REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 August 2023 |
for |
Advanced Pallet Systems Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 August 2023 |
for |
Advanced Pallet Systems Ltd |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Contents of the Financial Statements |
for the Year Ended 31 August 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Income and Retained Earnings | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 11 |
Notes to the Financial Statements | 12 |
Advanced Pallet Systems Ltd |
Company Information |
for the Year Ended 31 August 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
69 High Street |
Bideford |
Devon |
EX39 2AT |
BUSINESS ADDRESS: | Chubb Road |
East The Water |
Bideford |
Devon |
EX39 4HE |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Strategic Report |
for the Year Ended 31 August 2023 |
The directors present their strategic report for the year ended 31 August 2023. |
REVIEW OF BUSINESS |
The 22/23 financial year saw the business continue to perform strongly with tight controls on direct and administrative costs. |
The companies key financial indicators showed the turnover for the year decreased by 3.7% to £18,178,241, down from £18,872,617 in 2022. Despite an increase in units produced and sold, overall turnover was affected by price reductions necessitated by the continuous rise in material costs during 2021 and 2022. This is evident in the operating profit of £4,976,118 for the year, compared to £5,682,940 in 2022. |
The balance sheet shows net assets of £4,803,792 (2022 - £3,567,979) as at 31 August 2023. Notably tangible asset additions of £870,677 from investment and upgrades in a wide range of advanced machines. |
RESULTS |
The results for the year are set out in the statement of comprehensive income on page 9. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are several potential risks and uncertainties that could significantly affect the company's performance, leading to outcomes that may differ from both expected and historical results. The company continuously monitors these operational risks, which are outlined below: |
Ensuring adequate resources to underpin operations: The risk is managed by financial planning, analysis and continuous forecasting, both financially and operationally, and maintaining long term relationships with stakeholders. |
Financial risks mainly involve exposure to bad debt: however, this risk is mitigated by the company's robust credit control practices, which include thorough credit assessments, ongoing monitoring of customer accounts, and prompt action to address any potential payment issues. |
Ongoing supply chain challenges, including shortages of raw materials, increased transportation costs, and delays, can affect production schedules and increase costs: We continue to build strategic partnerships with key suppliers to negate risks and improve overall company performance. |
The directors consider the main risks to the business not to have changed from previous years and will continue with current policies and procedures that have served the business well in their management. |
The directors are not aware of any significant risks or uncertainties which would cast significant doubt about the ability of the company to continue as a going concern. |
FUTURE DEVELOPMENTS |
A new 10-year lease has been signed for our current location, targeting continued profitable growth, with planned upgrades to the site and further investment in sustainable advanced manufacturing techniques. |
SIGNED ON BEHALF OF THE BOARD: |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Report of the Directors |
for the Year Ended 31 August 2023 |
The directors present their report with the financial statements of the company for the year ended 31 August 2023. |
PRINCIPAL ACTIVITY |
The company's principal activity is to manufacture packaging solutions using wood as the core product, offering tailored and sustainable solutions across the Southwest. We specialise in the manufacturing of pallets and crates to our customers' exact specification but also distribute a wide range of competitively priced paper, plastic and consumable packaging. |
DIVIDENDS |
Interim dividends of £2,706,328 (2022 - £4,206,328) were paid during the year. |
The directors recommend that no final dividend be paid. |
The total distribution for the year ended 31 August 2023 will be £2,706,328 (2022 - £4,206,328). |
EVENTS SINCE THE END OF THE YEAR |
Since the balance sheet date the company has renewed the lease to occupy the premises for a further 10 years at an initial annual rental of £150,000, increasing by 5% every second year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year the company made charitable contributions totalling £12,855 (2022 - £1,645). |
DISCLOSURE IN THE STRATEGIC REPORT |
Particulars of the financial risk management objectives and policies of the company and future developments are set out in the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Report of the Directors |
for the Year Ended 31 August 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
SIGNED ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Advanced Pallet Systems Ltd |
Qualified Opinion |
We have audited the financial statements of Advanced Pallet Systems Ltd (the 'company') for the year ended 31 August 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion section of our report, the accompanying financial statements: |
- give a true and fair view of the state of the company's affairs as at 31st August 2023 and of its profit for the period then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion |
We were not appointed auditors until after 31st August 2022 and thus did not observe the counting of the stock and work in progress at 31 August 2021 or 31 August 2022. We were unable to obtain sufficient appropriate audit evidence about the existence of stock and work in progress of £809,548 at 31 August 2021 and £1,274,190 at 31 August 2022 using alternative audit procedures. Consequently we were unable to determine whether any adjustments to the carrying value at 31 August 2021 and 31 August 2022 were necessary or whether there was any consequential effect on the cost of sales for the year ended 31 August 2023 and also for the year ended 31 August 2022. Our audit opinion on the financial statements for the year ended 31 August 2023 has been modified accordingly. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 qualified 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. |
