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COMPANY REGISTRATION NUMBER: 02229806
Sandland Packaging Limited
Financial Statements
31 December 2023
Sandland Packaging Limited
Financial Statements
Year ended 31 December 2023
Contents
Pages
Officers and professional advisers
1
Strategic report
2
Directors' report
3 to 4
Independent auditor's report to the members
5 to 8
Statement of income and retained earnings
9
Statement of financial position
10 to 11
Statement of cash flows
12
Notes to the financial statements
13 to 22
Sandland Packaging Limited
Officers and Professional Advisers
The board of directors
Mrs J Hickman
Mr R Welch
Mr M Hickman
Mr A Batha
Registered office
Unit 5, Phoenix Industrial Estate
Loxdale Street
Bilston
West Midlands
WV14 0PR
Auditor
BSN Associates Limited
Chartered accountants & statutory auditor
3B Swallowfield Courtyard
Wolverhampton Road
Oldbury
West Midlands
B69 2JG
Sandland Packaging Limited
Strategic Report
Year ended 31 December 2023
Principal activity The principal activity of the Company during the year was the manufacture of Carbon Neutral bespoke cardboard boxes for both end users and merchants Our business is built on the three principles of - Passion - Excellence - Trust Business review The results for the year show a profit before taxation of £1,147,706 compared to £177,230 in 2022. Turnover was £10,737,472 compared to £10,591,457 in 2022, which is an increase of 1.4%. The directors are satisfied with the performance of the Company during the year. Principal risks and uncertainties The principal risks and uncertainties affecting the business include the following: Credit risk - the Company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of mitigation of credit risk. Disaster risk - the Company has adequate insurance, back up procedures and fire alarms in place to mitigate the risk of disaster or fire. The only uncertainties affecting the business currently are the increasing energy costs. Employees The Company is committed to providing training and development to its employees to ensure that they are working within a safe working environment. Environmental matters The company is proud to be carbon neutral, holding ISO 9001 and 14001 quality management certificates. The company also ensures it has minimal impact on the environment by partaking in the One Tree Planted scheme and has a bronze ecovadis sustainability rating.
This report was approved by the board of directors on 11 September 2024 and signed on behalf of the board by:
Mrs J Hickman
Mr M Hickman
Director
Director
Registered office:
Unit 5, Phoenix Industrial Estate
Loxdale Street
Bilston
West Midlands
WV14 0PR
Sandland Packaging Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mrs J Hickman
Mr R Welch
Mr M Hickman
Mr A Batha
Dividends
The directors do not recommend the payment of a dividend.
Future developments
The directors believe that there are no significant future developments that will impact the company.
Disclosure of information in the strategic report
The strategic report is set out on page 2 of these financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 11 September 2024 and signed on behalf of the board by:
Mrs J Hickman
Mr M Hickman
Director
Director
Registered office:
Unit 5, Phoenix Industrial Estate
Loxdale Street
Bilston
West Midlands
WV14 0PR
Sandland Packaging Limited
Independent Auditor's Report to the Members of Sandland Packaging Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of Sandland Packaging Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the 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, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We have audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also made enquiries of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Hannah Justice FCA FCCA
(Senior Statutory Auditor)
For and on behalf of
BSN Associates Limited
Chartered accountants & statutory auditor
3B Swallowfield Courtyard
Wolverhampton Road
Oldbury
West Midlands
B69 2JG
11 September 2024
Sandland Packaging Limited
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
10,737,472
10,591,457
Cost of sales
7,140,051
7,904,772
-------------
-------------
Gross profit
3,597,421
2,686,685
Distribution costs
331,911
341,881
Administrative expenses
1,892,039
1,792,391
------------
------------
Operating profit
5
1,373,471
552,413
Interest payable and similar expenses
8
225,765
375,183
------------
------------
Profit before taxation
1,147,706
177,230
Tax on profit
9
183,589
6,576
------------
---------
Profit for the financial year and total comprehensive income
964,117
170,654
------------
---------
Retained earnings at the start of the year
5,325,209
5,154,555
------------
------------
Retained earnings at the end of the year
6,289,326
5,325,209
------------
------------
All the activities of the company are from continuing operations.
