IRIS Accounts Production v24.2.0.383 02374363 Board of Directors Board of Directors 1.2.23 31.12.23 31.12.23 cardboard packaging manufacturers. true false true true false false true true true true false 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REGISTERED NUMBER: 02374363 (England and Wales)


































Strategic Report,

Report of the Directors and

Financial Statements

for the period

1 February 2023 to 31 December 2023

for

DURHAM BOX COMPANY LIMITED

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)






Contents of the Financial Statements
for the period 1 February 2023 to 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


DURHAM BOX COMPANY LIMITED

Company Information
for the period 1 February 2023 to 31 December 2023







DIRECTORS: D C Morris
G A O'Callaghan
D J Richardson



REGISTERED OFFICE: Auckland Crescent
St Helens Auckland
Bishop Auckland
Co. Durham
DL14 9AD



REGISTERED NUMBER: 02374363 (England and Wales)



AUDITORS: Mitchells Grievson Limited
Kensington House
3 Kensington
Bishop Auckland
Co. Durham
DL14 6HX



BANKERS: National Westminster Bank plc
28 Market Place
Barnard Castle
Co. Durham
DL12 8NB

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Strategic Report
for the period 1 February 2023 to 31 December 2023

The directors present their strategic report for the period 1 February 2023 to 31 December 2023.

REVIEW OF BUSINESS
The principal activity of the company in the year under review was the manufacture of corrugated cardboard packaging.

A significant development during this period was the sale of shares to Logson Holdings Limited by two outgoing Directors and shareholders. Logson Holdings Limited became majority shareholder (67%) through the purchase of the shares of Michael Morris and Susan Morris. The remaining Director, Daniel Morris, retained a 33% shareholding and remains in position as Managing Director.

To align the financial year with that of the parent company, the financial year was changed to have a year ending date of 31st December, resulting in a shorter period of 11 months.

Financial results for the period ended 31st December 2023 show a profit before tax of £3,257,300 (year to 31st January 2023 - £1,405,403), and net assets of £11,229,519 (year to 31st January 2023 - £8,009,956). Return on Capital Employed for the period was 29.39% (year to 31st January 2023 - 12.02%)

Demand from customers gradually improved throughout the year compared to the year previous, with volume of packaging sold increasing by around 8%. Revenue during this period increased by 6%, indicating a slight fall in selling price which resulted from a fall in material prices earlier in the year.

Staffing costs reduced during the year due to a restructuring resulting in part from the change of ownership.

These reduced costs, combined with improved efficiencies and a continued move towards digital production, have led to an improvement in gross profit margin and a higher profit before tax compared with the previous year.

Given that overall trade in the corrugated industry was somewhat subdued throughout this period, the Directors are satisfied with the performance of the business during the year.

PRINCIPAL RISKS AND UNCERTAINTIES
There remains significant uncertainty about the state of the economy and as the year concluded, the UK economy was deemed to be in recession. The demand for corrugated products is intrinsically linked with wider economic conditions and alongside reduced demand comes increased competitive pressures so an economic downturn is presently seen as the principal risk.

After a prolonged period of volatility in the energy market, the industry remains vulnerable to further factors that could cause energy prices to spike, so global events that impact the price of energy are a continued threat.

Inflationary pressures that have been pervasive in the UK economy for the previous two years have seemingly eased, but with the potential for global events to impact energy costs and the flowing of trade, the risk of inflation remains. The company is exposed to risks relating to changes in paper prices, and additional costs would need to be passed on to customers, in order to maintain margins. The company has made large investments into new machinery over recent years, to assist in improving productivity and help reduce costs, which would counter the financial impact of this risk and protect margins from inflationary increases.

The Directors consider that the company is well placed to manage these risks successfully, despite the current uncertainty within the economy.


DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Strategic Report
for the period 1 February 2023 to 31 December 2023

FINANCIAL RISK MANAGEMENT
The company's operations expose it to a variety of financial risks that include changes in price, credit exposure, interest rates and liquidity. These risks are outlined below:

Changes in price
The main expenditure of the company is on corrugated sheet, the price of which is directly linked to the price of paper which is traded as a global commodity. Significant fluctuations in the price of paper therefore have a profound impact on the input cost of the company's finished goods. There are a number of drivers that impact the price of paper and as such there can be significant movements in the price the company pays for corrugated sheet. One such driver is however energy, and any shock to the energy market resulting in surging prices would have a corresponding impact on the cost of paper.

