Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false2023-01-01falseDistribution of various household goods throughout the UK and the rest of Europe1718false 03760771 2023-01-01 2023-12-31 03760771 2022-01-01 2022-12-31 03760771 2023-12-31 03760771 2022-12-31 03760771 2022-01-01 03760771 1 2023-01-01 2023-12-31 03760771 1 2022-01-01 2022-12-31 03760771 5 2023-01-01 2023-12-31 03760771 5 2022-01-01 2022-12-31 03760771 d:CompanySecretary1 2023-01-01 2023-12-31 03760771 d:Director1 2023-01-01 2023-12-31 03760771 d:RegisteredOffice 2023-01-01 2023-12-31 03760771 e:FurnitureFittings 2023-01-01 2023-12-31 03760771 e:FurnitureFittings 2023-12-31 03760771 e:FurnitureFittings 2022-12-31 03760771 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03760771 e:ComputerEquipment 2023-01-01 2023-12-31 03760771 e:CurrentFinancialInstruments 2023-12-31 03760771 e:CurrentFinancialInstruments 2022-12-31 03760771 e:Non-currentFinancialInstruments 2023-12-31 03760771 e:Non-currentFinancialInstruments 2022-12-31 03760771 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 03760771 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 03760771 f:UnitedKingdom 2023-01-01 2023-12-31 03760771 f:UnitedKingdom 2022-01-01 2022-12-31 03760771 f:RestEuropeOutsideUK 2023-01-01 2023-12-31 03760771 f:RestEuropeOutsideUK 2022-01-01 2022-12-31 03760771 f:RestWorldOutsideUK 2023-01-01 2023-12-31 03760771 f:RestWorldOutsideUK 2022-01-01 2022-12-31 03760771 e:ShareCapital 2023-01-01 2023-12-31 03760771 e:ShareCapital 2023-12-31 03760771 e:ShareCapital 2022-01-01 2022-12-31 03760771 e:ShareCapital 2022-12-31 03760771 e:ShareCapital 2022-01-01 03760771 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03760771 e:RetainedEarningsAccumulatedLosses 2023-12-31 03760771 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 03760771 e:RetainedEarningsAccumulatedLosses 2022-12-31 03760771 e:RetainedEarningsAccumulatedLosses 2022-01-01 03760771 d:OrdinaryShareClass1 2023-01-01 2023-12-31 03760771 d:OrdinaryShareClass1 2023-12-31 03760771 d:OrdinaryShareClass1 2022-12-31 03760771 d:FRS102 2023-01-01 2023-12-31 03760771 d:Audited 2023-01-01 2023-12-31 03760771 d:FullAccounts 2023-01-01 2023-12-31 03760771 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03760771 e:WithinOneYear 2023-12-31 03760771 e:WithinOneYear 2022-12-31 03760771 e:BetweenOneFiveYears 2023-12-31 03760771 e:BetweenOneFiveYears 2022-12-31 03760771 e:TaxLossesCarry-forwardsDeferredTax 2023-12-31 03760771 e:TaxLossesCarry-forwardsDeferredTax 2022-12-31 03760771 2 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 03760771










SANITA UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
SANITA UK LIMITED
 
 
COMPANY INFORMATION


Director
Rabih Frem 




Company secretary
Rabee Afram



Registered number
03760771



Registered office
Suite 3
Sigma House

Hadley Park East

Telford

Shropshire

TF1 6QJ




Trading Address
Sigma House
1st Floor

Hadley Park East

Telford

Shropshire

TF1 6QJ






Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
SANITA UK LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 3
Director's report
 
4 - 5
Independent auditors' report
 
6 - 9
Statement of comprehensive income
 
10
Balance sheet
 
11
Statement of changes in equity
 
12
Statement of cash flows
 
13 - 14
Notes to the financial statements
 
15 - 26


 
SANITA UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The director presents their report in respect of the accounts for the year ended 31 December 2023.

