Company registration number 02798524 (England and Wales)
EUROPLAST (BLACKBURN) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
EUROPLAST (BLACKBURN) LIMITED
COMPANY INFORMATION
Director
Mr Z V Issa
Secretary
Mr Z V Issa
Company number
02798524
Registered office
Unit 1 - 2 Euro House
Duttons Way
Shadsworth Business Park
Blackburn
Lancashire
BB1 2QR
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Unit 1 - 2 Euro House
Duttons Way
Shadsworth Business Park
Blackburn
Lancashire
BB1 2QR
EUROPLAST (BLACKBURN) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Independent auditor's report
3 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
EUROPLAST (BLACKBURN) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 MARCH 2024
- 1 -
The director presents the strategic report and financial statements for the year ended 30 March 2024.
The results for the year are disclosed in the attached financial statements.
The principal activity of the company during the year was the manufacturing of bubble wraps, bubble bags, bubble envelopes & other bubble related products. The company manufactures LDPE films, tubings & bespoke LDPE bags.
Review of the business
The company returned an excellent pre-tax profit in the year of £1,516,716. The director and management are pleased with the performance of the company in the year.
The company continues to seek to be the go-to supplier for plastic packaging requirements.
The company has reduced turnover when compared with 2023 but improved its gross margin to 54.99%.
The director and management continue to monitor trading levels, gross profit margins, and net profit margins on a regular basis and are optimistic about the company's future performance with due regard to the competitiveness of the industry.
As at the year end the company had shareholder’s funds of £8,019,094 (2023 - £7,639,565).
Principal risks and uncertainties
A fundamental risk to the business comes from the quality of raw material used in production along with ensuring the correct quality of product is manufactured using this raw material. An inferior quality product would definitely damage the company's reputation as the premier supplier of packaging material in the U.K market.
The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through standard credit control procedures.
.............................................
Mr Z V Issa
Director
Date: .............................................
EUROPLAST (BLACKBURN) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 MARCH 2024
- 2 -
The director presents his annual report and financial statements for the year ended 30 March 2024.
Principal activities
The principal activity of the company continued to be that of polythene bag and bubble wrap manufacturers.
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £750,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr Z V Issa
Auditor
Pierce C A Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Z V Issa
Director
12 September 2024
EUROPLAST (BLACKBURN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EUROPLAST (BLACKBURN) LIMITED
- 3 -
Opinion
We have audited the financial statements of Europlast (Blackburn) Limited (the 'company') for the year ended 30 March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
EUROPLAST (BLACKBURN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROPLAST (BLACKBURN) LIMITED
- 4 -
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 director's 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:
The nature of the industry, the company’s control environment, the significant laws and regulations relevant to the company, and the company’s policies on detection of fraud;
Results of our enquiries of management, of those charged with governance and of our discussions with staff in compliance roles;
Our review of disclosures included in the financial statements, and
Engagement team discussions in respect of any potential indicators of non-compliance or fraud.
We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.
We did not identify a material risk of non-compliance with laws and regulations or of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
EUROPLAST (BLACKBURN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROPLAST (BLACKBURN) LIMITED
- 5 -
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.
Jane Smith (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
15 September 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
EUROPLAST (BLACKBURN) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
10,825,559
12,383,167
Cost of sales
(4,872,355)
(6,746,959)
Gross profit
5,953,204
5,636,208
Distribution costs
(467,218)
(777,330)
Administrative expenses
(3,953,333)
(3,529,011)
Other operating income
1,317
3,020
Operating profit
4
1,533,970
1,332,887
Interest receivable and similar income
6
2,353
6,067
Interest payable and similar expenses
7
(19,607)
(41,921)
Profit before taxation
1,516,716
1,297,033
Tax on profit
8
(385,444)
(177,417)
Profit for the financial year
1,131,272
1,119,616
The profit and loss account has been prepared on the basis that all operations are continuing operations.
