Company registration number NI027400 (Northern Ireland)
PORTA-FILL INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PORTA-FILL INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
Mrs D Rafferty
Mr M Rafferty
Mr C J Rafferty
Secretary
Mr M Rafferty
Company number
NI027400
Registered office
2 Dungannon Business Park
Killyliss Road
Dungannon
Co Tyrone
BT70 1RP
Auditor
GMcG PORTADOWN
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
Bankers
AIB
18 - 20 Scotch Street
Dungannon
Co Tyrone
BT70 1AZ
Danske Bank
Corporate Banking
P.O. Box 183
Donegall Square West
BT1 6JS
PORTA-FILL INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 26
PORTA-FILL INTERNATIONAL 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

The directors remain pleased with the progress of the company with the results for the year reflecting continued development in the company's geographical markets, as evidenced by the key performance indicators noted below.

 

The company continues to invest heavily in its facilities incorporating a significant Research and Development facility, and looks forward to further developing the company's product range using this facility. The company sees development in Research and Development as being key to enabling it to compete in the global market.

 

During the year as part of a group reorganisation, MJR Holdings Ireland Limited became the company's ultimate parent company and the property held by the company was transferred to MJR Holding Ireland Limited. This property transfer generated a profit on disposal of £2,333,170, which is included in the company's results for the year.

 

The directors are pleased with results for the year given the inflationary pressures on the company's existing cost base, particularly in relation to raw materials used in production.

 

Turnover has decreased by 3.7% and the company generated a gross profit margin of 31% (2022 - 36%). These KPI's have been impacted by bringing new products to market, inflationary cost increases and fluctuation in exchange rates in the year.

 

The company reported an operating profit of £4,664,447 (2022 - £3,030,779). The current year operating profit includes profit of £2,333,170 on the disposal of the property noted above as well as other operating income of £298,224 relating to capital grants released in the year. Excluding theses one off items of income the company returned an operating profit of £2,033,053 (2022 - £3,030,779).

Principal risks and uncertainties

The principal risks and uncertainties affecting the company are controlling costs and maintaining sales levels. The company's management endeavour to mitigate these risks by implementing regular strategic and operational reviews.

 

The key business risks and uncertainties are considered to relate to potential competition from foreign, low cost markets, and the risks associated with currency fluctuations. The company operates bank accounts denominated in Sterling, US Dollars and Euro in an attempt to mitigate it's exposure to exchange risk.

 

Other risks facing the company are considered to be:

 

Credit risk

Appropriate credit checks on potential customers are made before sale contracts are agreed. The amount of exposure to individual customers is subject to a limit which is assessed regularly by the directors.

Liquidity risk

The company maintains sufficient cash reserves designed to ensure that funds are available for its operation. Liquidity risk is considered medium.

Environment

The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors ongoing aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

Health and safety

The company is committed to achieving the highest practical standards in health and safety management and endeavours to make the workplace a safe environment for all it's employees.

PORTA-FILL INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The directors used the key performance indicator as set out below to monitor the company's performance. Key performance indicators were an improvement on the performance achieved in the previous accounting period. Overall, the directors are pleased with the company's performance for the year.

 

The key performance indicators during the financial year were as follows:

 

 

2023

2022

 

£

£

Turnover

13,673,540

14,206,074

Gross Profit

4,264,600

5,055,900

Gross Profit Margin (%)

31

36

Operating Profit

4,664,447

3,030,779

Operating Profit excluding profit on

2,331,277

 

property disposal

 

 

Shareholders' Funds

10,543,404

13,261,794

 

On behalf of the board

Mr C J Rafferty
Director
23 August 2024
PORTA-FILL INTERNATIONAL 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 continued to be the manufacturing of mobile screening plant for use in the sorting of segregates.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £7,029,564. The directors do not recommend payment of a final dividend.

Directors

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

Mrs D Rafferty
Mr M Rafferty
Mr C J Rafferty
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 company and of the profit or loss of the company 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 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.

PORTA-FILL INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr C J Rafferty
Director
23 August 2024
PORTA-FILL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PORTA-FILL INTERNATIONAL LIMITED
- 5 -
Opinion

We have audited the financial statements of Porta-Fill International Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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.

PORTA-FILL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PORTA-FILL INTERNATIONAL LIMITED
- 6 -

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.

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 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:

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.

PORTA-FILL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PORTA-FILL INTERNATIONAL LIMITED
- 7 -
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.

PORTA-FILL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PORTA-FILL INTERNATIONAL LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

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

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

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

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

PORTA-FILL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PORTA-FILL INTERNATIONAL LIMITED
- 9 -

Our procedures to respond to the risks identified included the following:

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

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

PORTA-FILL INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PORTA-FILL INTERNATIONAL LIMITED
- 10 -

The purpose of our audit work and to whom we owe our responsibilities

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.