Business review
 
The Sanita UK director is pleased to report another profitable year in line with their medium and long term strategy, vision and expected planned growth.
The Company continues the focus on its core business of wholesale distribution activities of plastics and paper packaging material in the UK, the rest of Europe, and expanding its activities globally on behalf of our Group’s affiliated companies.
Sanita UK has successfully implemented a diversification strategy in sales during the past five years and will continue focusing on widening the scope of diversification to include more products and wider geographical coverage that will increase its sales volumes and serve our customers with the sustainable products that comes from our latest technology production lines.
Sanita UK has also successfully introduced a procurement sector for the raw material to source and service the requirements of affiliated sister companies within Indevco and Napco Groups. This sector has been ongoing for the last three years and it has proven to be an added value to our Company’s portfolio of services. 
There has been a further focus on the geographical diversity of sales activities inside and outside of Europe, and on a global level to contribute to the Company’s planned growth, and to overcome any potential political and economic turbulences that may arise on a global level. 
The director considers that the Company will maintain further growth in the coming years. Our Group continues to invest in the latest technology of machines and production lines which will enable us to continue widening our offerings, and contribute to the European environmental schemes. 
Sanita UK will seek further growth in different market sectors and Geographical areas.

Page 1

 
SANITA UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The Company’s director is certain that Sanita UK is capable to overcome any potential economic risks than in any time in the past. Sanita UK has managed to overcome all obstacles and challenges in the past years (Brexit, Covid Pandemic, and Economic challenges). The Company prides itself to be a member of Indevco group, and is supported by its global affiliated factories.
Sanita UK have been successful in being in a leading position to drive the sustainability initiatives taken by the government; the Company was a leader in offering products and packaging solutions that includes recycled contents of plastics and paper. For the third consecutive year we are proud to be FSC certified supplier. 
In the meantime, the Group has invested in four recycling facilities in Saudi Arabia and the Middle east where the products are being manufactured, these investments have enhanced Sanita UK’s sustainability image in the European market and allowed the company to become a leader in offering sustainable packaging products. 
The risks and uncertainties that are related to local or global factors allow the Company to capitalise on its position consistently within the affiliated group to continue generating positive profits; a profit level that allows the Company to grow and diversify further.  

Financial key performance indicators
 
The director of Sanita UK continues to monitor closely and on a monthly basis the gross and net profit projected as the return on the growth of sales. The management will continue to meet monthly to discuss the Company’s income statement and management accounts, and to analyse and act on any deviations in terms of its profits, costs or unforeseen changes in its overheads.  These meetings are followed by quarterly revisions to assess and provide guidance when needed. 

Other key performance indicators
 
The Company does not utilise other key performance indicators to measure its performance.

Page 2

 
SANITA UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Director's statement of compliance with duty to promote the success of the Company
 
The director of Sanita UK continues to monitor the Company’s performance and assess its position in terms of the Company’s market reputation and continue to promote its success factors. 
Sanita UK as a large importer of plastics and paper packaging material focuses intensively on enhancing its market presence and what that brings from Environmental challenges. 
The Company’s sustainability reputation is a key focus for its success; Therefore, the company continues to promote its sustainability values, and has also been involved in many environmental projects in coordination with its affiliated manufacturing sites. The Company is in a direct registration with the Environment agency (EA) and discusses openly any activities that might promote the reputation of the company in the packaging field. 
As a large British firm, Sanita UK coordinates its environmental obligations directly with the EA, and consequently pays all related packaging recovery notes on an annual basis. Sanita UK is also registered with the HMRC for the Plastics Packaging Tax following the government’s guidance and commits to pay any plastics taxes for the imported goods that does not include 30% recycled contents in the UK. whilst, working intensively with our factories to pass the knowledge and the European sustainability requirements for our research and development laboratories in order to develop products that satisfy the European standards, by utilising higher percentage of recycled plastics contents. 
Our aim is to continue promoting Sanita UK’s name as a leading company with the desirability of maintaining high standards and reputation in all aspects of trading.
As a part of a multinational group of companies, we continue to promote and enhance our working environment. The company has recruited and is still recruiting to enhance its sales force and customer services, and cover as many geographical markets as potentially possible. Sanita UK is a member of the Shropshire Chamber of Commerce, and also a member of Alpha scheme for HR consultancy.
The director continues to assess their decisions and shares its vision transparently with its employees. The Company’s decisions whether being medium- or long-term plans are communicated and discussed openly with the employees. These decisions and following the continuous growth of the company are aimed only towards the interest of the employees and their wellbeing. In addition, we follow our Group’s social sustainability directives, and we support our factories in sourcing sustainably, and in obtaining multiple accreditation that reflect positively on the Group’s image and consequently Sanita UK. Our factories are Sedex, and Ecovades certified with policies covering ethnic diversity, inclusion, safe workplace, anti-corruption, child labour and non-discrimination. Our Group is taking part in the United Nations sustainable development goals. 
We aim to nurture the lives of our employees by offering reasonable benefits, in addition to contributing to our employees’ private pension scheme. We listen to change, and we follow our Head quarters’ Philosophy “what is good for the community is good for the company. What is good for the company, we will strive to do excellently and in away that enriches the lives of our people”. 


