The Envelope Works Limited 05081474 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is that of printing and supply of overprinted envelopes Digita Accounts Production Advanced 6.30.9574.0 true true false false true 05081474 2023-01-01 2023-12-31 05081474 2023-12-31 05081474 bus:Director1 1 2023-12-31 05081474 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-12-31 05081474 core:CurrentFinancialInstruments 2023-12-31 05081474 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 05081474 core:Non-currentFinancialInstruments 2023-12-31 05081474 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 05081474 core:Goodwill 2023-12-31 05081474 core:MoreThanFiveYears 1 2023-12-31 05081474 core:FurnitureFittings 2023-12-31 05081474 core:LandBuildings core:OwnedOrFreeholdAssets 2023-12-31 05081474 core:MotorVehicles 2023-12-31 05081474 core:OtherPropertyPlantEquipment 2023-12-31 05081474 core:AllSubsidiaries 2023-12-31 05081474 core:OtherRelatedParties 2023-12-31 05081474 bus:SmallEntities 2023-01-01 2023-12-31 05081474 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 05081474 bus:FilletedAccounts 2023-01-01 2023-12-31 05081474 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 05081474 bus:RegisteredOffice 2023-01-01 2023-12-31 05081474 bus:Director1 2023-01-01 2023-12-31 05081474 bus:Director1 1 2023-01-01 2023-12-31 05081474 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 05081474 core:RevaluationReserve core:LandBuildings 2023-01-01 2023-12-31 05081474 core:Goodwill 2023-01-01 2023-12-31 05081474 core:FurnitureFittings 2023-01-01 2023-12-31 05081474 core:LandBuildings 2023-01-01 2023-12-31 05081474 core:LandBuildings core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 05081474 core:MotorVehicles 2023-01-01 2023-12-31 05081474 core:OfficeEquipment 2023-01-01 2023-12-31 05081474 core:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 05081474 core:PlantMachinery 2023-01-01 2023-12-31 05081474 core:AllSubsidiaries 2023-01-01 2023-12-31 05081474 core:AllSubsidiaries core:RenderingOrReceivingServices 2023-01-01 2023-12-31 05081474 core:OtherRelatedParties 2023-01-01 2023-12-31 05081474 core:Subsidiary1 2023-01-01 2023-12-31 05081474 core:Subsidiary1 countries:England 2023-01-01 2023-12-31 05081474 1 2023-01-01 2023-12-31 05081474 countries:England 2023-01-01 2023-12-31 05081474 2022-12-31 05081474 bus:Director1 1 2022-12-31 05081474 core:Goodwill 2022-12-31 05081474 core:CostValuation 2022-12-31 05081474 core:FurnitureFittings 2022-12-31 05081474 core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 05081474 core:MotorVehicles 2022-12-31 05081474 core:OtherPropertyPlantEquipment 2022-12-31 05081474 core:AllSubsidiaries 2022-12-31 05081474 core:OtherRelatedParties 2022-12-31 05081474 2022-01-01 2022-12-31 05081474 2022-12-31 05081474 bus:Director1 1 2022-12-31 05081474 core:HirePurchaseContracts core:CurrentFinancialInstruments 2022-12-31 05081474 core:CurrentFinancialInstruments 2022-12-31 05081474 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 05081474 core:Non-currentFinancialInstruments 2022-12-31 05081474 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 05081474 core:Goodwill 2022-12-31 05081474 core:MoreThanFiveYears 1 2022-12-31 05081474 core:FurnitureFittings 2022-12-31 05081474 core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 05081474 core:MotorVehicles 2022-12-31 05081474 core:OtherPropertyPlantEquipment 2022-12-31 05081474 core:AllSubsidiaries 2022-12-31 05081474 core:OtherRelatedParties 2022-12-31 05081474 bus:Director1 1 2022-01-01 2022-12-31 05081474 core:AllSubsidiaries 2022-01-01 2022-12-31 05081474 core:AllSubsidiaries core:RenderingOrReceivingServices 2022-01-01 2022-12-31 05081474 core:OtherRelatedParties 2022-01-01 2022-12-31 05081474 core:Subsidiary1 2022-01-01 2022-12-31 05081474 2021-12-31 05081474 bus:Director1 1 2021-12-31 05081474 core:AllSubsidiaries 2021-12-31 05081474 core:OtherRelatedParties 2021-12-31 iso4217:GBP xbrli:pure

Registration number: 05081474

The Envelope Works Limited
Annual Report and
Unaudited Financial Statements

31 December 2023

 

The Envelope Works Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 14

 

The Envelope Works Limited

Balance Sheet
31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

5

86,193

101,183

Tangible assets

6

3,295,992

2,647,295

Investments

7

100

100

 

3,382,285

2,748,578

Current assets

 

Stocks

8

1,055,708

1,222,242

Debtors

9

2,194,448

2,713,024

Cash at bank and in hand

 

305,312

57,840

 

3,555,468

3,993,106

Creditors: Amounts falling due within one year

10

(2,230,645)

(2,733,329)

Net current assets

 

1,324,823

1,259,777

Total assets less current liabilities

 

4,707,108

4,008,355

Creditors: Amounts falling due after more than one year

10

(1,489,562)

(1,033,764)

Provisions for liabilities

(246,619)

(234,291)

Net assets

 

2,970,927

2,740,300

Capital and reserves

 

Called up share capital

150

150

Revaluation reserve

1,195,562

595,562

Retained earnings

1,775,215

2,144,588

Shareholders' funds

 

2,970,927

2,740,300

For the financial year ending 31 December 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the Company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

The Envelope Works Limited

Balance Sheet
31 December 2023

Approved and authorised by the Board on 18 September 2024 and signed on its behalf by:
 

.........................................
M S Farrimond
Director

Company Registration Number: 05081474

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the Directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

1

General information

The Company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Duttons Way
Shadsworth Business Park
Blackburn
Lancashire
BB1 2QR

The principal place of business is:
Duttons Way
Shadsworth Business Park
Blackburn
Lancashire
BB1 2QR

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Government grants

Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets excluding buildings are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Buildings are stated at fair value and any fair value adjustment during the period is taken to the Revaluation reserve.

