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Registered number: 03373762










CEPAC LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CEPAC LIMITED
 
 
COMPANY INFORMATION


Directors
R C Ainslie 
J A R Cook 
S Hollingsworth (resigned 31 May 2023)
N D Marsden 
D A S Anam 
M D A Saeed 
S J Moss 
C P Box 
C Ford (appointed 1 April 2023)
C Mason (appointed 1 April 2023)
S Gilder (appointed 1 December 2023)
A McDonald (appointed 1 December 2023)




Company secretary
Grays Inn Secretaries Limited



Registered number
03373762



Registered office
Prince Albert House
2 Kingsmill Terrace

London

NW8 6BN




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA




Bankers
Lloyds Bank plc




Solicitors
Knights plc





 
CEPAC LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 7
Independent Auditors' Report
 
8 - 11
Statement of Income and Retained Earnings
 
12
Balance Sheet
 
13
Statement of Cash Flows
 
14 - 15
Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 33


 
CEPAC LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
The core objective of our business is to continue to lead packaging innovation and to be the benchmark for customer service in our industry. Our success has been achieved through pioneering development leading to profitable growth in existing business and appropriate acquisitions. This will continue to be integral to our future strategy, with significant strategic investment and expansion plans being put in place for 2023 and beyond. Key to our success is partnering with customers, suppliers and all stakeholders to develop innovative and sustainable packaging solutions. This will continue to be at the heart of our strategy. 

Cepac continues to invest to strengthen our position and during 2023 we made a significant investment and acquired land adjacent to our current plant in Rotherham that will enable future strategic expansion. In addition, we completed a corrugator investment at our existing Rotherham plant, to enhance the capability of our high-performance corrugator, which will also facilitate growth in coming years. As the leading UK independent corrugated supplier, we offer an unrivalled range of sustainable and innovative print and performance packaging, particularly recognising the increasing importance of paper-based packaging, by pioneering the latest technology to develop sustainable solutions. We will continue to build upon our strong reputation for pioneering innovation and a number of future strategic investments are planned with direct benefits for our partners.  

Our strategy is constantly reviewed by the Board in the light of the company’s performance and changing market conditions to ensure that it remains appropriate to achieve our business objectives.

2023 was a challenging year with inflationary cost pressures impacting the business. Due to volume softness in the market, paper and raw material prices dropped in H1 and were then stable throughout the remainder of the year, but other cost pressures still remained. 
Sales volumes increased slightly over the year and, compared to a decline in demand in the general market for corrugated, our performance recovered comparatively. Inflationary pressures remained stubborn and continued to impact our customers’ and consumer confidence. However, our partnership approach and our focus upon performance packaging allowed us to mitigate some cost pressures for our customers.  Sales volumes now and in the future will be positively impacted by the strong growth in demand for plastic replacement products, as sustainability pushes ever further up the agenda. Cepac is strongly placed to respond to these dynamic market changes. 
In the second half of 2023 we experienced disruption at our Darlington facility caused by industrial action. As a result, we accelerated strategic plans to refocus the site into sustainable direct food packaging, manufacturing plastic replacement products, where there are strong growth opportunities, utilising fully recyclable, paper alternatives to plastic. 
We also implemented a strategic re-structuring programme at our Rawcliffe Bridge facility, centred upon the earlier investment in a state-of-the-art high-speed multi-colour precision Rotary Die Cut machine. Optimal print and die-cut quality and customer service is central to the site’s future strategic growth. 

Page 1

 
CEPAC LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
Economic and market risk
The cyclical nature of the paper industry provides challenges and risks that have to be managed, as clearly illustrated by the material cost increases in 2017 and 2018 then followed by reductions in 2019, then increases again towards the end of 2020 and unprecedented increases in 2021 and then sharp decreases during 2023. Paper prices softened through the first half of 2023 but then stabilised in the second half of the year. Market risk is associated with both competitor activity and the paper cycle. Economically, the major risk will be how market demand, changes in the supply chain, environmental considerations and especially inflation, impact consumer spending across all sections of the economy and inevitably influence demand for paper and corrugated packaging.
We continue to enjoy full support from our paper suppliers including new investment, as the very latest state-of-the-art paper making technology is being introduced. This is key to underpinning our own innovation. This has allowed us to protect and maintain margins in an environment of escalating costs, with the support of our employees, customers, suppliers and all stakeholders throughout 2023. Critically, it continues to ensure cost effective packaging solutions for our customer partners.  
Cepac are actively responding to environmental concerns through the use of new technology and process control combined with innovation in the form of performance packaging.
Operational continuity risk
The company works actively to continuously reduce the risk of events happening that could disrupt operations. Insurance policies are in place to mitigate financial risk and business continuity plans are formulated to safeguard customer service. Operational contingency from site to site continues to be reviewed and developed further where appropriate. Future strategic investments will support business growth and enhance operational contingency. 
Financial risk management objectives and policies
The company uses various financial instruments: these include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company’s operations. No transactions in derivatives take place and the main risks arising from these financial instruments are credit risk, interest rate risk, liquidity risk and currency risk.
Credit risk:
 