This report was approved by the board and signed on its behalf.



................................................
Rabih Frem
Director

Date: 3 September 2024

Page 3

 
SANITA UK LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £271,401 (2022 - £482,977).

No dividends are recommended to be paid from the current year.

Director

The director who served during the year was:

Rabih Frem 

Future developments

Refer to the business review for details of future developments.

Page 4

 
SANITA UK LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Engagement with suppliers, customers and others

Enhancing our relationship with our suppliers and customers has always been our focus. Our suppliers and customers are our esteemed partners. This strategy has always been the key success for the company. Our excellent relationship with our partners has contributed heavily to the success and the growth of the company. 
The director and the management of Sanita UK execute frequent assessments for the services provided by the company, and the relationship we hold with our partners. Our Group’s head office measures the customers’ and suppliers’ satisfaction periodically through a survey that gets shared with customers directly, and randomly to continue assessing Sanita UK’s performance, and act promptly on any corrective actions required to improve our services. 

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Rabih Frem
Director

Date: 3 September 2024

Page 5

 
SANITA UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF SANITA UK LIMITED
 

Opinion


We have audited the financial statements of Sanita UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 
SANITA UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF SANITA UK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion 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 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.


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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 7

 
SANITA UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF SANITA UK LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 4, 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 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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the
Company and determined that the most significant are those that relate to the reporting framework (FRS102 and
the Companies Act 2006), the relevant tax compliance regulations, Employment Law, Health and Safety
Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company is complying with these frameworks by making enquiries of management
and those responsible for legal and compliance procedures. 
We assessed the susceptibility of the Company's financial statements to material misstatement, including how
fraud might occur by meeting with key management to understand where they considered there was
susceptibility to fraud. Based on our understanding our procedures involved enquiries of management, control testing across key accounting cycles and review of the systems in place,  manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


Page 8

 
SANITA UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF SANITA UK LIMITED (CONTINUED)


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.





Andrew Malpass BA (Hons) FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
16 September 2024
Page 9

 
SANITA UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
68,100,846
78,493,752

Cost of sales
  
(65,383,197)
(75,363,611)

Gross profit
  
2,717,649
3,130,141

Administrative expenses
  
(1,823,031)
(2,152,607)

Operating profit
 5 
894,618
977,534

Interest receivable and similar income
 8 
3,189
-

Interest payable and similar expenses
 9 
(534,423)
(338,122)

Profit before tax
  
363,384
639,412

Tax on profit
 10 
(91,983)
(156,435)

Profit for the year
  
271,401
482,977

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 15 to 26 form part of these financial statements.

Page 10

 
SANITA UK LIMITED
REGISTERED NUMBER: 03760771

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
13,562
16,270

  
13,562
16,270

Current assets
  

Stocks
 12 
490,035
731,282

Debtors
 13 
23,293,298
23,551,916

Cash at bank and in hand
 14 
3,937,557
3,871,939

  
27,720,890
28,155,137

Creditors: amounts falling due within one year
 15 
(22,922,841)
(23,631,197)

Net current assets
  
 
 
4,798,049
 
 
4,523,940

Total assets less current liabilities
  
4,811,611
4,540,210

  

