
-

Net obligations under hire purchase contracts are secured on the fixed assets they relate to.

 

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 33 -
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
197,752
-
0
-
0
Bank overdrafts
211,905
307,893
-
0
-
0
Other loans
-
0
332,254
-
0
-
0
211,905
837,899
-
-
Payable within one year
211,905
443,163
-
0
-
0
Payable after one year
-
0
394,736
-
0
-
0
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
65,839
42,229
-
-
Tax losses
-
-
1,968
18,688
65,839
42,229
1,968
18,688
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
33,803
33,803
-
-
Investment property
399,899
-
-
-
433,702
33,803
-
-
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
22
Deferred taxation
(Continued)
- 34 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
23,541
33,803
Charge to profit or loss
-
399,899
Effect of change in tax rate - profit or loss
40,330
-
Liability at 31 December 2023
63,871
433,702

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,520
88,992

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary-A shares of £1 each
50
50
50
50
Ordinary-B shares of £1 each
5,050
5,050
5,050
5,050
Ordinary-C shares of £1 each
4,900
4,900
4,900
4,900
10,000
10,000
10,000
10,000
Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 35 -
25
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
1,496,975
1,741,781
-
0
-
0
Revaluation surplus arising in the year
1,687,447
-
0
-
0
-
0
Transfer to retained earnings
-
(244,806)
-
-
At the end of the year
3,184,422
1,496,975
-
0
-

No provision for deferred tax has been made upon the fair value reserve.

26
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,788,047
2,500,360
2,310,838
1,875,760
Profit for the year
210,501
134,088
1,302,585
281,479
Dividends
(92,207)
(91,207)
(92,207)
(91,207)
Transfer to reserves
-
244,806
(1,222,955)
244,806
At the end of the year
2,906,341
2,788,047
2,298,261
2,310,838
27
Financial commitments, guarantees and contingent liabilities

Grafitec Web Ltd has a cross guarantee and debenture dated 21 October 2004, in favour of Barclays Bank plc, between Grafitec Plc and the following companies:

 

Grafitec Web Limited

 

Grafitec Holdings Limited

Grafitec Holdings Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2023
- 36 -
28
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
210,501
134,088
Adjustments for:
Share of results of associates and joint ventures
(13,696)
(23,742)
Taxation charged
96,598
18,241
Finance costs
55,630
36,227
Investment income
(11,000)
(246)
Loss on disposal of tangible fixed assets
1,440
611
Gain on disposal of investment property
-
0
(124,924)
Amortisation and impairment of intangible assets
5,405
5,408
Depreciation and impairment of tangible fixed assets
48,155
92,536
Other gains and losses
80,343
-
Movements in working capital:
Decrease/(increase) in stocks
328,630
(81,203)
Decrease/(increase) in debtors
2,863,067
(1,021,007)
Decrease in creditors
(2,869,996)
(103,095)
Cash generated from/(absorbed by) operations
795,077
(1,067,106)
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,016,539
(117,507)
899,032
Bank overdrafts
(307,893)
95,988
(211,905)
708,646
(21,519)
687,127
Borrowings excluding overdrafts
(530,006)
530,006
-
178,640
508,487
687,127
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