The company’s principal financial assets are its trade debtors, assessment and monitoring of existing and potential customers is undertaken in conjunction with underwriters with credit insurance in place to cover any potential losses.
Interest rate risk:

The company finances its operations through bank borrowings, which are all £STG denominated and therefore subject to UK interest rate movement. Funding is at fixed margin levels relative to base rate or LIBOR, dependent upon the type of facility. The Board keeps under review the potential for interest rate movement and any potential impact on debt servicing costs.



 
Page 2

 
CEPAC LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Liquidity risk:

The company has facilities in place that allow for drawdown of monies to operate the businesses and provide predictability of cash flow. Financing for major items of capital expenditure is being used to provide further balances and options in the company’s funding going forward. Our facilities leave ample funding headroom and there are significant approved plans for investment in carefully selected capital expenditure projects during 2024, which will support and drive future development of the business. The directors are committed to our objective of maintaining a strong balance sheet.
Currency risk:

Most paper purchases are denominated in £STG with a small percentage that is Euro denominated. This is effectively purchased at foreign exchange spot rates and will be closely monitored to ensure effectiveness and predictability. Other supplies bought, where necessary, in foreign currency are also paid at spot rate, the proportion and risk not being sufficiently material to require derivatives to manage the risk.

Financial key performance indicators
 
The company uses a number of financial measures to monitor progress against budgets, strategies and corporate objectives, with the main items summarised below:
Revenue - £126,144,727 (2022: £133,508,658).
Profit in the year - £5,226,217 (2022: £6,328,369).
Softening Paper prices were offset against significant material price increases seen in the year and were subsequently reflected in decreasing selling prices. The net effect was a maintenance of margins into 2024. Competitive activity and paper mill developments continue to influence selling and pricing decisions. In addition to financial measures, as a matter of the utmost priority the Board also monitors and proactively reviews Health, Safety and Environmental issues in all its operating units. This is and will remain a key management priority and the objective of all involved in the businesses is to continually improve the working environment to avoid or minimise any threats to the safety and wellbeing of our employees and the environment.


This report was approved by the board on 29 August 2024 and signed on its behalf.



S J Moss
Director

Page 3

 
CEPAC LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

R C Ainslie 
J A R Cook 
S Hollingsworth (resigned 31 May 2023)
N D Marsden 
D A S Anam 
M D A Saeed 
S J Moss 
C P Box 
C Ford (appointed 1 April 2023)
C Mason (appointed 1 April 2023)
S Gilder (appointed 1 December 2023)
A McDonald (appointed 1 December 2023

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £5,226,217 (2022 - £6,328,369).

Page 4

 
CEPAC LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Engagement with employees

The Company keeps its employees informed on matters affecting them as employees and on the performance of the Company through periodic meetings. Other information is distributed through publications such as the Annual Accounts, the Staff Handbook and the company Intranet. 

Disabled employees

It is the Company's policy that full consideration is given to applications for employment by disabled persons, having regard to the respective aptitudes and abilities of the applicant concerned. In the event of employees becoming disabled, continuity of employment and appropriate training is arranged where practicable. As far as possible, disabled employees are treated equally with other employees as regards training, career development and promotion.

Qualifying third party indemnity provisions

The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 5

 
CEPAC LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

Cepac operates from 4 manufacturing sites across the UK, the primary use of energy is within our corrugating and conversion process which require high volumes of heat and power respectively. We are striving to minimise our impact on the planet, and this will play a key part of our sustainable strategy going forward. 

The Company’s greenhouse gas emissions and energy consumption are as follows:

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Quantification & Reporting Methodology
The calculations in this report use the GHG Protocol methodology. In accordance with 2020 Government greenhouse gas conversion factors for company reporting - Methodology Paper for Conversion factors, the emissions factor for Grid Electricity scope 2 emissions resulting from ‘electricity generated’ was used to calculate emissions associated with electricity consumption. Cepac has opted to change methodology from tonnes CO2e/£ million turnover to using tonnes CO2e/100 KSM the Intensity Ratio for SECR reporting. This is to eliminate volatility based on pricing. 