Historically the price of paper has been dictated by demand, with prices rising and falling in line with demand. Currently, demand is low, but other factors within the papermaking sector are increasing the likelihood of price rises in the months ahead.

Combined with subdued demand, these price rises could present real difficulties for some businesses within the sector. Durham Box has a stable supply chain and buys at a competitive rate, so should remain well placed to cope with rising prices and will endeavour to cover any cost increases through the selling price of its products.

Rising costs (non-paper)
After paper and wages, energy is the most significant cost to the business having risen significantly during the last year. Combined with a desire to lessen the environmental impact of its operations, these high costs are leading many businesses to look at ways of lessening their energy consumption. As such, an existing solar PV scheme is being considered for significant expansion to enable the business to generate a significant portion of its energy requirement.

Interest rates
The company has some borrowings, all currently on fixed interest rates and at a preferential rate that was fixed before interest rates increased. As such, interest on current borrowings is not a concern, but the relatively high interest rates (compared to recent years) could serve as a deterrent from making further investments or encourage the business to use its own cash reserves rather than taking on additional borrowing.

Credit exposure
The company's policy is structured towards minimising potential losses that could arise from the granting of credit to its customers. Appropriate credit checks are conducted on prospective customers and existing customers are monitored and evaluated according to their published creditworthiness and observed payment history. Further to this, the company has a wide portfolio of customers, the largest of which provides less than 5% of the overall turnover. As such, the Directors consider the risk to the company from exposure to credit to be suitably mitigated.

Liquidity
The company aims to mitigate liquidity risk by managing cash generated by its operations. Capital expenditure is the responsibility of the Directors and flexibility is maintained by retaining surplus cash in readily accessible bank accounts.

The company has an approved line of credit by way of an approved overdraft facility, but the cash is maintained at a level to ensure this facility is not required. The Directors continuously monitor and evaluate the ongoing performance of the business. Data is analysed monthly through the swift generation of management accounts.


DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Strategic Report
for the period 1 February 2023 to 31 December 2023

GOING CONCERN
The financial statements have been prepared using the going concern basis of accounting. The Directors have considered all material uncertainties, in particular the current economic concerns, when making their assessment on the appropriateness of using the going concern basis. The Directors have considered a period of at least 12 months from the date the financial statements are expected to be approved.

The Directors monitor and evaluate the ongoing performance of the company. Monthly reports are produced on a timely basis and current financial performance of the business during the current year looks promising and shows an increase in both turnover and profitability compared to the previous year.

The company is managing the business risks faced, despite the current uncertain economic outlook and taking into consideration both the recent financial performance and current financial liquidity of the company, the Directors continue to adopt the going concern basis in preparing the financial statements.

ON BEHALF OF THE BOARD:





D C Morris - Director


24 June 2024

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Report of the Directors
for the period 1 February 2023 to 31 December 2023

The directors present their report with the financial statements of the company for the period 1 February 2023 to 31 December 2023.

DIVIDENDS
An interim dividend of £Nil (year to 31st January 2023: £427,442) was paid during the year. The Directors do not recommend the payment of a final dividend.

DIRECTORS
D C Morris has held office during the whole of the period from 1 February 2023 to the date of this report.

Other changes in directors holding office are as follows:

M J Morris - resigned 30 June 2023
Mrs S A Morris - resigned 30 June 2023
G A O'Callaghan - appointed 30 June 2023
D J Richardson - appointed 30 June 2023

LAND AND BUILDINGS
The freehold property shown in the accounts have, in the opinion of the Directors, a market value of approximately £3,450,000.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Report of the Directors
for the period 1 February 2023 to 31 December 2023


AUDITORS
The auditors, Mitchells Grievson Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D C Morris - Director


24 June 2024

Report of the Independent Auditors to the Members of
Durham Box Company Limited

Opinion
We have audited the financial statements of Durham Box Company Limited (the 'company') for the period ended 31 December 2023 which comprise the Income Statement, Other 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 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 period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Durham Box Company Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-Enquiries of management and those charged with governance around actual and potential litigation and claims.

-Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

-Enquiries of management and staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

-Reviewing minutes of board meetings of those charged with governance.

-Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

-Auditing the risk of management override of controls, including identifying and testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

-Reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal and HR advisors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Durham Box Company Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Nigel Rea (Senior Statutory Auditor)
for and on behalf of Mitchells Grievson Limited
Kensington House
3 Kensington
Bishop Auckland
Co. Durham
DL14 6HX

2 July 2024

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Income Statement
for the period 1 February 2023 to 31 December 2023

Period Year Ended
1.2.23 to 31.12.23 31.1.23
Notes £    £    £    £   

TURNOVER 18,463,959 18,756,126

Other operating income 55,971 43,821
18,519,930 18,799,947

Raw materials and consumables 9,286,770 10,683,777
Other external expenses 204,050 53,076
9,490,820 10,736,853
9,029,110 8,063,094

Staff costs 4 3,670,374 4,235,195
Depreciation 629,197 760,948
Other operating expenses 1,396,474 1,553,872
5,696,045 6,550,015
OPERATING PROFIT 5 3,333,065 1,513,079

Interest receivable and similar income 69,958 20,942
3,403,023 1,534,021

Interest payable and similar expenses 6 145,723 128,618
PROFIT BEFORE TAXATION 3,257,300 1,405,403

Tax on profit 7 658,621 567,204
PROFIT FOR THE FINANCIAL PERIOD 2,598,679 838,199

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Other Comprehensive Income
for the period 1 February 2023 to 31 December 2023

Period
1.2.23
to Year Ended
31.12.23 31.1.23
Notes £    £   

PROFIT FOR THE PERIOD 2,598,679 838,199


OTHER COMPREHENSIVE INCOME
Revaluation of freehold property 827,845 -
Income tax relating to other comprehensive
income

(206,961

)

(84,820

)
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD, NET OF INCOME
TAX


620,884


(84,820


)
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

3,219,563
Prior year adjustment (138,291 )
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

615,088

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Balance Sheet
31 December 2023

31.12.23 31.1.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 8,365,918 7,963,220

CURRENT ASSETS
Stocks 10 823,140 1,013,832
Debtors 11 4,726,732 4,760,591
Cash at bank and in hand 4,152,126 2,448,286
9,701,998 8,222,709
CREDITORS
Amounts falling due within one year 12 3,726,325 3,602,568
NET CURRENT ASSETS 5,975,673 4,620,141
TOTAL ASSETS LESS CURRENT
LIABILITIES

14,341,591

12,583,361

CREDITORS
Amounts falling due after more than one year 13 (1,495,285 ) (3,086,640 )

PROVISIONS FOR LIABILITIES 17 (1,528,887 ) (1,360,365 )

ACCRUALS AND DEFERRED INCOME 18 (87,900 ) (126,400 )
NET ASSETS 11,229,519 8,009,956

CAPITAL AND RESERVES
Called up share capital 19 2,000 2,000
Revaluation reserve 20 1,115,295 529,969
Capital redemption reserve 20 2,000 2,000
Retained earnings 20 10,110,224 7,475,987
SHAREHOLDERS' FUNDS 11,229,519 8,009,956

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2024 and were signed on its behalf by:




D C Morris - Director



D J Richardson - Director


DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Statement of Changes in Equity
for the period 1 February 2023 to 31 December 2023

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1 February 2022 2,000 7,164,676 653,634 2,000 7,822,310
Prior year adjustment - (138,291 ) - - (138,291 )
As restated 2,000 7,026,385 653,634 2,000 7,684,019

Changes in equity
Dividends - (427,442 ) - - (427,442 )
Total comprehensive income - 877,044 (123,665 ) - 753,379
Balance at 31 January 2023 2,000 7,475,987 529,969 2,000 8,009,956

Changes in equity
Total comprehensive income - 2,634,237 585,326 - 3,219,563
Balance at 31 December 2023 2,000 10,110,224 1,115,295 2,000 11,229,519

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements
for the period 1 February 2023 to 31 December 2023

1. STATUTORY INFORMATION

Durham Box Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The principal activity of the company during the year under review was the design and manufacture of corrugated cardboard packaging.

The company traded for a shorter period in the current year due to a change in accounting period. Therefore, the comparative amounts in the financial statements (including related notes) are not entirely comparable.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared on a going concern basis 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.

