IRIS Accounts Production v24.2.0.383 02312465 Board of Directors 1.1.23 31.12.23 31.12.23 true false true true false false false true true true true false Ordinary shares 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh023124652022-12-31023124652023-12-31023124652023-01-012023-12-31023124652021-12-31023124652022-01-012022-12-31023124652022-12-3102312465ns15:EnglandWales2023-01-012023-12-3102312465ns14:PoundSterling2023-01-012023-12-3102312465ns10:Director12023-01-012023-12-3102312465ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3102312465ns10:FRS1022023-01-012023-12-3102312465ns10:Audited2023-01-012023-12-3102312465ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3102312465ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3102312465ns10:FullAccounts2023-01-012023-12-310231246512023-01-012023-12-3102312465ns10:OrdinaryShareClass12023-01-012023-12-3102312465ns10:Director22023-01-012023-12-3102312465ns10:Director32023-01-012023-12-3102312465ns10:Director42023-01-012023-12-3102312465ns10:Director52023-01-012023-12-3102312465ns10:RegisteredOffice2023-01-012023-12-3102312465ns5:CurrentFinancialInstruments2023-12-3102312465ns5:CurrentFinancialInstruments2022-12-3102312465ns5:ShareCapital2023-12-3102312465ns5:ShareCapital2022-12-3102312465ns5:RetainedEarningsAccumulatedLosses2023-12-3102312465ns5:RetainedEarningsAccumulatedLosses2022-12-3102312465ns5:ShareCapital2021-12-3102312465ns5:RetainedEarningsAccumulatedLosses2021-12-3102312465ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3102312465ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-310231246512023-01-012023-12-3102312465ns5:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3102312465ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3102312465ns15:UnitedKingdom2023-01-012023-12-3102312465ns15:UnitedKingdom2022-01-012022-12-3102312465ns15:Europe2023-01-012023-12-3102312465ns15:Europe2022-01-012022-12-3102312465ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3102312465ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-3102312465ns10:HighestPaidDirector2023-01-012023-12-3102312465ns10:HighestPaidDirector2022-01-012022-12-3102312465ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-01-012023-12-3102312465ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-01-012022-12-3102312465ns5:OwnedAssets2023-01-012023-12-3102312465ns5:OwnedAssets2022-01-012022-12-3102312465132023-01-012023-12-3102312465132022-01-012022-12-3102312465142023-01-012023-12-3102312465142022-01-012022-12-3102312465ns10:OrdinaryShareClass12022-01-012022-12-3102312465ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3102312465ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3102312465ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3102312465ns5:LeaseholdImprovements2022-12-3102312465ns5:PlantMachinery2022-12-3102312465ns5:FurnitureFittings2022-12-3102312465ns5:LeaseholdImprovements2023-01-012023-12-3102312465ns5:PlantMachinery2023-01-012023-12-3102312465ns5:FurnitureFittings2023-01-012023-12-3102312465ns5:LeaseholdImprovements2023-12-3102312465ns5:PlantMachinery2023-12-3102312465ns5:FurnitureFittings2023-12-3102312465ns5:LeaseholdImprovements2022-12-3102312465ns5:PlantMachinery2022-12-3102312465ns5:FurnitureFittings2022-12-3102312465ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3102312465ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3102312465ns5:WithinOneYear2023-12-3102312465ns5:WithinOneYear2022-12-3102312465ns5:BetweenOneFiveYears2023-12-3102312465ns5:BetweenOneFiveYears2022-12-3102312465ns5:MoreThanFiveYears2023-12-3102312465ns5:MoreThanFiveYears2022-12-3102312465ns5:AllPeriods2023-12-3102312465ns5:AllPeriods2022-12-3102312465ns5:DeferredTaxation2022-12-3102312465ns5:OtherProvisionsContingentLiabilities2022-12-3102312465ns5:DeferredTaxation2023-01-012023-12-3102312465ns5:OtherProvisionsContingentLiabilities2023-01-012023-12-3102312465ns5:DeferredTaxation2023-12-3102312465ns5:OtherProvisionsContingentLiabilities2023-12-3102312465ns10:OrdinaryShareClass12023-12-3102312465ns5:RetainedEarningsAccumulatedLosses2022-12-31
REGISTERED NUMBER: 02312465 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