 
Page 6

 
CEPAC LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Energy efficient actions taken in 2023
 
Installed a solar hot water tube to pre-heat water and reduce the load on the gas boilers.
Ink save project - saves ink/water (Gopfert print unit).
Air blower on Gopfert replaced with fan blower.
Reviewed performance of Samoa pneumatic pump trial and identified savings so that the trial can be extended in 2024.
Replace lighting in Compactor 3 area with LED fittings.
Progressed LED lighting replacement of new reel store.
Introduced monthly energy savings team meetings to help maintain focus on energy savings across the Darlington site, including installing a energy dashboard in the canteen displaying energy savings and provide energy related information.
Raised Capex for new “Essential control” BMS system upgrade.
Installed new variable speed compressor so that the compressor only runs to meet the required demand we require.
Completed energy monitoring on Corrugator and KBA so that energy monitoring equipment fitted on all high consuming machines.
Installed smaller pumps for the Starch system to reduced electricity consumption of air compressors.
Replaced warehousing lighting with LED lighting.

Further plans for 2024
 
Replace older Air Compressors.
Replace the air blower on the United machine with an energy efficient fan blower.
Replace compressed air pumps with Samoa air efficient / electric pumps.
Replace all machine lighting for the new corrugator with LED lighting.
Explore viability of battery storage of waste energy from production equipment, for example charge batteries using the waste energy from the electrical braking controls of the invertor drives.
Upgrade LED lighting control system in the conversion hall so that all light fittings are PIR controlled rather than being manually switched on/off.
Replace the corrugator with a sheet plant to reduce electricity consumption by an estimated 30%, LPG by 95% and compressed air by 50% and overall waste by 80%.
Consider revised process for collecting transport data in order to improve the accuracy of reporting.
Encourage staff on the company car scheme, staff using pool cars and staff completing substantial business travel in privately owned vehicles to attend eco-driver awareness session.
Promote meetings via teams/zoom to reduce business travel.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

This report was approved by the board on 29 August 2024 and signed on its behalf.
 





S J Moss
Director

Page 7

 
CEPAC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED
 

Opinion


We have audited the financial statements of Cepac Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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.


Page 8

 
CEPAC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 9

 
CEPAC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED)


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 an Auditors' 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:

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

the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations; and
through discussions with the directors and other management and from our commercial knowledge, we identified the laws and regulations applicable to the Company.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;
reviewed the general ledger entries during the year to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims;
considering relationships with HMRC and other relevant regulators; and
reviewing legal and professional costs to identify any indicators of litigation.

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

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they
Page 10

 
CEPAC LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED)


may involve deliberate concealment or collusion.


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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Andrew Irvine (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
Cedar House
63 Napier Street
Sheffield
South Yorkshire
S11 8HA

29 August 2024
Page 11

 
CEPAC LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
126,144,727
133,508,658

Cost of sales
  
(82,014,497)
(94,864,676)

Gross profit
  
44,130,230
38,643,982

Distribution costs
  
(7,139,995)
(6,083,534)

Administrative expenses
  
(29,340,727)
(26,664,685)

Other operating income
 5 
1,586,335
2,060,560

Exceptional items
 6 
(2,014,751)
-

Operating profit
 7 
7,221,092
7,956,323

Interest receivable and similar income
  
263,054
174,908

Interest payable and similar expenses
  
(567,457)
(185,922)

Profit before tax
  
6,916,689
7,945,309

Tax on profit
 11 
(1,690,472)
(1,616,940)

Profit after tax
  
5,226,217
6,328,369

  

  

Retained earnings at the beginning of the year
  
51,656,416
46,044,689

Profit for the year
  
5,226,217
6,328,369

Dividends declared and paid
  
(949,255)
(716,642)

Retained earnings at the end of the year
  
55,933,378
51,656,416
The notes on pages 17 to 33 form part of these financial statements.