The following principal accounting policies have been consistently applied unless otherwise stated:

Going concern
The company meets its day-to-day working capital requirements through its bank facilities. The current economic conditions are indicative of an economic slowdown and dampened consumer spending which may negatively impact on the level of demand for the company's products. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current facilities. The Group maintains a strong balance sheet, significant borrowing facility headroom and working capital facilities. The directors have a reasonable expectation that the company will be able to continue in operation and meet its liabilities as they fall due for a period of at least 12 months from the date of this report and have therefore continued to adopt the going concern basis in preparing the financial statements.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

3. ACCOUNTING POLICIES - continued

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods
Turnover 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 turnover 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.

Sale of goods are recognised on sale to customer which is upon receipt of goods.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 4% on cost
Plant and machinery - 10% on reducing balance
Fixtures and fittings - 10% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 20% on cost

Tangible 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.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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 the Statement of comprehensive income.

Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit and loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

3. ACCOUNTING POLICIES - continued

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 first in, first out 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 the Statement of comprehensive income.

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

i. Financial assets

Basic financial assets, including trade debtors, cash at bank and in hand and amounts owed by group undertakings, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of comprehensive income.

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

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

ii. Financial liabilities

Basic financial liabilities, including trade creditors, other creditors and amounts owed to group undertakings initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

iii. Offsetting


DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

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

Current and deferred taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Balance sheet date.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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 that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within "finance income or costs". All other foreign exchange gains and losses are presented in the Statement of comprehensive income within "other operating income".

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

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

3. ACCOUNTING POLICIES - continued

Operating leases: lessee
Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the period of the lease.

Employee benefits
The company provides a range of benefits to employees, including paid holiday arrangements and a defined contribution pension plan.

(i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii) Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which th company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the Balance sheet. The assets of the plan are held separately from the company in an independently administered fund.

Interest income
Interest income is recognised in the Statement of comprehensive income using the effective interest method.

Finance costs
Finance costs are charged to the Statement of comprehensive income 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.

Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash at bank and in hand
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Borrowing costs
All borrowing costs are recognised in the Statement of comprehensive income in the period in which they are incurred.

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

3. ACCOUNTING POLICIES - continued

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from proceeds.

Critical judgements and estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations on future events that are believed to be under the circumstances.

a) Critical judgements in applying the company's accounting policies.

There are no critical judgements in applying the company's accounting policies.

b) Key accounting estimates and assumptions.

There are no critical accounting estimates and assumptions.

4. EMPLOYEES AND DIRECTORS
Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Wages and salaries 3,247,764 3,697,508
Social security costs 329,313 393,585
Other pension costs 93,297 144,102
3,670,374 4,235,195

The average number of employees during the period was as follows:
Period
1.2.23
to Year Ended
31.12.23 31.1.23

Directors 3 3
Office administration and management 31 31
Factory and warehouse 70 63
104 97

Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Directors' remuneration 241,592 433,491

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

4. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes - 3

Information regarding the highest paid director is as follows:
Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Emoluments etc 215,194 328,984

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Other operating leases 5,246 39,771
Depreciation - owned assets 306,920 357,467
Depreciation - assets on hire purchase contracts 334,213 399,828
(Profit)/loss on disposal of fixed assets (11,935 ) 3,654
Foreign exchange differences (17,465 ) -
Audit fees 6,000 6,000
Leased vehicles 123,376 143,066
Other fees paid to auditor 17,045 15,395

6. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Bank loan interest 107,592 82,458
Hire purchase 38,131 46,160
145,723 128,618

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Current tax:
UK corporation tax 835,131 344,608
Prior year overprovision (119,646 ) -
R&D Tax Credit (18,425 ) -
Total current tax 697,060 344,608

Deferred tax (38,439 ) 222,596
Tax on profit 658,621 567,204

UK corporation tax has been charged at 25% (2023 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Profit before tax 3,257,300 1,405,403
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

814,325

267,027

Effects of:
Expenses not deductible for tax purposes 362 27,042
Depreciation in excess of capital allowances 57,417 50,539
Deferred tax movement (38,438 ) 222,596
Change in tax rate (36,975 ) -
Tax overprovided in previous years (119,645 ) -
R&D tax credit (18,425 ) -
Total tax charge 658,621 567,204

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

7. TAXATION - continued

Tax effects relating to effects of other comprehensive income

1.2.23 to 31.12.23
Gross Tax Net
£    £    £   
Revaluation of freehold property 827,845 (206,961 ) 620,884