EUROPLAST (BLACKBURN) LIMITED
BALANCE SHEET
AS AT
30 MARCH 2024
30 March 2024
- 7 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,568,768
1,635,400
Investment properties
11
368,500
1,937,268
1,635,400
Current assets
Stocks
12
1,436,763
1,493,242
Debtors falling due after more than one year
20
890,705
1,510,000
Debtors falling due within one year
13
1,675,150
1,549,823
Cash at bank and in hand
4,427,642
3,569,515
8,430,260
8,122,580
Creditors: amounts falling due within one year
14
(2,098,172)
(1,886,010)
Net current assets
6,332,088
6,236,570
Total assets less current liabilities
8,269,356
7,871,970
Provisions for liabilities
(248,519)
(232,405)
Net assets
8,020,837
7,639,565
Capital and reserves
Called up share capital
17
20,000
20,000
Profit and loss reserves
8,000,837
7,619,565
Total equity
8,020,837
7,639,565
The financial statements were approved and signed by the director and authorised for issue on 12 September 2024
Mr Z V Issa
Director
Company Registration No. 02798524
EUROPLAST (BLACKBURN) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 MARCH 2024
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 31 March 2022
20,000
6,499,949
6,519,949
Year ended 30 March 2023:
Profit and total comprehensive income
-
1,119,616
1,119,616
Balance at 30 March 2023
20,000
7,619,565
7,639,565
Year ended 30 March 2024:
Profit and total comprehensive income
-
1,131,272
1,131,272
Dividends
9
-
(750,000)
(750,000)
Balance at 30 March 2024
20,000
8,000,837
8,020,837
EUROPLAST (BLACKBURN) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 MARCH 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,498,933
1,314,173
Interest paid
(19,607)
(41,921)
Income taxes paid
(284,483)
(155,224)
Net cash inflow from operating activities
2,194,843
1,117,028
Investing activities
Purchase of tangible fixed assets
(271,493)
(142,098)
Proceeds from disposal of tangible fixed assets
54,500
Purchase of investment property
(368,500)
Repayment of loans
183,517
Interest received
2,353
6,067
Net cash (used in)/generated from investing activities
(583,140)
47,486
Financing activities
Payment of finance leases obligations
(3,576)
(13,064)
Dividends paid
(750,000)
Net cash used in financing activities
(753,576)
(13,064)
Net increase in cash and cash equivalents
858,127
1,151,450
Cash and cash equivalents at beginning of year
3,569,515
2,418,065
Cash and cash equivalents at end of year
4,427,642
3,569,515
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
- 10 -
1
Accounting policies
Company information
Europlast (Blackburn) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 - 2 Euro House, Duttons Way, Shadsworth Business Park, Blackburn, Lancashire, BB1 2QR.
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.
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.
1.2
Going concern
The director trueis not aware of any material uncertainties affecting the company and considers that the company will have sufficient resources to continue trading for the foreseeable future. As a result the director has continued to adopt the going concern basis in preparing the financial statements.
1.3
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 dispatch 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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
15% reducing balance
Motor vehicles
15% 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.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
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.
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.
1.8
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.
1.9
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 balance sheet 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, 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.
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.10
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.
1.11
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 profit and loss account 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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 balance sheet 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.
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.15
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.17
The company has created a trust whose beneficiaries include employees of the company and their dependants. Assets held under this trust will be controlled by trustees who will be acting independently and entirely at their own discretion.