Page 12

 
CEPAC LIMITED
REGISTERED NUMBER: 03373762

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
505,275
790,929

Tangible assets
 13 
44,920,744
28,515,826

Investments
 14 
2,707
-

  
45,428,726
29,306,755

Current assets
  

Stocks
 15 
7,652,370
8,443,904

Debtors: amounts falling due within one year
 16 
31,687,236
32,246,466

Cash at bank and in hand
  
4,515,698
9,868,415

  
43,855,304
50,558,785

Creditors: amounts falling due within one year
 17 
(18,970,296)
(14,922,024)

Net current assets
  
 
 
24,885,008
 
 
35,636,761

Total assets less current liabilities
  
70,313,734
64,943,516

Creditors: amounts falling due after more than one year
 18 
(407,273)
(922,828)

Provisions for liabilities
  

Deferred tax
 20 
(3,973,083)
(2,364,271)

Net assets
  
65,933,378
61,656,417


Capital and reserves
  

Called up share capital 
 21 
10,000,000
10,000,000

Profit and loss account
 22 
55,933,378
51,656,417

  
65,933,378
61,656,417


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 August 2024.




S J Moss
Director

The notes on pages 17 to 33 form part of these financial statements.

Page 13

 
CEPAC LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
5,226,217
6,328,369

Adjustments for:

Amortisation of intangible assets
408,130
1,370,362

Depreciation of tangible assets
2,749,907
3,091,441

Loss on disposal of tangible assets
-
(15,478)

Interest paid
567,457
185,922

Interest received
(263,054)
(174,908)

Taxation charge
1,690,472
1,616,940

Decrease/(increase) in stocks
791,534
(543,756)

Decrease/(increase) in debtors
2,435,716
(7,433,597)

(Decrease)/increase in creditors
(641,128)
3,985,818

Corporation tax (paid)
(1,958,147)
(1,258,804)

Net cash generated from operating activities

11,007,104
7,152,309


Cash flows from investing activities

Purchase of intangible fixed assets
-
(3,632)

Purchase of tangible fixed assets
(19,403,600)
(6,856,545)

Sale of tangible fixed assets
126,299
150,276

Purchase of fixed asset investments
(2,707)
-

Interest received
263,054
174,908

Net cash from investing activities

(19,016,954)
(6,534,993)
Page 14

 
CEPAC LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

New secured loans
2,155,082
1,270,697

Other new loans
-
29,598

Repayment of other loans
(637,028)
-

Movements on invoice discounting facility
-
1,100,057

Dividends paid
(949,255)
(716,642)

Interest paid
(567,457)
(185,922)

Net cash used in financing activities
1,342
1,497,788

Net (decrease)/increase in cash and cash equivalents
(8,008,508)
2,115,104

Cash and cash equivalents at beginning of year
8,526,111
6,411,007

Cash and cash equivalents at the end of year
517,603
8,526,111


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,515,698
9,868,415

Bank overdrafts
(3,998,095)
(1,342,304)

517,603
8,526,111


The notes on pages 17 to 33 form part of these financial statements.

Page 15

 
CEPAC LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
New loans & finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

9,868,415

(5,352,717)

-

4,515,698

Bank overdrafts

(1,342,304)

(2,655,791)

-

(3,998,095)

Debt due after 1 year

(922,828)

515,555

-

(407,273)

Debt due within 1 year

(2,322,741)

121,473

(2,155,082)

(4,356,350)


5,280,542
(7,371,480)
(2,155,082)
(4,246,020)

The notes on pages 17 to 33 form part of these financial statements.

Page 16

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Cepac Limited is a private company limited by shares, incorporated in England and Wales (registered number: 03373762). Its registered office is Prince Albert House, 2 Kingsmill Terrace, London, NW8 6BN.

The principal activity of the Company throughout the year continued to be that of the provision of design and production of corrugated packaging.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 17

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life.

Software costs

Software costs are initially recognised at cost and are transferred from assets under construction on completion of the capital project. After initial recognition, under the cost model, software costs are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10
years
Software
-
4
years

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 18

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property (excluding land)
-
40 years
Plant and machinery
-
4 to 20 years
Fixtures and fittings
-
4 to 10 years
Assets under construction
-
not depreciated

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Assets under construction
The amounts recorded as assets under construction reflect the cost value of ongoing capital projects that are not yet complete. Each capital project is assigned a project code in the accounting system, where all relevant costs are allocated as incurred. When a capital project is complete, it is transferred from assets under construction to the appropriate asset category and begins depreciation from the date the completed asset becomes available for use, according to the depreciation rates specified above.

 
2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.8

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 19

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Interest income

Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.

 
2.11

Borrowing costs

All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.

 
2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
 

 
2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 20

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.16

Current and deferred taxation

Tax is recognised in the Statement of Income and Retained Earnings. 

