REGISTERED NUMBER: |
PAPERWORK (PAPER CONVERTORS) LIMITED |
TRADING AS |
DISPO INTERNATIONAL |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
REGISTERED NUMBER: |
PAPERWORK (PAPER CONVERTORS) LIMITED |
TRADING AS |
DISPO INTERNATIONAL |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
PAPERWORK (PAPER CONVERTORS) LIMITED |
TRADING AS DISPO INTERNATIONAL |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Glenewes House |
Gate Way Drive |
Leeds |
West Yorkshire |
LS19 7XY |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
The business has had a strong and successful year, the figures are reflective of our strong position within our industry despite the economic challenges faced this year. We have seen import charges return to pre Covid rates in the last 12 months. The turnover in the year increased by 4.59% to £14,769,789 (2023: £14,121,974). Gross profit of £4,110,700 (2023: £3,469,987) represents a gross margin of 27.8% (2023: 24.6%) and costs at £2,579,918 (2023: £2,418,048) are at 17.4% as a percentage of sales (2023 17.1%). Profit before tax is £1,666,043 (2023: £1,177,990) resulting in a return of 11.3% (2023: 8.3%). |
The company continued to focus on expanding the product range with alternative environmentally friendly products to encourage future growth and invest in adequate storage space. |
The company offers a wide range of catering disposable products to the wholesale and distribution market. It prides itself on delivering high customer satisfaction by providing a 'one stop shop' for all things catering. |
The business remains focused on providing an exceptional service and the directors are confident that the next 12 months will show similar growth to previous years. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the company's strategy are subject to several key risks. These are: |
- Environmental Regulations |
Government regulation such as the PRN system, Plastic Packaging Tax and EPR system have caused a heavy burden on the business. They seem unfair and unregulated within the industry. |
Changes in consumer preferences, from PE materials to PLA (Bio) opting for what is perceived to be environmentally friendly products caused by the lack of Government investment in recycling facilities and collection infrastructure alongside the governments poor understanding of the materials. |
- Recruitment and retention of staff |
Being a family business key roles are filled by longstanding members of staff that live locally to the area. Staff are rewarded with attractive packages compared to competition. Staff are encouraged to take initiative, and make improvements within their role, to experience the roles of others. This has led to increased job satisfaction and efficiency within the business. Training needs and desires of staff are reviewed regularly and funded. Staff are supported. The company has a strong support network for staff struggling outside of work with open dialogue between staff and management. |
- Cost of living inflationary pressures |
- Increased staff wages, to retain staff and support throughout the pressures. |
- Increased cost of transport. |
- Energy price rises. |
- Continued impact of the war in the Ukraine and its impact on costs |
- Fuel and energy price rises have resulted in increased selling prices for which we have seen resistance |
in the market. |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES (continued) |
Financial Risks |
The company's objectives when managing capital are to safeguard the company's ability to continue to trade as a going concern to provide returns for shareholders. |
The company continues to monitor credit risk closely and considers that its current policy of credit checks and subscription to a reputable credit agency providing live updates meets its objectives of managing such exposure. |
The company manages the exposure to currency fluctuations and sets costs at realistic rates. |
The company reviews regularly the effects rising fuel costs have on the business. |
The company considers the rising interest rates and industry related costs when taking a view on storage. |
Employee Motivation |
The company's employees continue to be central to its operations. The company actively encourages employee involvement in all areas of the business, this helps keep employees motivated and dedicated to their work. Regular meetings are held with feedback for improvement along with a suggestion box for employees. |
General |
Factors from outside the company's control cannot be foreseen, however as far as the directors are aware there isn't any significant risk which may adversely impact on the company in the next 12 months. In the view of the Directors the company's performance is largely reliant on keeping abreast of changes in legislation. |
KEY PERFORMANCE INDICATORS |
In order to achieve growth in profitability and to control cash flow, strong financial management is maintained by the company. A number of key financial performance indicators are used as measures to ensure the company grows and remains financially strong to enable it to invest in the future. The indicators are drawn from the accounts and are shown below. |
- Turnover |
- Gross profit Margin |
- Net Profit Margin |
- Shareholders' funds |
- Stock and sales ratios |
- New and lost business |
- Overhead monitoring |
ON BEHALF OF THE BOARD: |
10 September 2024 |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of wholesale of disposable catering equipment. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chose in accordance with Companies Act 2006, S414C (11), to set out in the company's strategic report information required by Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch 7 to be contained in the directors' report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
AUDITORS |
The auditors, BPR Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PAPERWORK (PAPER CONVERTORS) LIMITED |
Qualified opinion |
We have audited the financial statements of Paperwork (Paper Convertors) Limited (the 'company') for the year ended 30 April 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects on the corresponding figures of the matter described in the basis for qualified opinion paragraph, the financial statements: |
