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COMPANY REGISTRATION NUMBER: 01254215
POLI-FILM UK LIMITED
FINANCIAL STATEMENTS
31 December 2023
POLI-FILM UK LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 3
Directors' report
4 to 5
Independent auditor's report to the members
6 to 9
Statement of income and retained earnings
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13 to 21
POLI-FILM UK LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
Mr P Beaver
Mr H Byrne
Mr O Berger
Registered office
7 Brunel Close
Drayton Fields Industrial Estate
Daventry
Northamptonshire
NN11 8RB
Auditor
Sawford Bullard
Accountants & statutory auditor
The Old Mill
Blisworth Hill Farm
Stoke Road
Blisworth
Northampton
NN7 3DB
Bankers
National Westminster Bank plc
44 High Street
Daventry
Northants
NN11 4FZ
POLI-FILM UK LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present the strategic report of the company for the year ended 31 December 2023.
Business review
The principal activity of the company during the year was the conversion and distribution of protection film. The company principally operates within the UK with modest sales to Ireland. Sales to other geographical markets are dealt with by other Group companies. The Group is always active in developing new products and exploring the potential of new markets for its products. In measuring the performance of the company the directors use sales volumes, margins, return on capital and market share as the key performance indicators. Whilst unit turnover increased by 1.4%, sales product mix resulted in a drop of 6.7% by value compared to the previous year. Sales mix has contributed to improved margins and a tight control of costs has resulted in a modest increase in pre-tax profits to £1.55m compared to £1.51m in 2022. Dividends of £1,900,000 were paid during the year, (2022: £500,000). The company's balance sheet remains strong with sufficient working capital to support future growth.
Financial risk management objectives and policies
The company's operations expose it to a variety of financial risks that include the effects of changes in prices, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company, this is summarised as follows: Price risk The company is exposed to raw material price volatility and the company manages this risk by reacting to price changes in a timely manner. Currency exchange rate exposure is managed by entering in to forward exchange contracts whenever rates of exchange are favourable. Credit risk The company has implemented policies that require appropriate credit checks on potential customers before sales are made. Customers are assigned credit limits and overdue debts are chased on a regular basis. The company also uses debtor insurance to mitigate risk as much as possible. Liquidity risk and interest rate risk The company actively monitors its liquidity and cash flow position to ensure it has sufficient cash in order to fund its activities and keep the cost of borrowing to a minimum.
Future developments
The directors expect the UK economy to remain challenging during 2024 with lower consumer spending likely to reduce demand for the company's products.
This report was approved by the board of directors on 8 March 2024 and signed on behalf of the board by:
Mr P Beaver
Director
POLI-FILM UK LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mr P Beaver
Mr H Byrne
Mr O Berger
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Financial instruments
The strategic report details the financial risk management objectives and policies and the exposure to price, credit, liquidity and cashflow risk.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 8 March 2024 and signed on behalf of the board by:
Mr P Beaver
Director
POLI-FILM UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLI-FILM UK LIMITED
YEAR ENDED 31 DECEMBER 2023
Opinion
We have audited the financial statements of Poli-Film UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the 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, 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.
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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment by, for example, forger or intentional misrepresentations, or through collusion. The company does not operate in a highly regulated industry and therefore the risk of material misstatement due to non compliance with laws and regulations is considered to be low. We focused on laws and regulations that are more prevalent to the company, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests comprised of; Enquiry of management around actual and potential litigation and claims; Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. There are inherent limitations in the audit procedures described above and the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Neil K Sawford
(Senior Statutory Auditor)
For and on behalf of
Sawford Bullard
Accountants & statutory auditor
The Old Mill
Blisworth Hill Farm
Stoke Road
Blisworth
Northampton
NN7 3DB
8 March 2024
POLI-FILM UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED 31 DECEMBER 2023
2023
2022
Note
£
£
Turnover
4
11,383,391
12,202,715
Cost of sales
8,528,141
9,378,328
-------------
-------------
Gross profit
2,855,250
2,824,387
Distribution costs
289,587
286,793
Administrative expenses
1,103,750
1,069,841
Other operating income
5
94,162
49,098
------------
------------
Operating profit
6
1,556,075
1,516,851
Other interest receivable and similar income
10
3,582
27
Interest payable and similar expenses
11
6,189
3,671
------------
------------
Profit before taxation
1,553,468
1,513,207
Tax on profit
12
371,514
292,614
------------
------------
Profit for the financial year and total comprehensive income
1,181,954
1,220,593
------------
------------
Dividends paid and payable
13
( 1,900,000)
( 500,000)
Retained earnings at the start of the year
3,246,784
2,526,191
------------
------------
Retained earnings at the end of the year
2,528,738
3,246,784
------------
------------
All the activities of the company are from continuing operations.