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Page 21

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include the carrying value of stocks and recoverability of debts. Although these estimates and associated assumptions are based on historical experience and management's best knowledge of current events and actions, the actual results may ultimately differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The stock policy is to provide a 50% on finished goods over 6 months old and 100% over 12 months. This approach is based on historical experience, ensuring stock valuation is accurate alongside active management of stock levels to ensure stock is rotated to minimise the provision.
Impairment of debtors is assessed with a variety of factors such as credit reports, ageing profile and historical recoverability levels. See the debtors note to the financial statements for the net carrying amounts of trade debtors, stated after the asssociated impairment provision. 


4.


Turnover

All turnover arose from the Company's principal activity and within the United Kingdom. All turnover relates to the sale of goods.


5.


Other operating income

2023
2022
£
£

Other operating income
1,586,335
1,853,838

Research and development expenditure credit
-
206,722

1,586,335
2,060,560



6.


Exceptional items

2023
2022
£
£


Redundancy and restructuring costs
2,014,751
-

As outlined in the strategic report, during the year the Company announced that it would be undertaking a restructuring exercise at a number of its operating sites. 

Page 22

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of owned tangible fixed assets
2,670,816
2,696,073

Depreciation of tangible fixed assets held under finance lease and hire purchase agreements
79,091
395,368

Amortisation of intangible assets, including goodwill
408,130
1,370,362

Other operating lease rentals
1,431,572
1,370,575

(Profit)/loss on sale of tangible fixed assets
-
(15,478)


8.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
46,250
40,650

Fees payable to the Company's auditor in respect of:

Tax compliance services
8,250
5,175

All other non-audit services not included above
2,000
3,000

Page 23

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
22,381,334
20,467,638

Social security costs
2,387,383
2,206,447

Cost of defined contribution scheme
1,289,492
1,227,844

26,058,209
23,901,929


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales
40
40



Production
374
390



Administration
111
95

525
525


10.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
1,345,960
954,601

Company contributions to defined contribution pension schemes
100,564
84,054

1,446,524
1,038,655


During the year retirement benefits were accruing to 7 directors (2022 - 7) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £375,063 (2022 - £371,716).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,086 (2022 - £20,619).

Page 24

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
174,547
1,109,502

Adjustments in respect of previous periods
(92,887)
(102,833)


Total current tax
81,660
1,006,669

Deferred tax


Origination and reversal of timing differences
1,516,358
610,271

Adjustments in respect of prior periods
92,454
-

Total deferred tax
1,608,812
610,271


Tax charge
1,690,472
1,616,940

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the calculated rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
6,916,689
7,945,309


Profit on ordinary activities multiplied by the calculated rate of corporation tax in the UK of 23.52% (2022 - 19%)
1,626,843
1,509,609

Effects of:


Expenses not deductible for tax purposes
9,556
10,795

Additional deduction for land remediation expenditure
(4,107)
(2,870)

Adjustments to tax charge in respect of prior periods - corporation tax
(92,887)
(102,833)

Adjustments to tax charge in respect of prior periods - deferred tax
92,454
-

Remeasurement of deferred tax for changes in tax rates
89,735
103,423

Fixed asset differences
(31,122)
(80,526)

Movement in deferred tax not recognised
-
179,342

Total tax charge for the year
1,690,472
1,616,940

Page 25

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Intangible assets




Software costs
Goodwill
Total

£
£
£



Cost


At 1 January 2023
2,282,727
11,964,282
14,247,009


Transfer between classes
122,476
-
122,476



At 31 December 2023

2,405,203
11,964,282
14,369,485



Amortisation


At 1 January 2023
1,731,125
11,724,955
13,456,080


Charge for the year on owned assets
245,595
162,535
408,130



At 31 December 2023

1,976,720
11,887,490
13,864,210



Net book value



At 31 December 2023
428,483
76,792
505,275



At 31 December 2022
551,602
239,327
790,929



Page 26

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Assets under construction
Total

£
£
£
£
£



Cost


At 1 January 2023
10,526,820
51,644,685
3,162,127
5,253,659
70,587,291


Additions
-
-
-
19,403,600
19,403,600


Disposals
-
(169,103)
(952)
-
(170,055)


Transfers between classes
1,436,581
2,644,619
308,814
(4,512,490)
(122,476)



At 31 December 2023

11,963,401
54,120,201
3,469,989
20,144,769
89,698,360



Depreciation


At 1 January 2023
782,324
39,176,873
2,112,268
-
42,071,465


Charge for the year on owned assets
245,918
2,339,157
164,832
-
2,749,907


Disposals
-
(43,740)
(16)
-
(43,756)



At 31 December 2023

1,028,242
41,472,290
2,277,084
-
44,777,616



Net book value



At 31 December 2023
10,935,159
12,647,911
1,192,905
20,144,769
44,920,744



At 31 December 2022
9,744,497
12,467,812
1,049,859
5,253,659
28,515,827

Included in freehold property is freehold land totalling £2,580,000 (2022: £2,580,000) that is not depreciated.