- give a true and fair view of the state of the company's affairs as at 30 April 2024 and of the company's 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 qualified opinion |
The evidence available to us was limited because we were not appointed as auditor of the company until 27 April 2023 and in consequence it was not possible for us to observe the counting of physical stock at 30 April 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities of £4,046,608 held at 30 April 2022 by using other audit procedures. Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 30 April 2023. Our audit opinion on the financial statements for the year ended 30 April 2023 was modified accordingly. Our opinion on the current year's financial statements is also modified because of the possible effect of this matter on the comparability of the current year's figures and the corresponding figures. In addition, were any adjustment to the stock balance at 30 April 2022 to be required, the Strategic Report would also need to be amended. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PAPERWORK (PAPER CONVERTORS) LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £4,046,608 held at 30 April 2022. We have concluded that where the other information refers to the stock balance at 30 April 2022 or related balances such as cost of sales for the year ended 30 April 2023, it may be materially misstated for the same reason. |
Qualified opinion on other matters prescribed by the Companies Act 2006 |
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit: |
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
Arising solely from the limitation on the scope of our work relating to stock reported in the financial statements for the year ended 30 April 2022, referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of |
our audit; and |
- we were unable to determine whether adequate accounting records had been maintained. |
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: |
- | returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PAPERWORK (PAPER CONVERTORS) LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures were capable of detecting irregularities, including fraud is detailed below: |
To identify risks of material misstatement due to irregularities, including fraud (fraud risks) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures involved enquiring of the directors as to the company's policies and procedures to prevent and detect fraud, as well as whether they had knowledge of any actual, suspected, or alleged fraud. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. |
As required by auditing standards and considering our overall knowledge of the control environment, we performed procedures to address the risk of management override of controls, in particular the risk that management may be able to make inappropriate accounting entries. We concluded that there was limited opportunity for manipulation or management override of controls. We performed procedures including a review of accounting entries to supporting documentation. We did not identify any additional fraud risks. |
We identified Health and Safety, and Employment Law as areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. |
We communicated the identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The company is subject to laws and regulations that directly affect the financial statements, including financial reporting and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and key management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. |
It is considered that our procedures can detect irregularities, including fraud. However, 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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PAPERWORK (PAPER CONVERTORS) LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Glenewes House |
Gate Way Drive |
Leeds |
West Yorkshire |
LS19 7XY |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,579,918 | 2,418,048 |
1,530,782 | 1,051,939 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,666,252 | 1,202,937 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2024 |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Related party loan | - | (460,000 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
283,187 |
Cash and cash equivalents at end of year |
2 |
2,013,298 |
996,505 |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Government grants | ( |
) |
Finance costs | 209 | 24,947 |
Finance income | (24,235 | ) | (29 | ) |
1,696,759 | 1,264,867 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30/4/24 | 1/5/23 |
£ | £ |
Cash and cash equivalents | 2,013,298 | 996,505 |
Year ended 30 April 2023 |
30/4/23 | 1/5/22 |
£ | £ |
Cash and cash equivalents | 996,505 | 283,187 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/5/23 | Cash flow | At 30/4/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 996,505 | 1,016,793 | 2,013,298 |
996,505 | 2,013,298 |
Total | 996,505 | 1,016,793 | 2,013,298 |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Paperwork (Paper Convertors) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in sterling which is the functional currency of the company rounded to the nearest pound £. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events. |
In preparing these financial statements, the directors have made the following judgements: |
Tangible fixed assets |
Tangible fixed assets are depreciated over their useful lives which are assessed annually by the directors. In assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. |
Determining appropriate rates of depreciation requires an estimation of the useful lives and expected residual values of fixed assets. The net carrying amount of assets is £1,546,426 (2023: £1,502,206). During the year depreciation of £54,742 (2023: £107,226) has been provided. |
Bad debt provision |
Where the company believes that unpaid debtors may result in a bad debt, a provision is calculated, which considers the payment history of the relevant customers, and the ageing of the debt. |
Stock Provision |