Mr Stephen Houston FCA
Senior Statutory Auditor
For and on behalf of GMcG PORTADOWN
23 August 2024
Chartered Accountants
Statutory Auditor
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
PORTA-FILL INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
13,673,540
14,206,074
Cost of sales
(9,408,940)
(9,150,174)
Gross profit
4,264,600
5,055,900
Distribution costs
(646,732)
(781,073)
Administrative expenses
(1,599,365)
(1,285,091)
Other operating income
312,774
41,043
Profit on property disposal
4
2,333,170
-
0
Operating profit
5
4,664,447
3,030,779
Interest receivable and similar income
8
-
0
193
Interest payable and similar expenses
9
-
0
(15,482)
Profit before taxation
4,664,447
3,015,490
Tax on profit
10
(353,273)
(407,266)
Profit for the financial year
4,311,174
2,608,224

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PORTA-FILL INTERNATIONAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,017,639
4,483,582
Current assets
Stocks
13
5,896,201
4,578,310
Debtors
14
1,227,961
1,721,025
Cash at bank and in hand
4,673,372
5,858,993
11,797,534
12,158,328
Creditors: amounts falling due within one year
15
(1,990,703)
(2,903,014)
Net current assets
9,806,831
9,255,314
Total assets less current liabilities
10,824,470
13,738,896
Creditors: amounts falling due after more than one year
16
(31,066)
(322,102)
Provisions for liabilities
Deferred tax liability
17
250,000
155,000
(250,000)
(155,000)
Net assets
10,543,404
13,261,794
Capital and reserves
Called up share capital
20
31,620
31,620
Capital redemption reserve
21
30,380
30,380
Profit and loss reserves
21
10,481,404
13,199,794
Total equity
10,543,404
13,261,794

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

The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
Mr C J Rafferty
Director
Company registration number NI027400 (Northern Ireland)
PORTA-FILL INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
31,620
30,380
10,661,134
10,723,134
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
2,608,224
2,608,224
Dividends
11
-
-
(69,564)
(69,564)
Balance at 31 December 2022
31,620
30,380
13,199,794
13,261,794
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
4,311,174
4,311,174
Dividends
11
-
-
(7,029,564)
(7,029,564)
Balance at 31 December 2023
31,620
30,380
10,481,404
10,543,404
PORTA-FILL INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fixed assets

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Debtors and amounts recoverable

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

Stock and work in progress

At each balance sheet date the company's stocks and work in progress are assessed for impairment. If stocks or work in progress is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The assessment of the selling price of such stock and work in progress involves some estimation uncertainty.

Taxation

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The management used external professional advice to support the year end provisions.

2
Accounting policies
Company information

Porta-Fill International Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is Portafill International, Killyliss Road, Dungannon Business Park, Dungannon, BT70 1RP.

2.1
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. The principal accounting policies adopted are set out below.

PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies (Continued)
- 15 -

This 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:

 

 

Porta-Fill International Limited is a immediate wholly owned subsidiary of MJR Holdings Ireland Limited. The results of Porta-Fill International Limited are included in the consolidated financial statements of MJR Holdings Ireland Limited, the ultimate parent company which are available from 2 Dungannon Business park, Killyliss Road, Dungannon, BT70 1RP.

2.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

2.3
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.

2.4
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
5% straight line
Plant and equipment
25% straight line or reducing balance
Fixtures and fittings
15% straight line or reducing balance
Motor vehicles
20% straight line or reducing balance
PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies (Continued)
- 16 -

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 credited or charged to profit or loss.

2.5
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

2.6
Stocks and work in progress

Stocks and work in progress 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. Direct materials costed on a first in first out basis.

 

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.

2.7
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.

PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies (Continued)
- 17 -
2.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include 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.

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 company 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 company after deducting all of its liabilities.

PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies (Continued)
- 18 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.9
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 profit and loss account 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies (Continued)
- 19 -
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 profit and loss account, 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 when the company has 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.

2.10
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

3
Turnover
2023
2022
£
£
Sale of machinery and parts
13,673,540
14,206,074

The directors consider the company to have only one class of business that being the sale of machinery and associated parts. An analysis of the company's geographical markets has not been given as, in the opinion of the directors, this disclosure would be seriously prejudicial to the interests of the company.

2023
2022
£
£
Other revenue
Commissions received
743
-
0
Government grants receivable and released
312,032
41,043
PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover (Continued)
- 20 -
4
Profit on property disposal
2023
2022
£
£
Profit on disposal of property
2,333,170
-

During the year as part of a group reorganisation, MJR Holdings Ireland Limited became the company's ultimate parent company and the property held by the company was transferred to MJR Holding Ireland Limited generating a gain in disposal of £2,333,170.