31.1.23
Gross Tax Net
£    £    £   
Revaluation of freehold property - (84,820 ) (84,820 )

8. DIVIDENDS
Period
1.2.23
to Year Ended
31.12.23 31.1.23
£    £   
Ordinary shares of £1 each
Interim - 427,442

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 February 2023 4,079,429 9,433,804 508,434
Additions - 93,670 12,321
Disposals - - -
Revaluations 827,845 - -
At 31 December 2023 4,907,274 9,527,474 520,755
DEPRECIATION
At 1 February 2023 1,351,438 4,723,907 192,915
Charge for period 105,836 441,063 29,078
Eliminated on disposal - - -
At 31 December 2023 1,457,274 5,164,970 221,993
NET BOOK VALUE
At 31 December 2023 3,450,000 4,362,504 298,762
At 31 January 2023 2,727,991 4,709,897 315,519

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 February 2023 270,631 249,498 14,541,796
Additions 169,928 - 275,919
Disposals (138,480 ) - (138,480 )
Revaluations - - 827,845
At 31 December 2023 302,079 249,498 15,507,080
DEPRECIATION
At 1 February 2023 110,612 199,704 6,578,576
Charge for period 47,204 17,952 641,133
Eliminated on disposal (78,547 ) - (78,547 )
At 31 December 2023 79,269 217,656 7,141,162
NET BOOK VALUE
At 31 December 2023 222,810 31,842 8,365,918
At 31 January 2023 160,019 49,794 7,963,220

Included in cost or valuation of land and buildings is freehold land of £ 584,700 (2023 - £ 584,700 ) which is not depreciated.

Cost or valuation at 31 December 2023 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
Valuation in 1995 248,486 - -
Valuation in 2020 593,436 - -
Valuation in 2022 185,659 - -
Valuation in 2023 827,845 - -
Cost 3,051,848 9,527,474 520,755
4,907,274 9,527,474 520,755

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 1995 - - 248,486
Valuation in 2020 - - 593,436
Valuation in 2022 - - 185,659
Valuation in 2023 - - 827,845
Cost 302,079 249,498 13,651,654
302,079 249,498 15,507,080

If freehold property had not been revalued they would have been included at the following historical cost:

31.12.23 31.1.23
£    £   
Cost 3,051,879 3,051,879
Aggregate depreciation 1,148,150 1,148,150

Value of land in freehold land and buildings 49,281 49,281

Freehold land and buildings was valued on the fair value basis basis on 9 May 2023 by Cushman & Wakefield .

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST OR VALUATION
At 1 February 2023 4,242,873 270,631 4,513,504
Additions 84,420 169,928 254,348
Disposals - (138,480 ) (138,480 )
Transfer to ownership (114,080 ) - (114,080 )
At 31 December 2023 4,213,213 302,079 4,515,292
DEPRECIATION
At 1 February 2023 1,156,595 110,612 1,267,207
Charge for period 287,009 47,204 334,213
Eliminated on disposal - (78,547 ) (78,547 )
Transfer to ownership (48,761 ) - (48,761 )
At 31 December 2023 1,394,843 79,269 1,474,112
NET BOOK VALUE
At 31 December 2023 2,818,370 222,810 3,041,180
At 31 January 2023 3,086,278 160,019 3,246,297

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

10. STOCKS
31.12.23 31.1.23
£    £   
Finished goods 823,140 1,013,832

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.1.23
£    £   
Trade debtors 3,604,737 3,149,111
Amts owed by/to group undertak 630,870 -
Other debtors 255,116 131,987
Directors' loan accounts 172,260 807,920
Prepayments 63,749 671,573
4,726,732 4,760,591

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.1.23
£    £   
Bank loans and overdrafts (see note 14) - 391,579
Hire purchase contracts (see note 15) 661,529 432,069
Trade creditors 362,985 1,862,721
Amts owed by/to group undertak 1,752,672 -
Tax 435,131 344,608
Social security and other taxes 114,859 93,836
Pension liability 18,464 14,211
Net wages due 6,584 32,752
VAT 278,040 413,607
Other creditors 2,762 1,185
Accrued expenses 93,299 16,000
3,726,325 3,602,568

