Company registration number 03835532 (England and Wales)
Advanced Packaging Limited
financial statements
For the year ended 31 December 2023
Advanced Packaging Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
Advanced Packaging Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,593,424
295,783
Current assets
Stocks
294,001
250,958
Debtors
4
1,747,001
1,933,238
Cash at bank and in hand
29,316
41,895
2,070,318
2,226,091
Creditors: amounts falling due within one year
5
(1,530,660)
(1,471,631)
Net current assets
539,658
754,460
Total assets less current liabilities
2,133,082
1,050,243
Creditors: amounts falling due after more than one year
6
(907,438)
(34,860)
Provisions for liabilities
(351,900)
(76,900)
Net assets
873,744
938,483
Capital and reserves
Called up share capital
125
125
Share premium account
16,148
16,148
Capital redemption reserve
45
45
Profit and loss reserves
857,426
922,165
Total equity
873,744
938,483

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The director of the company has elected not to include a copy of the income statement within the financial statements.true

The financial statements were approved and signed by the director and authorised for issue on 13 September 2024
Mr K J Willis
Director
Company registration number 03835532 (England and Wales)
Advanced Packaging Limited
Notes to the financial statements
For the year ended 31 December 2023
- 2 -
1
Accounting policies
Company information

Advanced Packaging Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke on Trent, Staffordshire, ST1 5SQ.

 

The business trades from Units 18-20 Parkhouse Industrial Estate, Rosevale Road, Newcastle under Lyme, Staffordshire, ST5 7EF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

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

Related party exemption

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 other group entities where the relationship is one of being wholly owned.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment
15% on reducing balance
Fixtures and fittings
25% on reducing balance
IT equipment
33.33% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Advanced Packaging Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.5
Cash and cash equivalents

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

1.6
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances and loans from fellow group companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

Advanced Packaging Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

1.7
Equity instruments

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

1.8
Taxation

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

Current tax

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

Deferred tax

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

1.9
Employee benefits

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

 

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

 

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

1.10
Retirement benefits

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

1.11
Share-based payments
Advanced Packaging Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the black scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2
Employees

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

2023
2022
Number
Number
Total
22
18
Advanced Packaging Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 6 -
3
Tangible fixed assets
Plant and equipment
Fixtures and fittings
IT equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
657,957
116,521
23,214
134,015
931,707
Additions
1,372,270
95,064
9,657
-
0
1,476,991
Disposals
(135,200)
-
0
-
0
-
0
(135,200)
At 31 December 2023
1,895,027
211,585
32,871
134,015
2,273,498
Depreciation and impairment
At 1 January 2023
408,406
93,283
17,167
117,068
635,924
Depreciation charged in the year
122,291
19,232
4,021
4,237
149,781
Eliminated in respect of disposals
(105,631)
-
0
-
0
-
0
(105,631)
At 31 December 2023
425,066
112,515
21,188
121,305
680,074
Carrying amount
At 31 December 2023
1,469,961
99,070
11,683
12,710
1,593,424
At 31 December 2022
249,551
23,238
6,047
16,947
295,783
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,155,095
1,313,629
Amounts owed by group undertakings
530,523
100,181
Other debtors
61,383
519,428
1,747,001
1,933,238
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
81,854
-
0
Trade creditors
679,709
693,125
Taxation and social security
89,211
172,282
Other creditors
679,886
606,224
1,530,660
1,471,631
Advanced Packaging Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
907,438
34,860
7
Security

The bank loans are secured by a fixed and floating charge over the assets of the company.

 

Included within other creditors are invoice discounting facilities of £488,340 (2022 - £556,686), which are secured by fixed charges over the assets to which they relate.

 

Amounts due under finance leases and hire purchase contracts of £1,057,332 (2022 - £65,427) are secured against the assets which they relate to.

8
Share-based payment transactions
Liabilities and expenses

The ultimate parent company of Advanced Packaging Limited operates a share based compensation plan. The fair value of employee services received in exchange for the grant of options is recognised as an expense in the financial statements of Advanced Packaging Limited rather than the ultimate parent company, where the scheme is in place, due to employees holding share options being employees of Advanced Packaging Limited and not the ultimate parent company.

 

The total to be expensed over the vesting period is determined by reference to the fair value of options granted. Non market vesting conditions are included in the assumptions about the number of options that are expected to become exercisable. The proceeds received net of any attributable transaction costs are credited to share capital (nominal value) and share premium in the ultimate parent company when the options are exercised.

9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Stacey Parr FCCA
Statutory Auditor:
DJH Audit Limited
Date of audit report:
16 September 2024
10
Financial commitments, guarantees and contingent liabilities

The company has given unlimited guarantees, secured on the company's assets, as security for the borrowings of fellow group undertakings. The amount guaranteed at the year end was £6,056,881.

Advanced Packaging Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 8 -
11
Operating lease commitments
Lessee

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

2023
2022
£
£
1,419,139
94,903
12
Parent company

The parent company of Advanced Packaging Limited Advanced Packaging Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke on Trent, Staffordshire, ST1 5SQ.

 

The ultimate parent company of Advanced Packaging Limited is KJ Willis Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke on Trent, Staffordshire, ST1 5SQ.

13
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Total adjustments
-
Profit as previously reported
437,074
Profit as adjusted
437,074
Notes to reconciliation

The directors have reviewed the depreciation accounting policy and on reflection have identified that the costs previously classified within administration, should be classified with cost of sales. There has been no change to the net asset position or the profit reported for the period.

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