Net assets
  
4,811,611
4,540,210


Capital and reserves
  

Called up share capital 
 17 
10,000,000
10,000,000

Profit and loss account
 18 
(5,188,389)
(5,459,790)

  
4,811,611
4,540,210


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Rabih Frem
Director

Date: 3 September 2024

Page 11

 
SANITA UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
10,000,000
(5,942,767)
4,057,233


Comprehensive income for the year

Profit for the year
-
482,977
482,977
Total comprehensive income for the year
-
482,977
482,977



At 1 January 2023
10,000,000
(5,459,790)
4,540,210


Comprehensive income for the year

Profit for the year
-
271,401
271,401
Total comprehensive income for the year
-
271,401
271,401


At 31 December 2023
10,000,000
(5,188,389)
4,811,611


The notes on pages 15 to 26 form part of these financial statements.

Page 12

 
SANITA UK LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
271,401
482,977

Adjustments for:

Depreciation of tangible assets
5,483
4,166

Interest paid
534,423
338,122

Interest received
(3,189)
-

Taxation charge
91,983
156,435

Decrease/(increase) in stocks
241,247
(263,506)

Decrease/(increase) in debtors
889,850
(1,343,531)

(Increase)/decrease in amounts owed by groups
(723,215)
17,133

(Decrease)/increase in creditors
(539,023)
911,508

(Decrease)/increase in amounts owed to groups
(1,513,103)
4,419,186

Net cash generated from operating activities

(744,143)
4,722,490


Cash flows from investing activities

Purchase of tangible fixed assets
(2,775)
(12,926)

Interest received
3,189
-

Net cash from investing activities

414
(12,926)
Page 13

 
SANITA UK LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

New secured loans
1,343,770
-

Repayment of loans
-
(1,857,810)

Interest paid
(534,423)
(338,122)

Net cash used in financing activities
809,347
(2,195,932)

Net increase in cash and cash equivalents
65,618
2,513,632

Cash and cash equivalents at beginning of year
3,871,939
1,358,307

Cash and cash equivalents at the end of year
3,937,557
3,871,939


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,937,557
3,871,939

3,937,557
3,871,939


Page 14

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Sanita UK Limited ('the Company') undertakes wholesale of packaging and converting products.
The Company is a private company limited by shares and is incorporated and domiciled in England. The address of its registered office is Suite 3, Sigma House, Hadley Park East, Telford, Shropshire, England, TF1 6QJ .

2.Accounting policies

 
2.1

Going concern

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.
After making enquires, the Director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements. 

 
2.2

Basis of preparation of financial statements

The financial statements have been prepared 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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Sale of goods

Revenue 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 revenue 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.

Page 15

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Tangible fixed assets

Tangible fixed 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
Computer equipment
-
20%

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 profit or loss.

 
2.5

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 weighted average 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 profit or loss.

 
2.6

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.

 
2.7

Cash and cash equivalents

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 16

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

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.

 
2.9

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 resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

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 profit or loss within 'other operating income'.

 
2.10

Finance costs

Finance costs are charged to profit or loss 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.

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.13

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.14

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believe to be reasonable under the circumstatnces.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year.

Page 18

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

Turnover is attributable to sale of goods of £67,330,019 (2022: £77,733,379) and sale of services of £770,827 (2022: £760,373).

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
27,300,443
38,437,202

Rest of Europe
33,398,789
37,504,390

Rest of the world
7,401,614
2,552,160

68,100,846
78,493,752



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
5,483
4,166

Exchange differences
36,319
386,123

Fees payable to the Company's auditor for the audit of the Company's 
annual financial statements
12,600
12,015

Defined contribution pension costs
13,457
22,948


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
12,600
12,015

Fees payable to the Company's auditors and their associates in respect of:

All non-audit services not included above
2,000
1,900

Page 19

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
779,568
832,355

Social security costs
89,849
130,997

Cost of defined contribution scheme
13,457
22,948

882,874
986,300


Key management personnel received remuneration during the year of £179,002 (2022: £178,042).

The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
10
8



Sales
7
10

17
18


8.