5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
40,425
(116,800)
Government grants received and released
(312,031)
(41,043)
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
7,500
Depreciation of owned tangible fixed assets
290,042
444,653
Profit on disposal of tangible fixed assets
(8,028)
(10,834)
Operating lease charges
280,000
-
6
Employees

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

2023
2022
Number
Number
Production
51
51
Administration
18
15
Total
69
66

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,156,698
1,948,752
Social security costs
205,385
194,626
Pension costs
47,583
43,416
2,409,666
2,186,794
PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
49,112
46,757
Company pension contributions to defined contribution schemes
1,199
1,193
50,311
47,950

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
193
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
15,482
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
300,000
350,000
Adjustments in respect of prior periods
(41,727)
(20,734)
Total current tax
258,273
329,266
Deferred tax
Origination and reversal of timing differences
95,000
78,000
Total tax charge
353,273
407,266
PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation (Continued)
- 22 -

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
4,664,447
3,015,490
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,166,112
572,943
Tax effect of income not taxable in determining taxable profit
(663,308)
(8,889)
Adjustments in respect of prior years
(41,727)
(20,734)
Effect of change in corporation tax rate
(29,017)
-
0
Research and development tax credit
(161,316)
(126,597)
Differences on depreciation and capital allowances
82,529
(9,457)
Taxation charge for the year
353,273
407,266
11
Dividends
2023
2022
£
£
Interim paid
7,029,564
69,564
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
4,003,194
1,726,324
604,177
126,612
6,460,307
Additions
-
0
192,117
44,320
68,465
304,902
Disposals
(4,003,194)
-
0
-
0
(53,301)
(4,056,495)
At 31 December 2023
-
0
1,918,441
648,497
141,776
2,708,714
Depreciation and impairment
At 1 January 2023
536,364
1,020,518
320,681
99,162
1,976,725
Depreciation charged in the year
-
0
224,481
49,173
16,388
290,042
Eliminated in respect of disposals
(536,364)
-
0
-
0
(39,328)
(575,692)
At 31 December 2023
-
0
1,244,999
369,854
76,222
1,691,075
Carrying amount
At 31 December 2023
-
0
673,442
278,643
65,554
1,017,639
At 31 December 2022
3,466,830
705,806
283,496
27,450
4,483,582
PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Stocks
2023
2022
£
£
Raw materials and consumables
1,524,705
1,615,518
Work in progress
1,616,625
1,578,403
Finished goods and goods for resale
2,754,871
1,384,389
5,896,201
4,578,310
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
819,122
1,245,057
Other debtors
192,845
280,614
Prepayments and accrued income
215,994
195,354
1,227,961
1,721,025
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
1,481,354
2,084,011
Corporation tax
300,000
350,000
Other taxation and social security
45,303
49,050
Government grants
18
10,355
31,350
Other creditors
76,576
336,226
Accruals and deferred income
77,115
52,377
1,990,703
2,903,014
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Government grants
18
31,066
322,102
PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
250,000
155,000
2023
Movements in the year:
£
Liability at 1 January 2023
155,000
Charge to profit or loss
95,000
Liability at 31 December 2023
250,000
18
Government grants
2023
2022
£
£
Arising from government grants
41,421
353,452
Included in the financial statements as follows:
Current liabilities
10,355
31,350
Non-current liabilities
31,066
322,102
41,421
353,452

Government grants relating to property totalling £298,224 were released in the year as the property was transferred to the MJR Holdings Ireland Limited (parent company) as part of a group reconstruction.

 

Terms attaching to capital grant funding can result in repayment should the company default on agreements in place or sell or otherwise transfer the benefit pertaining to the capital asset. The directors do not expect any such repayment becoming due.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,583
43,416

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

PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
31,620
31,620
31,620
31,620
21
Reserves
Capital redemption reserve

The capital redemption reserve is a non-distributable reserve into which amounts were transferred following a purchase of the company's own shares.

Profit and loss reserves

The profit and loss reserve is the balance of retained earnings at the end of the period and is available for distribution.

22
Financial commitments, guarantees and contingent liabilities

A contingent liability exists to repay grants received in relation to capital building costs, associated with the property transferred to MJR Holdings Ireland Limited (parent company), should certain conditions not be met by the company or MJR Holdings Ireland Limited.

 

MJR Holdings Ireland Limited has provide a letter of guarantee to Invest NI in respect of the company's liabilities under the letters of offer if the conditions referred to in the letters of offer cease to be met.

23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
480,000
-
0
Between two and five years
1,920,000
-
0
In over five years
2,120,000
-
0
4,520,000
-
0
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
177,300
PORTA-FILL INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
25
Related party transactions

The company has taken advantage of the exemption from disclosing related party transactions between group companies, where all subsidiaries are wholly owned in accordance with FRS102.

26
Directors' transactions

At the year end the amount owing by the company to directors was £69,564 (2022- £208,692). No interest accrues on amounts owing to directors nor are there terms of repayment attaching.

27
Ultimate controlling party

Following a group structure in the year MJR Holdings Ireland Limited, a company incorporated in Northern Ireland, became the company's ultimate parent company. MJR Holding Ireland Limited has included the company's results in its group financial statement, copies of which are available from its registered office at 2 Dungannon Business Park, Killyliss Road, Dungannon, BT70 1RP.

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