The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
1,488,548
4,139,724

Page 27

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost


Additions
2,707



At 31 December 2023
2,707





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Flutepack Bidco Limited
Prince Albert House, 2 Kingsmill Terrace, London, United Kingdom, NW8 6BN
A Ordinary
75%

Page 28

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Stocks

2023
2022
£
£

Raw materials and consumables
5,755,642
5,989,003

Work in progress
375,582
383,904

Finished goods and goods for resale
1,521,146
2,070,997

7,652,370
8,443,904


The carrying value of stocks are stated net of impairment losses totalling £2,232,636 (2022: £2,356,345). Impairment losses totalling £112,446 (2022: £157,872) were recognised in the Statement of Income and Retained Earnings.


16.


Debtors

2023
2022
£
£


Trade debtors
25,009,329
29,404,778

Amounts owed by subsidiary undertakings
1,076,989
-

Amounts owed by parent company
1,644,196
-

Other debtors
285,134
847,274

Prepayments and accrued income
1,546,537
1,745,850

Tax recoverable
2,125,051
248,564

31,687,236
32,246,466


Page 29

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
3,998,095
1,342,304

Bank loans
3,894,446
1,685,713

Net obligations under finance leases and hire purchase contracts
461,904
637,028

Trade creditors
4,905,845
7,040,406

Amounts owed to group undertakings
2,708
-

Other taxation and social security
2,221,052
2,201,361

Accruals and deferred income
3,486,246
2,015,212

18,970,296
14,922,024


Bank overdrafts are secured by a fixed and floating charge over the relevant properties and the Company's assets. 
Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate. 


18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
-
53,651

Net obligations under finance leases and hire purchase contracts
407,273
869,177

407,273
922,828


Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate. 

Page 30

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Borrowings


Analysis of the maturity of loans and finance leases is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
3,894,446
1,685,713

Finance leases
461,904
637,028


4,356,350
2,322,741

Amounts falling due 1-2 years

Bank loans
-
53,651

Finance leases
407,273
461,904


407,273
515,555

Amounts falling due 2-5 years

Finance leases
-
407,273


-
407,273


Total borrowings
4,763,623
3,245,569


Page 31

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Deferred taxation




2023


£






At beginning of year
2,364,271


Charged to profit or loss
1,608,812



At end of year
3,973,083

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Excess of taxation allowances over depreciation of fixed assets
4,039,009
2,476,373

Other timing differences
(65,926)
(112,102)

3,973,083
2,364,271


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,000,000 (2022 - 10,000,000) Ordinary shares shares of £1.00 each
10,000,000
10,000,000



22.


Reserves

Profit and loss account

Includes all current and prior retained profits and losses.


23.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted £1,289,492 (2022: £1,227,843). Contributions totaling £204,883 (2022: £187,291) were payable to the fund at the balance sheet date and are included in creditors.

Page 32

 
CEPAC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£

Land and buildings


Not later than 1 year
870,000
870,000

Later than 1 year and not later than 5 years
1,742,384
2,612,384

2,612,384
3,482,384

2023
2022

£
£

Other


Not later than 1 year
356,403
517,116

Later than 1 year and not later than 5 years
553,228
459,888

909,631
977,004


25.Guarantees

The Company has an arrangement with HMRC is respect of duty deferment. The amount guaranteed is £100,000 (2022: £100,000)


26.


Related party transactions

The Company has chosen to take the exemption from the requirement to disclose transactions with other group companies on the basis that it is a wholly owned subsidiary and its results are consolidated in that of the parent company.

The directors represent key management personnel for the purposes of the FRS 102 related party requirements and their compensation is disclosed in note 10.

Services of £50,732 (2022: £52,007) were provided to the company from a consultant who is a close family member of a director. The amount owed by the company at the year end is £NIL (2022: £NIL).

27.


Controlling party

Capital House Investment Limited owns 100% of the share capital of Europa Holdings Limited, which in turn owns 100% of the share capital of Cepac Limited. Both Capital House Investment Limited and Europa Holdings Limited are incorporated in the Cayman Islands.

 
Page 33