POLI-FILM UK LIMITED
STATEMENT OF FINANCIAL POSITION
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
14
108,983
156,528
Current assets
Stocks
15
1,605,120
2,360,619
Debtors
16
1,962,365
1,995,742
Cash at bank and in hand
474,150
656,018
------------
------------
4,041,635
5,012,379
Creditors: amounts falling due within one year
17
1,201,522
1,485,587
------------
------------
Net current assets
2,840,113
3,526,792
------------
------------
Total assets less current liabilities
2,949,096
3,683,320
Creditors: amounts falling due after more than one year
18
11,204
23,808
Provisions
Taxation including deferred tax
20
9,154
12,728
------------
------------
Net assets
2,928,738
3,646,784
------------
------------
Capital and reserves
Called up share capital
23
400,000
400,000
Profit and loss account
24
2,528,738
3,246,784
------------
------------
Shareholders funds
2,928,738
3,646,784
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 8 March 2024 , and are signed on behalf of the board by:
Mr H Byrne
Director
Company registration number: 01254215
POLI-FILM UK LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
1,181,954
1,220,593
Adjustments for:
Depreciation of tangible assets
51,991
56,981
Other interest receivable and similar income
( 3,582)
( 27)
Interest payable and similar expenses
6,189
3,671
Loss on disposal of tangible assets
10
Tax on profit
371,514
292,614
Accrued expenses/(income)
12,320
( 16,755)
Changes in:
Stocks
755,499
( 504,997)
Trade and other debtors
33,377
48,686
Trade and other creditors
38,008
( 293,525)
------------
------------
Cash generated from operations
2,447,280
807,241
Interest paid
( 6,189)
( 3,671)
Interest received
3,582
27
Tax paid
( 346,685)
( 230,086)
------------
---------
Net cash from operating activities
2,097,988
573,511
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 4,458)
( 53,391)
Proceeds from sale of tangible assets
2
Proceeds from sale of subsidiaries
500,000
------------
---------
Net cash (used in)/from investing activities
( 4,456)
446,609
------------
---------
Cash flows from financing activities
Proceeds from loans from group undertakings
( 342,533)
( 431,689)
Payments of finance lease liabilities
( 32,867)
7,136
Dividends paid
( 1,900,000)
( 500,000)
------------
---------
Net cash used in financing activities
( 2,275,400)
( 924,553)
------------
---------
Net (decrease)/increase in cash and cash equivalents
( 181,868)
95,567
Cash and cash equivalents at beginning of year
656,018
560,451
---------
---------
Cash and cash equivalents at end of year
474,150
656,018
---------
---------
POLI-FILM UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 7 Brunel Close, Drayton Fields Industrial Estate, Daventry, Northamptonshire, NN11 8RB.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful lives of depreciable assets Management reviews its estimate of useful lives of depreciable assets at each accounting date, based on the expected useful life. Stocks Management estimates the net realisable values of stocks, taking into account the most reliable evidence available at each accounting date. The future realisation of the inventory may be affected by obsolescence or other market-driven changes that may reduce future selling prices.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long Leasehold Property
-
20% straight line
Plant and Machinery
-
10% straight line
Fixtures and Fittings
-
10% - 20% Straight line
Motor vehicles
-
16% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
11,383,391
12,202,715
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
10,339,948
11,146,703
Overseas sales - Europe
1,043,443
1,056,012
-------------
-------------
11,383,391
12,202,715
-------------
-------------
5. Other operating income
2023
2022
£
£
Other operating income
94,162
49,098
--------
--------
6. Operating profit
Operating profit or loss is stated after charging:
2023
2022
£
£
Depreciation of tangible assets
51,991
56,981
Loss on disposal of tangible assets
10
Impairment of trade debtors
33
19,864
--------
--------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
8,928
8,928
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
5
5
Number of sales and administrative staff
7
7
----
----
12
12
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
499,496
464,670
Social security costs
56,394
54,023
Other pension costs
19,210
18,057
---------
---------
575,100
536,750
---------
---------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
109,864
103,063
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
1
1
----
----
Directors remuneration include taxable benefits in kind with an equivalent cash value of £11,559, (2022: £10,613).
10. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
3,582
27
-------
----
11. Interest payable and similar expenses
2023
2022
£
£
Interest on obligations under finance leases and hire purchase contracts
2,805
2,636
Other interest payable and similar charges
3,384
1,035
-------
-------
6,189
3,671
-------
-------
12. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
375,088
295,803
Deferred tax:
Origination and reversal of timing differences
( 3,574)
( 3,189)
---------
---------
Tax on profit
371,514
292,614
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,553,468
1,513,207
------------
------------
Profit on ordinary activities by rate of tax
365,376
287,509
Effect of expenses not deductible for tax purposes
1,495
1,291
Effect of capital allowances and depreciation
8,217
7,003
Movement in deferred taxation
( 3,574)
( 3,189)
------------
------------
Tax on profit
371,514
292,614
------------
------------
13. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
1,900,000
500,000
------------
---------
14. Tangible assets
Long leasehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
114,310
306,423
117,364
199,093
737,190
Additions
4,458
4,458
Disposals
( 25,294)
( 25,294)
---------
---------
---------
---------
---------
At 31 December 2023
114,310
306,423
96,528
199,093
716,354
---------
---------
---------
---------
---------
Depreciation
At 1 January 2023
101,701
280,435
113,029
85,497
580,662
Charge for the year
8,485
6,284
5,592
31,630
51,991
Disposals
( 25,282)
( 25,282)
---------
---------
---------
---------
---------
At 31 December 2023
110,186
286,719
93,339
117,127
607,371
---------
---------
---------
---------
---------
Carrying amount
At 31 December 2023
4,124
19,704
3,189
81,966
108,983
---------
---------
---------
---------
---------
At 31 December 2022
12,609
25,988
4,335
113,596
156,528
---------
---------
---------
---------
---------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 31 December 2023
81,962
--------
At 31 December 2022
108,948
---------
15. Stocks
2023
2022
£
£
Raw materials and consumables
1,605,120
2,360,619
------------
------------
16. Debtors
2023
2022
£
£
Trade debtors
1,914,564
1,913,191
Amounts owed by group undertakings
450
34,763
Prepayments and accrued income
47,351
47,788
------------
------------
1,962,365
1,995,742
------------
------------
17. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
76,237
42,299
Amounts owed to group undertakings
573,978
916,511
Accruals and deferred income
86,869
74,549
Corporation tax
224,206
195,803
Social security and other taxes
219,553
220,779
Obligations under finance leases and hire purchase contracts
12,616
32,879
Other creditors
8,063
2,767
------------
------------
1,201,522
1,485,587
------------
------------
18. Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
11,204
23,808
--------
--------
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
12,616
32,879
Later than 1 year and not later than 5 years
11,204
23,808
--------
--------
23,820
56,687
--------
--------
20. Provisions
Deferred tax (note 21)
£
At 1 January 2023
12,728
Charge against provision
( 3,574)
--------
At 31 December 2023
9,154
--------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 20)
9,154
12,728
-------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
9,154
12,728
-------
--------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 19,210 (2022: £ 18,057 ).
23. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
400,000
400,000
400,000
400,000
---------
---------
---------
---------
24. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
25. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
656,018
(181,868)
474,150
Debt due within one year
(949,390)
362,796
(586,594)
Debt due after one year
(23,808)
12,604
(11,204)
---------
---------
---------
( 317,180)
193,532
( 123,648)
---------
---------
---------
26. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
111,557
112,068
Later than 1 year and not later than 5 years
256,680
323,803
---------
---------
368,237
435,871
---------
---------
27. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2023
2022
2023
2022
£
£
£
£
POLIFILM PROTECTION GmbH
72,148
62,234
( 43,503)
Other Related Parties
7,672,965
9,819,499
( 573,528)
(838,245)
------------
------------
---------
---------
During the year the company had trading relationships on normal trading terms with both the Parent Company POLIFILM PROTECTION GmbH and a number of companies within the group. These transactions included sales to, purchases from group companies, commissions received from and recharges to group companies. The net of these figures is shown above.
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £ 109,864 (2022: £ 103,063 ).
28. Controlling party
Mr Christian Runkel and Mr Bastian Runkel own a controlling interest in POLIFILM GmbH, a German registered company, which the directors regard as this company's ultimate holding company.