Corresponding figures |
The corresponding figures for the year ended 31 August 2022 are unaudited. |
Report of the Independent Auditors to the Members of |
Advanced Pallet Systems Ltd |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
As described in our basis for qualified opinion of our report, we were unable to satisfy ourselves concerning the inventory quantities help at 31st August 2022 and 31st August 2021, which were included in the balance sheet at £1,274,190 and £809,548 respectively. We have concluded that were the other information refers to the inventory balance or related balances such as cost of sales , it may be materially misstated for the same reason. |
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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
We were not appointed as auditor of the company until after 31st August 2022 and thus did not observe the counting of physical inventories at the beginning or end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31s August 2021 and 31st August 2022, which are included in the balance sheet at £809,548 and £1,274,190 respectively, by using other audit procedures. |
Consequently we were unable to determine whether any adjustment to these amounts were necessary or whether there was any consequential effect on the cost of sales for the period ended 31st August 2023 and also for the year ended 31st August 2022. In addition, were any adjustments to the stock and work in progress balance to be required, the strategic report would also need to be amended. |
Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of our audit, we have not identified material misstatements in the strategic report or the directors report. |
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 Report of the Directors. Arising solely from the limitation on the scope ot our work relating to inventory, referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; |
and |
- we were unable to determine whether adequate accounting records have been kept. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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. |
Report of the Independent Auditors to the Members of |
Advanced Pallet Systems Ltd |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. In common with all audits under UK ISAs we are also required to perform specific procedures to respond to the threat of management override. This work included testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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 these laws and regulations, including fraud. |
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Health and Safety Act, UK Companies Act and UK tax legislation. |
Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. |
We did not identify any key audit matters relating to irregularities, including fraud. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Advanced Pallet Systems Ltd |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors and Chartered Accountants |
69 High Street |
Bideford |
Devon |
EX39 2AT |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Statement of Income and Retained Earnings |
for the Year Ended 31 August 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
4,888,415 | 5,579,177 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
5,027,122 | 5,690,687 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year as previously reported |
3,348,839 |
Dividends | 10 | ( |
) | ( |
) |
Prior year adjustment | 11 | 218,928 | - |
RETAINED EARNINGS AT END OF YEAR |
3,567,767 |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Balance Sheet |
31 August 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 | 3,567,767 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Cash Flow Statement |
for the Year Ended 31 August 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 29 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Amount introduced by directors |
Amount withdrawn by directors | - | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
30 |
1,676,388 |
Cash and cash equivalents at end of year | 30 | 2,541,468 | 1,487,883 |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements |
for the Year Ended 31 August 2023 |
1. | STATUTORY INFORMATION |
Advanced Pallet Systems Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous period, and also have been consistently applied within the same accounts. |
Significant judgements and estimates |
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. |
Estimated useful lives |
In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change is expected useful life of tangible assets. The depreciation charge for the year ended 31 August 2023 was £262,061 (2022 - £195,711). |
Work in progress |
The labour cost associated to jobs in progress is estimated based on an average of labour time spent. The total value of work in progress at 31 August 2023 was £195,025 (2022 - £273,453). |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill representing the excess of the purchase price over the fair value of the net assets of undertakings acquired is capitalised in the balance sheet and is amortised by equal annual instalments over the expected useful economic life of 20 years. |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
3. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Planning costs | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management. |
Government grants |
Government grants in respect of capital expenditure are treated as deferred income and are credited to the profit and loss account over the estimated useful life of the assets to which they relate. |
Government grants in respect of revenue items are credited to the profit and loss account when they are receivable. |
Stocks |
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Financial instruments |
Basic financial instruments with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
Having regard to the company's anticipated future revenues and costs including repayment of debt where appropriate, together with the expected availability of working capital, the directors consider that it is appropriate to prepare the financial statements on the going concern basis. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
as restated |
£ | £ |
United Kingdom |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Directors |
