Company registration number 07313173 (England and Wales)
INTERNATIONAL DIRECT PACKAGING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INTERNATIONAL DIRECT PACKAGING LIMITED
COMPANY INFORMATION
Directors
O Nielsen
A Texido
B Yen
D Ai-Wan
Company number
07313173
Registered office
Norfolk House
4 Station Road
St Ives
PE27 5AF
Auditor
Ensors Accountants LLP
Victory House
Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
INTERNATIONAL DIRECT PACKAGING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 26
INTERNATIONAL DIRECT PACKAGING 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 results for the year are set out in the accompanying financial statements. The directors are satisfied with the development and performance of the company's business during 2023.

 

The total turnover is at the level of last year as we have experienced a slowdown in sales during the last quarter of the year due to the general conditions in the market. At the same time, we have made some investments during the year to secure future growth. This has had some effect on the profit, keeping it at about the same level as the previous year. 

Principal risks and uncertainties

Risks and uncertainties that arise in the conduct of the Company's business are kept under regular review by the Directors.

 

The Company uses various financial instruments. These include cash, cash equivalents and various such items as trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the Company's operations.

 

The existence of these financial instruments exposes the Company to a number of financial risks, which are described in more detail below:

 

Currency risk: The Company's is exposed to transaction foreign exchange risk. This risk is mitigated through agreements with customers and suppliers and through appropriate hedging.

 

Credit risk: The principal credit risk arises from trade debtors. This is managed by the credit control function whereby credit checks are undertaken on new customers and debtor balances are reviewed on a regular basis.

 

Liquidity risk: The Company seeks to maintain liquidity risk by ensuring adequate cash flow is available to meet the foreseeable future.

Key performance indicators

Turnover decreased by 0.1% (2022 - increase 39.9%) over the previous year. The gross profit margin increased to 27.1% as compared with 23.2% in the previous year.

 

Distribution costs decreased 4.5% (2022 - 36.9%).

 

Administration expenses, which includes fluctuations in exchange rates, increased by 96.3% (2022 - 4.2%).

 

Net profit before tax remained consistent as compared to the previous year (2022 - increased by 198.2%).

 

The balance sheet was well managed and reflects a healthy balance between creditor financing with shareholders' funds at the end of 2023.

On behalf of the board

A Texido
Director
27 August 2024
INTERNATIONAL DIRECT PACKAGING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activities of the company are that of importing and onward distribution of high quality bespoke packaging.

 

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £520,000. No decision has been taken yet with respect to the payment of further dividends.

Directors

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

O Nielsen
A Texido
B Yen
D Ai-Wan
Auditor

Ensors Accountants LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
A Texido
Director
27 August 2024
INTERNATIONAL DIRECT PACKAGING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

INTERNATIONAL DIRECT PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTERNATIONAL DIRECT PACKAGING LIMITED
- 4 -
Opinion

We have audited the financial statements of International Direct Packaging Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

INTERNATIONAL DIRECT PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERNATIONAL DIRECT PACKAGING LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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.

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

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.

Jayson Lawson (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
30 August 2024
Chartered Accountants
Statutory Auditor
Victory House
Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
INTERNATIONAL DIRECT PACKAGING LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Revenue
3
47,664,805
47,722,833
Cost of sales
(34,749,949)
(36,647,057)
Gross profit
12,914,856
11,075,776
Distribution costs
(4,880,386)
(5,108,272)
Administrative expenses
(4,425,001)
(2,254,607)
Operating profit
4
3,609,469
3,712,897
Investment income
7
12,155
4,366
Finance costs
8
(5,478)
(66,765)
Profit before taxation
3,616,146
3,650,498
Tax on profit
9
(800,286)
(678,021)
Profit for the financial year
2,815,860
2,972,477
Profit for the financial year is all attributable to the owners of the parent company.
INTERNATIONAL DIRECT PACKAGING LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
2,815,860
2,972,477
Other comprehensive income
Currency translation gain taken to retained earnings
15,706
37,070
Total comprehensive income for the year
2,831,566
3,009,547
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 14 to 26 form part of these financial statements.

INTERNATIONAL DIRECT PACKAGING LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
2,708
6,187
Current assets
Inventories
15
9,729,042
8,962,587
Trade and other receivables
16
12,020,431
14,510,453
Cash and cash equivalents
6,661,124
3,680,189
28,410,597
27,153,229
Current liabilities
17
(16,587,885)
(17,645,505)
Net current assets
11,822,712
9,507,724
Total assets less current liabilities
11,825,420
9,513,911
Provisions for liabilities
Deferred tax liability
18
-
0
57
-
(57)
Net assets
11,825,420
9,513,854
Equity
Called up share capital
20
520,000
520,000
Retained earnings
11,305,420
8,993,854
Total equity
11,825,420
9,513,854

The notes on pages 14 to 26 form part of these financial statements.

