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Company Registration number: 01651229

Abpac Limited

Annual Report and Financial Statements

for the Year Ended 29 February 2024

 

Abpac Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 26

 

Abpac Limited

Company Information

Directors

Mr F A L Marx

Mr F J Wingfield-Digby

Mr G A Hill

Company secretary

Mr K Brownhill

Registered office

Abpac House
Wessex Way
Wincanton Business Park
Wincanton
Somerset
BA9 9RR

Auditors

Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

 

Abpac Limited

Strategic Report for the Year Ended 29 February 2024

The directors present their strategic report for the year ended 29 February 2024.

Principal activity

The principal activity of the company is selling and distribution of packaging.

Fair review of the business

Abpac is a wholesaler and distributor of bakery packaging, which is sold into the bakery and butchery sectors.

Turnover reduced very slightly in the year, as the company consolidated its product offering. The Board are optimistic that turnover will increase in future years.

Abpac continues to offer bespoke products to its customers & this sector continues to expand.

Equality, diversity and inclusion

Abpac welcomes applications from all backgrounds as it believes an inclusive culture is beneficial for all.

Abpac is committed to promoting working environment based on dignity, trust and respect and is free from harassment, bullying, victimisation, and discrimination.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Profit before tax margin

%

13

14

Stock days

Days

48

51

Trade debtor days

Days

38

41

The directors do not consider there are any other appropriate non-financial KPIs relevant to the understanding of the business.

Principal risks and uncertainties

Cash flow risk - the directors review facilities on a regular basis.

Credit risk - Abpac operates in a highly competitive market and uses the facilities of credit agencies in estimating risk and operates a rigorous credit control system.

Competition risk - Abpac operates in a very competitive market, this can lead to downward pressure on prices.

Interest rate risk - Abpac minimises net interest expense.

Currency risk - Abpac has very little currency exposure, but mitigates this by offsetting currency income wherever possible.

Material supplies risk - Abpac recognises it has material supplies risk and mitigates this as much as possible by increasing stock holdings where necessary.

 

Abpac Limited

Strategic Report for the Year Ended 29 February 2024

Approved by the Board on 6 September 2024 and signed on its behalf by:


Mr F A L Marx
Director

   
 

Abpac Limited

Directors' Report for the Year Ended 29 February 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr F A L Marx

Mr F J Wingfield-Digby

Mr G A Hill

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Financial instruments

Objectives and policies

The company's financial instruments comprise bank balances, trade debtors, trade creditors and lease purchase finance agreements. The main purpose of these instruments is to maintain funds to finance the group's operations.

Price risk, credit risk, liquidity risk and cash flow risk

In respect of bank balances, the liquidity risk is managed through treasury management in respect of cash balances with the use of a deposit account and fixed term deposits as necessary.

Trade debtors are managed by policies concerning the credit offering to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due.

Lease purchase finance agreement liquidity risk is managed in the same way as trade creditors above.

Future Developments

The future developments of the business are included within the strategic report.

Approved by the Board on 6 September 2024 and signed on its behalf by:


Mr F A L Marx
Director

   
 

Abpac Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

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

 

Abpac Limited

Independent Auditor's Report to the Members of Abpac Limited

Qualified opinion

We have audited the financial statements of Abpac Limited (the 'company') for the year ended 29 February 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

give a true and fair view of the state of the company's affairs as at 29 February 2024 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 qualified opinion on financial statements

We were not the auditors of the company for the year ended 28 February 2023 and thus did not observe the counting of physical stock at the end of the previous year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 28 February 2023, which are included in the profit and loss account and balance sheet at £1,303,886 by using other audit procedures. Consequently, we were unable to determine whether this amount was materially correct and if any adjustment to this amount was necessary.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

The prior period financial statements were not audited because the entity was under the audit threshold and did not elect to have a voluntary audit.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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.

 

Abpac Limited

Independent Auditor's Report to the Members of Abpac Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Except for the matter described in the basis for qualified opinion section of our report, in the light of our 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 and the Directors' Report.

Matters on which we are required to report by exception

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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.

 

Abpac Limited

Independent Auditor's Report to the Members of Abpac Limited

Auditor 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:

The extent to which the audit was considered capable of detecting irregularities including fraud

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 partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the packaging sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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;

tested journal entries 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.

 

Abpac Limited

Independent Auditor's Report to the Members of Abpac Limited

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; and

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

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 other 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 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 auditor's 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 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.