Production |
Administration |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
as restated |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
Computer software amortisation |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
as restated |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
- |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Interest payable |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Property improvements depreciation and loss on disposals |
Amortisation |
Effect of super deductions | ( |
) | ( |
) |
Movement in general bad debt provision | ( |
) | ( |
) |
Impact of change in tax rate on deferred tax |
Total tax charge | 1,084,102 | 1,080,925 |
10. | DIVIDENDS |
Interim dividends of £2,706,328 (2022 - £4,206,328) were paid during the year. |
11. | PRIOR YEAR ADJUSTMENT |
The prior year figures have been restated to reflect understated closing stock of £270,282 and consequent increase in corporation tax expense of £51,354. |
The effect of this has been to increase current assets by £270,282, increase creditors due within one year by £51,354 and to increase retained earnings by £218,928. |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
12. | INTANGIBLE FIXED ASSETS |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 September 2022 |
Additions |
At 31 August 2023 |
AMORTISATION |
At 1 September 2022 |
Amortisation for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
13. | TANGIBLE FIXED ASSETS |
Improvements |
Planning | to | Plant and |
costs | property | machinery |
£ | £ | £ |
COST |
At 1 September 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 September 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
Additions |
At 31 August 2023 |
DEPRECIATION |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
14. | STOCKS |
2023 | 2022 |
as restated |
£ | £ |
Stocks |
Work-in-progress |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts |
Corporation tax |
Prepayments and accrued income |
At 31 August 2023, the provision for doubtful debts totalled £47,855 (2022 - £62,580). |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Hire purchase contracts (see note 18) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT |
Other creditors |
Directors' current accounts |
Accrued expenses |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Hire purchase contracts (see note 18) |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
18. | LEASING AGREEMENTS - continued |
Non-cancellable | operating leases |
2023 | 2022 |
as restated |
£ | £ |
Within one year |
Between one and five years |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
as restated |
£ | £ |
Hire purchase contracts |
The hire purchase contracts are secured over the assets to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
as restated |
£ | £ |
Deferred tax |
Deferred |
tax |
£ |
Balance at 1 September 2022 |
Deferred tax charge for year |
Balance at 31 August 2023 |
Deferred tax is in respect of accelerated capital allowances and is not expected to change significantly in the year to 31 August 2024. |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary A | £1 | 200 | 200 |
Ordinary B | £1 | 11 | 11 |
Ordinary C | £1 | 1 | 1 |
212 | 212 |
Shares rank equally for voting purposes. On a show of hands each member shall have one vote and on a poll each member shall have one vote per share held. The voting rights are more particularly described in the Articles of Association. |
There are no rights, preferences or restrictions including restrictions on the payment of dividends and the repayment of capital on shares. |
22. | RESERVES |
Retained |
earnings |
£ |
At 1 September 2022 |
Prior year adjustment |
Profit for the year |
Dividends | ( |
) |
At 31 August 2023 |
23. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost and charge represents contributions payable by the company to the fund and amounted to £222,617 (2022 - £31,328). |
24. | CAPITAL COMMITMENTS |
2023 | 2022 |
as restated |
£ | £ |
Contracted but not provided for in the |
financial statements |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 August 2023 and 31 August 2022: |
2023 | 2022 |
as restated |
£ | £ |
Balance outstanding at start of year |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The maximum overdrawn balance during the year was £1,565. |
The loans were interest free and had no fixed date for repayment. |
26. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £2,706,328 (2022 - £4,206,328) were paid to the directors . |
During the year the company made purchases of £64,598 (2022 - £36,411) from Four Square Bowes Ltd, a company controlled by the directors. The transactions were carried out at arms length in the normal course of business. At the balance sheet date £17,330 (2022 - £10,400) was outstanding. |
During the year the company was charged rent of £115,008 (2022 - £104,998) by Bowes Family Pension Trust, a trust controlled by the directors. The transactions were carried out at arms length in the normal course of business. At the balance sheet date £nil (2022 - £nil) was outstanding. |
The total compensation payable for the year to those individuals whom the directors consider to be key management personnel was £216,486 (2022 - £37,596). |
27. | POST BALANCE SHEET EVENTS |
Since the balance sheet date the company has renewed the lease to occupy the premises for a further 10 years at an initial annual rental of £150,000, increasing by 5% every second year. |
28. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is the directors. |
Advanced Pallet Systems Ltd (Registered number: 04568580) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
29. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
as restated |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs |
Finance income | ( |
) | ( |
) |
5,209,998 | 5,866,721 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
30. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 2,541,468 | 1,487,883 |
Year ended 31 August 2022 |
31.8.22 | 1.9.21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,487,883 | 1,676,388 |
31. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.9.22 | Cash flow | changes | At 31.8.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 1,487,883 | 1,053,585 | 2,541,468 |
1,487,883 | 2,541,468 |
Debt |
Finance leases | - | 24,653 | (53,788 | ) | (29,135 | ) |
- | 24,653 | (53,788 | ) | (29,135 | ) |
Total | 1,487,883 | 1,078,238 | (53,788 | ) | 2,512,333 |