Sandland Packaging Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
11
1,070,765
1,082,360
Current assets
Stocks
12
431,188
397,362
Debtors
13
7,511,951
6,807,781
Cash at bank and in hand
134,612
57,588
------------
------------
8,077,751
7,262,731
Creditors: amounts falling due within one year
14
2,491,929
2,630,722
------------
------------
Net current assets
5,585,822
4,632,009
------------
------------
Total assets less current liabilities
6,656,587
5,714,369
Creditors: amounts falling due after more than one year
15
138,958
249,061
Provisions
Taxation including deferred tax
17
227,303
139,099
------------
------------
Net assets
6,290,326
5,326,209
------------
------------
Sandland Packaging Limited
Statement of Financial Position (continued)
31 December 2023
2023
2022
Note
£
£
£
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss account
22
6,289,326
5,325,209
------------
------------
Shareholders funds
6,290,326
5,326,209
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 11 September 2024 , and are signed on behalf of the board by:
Mrs J Hickman
Mr M Hickman
Director
Director
Company registration number: 02229806
Sandland Packaging Limited
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
964,117
170,654
Adjustments for:
Depreciation of tangible assets
261,413
274,501
Interest payable and similar expenses
225,765
375,183
(Gains)/loss on disposal of tangible assets
(21,826)
2,527
Tax on profit
183,589
6,576
Changes in:
Stocks
( 33,826)
90,081
Trade and other debtors
105,830
( 449,106)
Trade and other creditors
( 470,101)
777,999
------------
------------
Cash generated from operations
1,214,961
1,248,415
Interest paid
( 225,765)
( 375,183)
Tax received
640
3,992
------------
------------
Net cash from operating activities
989,836
877,224
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 266,047)
( 592,514)
Proceeds from sale of tangible assets
38,055
------------
------------
Net cash used in investing activities
( 227,992)
( 592,514)
------------
------------
Cash flows from financing activities
Repayments of borrowings
( 565,810)
( 100,000)
Payments of finance lease liabilities
( 119,010)
( 248,803)
------------
------------
Net cash used in financing activities
( 684,820)
( 348,803)
------------
------------
Net increase/(decrease) in cash and cash equivalents
77,024
( 64,093)
Cash and cash equivalents at beginning of year
57,588
121,681
---------
---------
Cash and cash equivalents at end of year
134,612
57,588
---------
---------
Sandland Packaging Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 5, Phoenix Industrial Estate, Loxdale Street, Bilston, West Midlands, WV14 0PR.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are those relating to the absorption of labour and overheads into the valuation of stock. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate to the estimated useful lives of tangible fixed assets.
Revenue recognition
Turnover represents sales of goods net of VAT and trade discounts. Turnover is recognised when the goods are physically delivered to the customer.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold property
-
15% straight line
Plant & Machinery
-
10% to 15% straight line
Fixtures and fittings
-
15% straight line
Motor vehicles
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stock is valued at the lower of cost and net realisable value. Cost is determined on an average cost basis. Net realisable value represents estimated selling price less costs to complete and sell. Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
10,737,472
10,591,457
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
261,413
274,501
(Gains)/loss on disposal of tangible assets
( 21,826)
2,527
Impairment of trade debtors
33,297
24,000
---------
---------
6. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
67
72
Administrative staff
16
16
----
----
83
88
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,452,572
2,260,913
Pension costs
42,303
38,968
------------
------------
2,494,875
2,299,881
------------
------------
7. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
293,836
266,667
Company contributions to defined contribution pension plans
3,963
3,963
---------
---------
297,799
270,630
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
3
3
----
----
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
94,973
86,200
Company contributions to defined contribution pension plans
1,321
1,321
--------
--------
96,294
87,521
--------
--------
8. Interest payable and similar expenses
2023
2022
£
£
Interest on obligations under finance leases and hire purchase contracts
15,272
9,305
Other interest payable and similar charges
210,493
365,878
---------
---------
225,765
375,183
---------
---------
9. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
95,385
Adjustments in respect of prior periods
( 638)
--------
----
Total current tax
95,385
( 638)
--------
----
Deferred tax:
Origination and reversal of timing differences
88,204
7,214
---------
-------
Tax on profit
183,589
6,576
---------
-------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,147,706
177,230
------------
---------
Profit on ordinary activities by rate of tax
269,947
33,674
Effect of expenses not deductible for tax purposes
3,707
918
Effect of capital allowances and depreciation
( 903)
( 28,016)
Utilisation of tax losses
( 7,385)
Research and development
(128,322)
Effect of change in rate of deferred tax
46,545
------------
---------
Tax on profit
183,589
6,576
------------
---------