Where assets are held in the trust and these are considered by the company to be in respect of services already provided by employees to the company, the company will account for these as assets of the company until the earlier of it no longer having de facto control of these assets and it not obtaining future economic benefit from these assets. The value transferred will be charged in the company's profit and loss account for the year to which it relates.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
10,825,559
12,383,167
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
3
Turnover and other revenue
(Continued)
- 15 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,821,487
12,378,645
Overseas
4,072
4,522
10,825,559
12,383,167
2024
2023
£
£
Other revenue
Interest income
2,353
6,067
Grants received
-
3,020
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
4,295
(6,658)
Government grants
-
(3,020)
Fees payable to the company's auditor for the audit of the company's financial statements
8,000
8,500
Depreciation of owned tangible fixed assets
252,286
265,475
Depreciation of tangible fixed assets held under finance leases
1,316
5,647
Loss on disposal of tangible fixed assets
30,023
1,276
Operating lease charges
300,327
300,291
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
5
5
Production
65
65
Sales
1
1
Total
71
71
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,507,734
1,420,478
Social security costs
120,051
103,203
Pension costs
20,195
19,440
1,647,980
1,543,121
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,353
6,067
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
19,607
41,921
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
369,330
259,850
Adjustments in respect of prior periods
(75,231)
Total current tax
369,330
184,619
Deferred tax
Origination and reversal of timing differences
16,114
(7,202)
Total tax charge
385,444
177,417
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
8
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,516,716
1,297,033
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
379,179
246,436
Tax effect of expenses that are not deductible in determining taxable profit
77,036
59,720
Adjustments in respect of prior years
(75,231)
Permanent capital allowances in excess of depreciation
(86,885)
(46,306)
Over provided in prior years
16,114
(7,202)
Taxation charge for the year
385,444
177,417
9
Dividends
2024
2023
£
£
Interim paid
750,000
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 31 March 2023
4,809,330
79,201
53,864
317,692
5,260,087
Additions
76,005
120,000
75,488
271,493
Disposals
(433,635)
(29,000)
(55,000)
(517,635)
At 30 March 2024
4,451,700
79,201
144,864
338,180
5,013,945
Depreciation and impairment
At 31 March 2023
3,429,357
74,406
32,230
88,694
3,624,687
Depreciation charged in the year
209,817
720
10,597
32,468
253,602
Eliminated in respect of disposals
(412,287)
(18,139)
(2,686)
(433,112)
At 30 March 2024
3,226,887
75,126
24,688
118,476
3,445,177
Carrying amount
At 30 March 2024
1,224,813
4,075
120,176
219,704
1,568,768
At 30 March 2023
1,379,973
4,795
21,634
228,998
1,635,400
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
10
Tangible fixed assets
(Continued)
- 18 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
17,549
11
Investment property
2024
£
Fair value
At 31 March 2023
Additions through external acquisition
368,500
At 30 March 2024
368,500
During the year the company purchased an investment property at 72-82 Columbia Way, Lammack, Blackburn, BB2 7DT. The directors consider the acquisition cost to be a fair representation of its market value at the year end date.
12
Stocks
2024
2023
£
£
Raw materials and consumables
883,305
1,653,737
Finished goods and goods for resale
553,458
548,463
1,436,763
1,493,242
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,489,604
1,431,620
Other debtors
140,000
Prepayments and accrued income
45,546
118,203
1,675,150
1,549,823
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
3,576
Trade creditors
1,474,217
1,257,271
Corporation tax
245,576
160,729
Other taxation and social security
230,301
268,077
Other creditors
29,025
23,821
Accruals and deferred income
119,053
172,536
2,098,172
1,886,010
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
3,576
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
248,519
232,405
2024
Movements in the year:
£
Liability at 31 March 2023
232,405
Charge to profit or loss
16,114
Liability at 30 March 2024
248,519
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 20 -
17
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
20,000 Ordinary shares of £1 each
20,000
20,000
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,195
19,440
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
300,000
300,000
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rent charged
Recharge of costs
2024
2023
2024
2023
£
£
£
£
Entities over which the entity has control, joint control or significant influence
300,000
300,000
135,818
133,653
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Key management personnel
25,441
19,696
Amounts owed to key management personnel is a loan with the director.
EUROPLAST (BLACKBURN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
20
Related party transactions
(Continued)
- 21 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
890,705
1,510,000
21
Ultimate controlling party
The parent company of Europlast (Blackburn) Limited is EP Holdings Limited, a company registered in Jersey.
The ultimate controlling party is Mr Zakir Issa, the director.
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,131,272
1,119,616
Adjustments for:
Taxation charged
385,444
177,417
Finance costs
19,607
41,921
Investment income
(2,353)
(6,067)
Loss on disposal of tangible fixed assets
30,023
1,276
Depreciation and impairment of tangible fixed assets
253,602
271,122
Movements in working capital:
Decrease in stocks
56,479
708,958
Decrease/(increase) in debtors
493,968
(533,154)
Increase/(decrease) in creditors
130,891
(463,896)
Decrease in deferred income
-
(3,020)
Cash generated from operations
2,498,933
1,314,173
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