Stock is carried at the lower of cost and net realisable value which requires the estimation of eventual sales price of goods to customers. Management base these on historical data. Stock is periodically reviewed, and allowances are made for obsolete and slow-moving items. The net carrying amount of stock is £3,680,401 (2023: £3,527,330). A stock provision of £225,347 (2023: £233,515) has been provided. |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:- |
- the Company has transferred to the buyer the significant risks and rewards of ownership of the |
goods; |
- 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 economic benefits associated with the transaction will flow to the Company; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
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 provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Freehold property - 2% on cost |
Plant and machinery - 25% on cost |
Fixtures and fittings - 25% on cost |
Motor vehicles - 25% reducing balance |
Land is not depreciated. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. |
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit and loss account. |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial Instruments |
Financial assets and financial liabilities are recognised when the company becomes a party to the |
contractual provisions of the instrument. |
Financial assets and liabilities are initially measured at transaction price, except for those financial |
assets classified as at fair value through profit or loss. |
Basic financial instruments |
Basic financial instruments are those with relatively straight forward terms and would normally include |
cash, bank balances, trade debtors and trade creditors. |
Where the arrangement does not constitute a financing transaction, e.g. trade debtors on normal |
commercial terms, the debtor will be valued initially at transaction price (i.e. cost) and subsequently at |
transaction price less impairment (if any) due to concerns over recoverability. |
Other financial instruments |
Other financial instruments 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 and loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the lease except where another systematic basis is more representative of the time pattern in which economic benefits of the leased assets are consumed. |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Rest of world | 181,565 | 490,153 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 4 | 4 |
Other | 21 | 20 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Non bank interest on loans |
Interest payable |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year under/over prov | - | (4,586 | ) |
Total current tax |
Deferred tax |
Tax on profit |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Short term timing differences | - | (1,350 | ) |
Deferred tax movement in relation to rate change. | - | 20,788 |
Deferred tax movement in relation to timing differences. | 27,846 | (14,553 | ) |
Total tax charge | 459,577 | 248,580 |
An increase in the UK corporation tax rate from 19% to 25% was enacted in the Finance Act 2021, which is effective from 1st April 2023. Consequently deferred tax has been calculated using that rate. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
A Ordinary shares of £1 each |
Interim |
C Ordinary shares of £1 each |
Interim |
D Ordinary shares of £1 each |
Interim |
E Ordinary shares of £1 each |
Interim |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TANGIBLE FIXED ASSETS |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
10. | STOCKS |
2024 | 2023 |
£ | £ |
Finished goods |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Taxation |
Social security and other taxes |
VAT | 275,140 | 367,637 |
Other creditors |
Accrued expenses |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
14. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 114,463 | 86,617 |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Charge to Income Statement during year |
Balance at 30 April 2024 |
The deferred tax liability is in respect of accelerated capital allowances. |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £1 | 4,500 | 4,500 |
B Ordinary | £1 | 100 | 100 |
C Ordinary | £1 | 4,500 | 4,500 |
D Ordinary | £1 | 500 | 500 |
E Ordinary | £1 | 500 | 500 |
10,100 | 10,100 |
PAPERWORK (PAPER CONVERTORS) LIMITED (REGISTERED NUMBER: 02660315) |
TRADING AS DISPO INTERNATIONAL |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
15. | CALLED UP SHARE CAPITAL - continued |
All the share capital in issue rank pari passu except the £1 'B' Ordinary shares shall not entitle the holders thereof to receive notice of or attend and vote (either in person or by proxy) at any General Meeting of the Company unless the business of the General Meeting includes the consideration of a Resolution for winding up the Company or a Resolution altering or abrogating any of the rights, privileges, limitations and restrictions attached to the Ordinary 'B' shares but so that in the event of the 'B' Ordinary shares entitling the holders thereof to attend at a Meeting, such holders shall have the right to vote at such Meeting in respect of the 'B' Ordinary shares, in which events holders of the 'B' Ordinary shares shall have one vote on a show of hands and on a poll one vote in respect of every 'B' Ordinary share held by them respectively. |
16. | RESERVES |
Retained |
earnings |
£ |
At 1 May 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 April 2024 |
The profit and loss account represents accumulated comprehensive income for the year and prior periods, after distribution of dividends. |
17. | RELATED PARTY DISCLOSURES |
Minerva SIPP's |
(Pension fund for Mr A J Hall and Mrs E A Hall) |
The pension fund owns 51.2% (2023 - 51.2%) of the property from which the company trades. During the year rent of £128,000 (2023 - £128,000) was paid to the Minerva SIPP's. |
At the balance sheet date the amount due to the Minerva SIPP's was £nil (2023 - £nil). |
2024 | 2023 |
£ | £ |
Sales and management charges |
Interest incurred on loans from related party | - | 18,170 |
Amount due from related party |
Amount due to related party |
18. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are Mr A Hall and Mrs E A Hall. |