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

The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
27 August 2024
A Texido
Director
Company registration number 07313173 (England and Wales)
INTERNATIONAL DIRECT PACKAGING LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
205
480
Investments
13
36,213
22,865
36,418
23,345
Current assets
Inventories
15
1,753,942
4,599,551
Trade and other receivables
16
16,191,720
13,881,018
Cash and cash equivalents
2,942,193
1,154,379
20,887,855
19,634,948
Current liabilities
17
(12,219,913)
(10,887,250)
Net current assets
8,667,942
8,747,698
Total assets less current liabilities
8,704,360
8,771,043
Provisions for liabilities
Deferred tax liability
18
-
0
57
-
(57)
Net assets
8,704,360
8,770,986
Equity
Called up share capital
20
520,000
520,000
Retained earnings
8,184,360
8,250,986
Total equity
8,704,360
8,770,986

The notes on pages 14 to 26 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £453,374 (2022 - £2,518,598 profit).

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 27 August 2024 and are signed on its behalf by:
27 August 2024
A Texido
Director
Company registration number 07313173 (England and Wales)
INTERNATIONAL DIRECT PACKAGING LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
520,000
6,244,006
6,764,006
Year ended 31 December 2022:
Profit for the year
-
2,972,477
2,972,477
Other comprehensive income:
Currency translation differences
-
37,070
37,070
Total comprehensive income
-
3,009,547
3,009,547
Dividends
10
-
(259,699)
(259,699)
Balance at 31 December 2022
520,000
8,993,854
9,513,854
Year ended 31 December 2023:
Profit for the year
-
2,815,860
2,815,860
Other comprehensive income:
Currency translation differences
-
15,706
15,706
Total comprehensive income
-
2,831,566
2,831,566
Dividends
10
-
(520,000)
(520,000)
Balance at 31 December 2023
520,000
11,305,420
11,825,420
INTERNATIONAL DIRECT PACKAGING LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
520,000
5,992,087
6,512,087
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,518,598
2,518,598
Dividends
10
-
(259,699)
(259,699)
Balance at 31 December 2022
520,000
8,250,986
8,770,986
Year ended 31 December 2023:
Profit and total comprehensive income
-
453,374
453,374
Dividends
10
-
(520,000)
(520,000)
Balance at 31 December 2023
520,000
8,184,360
8,704,360
INTERNATIONAL DIRECT PACKAGING LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
4,395,614
2,237,862
Interest paid
(5,478)
(66,765)
Income taxes paid
(915,326)
(316,841)
Net cash inflow from operating activities
3,474,810
1,854,256
Investing activities
Purchase of property, plant and equipment
(1,596)
(8,027)
Interest received
12,155
4,366
Net cash generated from/(used in) investing activities
10,559
(3,661)
Financing activities
Dividends paid to equity shareholders
(520,000)
(259,699)
Net cash used in financing activities
(520,000)
(259,699)
Net increase in cash and cash equivalents
2,965,369
1,590,896
Cash and cash equivalents at beginning of year
3,680,189
2,052,223
Effect of foreign exchange rates
15,566
37,070
Cash and cash equivalents at end of year
6,661,124
3,680,189
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

International Direct Packaging Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Norfolk House, 4 Station Road, St Ives, PE27 5AF.

 

The group consists of International Direct Packaging Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

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

 

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

 

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

1.3
Basis of consolidation

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

1.4
Going concern

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

1.5
Revenue

Revenue 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.

INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

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

1.6
Property, plant and equipment

Property, plant and equipment 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:

Fixtures and fittings
33.33% and 50% on cost
Computers
33.33% on cost

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

1.7
Non-current investments

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

1.8
Inventories

Inventories 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 inventories to their present location and condition.

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

1.9
Cash and cash equivalents

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

1.10
Financial instruments

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

 

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

 

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

INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, loans from fellow group 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.

 

Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.11
Equity instruments

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

INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
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.

INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
2
Judgements and key sources of estimation uncertainty

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

 

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

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Sales of bespoke packaging
46,397,591
46,912,107
Comissions
1,267,214
810,726
47,664,805
47,722,833
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
3,281,874
1,909,373
Europe
21,039,436
20,798,631
Rest of the World
23,343,495
25,014,829
47,664,805
47,722,833
2023
2022
£
£
Other revenue
Interest income
12,155
4,366
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
352,999
3,710
Fees payable to the group's auditor for the audit of the group's financial statements
30,000
17,500
Depreciation of owned property, plant and equipment
5,215
14,101
Inventories impairment losses recognised or reversed
37,409
58,953
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Employees
31
16
5
9

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,549,825
1,615,520
528,693
754,420
Social security costs
67,572
59,961
5,572
9,342
Pension costs
37,658
30,341
3,576
3,260
2,655,055
1,705,822
537,841
767,022
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
411,911
414,491
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
218,345
220,404

Total expenditure with respect to pensions contributions for the directors is £Nil (2022 - £Nil).