PROTECTIVE PACKAGING LIMITED

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Income Statement 12

Other Comprehensive Income 13

Balance Sheet 14

Statement of Changes in Equity 15

Notes to the Financial Statements 16


PROTECTIVE PACKAGING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J H Law
A P Harding
S Jolly
B C Lewis
C G Lewis





REGISTERED OFFICE: Unit 3, Gateway
1 Opus Close
Carrington
Manchester
M31 4RQ





REGISTERED NUMBER: 02312465 (England and Wales)





AUDITORS: Harold Sharp Limited
Statutory Auditors and Chartered Accountants
5 Brooklands Place
Brooklands Road
Sale
Cheshire
M33 3SD

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present the Strategic Report together with the audited financial statements for the year ended 31 December 2023.

REVIEW OF BUSINESS
The principal activities of the company during the year remained that of the manufacture of protective packaging solutions.

Development of the business

Fiscal 2023 saw the Company's sales decrease by 6.4% to £13.09m. The associated Gross Profit whilst running at an improved 61.1% versus Fiscal 2022's 59.6%, decreased by 4.1% to £7.99m. Domestic sales accounted for 54% of revenue with export activity contributing 46%. The company achieved sales with 41 export territories which serves to provide continued evidence that the Company's global reach is as strong as ever, supported by a programme of direct sales, sales through strategic distribution channels and an ever-growing on-line presence. The Company continues to exploit its considerable business differentiators in all markets, manufacturing the highest quality packaging, supplied in a timely fashion whilst ensuring adherence to its business ethics. The Company continues to win new business in all markets and to consolidate its position as the UK's leading supplier of climatic packaging solutions and a major force in Europe and further afield. The company continues to review its manufacturing techniques and material and product format mix with a view to achieving sales growth in industry sectors, specific applications and geographical regions that meet the sales strategies of the business. The company will continue to maximise the sales opportunities and associated margin levels for the unique elements of its product range. In every area of the business, we are stronger and more capable than ever due to the continuing success and further development of the Buddy System linked to a more strategic recruitment policy and continued investment in its automated manufacturing capability.

The Company's results for the year are included within these financial statements.

Future-outlook

2024 will see a ramping up of our dedicated sales and marketing initiatives associated with our ability to offer pouches with re-closable zipper profiles. Our zipper-pouch manufacturing capability will allow us to manufacture to both traditional sizes, but also to dimensions previously unavailable commercially anywhere. From our new modern base, and with our new equipment in place, the Directors are planning to be ready to exploit the growing opportunities associated with the global market and maintain and where possible enhance their position, as a worldwide leader in the provision of climatic packaging solutions across all market sectors and geographical locations. The Company's routes to market will continue to be a combination of direct sales and sales via a strategically developed network of exclusive and non-exclusive distributors and business partners, all supported by previous good practice with regard to recruitment and training proactive. The company will continue to work to the disciplines of its unbroken 35-year accreditation to ISO 9001:2015 and exploit the opportunities that will arise as a result. In addition, 2024 will allow the Company to exploit its accredited to the ISO 14001:2015 Standard for Environmental Management which, when coupled with the Company's continuing status as a carbon neutral business as it journeys towards Net Zero, demonstrates an appreciation of its environmental impact. The Company will use its enhanced manufacturing base to continue to engage with its key markets such as the pharmaceutical, diagnostic, healthcare, aerospace, electronics and food sectors. We will extend our global reach and presence by a significant increase in our marketing activity and through further development of our various websites in tandem with our linguistic skill sets. The company's commercial and operational platforms will grow through the further development of management in both areas of the business to further support the fulfilment of the company's Fiscal 2024 growth aspirations. Fiscal 2024 will see a continued emphasis placed upon the Company's significant differentiators as we seek to develop new markets and where necessary, displace the indigenous supply base. Fiscal 2024 will see the continued development of a new, tailored ERP system that will support our business as we develop our operational efficiencies and provide our customers with an enhanced experience. Fiscal 2024 will see the company develop specific mono-polymer materials to meet the requirements where appropriate, of sustainability and recyclability whilst maintaining the fundamentals principles of a barrier to atmospheric degradation of the packaged product and the prolongation of product-life.


PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties that the company faces continue to relate mainly to working within the credit worthiness of our customers, both domestic and overseas. In mitigation, our relationship with our credit limit underwriters is crucial, as we will only extend credit payment terms to companies that we can obtain an insured credit limit with. Immediate payment against pro-forma invoices is the only option when we are doing business with uninsured customers and this can sometimes be a hurdle to us actually doing business. The Company is exposed to fluctuating cost prices for its key raw materials and to currency exchange rates. In mitigation, the Company robustly resists the acceptance of price fluctuation, other than downwards and in respect of the GBP/EURO exchange rate relationship, has the perfect natural hedge of almost parity between the value of EURO purchases and EURO sales. The Company's IT system is fundamentally based on an aged and creaking platform, but F2023/4 will see the full integration across the entire business of a new and bespoke ERP system. The Company has successfully navigated the implementation of the Plastic Packaging Tax (PPT) and the collection of the appropriate amount of tax from the sale of eligible products. However, the challenge remains for the Company to work with its supply chain on the development of laminate materials that contain a minimum 30% recyclate content so that its customers will no longer be exposed to the payment of PPT. This is not an overnight fix, but a medium to long-term aim and one that the Company is engaged in with its key supply partners. On a related theme, a further challenge that the Company faces is the implementation of Extended Producer Responsibility (EPR) and the associated cost of managing and recycling the packaging waste generated. The Company is required to obtain, from all UK customers, an understanding of the sales revenue of those customers, personnel employed by those customers and an appreciation of whether any of the purchased packaging is destined for the domestic waste stream. The collection of this data is a burden on the business..

Other potential risks include

Price risk: Economical, political and market conditions in supplier countries can affect the price we pay for raw materials. This can adversely affect our business but can also benefit the business.

Credit risk: All our domestic and overseas debt is insured or based on advance payment, to minimise any bad debt exposure within the business.

Liquidity risk: Due to our financial results during these financial years and our strict credit, we are diligent in managing our cash flows.

Exchange risk: The uncertainty associated to currency exchange rates is largely obviated by the company's natural hedge mechanism related to an almost equitable split in overseas currency sales and purchases.

Financial/Cash flow risk: The Company finances its operations through a mixture of cash flows and invoice financing. Daily cash positions are sent to the board for review. The management's objective is to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.


PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

POST BALANCE SHEET EVENTS
Events over the last few years such as Covid, the conflict in Ukraine and even shipping issues such as the problem in the Suez Canal have seen a lot of instability regarding pricing of things like energy, aluminium, polymers and freight. Although things have begun to stabilise we still need to be mindful of the ever changing climate that we are currently experiencing. We have seen multiple increases to interest rates, inflation and fluctuating fuel prices which all impacts our supply chain. Due to the nature of our business this has subsequently had an impact on our suppliers pricing which we are diligently monitoring using various market intelligence to ensure we are getting the most competitive prices and staying ahead of the curve.

We continue to monitor changes within the industry such as Plastic Packaging Tax which came into effect as at the 1st April 2022, as with previous potential significant business changes we were ahead of the curve and fully prepared for its implementation. Over the last 2 years we have seen increases in the amount charged per tonne for Plastic Packaging Tax and have made the necessary adjustments when required. We are also aware of changes in other European countries who begin to implement their own similar regulations and will ensure our processes are updated to reflect this where necessary.

Extended Producer Responsibility or EPR was introduced in 2023 the idea is to see the full cost of managing household waste shift to producers, in the hope of delivering a more circular economy for packaging where greater quantities of recyclable waste are reprocessed into valuable, high-quality secondary resources. EPR will also change the way in which non-household packaging waste is managed and its reprocessing is financed. Due to the nature of our business, our place in the supply chain and the amount of packaging we handle then this is something that we must conform to. A project team reviewed the published regulations and submitted data in line with our obligation during 2023 and will continue to do so throughout 2024. At this time the cost to the business of EPR is still unclear but full details are due to be published during the 2nd half of 2024.