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.1.23
£    £   
Bank loans (see note 14) - 2,197,560
Hire purchase contracts (see note 15) 1,495,285 889,080
1,495,285 3,086,640

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

14. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.1.23
£    £   
Amounts falling due within one year or on demand:
Bank Loan - 391,579

Amounts falling due between one and two years:
Bank loan 1-2 years - 391,579

Amounts falling due between two and five years:
Bank loan 2-5 years - 970,258

Amounts falling due in more than five years:

Repayable by instalments
Bank loan > 5 years - 835,723

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.12.23 31.1.23
£    £   
Gross obligations repayable:
Within one year 742,136 471,490
Between one and five years 1,666,663 974,685
2,408,799 1,446,175

Finance charges repayable:
Within one year 80,607 39,421
Between one and five years 171,378 85,605
251,985 125,026

Net obligations repayable:
Within one year 661,529 432,069
Between one and five years 1,495,285 889,080
2,156,814 1,321,149

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

15. LEASING AGREEMENTS - continued

Non-cancellable operating leases
31.12.23 31.1.23
£    £   
Within one year 57,496 64,052
Between one and five years 93,632 54,867
151,128 118,919

16. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.1.23
£    £   
Bank loans - 2,589,139
Hire purchase contracts 2,156,814 1,321,149
2,156,814 3,910,288

The hire purchase contracts are secured on the assets to which the agreements relate.

17. PROVISIONS FOR LIABILITIES
31.12.23 31.1.23
£    £   
Deferred tax
Accellerated capital allowances 1,528,887 1,360,365

Deferred
tax
£   
Balance at 1 February 2023 1,360,365
Provided during period 168,522
Balance at 31 December 2023 1,528,887

18. ACCRUALS AND DEFERRED INCOME
31.12.23 31.1.23
£    £   
Deferred government grants 87,900 126,400

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

19. CALLED UP SHARE CAPITAL

The 2000 issued ordinary £1 shares were changed on 30 June 2023 and are now split into 1,334 Ordinary A shares and 666 Ordinary C Shares. (31.01.23 - 666 Ordinary A shares, 666 Ordinary B shares, 666 Ordinary C shares, and 2 Ordinary D shares).

The ordinary A, B, C, D, shares are ranked equally and carry voting rights.

20. RESERVES
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1 February 2023 7,475,987 529,969 2,000 8,007,956
Profit for the period 2,598,679 2,598,679
Transfer to P&L reserve 35,558 (35,558 ) - -
Revaluation of property - 827,845 - 827,845
Deferred tax on revaluation - (206,961 ) - (206,961 )
At 31 December 2023 10,110,224 1,115,295 2,000 11,227,519

21. ULTIMATE PARENT COMPANY

W&R Barnett Holdings Limited (incorporated in Northern Ireland ) is regarded by the directors as being the company's ultimate parent company.

The company's immediate parent company is Logson Holdings Limited, a company incorporated in England and Wales.

At the year end, the smallest group of undertakings which has produced consolidated financial statements, and of which the company is a member, is W&R Barnett Limited, a company incorporated in Northern Ireland. Group financial statements for this company are available from Companies House, Second Floor, The Linenhall, 32-38 Linenhall Street, Belfast, BT2 8BG.

At the year end, the largest group of undertakings which has produced consolidated financial statements, and for which the company is a member, is W&R Barnett Holdings Limited, a company incorporated in Northern Ireland. Group financial statements for this company are available from Companies House, Second Floor, The Linenhall, 32-38 Linenhall Street, Belfast, BT2 8BG.

DURHAM BOX COMPANY LIMITED (REGISTERED NUMBER: 02374363)

Notes to the Financial Statements - continued
for the period 1 February 2023 to 31 December 2023

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the period ended 31 December 2023 and the year ended 31 January 2023:

31.12.23 31.1.23
£    £   
M J Morris
Balance outstanding at start of period 306,537 330,135
Amounts advanced - 91,402
Amounts repaid (306,537 ) (115,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period - 306,537

Mrs S A Morris
Balance outstanding at start of period 501,382 318,897
Amounts advanced - 297,485
Amounts repaid (501,382 ) (115,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period - 501,382

D C Morris
Balance outstanding at start of period - 422,188
Amounts advanced 172,260 125,254
Amounts repaid - (547,442 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of period 172,260 -

23. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

24. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the shareholders of W&R Barnett Holdings Limited.