10. Intangible assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
220,488
---------
Amortisation
At 1 January 2023 and 31 December 2023
220,488
---------
Carrying amount
At 31 December 2023
---------
At 31 December 2022
---------
11. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
161,742
2,507,397
52,703
476,627
3,198,469
Additions
20,430
152,273
6,694
86,650
266,047
Disposals
( 59,048)
( 59,048)
---------
------------
--------
---------
------------
At 31 December 2023
182,172
2,659,670
59,397
504,229
3,405,468
---------
------------
--------
---------
------------
Depreciation
At 1 January 2023
110,552
1,556,631
51,618
397,308
2,116,109
Charge for the year
9,281
212,279
496
39,357
261,413
Disposals
( 42,819)
( 42,819)
---------
------------
--------
---------
------------
At 31 December 2023
119,833
1,768,910
52,114
393,846
2,334,703
---------
------------
--------
---------
------------
Carrying amount
At 31 December 2023
62,339
890,760
7,283
110,383
1,070,765
---------
------------
--------
---------
------------
At 31 December 2022
51,190
950,766
1,085
79,319
1,082,360
---------
------------
--------
---------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 31 December 2023
338,775
55,967
394,742
---------
--------
---------
At 31 December 2022
425,895
65,090
490,985
---------
--------
---------
12. Stocks
2023
2022
£
£
Raw materials and consumables
431,188
397,362
---------
---------
13. Debtors
2023
2022
£
£
Trade debtors
2,174,472
2,262,001
Amounts owed by group undertakings
5,259,080
4,429,836
Corporation tax repayable
68,546
Other debtors
78,399
47,398
------------
------------
7,511,951
6,807,781
------------
------------
The debtors above include the following amounts falling due after more than one year:
2023
2022
£
£
Amounts owed by group undertakings
5,259,080
4,429,836
------------
------------
14. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
417,873
157,016
Trade creditors
1,174,079
1,799,658
Accruals and deferred income
448,886
313,537
Corporation tax
96,025
Social security and other taxes
219,704
192,060
Obligations under finance leases and hire purchase contracts
127,256
152,830
Director loan accounts
7,324
4,252
Other creditors
782
11,369
------------
------------
2,491,929
2,630,722
------------
------------
Hire purchase obligations are secured against the specific assets they finance and carry interest at varying rates. Overdrafts and loans are secured by debenture over the company's assets.
The invoice discounting facility is secured by a fixed charge over the assets of the Company.
15. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
16,667
Obligations under finance leases and hire purchase contracts
138,958
232,394
---------
---------
138,958
249,061
---------
---------
Hire purchase obligations are secured against the specific assets they finance and carry interest at varying rates.
There is a fixed charge registered in the name of Sandland Packaging Limited , secured over the assets of Sandland Packaging Limited , that relates to the ultimate parent company.
16. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
127,256
152,830
Later than 1 year and not later than 5 years
138,958
232,394
---------
---------
266,214
385,224
---------
---------
17. Provisions
Deferred tax (note 18)
£
At 1 January 2023
139,099
Additions
88,204
---------
At 31 December 2023
227,303
---------
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 17)
227,303
139,099
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
227,303
180,025
Unused tax losses
( 40,744)
Pension plan obligations
( 182)
---------
---------
227,303
139,099
---------
---------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 42,303 (2022: £ 38,968 ).
20. Financial instruments
Financial assets recognised at cost compromise cash at bank, trade and other debtors and amounted to £2,177,782 (2022 - £2,331,584). Financial liabilities recognised at amortised cost compromise bank loans and overdrafts, trade creditors, hire purchase liabilities and other creditors and amounted to £1,866,912 (2022 - £2,374,186).
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
1,000
1,000
1,000
1,000
-------
-------
-------
-------
22. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
57,588
77,024
134,612
Debt due within one year
(314,098)
(238,355)
(552,453)
Debt due after one year
(249,061)
110,103
(138,958)
---------
---------
---------
( 505,571)
( 51,228)
( 556,799)
---------
---------
---------
Sandland Packaging Limited
Notes to the Financial Statements (continued)
Year ended 31 December 2023
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
158,000
158,000
Later than 1 year and not later than 5 years
398,000
476,000
Later than 5 years
80,000
160,000
---------
---------
636,000
794,000
---------
---------
25. Related party transactions
During the year the company was invoiced for consultancy services of £51,243 (2022: £42,458) by Mr R Welch , a director of the company. At the balance sheet date £7,324 was due to Mr R Welch (2022: £4,252). The company also received consultancy services of £90,000 (2022: £90,000) and had an outstanding trade creditor balance of £Nil (2022: £7,500) to GIL Investments Limited, a shareholder of Sandland Packaging Holdings Limited, the ultimate parent company.
26. Controlling party
The company's parent undertaking is Sandland Packaging Group Limited, a company incorporated in England and Wales. The ultimate parent undertaking is Sandland Packaging Holdings Limited, a company incorporated in England and Wales.