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

10% straight line

Motor vehicles

25% straight line

Office equipment

20% - 33% straight line

Land and buildings

2% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

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 profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

3

Staff numbers

The average number of persons employed by the Company (including Directors) during the year, was 41 (2022 - 41).

4

Profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

216,887

188,393

Amortisation expense

14,990

14,990

5

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

449,900

449,900

At 31 December 2023

449,900

449,900

Amortisation

At 1 January 2023

348,717

348,717

Amortisation charge

14,990

14,990

At 31 December 2023

363,707

363,707

Carrying amount

At 31 December 2023

86,193

86,193

At 31 December 2022

101,183

101,183

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

6

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Motor vehicles
 £

Other tangible assets
 £

Total
£

Cost or valuation

At 1 January 2023

2,012,150

420,289

24,566

1,691,021

4,148,026

Revaluations

600,000

-

-

-

600,000

Additions

-

101,769

-

163,815

265,584

At 31 December 2023

2,612,150

522,058

24,566

1,854,836

5,013,610

Depreciation

At 1 January 2023

92,226

304,136

20,873

1,083,497

1,500,732

Charge for the year

47,225

51,138

1,206

117,317

216,886

At 31 December 2023

139,451

355,274

22,079

1,200,814

1,717,618

Carrying amount

At 31 December 2023

2,472,699

166,784

2,487

654,022

3,295,992

At 31 December 2022

1,919,924

116,154

3,693

607,524

2,647,295

Included within the net book value of land and buildings above is £2,472,699 (2022 - £1,919,925) in respect of freehold land and buildings.
 

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

7

Investments

2023
£

2022
£

Investments in subsidiaries

100

100

Subsidiaries

£

Cost or valuation

At 1 January 2023

100

Provision

Carrying amount

At 31 December 2023

100

At 31 December 2022

100

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Country of incorporation

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

The Reel Envelope Company Limited

England

Ordinary

100%

100%

         

Subsidiary undertakings

The Reel Envelope Company Limited

The principal activity of The Reel Envelope Company Limited is Envelope manufacturer.

8

Stocks

2023
£

2022
£

Raw materials and consumables

1,055,708

1,222,242

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

9

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

1,375,196

1,829,531

Amounts owed by related parties

12

607,040

700,490

Prepayments

 

196,041

173,012

Other debtors

 

16,171

9,991

   

2,194,448

2,713,024

10

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

11

250,504

297,471

Trade creditors

 

1,322,164

1,594,991

Amounts owed to Group undertakings and undertakings in which the Company has a participating interest

12

11,280

8,370

Taxation and social security

 

311,392

312,277

Accruals and deferred income

 

21,880

18,647

Other creditors

 

313,425

501,573

 

2,230,645

2,733,329

The bank loans and overdrafts are secured against the assets of the company.

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

11

1,489,562

1,033,764

2023
£

2022
£

Due after more than five years

After more than five years by instalments

487,581

328,018

-

-

The bank loans and overdrafts are secured against the assets of the company.

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

11

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

1,489,562

803,577

Other borrowings

-

230,187

1,489,562

1,033,764

Current loans and borrowings

2023
£

2022
£

Bank borrowings

250,495

118,889

Bank overdrafts

9

-

Hire purchase contracts

-

7,024

Other borrowings

-

171,558

250,504

297,471

12

Related party transactions

Transactions with Directors

2023

At 1 January 2023
£

Advances to Director
£

At 31 December 2023
£

M S Farrimond

Directors loan account

9,991

6,180

16,171

2022

At 1 January 2022
£

Advances to Director
£

Repayments by Director
£

At 31 December 2022
£

M S Farrimond

Directors loan account

28,857

1,746

(20,612)

9,991

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Directors' remuneration

The directors are remunerated by the company. The directors consider that their remuneration meets the criteria of being under normal market conditions.

Summary of transactions with subsidiaries

During the year the company paid management charges and operated a loan account with its subsidiary company The Reel Envelope Company Limited.
 

Summary of transactions with other related parties

Simon Holdings Plc
 During the year the company received management services, marketing and operated a loan account with its fellow group company.
 

Expenditure with and payables to related parties

2023

Subsidiary
£

Rendering of services

96,000

2022

Subsidiary
£

Rendering of services

96,000

Loans to related parties

2023

Subsidiary
£

Total
£

At start of period

700,490

700,490

Repaid

(93,450)

(93,450)

At end of period

607,040

607,040

2022

Subsidiary
£

Total
£

At start of period

836,318

836,318

Repaid

(135,828)

(135,828)

At end of period

700,490

700,490

 

The Envelope Works Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Loans from related parties

2023

Other related parties
£

Total
£

At start of period

8,369

8,369

Repaid

2,910

2,910

At end of period

11,279

11,279

2022

Subsidiary
£

Other related parties
£

Total
£

At start of period

5,113

10,259

15,372

Repaid

-

(1,890)

(1,890)

Impairment

(5,113)

-

(5,113)

At end of period

-

8,369

8,369

13

Parent and ultimate parent undertaking

The ultimate controlling party is shared between the director Mark Farrimond and Simon Holdings Plc.

14

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Revaluation reserve
£

Total
£

Surplus/deficit on property, plant and equipment revaluation

600,000

600,000