Joseph Doggrell FCA BSc (Hons) (Senior Statutory Auditor)
For and on behalf of Albert Goodman LLP, Statutory Auditor

Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

10 September 2024

 

Abpac Limited

Profit and Loss Account
for the Year Ended 29 February 2024

Note

2024
 £

2023
 £

Turnover

3

13,099,926

13,368,397

Cost of sales

 

(8,941,045)

(9,344,862)

Gross profit

 

4,158,881

4,023,535

Distribution costs

 

(279,920)

(346,777)

Administrative expenses

 

(2,255,499)

(1,793,504)

Operating profit

4

1,623,462

1,883,254

Other interest receivable and similar income

5

29,494

28

Interest payable and similar charges

6

(6,919)

(1,102)

Profit before tax

 

1,646,037

1,882,180

Taxation

10

(404,422)

(297,425)

Profit for the financial year

 

1,241,615

1,584,755

The above results were derived from continuing operations.

 

Abpac Limited

Statement of Comprehensive Income
for the Year Ended 29 February 2024

2024
£

2023
£

Profit for the year

1,241,615

1,584,755

Total comprehensive income for the year

1,241,615

1,584,755

 

Abpac Limited

(Registration number: 01651229)
Balance Sheet as at 29 February 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

10,770

-

Tangible assets

12

277,602

338,558

 

288,372

338,558

Current assets

 

Stocks

13

1,173,924

1,303,886

Debtors

14

4,339,863

3,780,598

Cash at bank and in hand

 

1,832,575

1,711,864

 

7,346,362

6,796,348

Creditors: Amounts falling due within one year

16

(1,773,762)

(1,810,998)

Net current assets

 

5,572,600

4,985,350

Total assets less current liabilities

 

5,860,972

5,323,908

Creditors: Amounts falling due after more than one year

16

(39,589)

(86,962)

Provisions for liabilities

17

(57,326)

(64,504)

Net assets

 

5,764,057

5,172,442

Capital and reserves

 

Called up share capital

12,000

12,000

Retained earnings

5,752,057

5,160,442

Shareholders' funds

 

5,764,057

5,172,442

Approved and authorised by the Board on 6 September 2024 and signed on its behalf by:
 


Mr F A L Marx
Director

   
 

Abpac Limited

Statement of Changes in Equity
for the Year Ended 29 February 2024

Share capital
£

Retained earnings
£

Total
£

At 1 March 2023

12,000

5,160,442

5,172,442

Profit for the year

-

1,241,615

1,241,615

Dividends

-

(650,000)

(650,000)

At 29 February 2024

12,000

5,752,057

5,764,057

Share capital
£

Retained earnings
£

Total
£

At 1 March 2022

12,000

3,575,687

3,587,687

Profit for the year

-

1,584,755

1,584,755

At 28 February 2023

12,000

5,160,442

5,172,442

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Abpac House
Wessex Way
Wincanton Business Park
Wincanton
Somerset
BA9 9RR
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Summary of disclosure exemptions

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

Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;

Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;

Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

Section 33 'Related Party Disclosures' - Compensation for key management personnel.

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

Name of parent of group

These financial statements are consolidated in the financial statements of Kentra Bay Holdings Limited.

The financial statements of Kentra Bay Holdings Limited may be obtained from Companies House.

Going concern

The financial statements have been prepared on a going concern basis.

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

Tangible assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings 10 - 50 years straight line
Plant and machinery etc. 15 - 25 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

10% straight line

Furniture, fittings and equipment

15% reducing balance

Motor vehicles

25% straight line

Plant and machinery

25% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Software costs

10 years straight line basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

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 payments obligations.

The contributions are recognised as an expense in the profit and loss account 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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

13,099,926

13,367,983

Other revenue

-

414

13,099,926

13,368,397

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

82,897

77,443

Foreign exchange losses

278

4,354

Operating lease expense - plant and machinery

32,257

8,827

Profit on disposal of property, plant and equipment

(18,843)

(2,515)

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

29,494

28

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

-

71

Interest on obligations under finance leases and hire purchase contracts

6,919

1,031

6,919

1,102

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,285,276

1,407,916

Social security costs

123,946

144,016

Pension costs, defined contribution scheme

31,272

31,469

Other employee expense

41,491

2,340

1,481,985

1,585,741

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

44

49

44

49

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

197,513

185,116

Contributions paid to money purchase schemes

5,925

5,877

203,438

190,993

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Received or were entitled to receive shares under long term incentive schemes

3

3

In respect of the highest paid director:

2024
£

2023
£

Remuneration

96,414

96,564

Company contributions to money purchase pension schemes

2,892

2,897

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

10,500

-


 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

411,600

283,965

Deferred taxation

Arising from origination and reversal of timing differences

(7,178)

13,460

Tax expense in the income statement

404,422

297,425

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 24.5% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,646,037

1,882,180

Corporation tax at standard rate

403,279

357,614

Tax increase/(decrease) from effect of capital allowances and depreciation

8,553

(16,163)

Effect of expense not deductible in determining taxable profit (tax loss)

399

191

Effect of tax losses

-

(57,296)

Tax (decrease)/increase from other tax effects

(7,809)

13,079

Total tax charge

404,422

297,425

11

Intangible assets

Goodwill
 £

Internally generated software development costs
 £

Total
£

Cost or valuation

At 1 March 2023

14,000

-

14,000

Additions acquired separately

-

10,770

10,770

At 29 February 2024

14,000

10,770

24,770

Amortisation

At 1 March 2023

14,000

-

14,000

At 29 February 2024

14,000

-

14,000

Carrying amount

At 29 February 2024

-

10,770

10,770

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

12

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 March 2023

23,293

397,561

469,986

134,309

1,025,149

Additions

-

-

57,671

-

57,671

Disposals

-

-

(131,603)

-

(131,603)

At 29 February 2024

23,293

397,561

396,054

134,309

951,217

Depreciation

At 1 March 2023

8,219

338,167

219,355

120,850

686,591

Charge for the year

2,232

10,562

66,352

3,751

82,897

Eliminated on disposal

-

-

(95,873)

-

(95,873)

At 29 February 2024

10,451

348,729

189,834

124,601

673,615

Carrying amount

At 29 February 2024

12,842

48,832

206,220

9,708

277,602

At 28 February 2023

15,074

59,394

250,631

13,459

338,558

Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of freehold land and buildings and £12,842 (2023 - £15,074) in respect of short leasehold land and buildings.
 

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

13

Stocks

2024
£

2023
£

Stock

1,173,924

1,303,886

14

Debtors

Current

2024
£

2023
£

Trade debtors

1,357,802

1,510,097

Other debtors

6,635

3,070

Prepayments

58,358

70,129

Amounts owed by group undertakings

2,917,068

2,197,302

 

4,339,863

3,780,598

15

Cash and cash equivalents

2024
£

2023
£

Cash on hand

-

173

Cash at bank

1,832,575

1,711,691

1,832,575

1,711,864

16

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

18

47,428

19,029

Trade creditors

 

1,270,465

1,326,715

Social security and other taxes

 

225,299

218,683

Outstanding defined contribution pension costs

 

8,541

8,633

Accrued expenses

 

74,449

66,958

Corporation tax

10

147,580

170,980

 

1,773,762

1,810,998

Due after one year

 

Loans and borrowings

18

39,589

86,962

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2023

64,504

64,504

Increase (decrease) in existing provisions

(7,178)

(7,178)

At 29 February 2024

57,326

57,326

Deferred tax

Deferred tax assets and liabilities:

2024

Asset
£

Liability
£

Accelerated capital allowances

-

57,331

Other timing differences

6

-

6

57,331

2023

Asset
£

Liability
£

Accelerated capital allowances

-

68,936

Other timing differences

4,432

-

4,432

68,936

18

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Hire purchase contracts

47,428

19,029

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

39,589

86,962

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

19

Obligations under leases and hire purchase contracts

Finance leases

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Finance leases of £87,017 (2023 - £105,991) have been secured against the assets to which they relate.

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

47,428

19,029

Later than one year and not later than five years

39,589

86,962

87,017

105,991

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

248,795

244,814

Later than one year and not later than five years

787,846

856,510

Later than five years

198,144

357,516

1,234,785

1,458,840

The amount of non-cancellable operating lease payments recognised as an expense during the year was £247,829 (2023 - £244,380).

20

Related party transactions

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

301,605

298,755

Post-employment benefits

7,467

7,389

309,072

306,144

Summary of transactions with parent

The company has taken advantage of the exemption in FRS 102 paragraph 33.1A from disclosing transactions and balances with its parent company on the grounds it is a wholly owned subsidiary.
 

 

Abpac Limited

Notes to the Financial Statements
for the Year Ended 29 February 2024

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £31,272 (2023 - £31,469).

Contributions totalling £8,541 (2023 - £8,633) were payable to the scheme at the end of the year and are included in creditors.