7
Investment income
2023
2022
£
£
Interest income
Other interest income
12,155
4,366
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Finance costs
2023
2022
£
£
Interest on bank overdrafts and loans
-
14,637
Other interest on financial liabilities
594
-
Other interest
4,884
52,128
Total finance costs
5,478
66,765
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
203,085
592,778
Foreign current tax on profits for the current period
597,258
86,903
Total current tax
800,343
679,681
Deferred tax
Origination and reversal of timing differences
(57)
(1,660)
Total tax charge
800,286
678,021

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
3,616,146
3,650,498
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
850,518
693,595
Tax effect of expenses that are not deductible in determining taxable profit
86
289
Effect of change in corporation tax rate
-
14
Permanent capital allowances in excess of depreciation
64
(31)
Effect of overseas tax rates
(35,359)
(19,067)
Foreign exchange differences
(15,023)
3,221
Taxation charge
800,286
678,021
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
520,000
259,699
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Inventories
15
37,409
58,953
Recognised in:
Cost of sales
37,409
58,953
12
Property, plant and equipment
Group
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2023
21,501
61,523
83,024
Additions
1,596
-
0
1,596
Exchange adjustments
140
-
0
140
At 31 December 2023
23,237
61,523
84,760
Depreciation and impairment
At 1 January 2023
15,314
61,523
76,837
Depreciation charged in the year
4,910
-
0
4,910
Exchange adjustments
305
-
0
305
At 31 December 2023
20,529
61,523
82,052
Carrying amount
At 31 December 2023
2,708
-
0
2,708
At 31 December 2022
6,187
-
0
6,187
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Property, plant and equipment
(Continued)
- 22 -
Company
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
2,951
61,523
64,474
Depreciation and impairment
At 1 January 2023
2,471
61,523
63,994
Depreciation charged in the year
275
-
0
275
At 31 December 2023
2,746
61,523
64,269
Carrying amount
At 31 December 2023
205
-
0
205
At 31 December 2022
480
-
0
480
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
36,213
22,865
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
22,865
Additions
20,242
Valuation changes
(6,894)
At 31 December 2023
36,213
Carrying amount
At 31 December 2023
36,213
At 31 December 2022
22,865
14
Subsidiaries

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

INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 23 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
International Direct Packaging Inc
USA
Ordinary
100.00
International Direct Packaging KK
Japan
Ordinary
100.00
International Direct Packaging Inc
South Korea
Ordinary
100.00
International Direct Packaging Ltd
Republic of Ireland
Ordinary
100.00
15
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
9,729,042
8,962,587
1,753,942
4,599,551
16
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
10,841,136
12,838,763
3,467,407
6,775,296
Corporation tax recoverable
40,473
-
0
40,473
-
0
Amounts owed by group undertakings
-
-
12,402,634
6,333,314
Other receivables
373,019
629,496
-
0
435,516
Prepayments and accrued income
765,803
1,042,194
281,206
336,892
12,020,431
14,510,453
16,191,720
13,881,018
17
Current liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade payables
10,362,682
12,696,781
1,999,419
7,696,385
Amounts owed to group undertakings
-
0
-
0
6,531,670
-
0
Corporation tax payable
484,070
558,580
-
0
426,382
Other taxation and social security
170,782
31,399
114,899
507
Other payables
3,649,400
1,514
2,608,728
-
0
Accruals and deferred income
1,920,951
4,357,231
965,197
2,763,976
16,587,885
17,645,505
12,219,913
10,887,250
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
-
57
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
-
57
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
57
57
Credit to profit or loss
(57)
(57)
Asset at 31 December 2023
-
-
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,658
30,341

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

 

As at the balance sheet date the Group had total contributions outstanding of £2,925 (2022 - £Nil). There were no contributions outstanding for the Company as at the balance sheet date (2022 - £Nil).

20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
520,000
520,000
520,000
520,000
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
21
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
19,474
14,333
400
3,200
Between two and five years
9,575
33,715
-
-
29,049
48,048
400
3,200
22
Events after the reporting date

On 15 January 2024 the Company engaged in share buy back for all shares as held by Michael Billing as at that date. The consideration per share was £15.50. The event is considered non adjusting with respect to the financial statements for the year ended 31 December 2023.

23
Related party transactions

During the year the Group made purchases with connected parties of £28,035,674 (2022 - £27,686,736) and interest payments of £nil (2022 - £32,616).

 

As at the balance sheet date the Group owed £9,645,985 (2022 - £9,993,067) to connected parties. The balances are repayable on demand.

 

Remuneration during the year for those considered as key management was £411,911 (2022 - £608,413). The amount owed to key management at the balance sheet date with respect to remuneration was £189,629 (2022 - £204,651).

 

24
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,815,860
2,972,477
Adjustments for:
Taxation charged
800,286
678,021
Finance costs
5,478
66,765
Investment income
(12,155)
(4,366)
Depreciation and impairment of property, plant and equipment
5,215
14,101
Movements in working capital:
Increase in inventories
(766,455)
(3,782,872)
Decrease/(increase) in trade and other receivables
2,530,495
(2,886,534)
(Decrease)/increase in trade and other payables
(983,110)
5,180,270
Cash generated from operations
4,395,614
2,237,862
INTERNATIONAL DIRECT PACKAGING LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
25
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
3,680,189
2,965,369
15,566
6,661,124
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