Interest receivable

2023
2022
£
£


Other interest receivable
3,189
-

3,189
-


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
534,423
338,122

534,423
338,122

Page 20

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£



Total current tax
-
-

Deferred tax


Utilisation of brought forward trade losses
91,983
156,435

Total deferred tax
91,983
156,435


Taxation on profit on ordinary activities
91,983
156,435

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
363,384
639,412


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
85,395
121,488

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
340
90

Capital allowances for year in excess of depreciation
416
(2,687)

Utilisation of tax losses
(86,151)
(118,891)

Short-term timing difference leading to an increase (decrease) in taxation
91,983
156,435

Total tax charge for the year
91,983
156,435


Factors that may affect future tax charges

The company has taxable trading losses carried forward which will be relieved against future taxable trading profits. 

Page 21

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tangible fixed assets





Fixtures and fittings & computer equipment

£



Cost or valuation


At 1 January 2023
118,925


Additions
2,775



At 31 December 2023

121,700



Depreciation


At 1 January 2023
102,655


Charge for the year on owned assets
5,483



At 31 December 2023

108,138



Net book value



At 31 December 2023
13,562



At 31 December 2022
16,270


12.


Stocks

2023
2022
£
£

Finished goods and goods for resale
490,035
731,282

490,035
731,282


Page 22

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Debtors


2023
2022
£
£

Due after more than one year

Deferred taxation
1,368,337
1,501,892

1,368,337
1,501,892

Due within one year

Trade debtors
10,724,406
12,550,803

Amounts owed by group undertakings
9,598,568
8,875,353

Other debtors
214,289
205,872

Prepayments and accrued income
1,262,376
334,246

Deferred taxation
125,322
83,750

23,293,298
23,551,916



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,937,557
3,871,939

3,937,557
3,871,939


Page 23

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
8,574,550
7,230,780

Trade creditors
360,156
827,875

Amounts owed to group undertakings
12,179,028
13,692,131

Other taxation and social security
480,814
1,673,776

Accruals and deferred income
1,328,293
206,635

22,922,841
23,631,197


Bank loans are secured by a guarantee from Napco National, an affiliate company and member of the Indevco Group. 


16.


Deferred taxation




2023
2022


£

£






At beginning of year
1,585,642
1,742,077


Charged to profit or loss
(91,983)
(156,435)



At end of year
1,493,659
1,585,642

The deferred tax asset is made up as follows:

2023
2022
£
£


Tax losses carried forward
1,493,659
1,585,642

1,493,659
1,585,642

Page 24

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,000,000 (2022 - 10,000,000) Ordinary shares of £1.00 each
10,000,000
10,000,000



18.


Reserves

Profit and loss account

The profit and loss reserves represent the cumulative retained profits and losses generated by the company since incorporation. 


19.


Controlling party

The ultimate parent undertaking is Cedars Intercontinental Corporation SAL (Holding), a company registered in Lebanon.
Cedars Intercontinental Corporation SAL (Holding) prepares group financial statements and copies can be obtained from their registered office at Jounieh, Athenee Building, Kesrouan Caza, Lebanon.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £13,457 (2022 - £22,948).

Page 25

 
SANITA UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


21.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
38,238
38,809

Later than 1 year and not later than 5 years
68,668
91,432

106,906
130,241


22.


Related party transactions

The Company has made various sales and purchases with companies affiliated to the INDEVCO Group of which it is a part. Sales of £5,085,814 (2022: £1,853,981) and purchases of £61,224,966 (2022: £73,407,995) were made during the year. At the year end debtor balances of £6,970,935 (2022: £8,026,788) and creditors of £12,179,028 (2022: £13,692,218) are included in the accounts in respect of these affiliated companies.                                                          
The Company has made various sales and purchases with ePac Holdings Europe Limited which is a company under common control. During the year there have been sales of £666,464 (2022: £1,508,907) made during the year and purchases of £Nil (2022: £Nil) were made during the year. At the year end there was a debtor balance of £640,062 (2022: £850,181).

23.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

3,871,939

65,618

3,937,557

Debt due within 1 year

(7,230,780)

(1,343,770)

(8,574,550)


(3,358,841)
(1,278,152)
(4,636,993)

 
Page 26