As part of the review of our business impact on the environment we have once again partnered with a company to off-set our carbon emissions to become carbon neutral for another year. We also gained the ISO 14001 accreditation early 2023 and undertook the surveillance audit early 2024. We partnered with a specialist company for the installation of solar panels at our facility which were installed early Q2 2024 with significant results.

During 2022 we engaged with a specialist ERP partner to replace our current dated IT system and also our accounting software. This will help streamline procedures without the need to transfer data between the two different systems and also improve reporting and analysis. This is a substantial project which will be vigorously tested and development of the system will continue throughout 2024 with an expected completion of Q4 2024 or Q1 2025.

GOING CONCERN
In preparing these financial statements, the Directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Company will continue in business. In satisfaction of this responsibility, the Directors have considered the Company's ability to meet its liabilities as they fall due for a period of at least twelve months from the signing date of the financial statements.

The Company continues to manufacture at its new production facility with no plans to stop production. To date, the Company has not experienced any significant disruption from employee absence, its supply chain or its distribution networks and none is anticipated in the foreseeable future due to the fact that the Company has significant current orders as at the date of signing these accounts as well as holding appropriate levels of stock.

The Directors have prepared what they consider to be a realistic forecast for the period to the end of December 2025. This indicates that for a period of 16 months from the date of signing these accounts, the Company continues to generate cash. There are various cost saving measures that the Directors could implement if the fall in revenue was worse than this.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Directors therefore believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.


PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL KEY PERFORMANCE INDICATORS
Financially we have exercised excellent controls with regard to stock and cash flow with stock turn, debtor days and creditor days all at appropriate levels which are reported to the board for review on a weekly basis. All expense lines remain under control. Our sales visits and issued samples and quotes were all in line with our targets and our customer survey clearly indicates that we are considered an excellent supplier. Quality complaints are in line with our objectives but continue to be reviewed and improvements implemented to ensure these are kept to an absolute minimum.

RESEARCH AND DEVELOPMENT
The company will continue to develop new materials, manufacturing techniques and packaging product formats to allow entry into new geographical markets, areas of application and industry sectors and continue to provide specialist product and equipment manufacturers with the climatic packaging solutions that they require. We will endeavour wherever possible to utilise smart features on our packaging to exploit the opportunities for intelligent packaging. The company will build upon its growing reputation as a developer of the most appropriate packaging solutions to meet the specific demands of the customer's needs and that of their products and routes to market. The company will continue to link its excellent technical acumen with that of its key material supply base to achieve this objective.

ON BEHALF OF THE BOARD:





A P Harding - Director


23 September 2024

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture of protective packaging solutions.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 is £1,000,000 (2022: £1,093,752). The directors do not recommend a final dividend.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J H Law
A P Harding
S Jolly
B C Lewis
C G Lewis

DIRECTORS INDEMNITIES
The company has currently made qualifying third party indemnity provisions for the benefit of its directors, which remain in force at the date of this report.

MATTERS INCLUDED IN THE STRATEGIC REPORT
The business review, financial risk assessment, assessment of principal risk and uncertainties, research and development, post balance sheet events and future developments are included within the strategic 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A P Harding - Director


23 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PROTECTIVE PACKAGING LIMITED


Opinion
We have audited the financial statements of Protective Packaging Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.

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. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PROTECTIVE PACKAGING LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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
PROTECTIVE PACKAGING 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to accrued costs, and dilapidations provision.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.
- Testing key revenue lines, in particular cut-off, for evidence of management bias.
- Performing a physical verification of key assets , including stock.
- Obtaining third-party confirmation of material bank balances.
- Documenting and verifying all significant related party balances and transactions.
- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.


Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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
PROTECTIVE PACKAGING 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.




Karen Dent (Senior Statutory Auditor)
for and on behalf of Harold Sharp Limited
Statutory Auditors and Chartered Accountants
5 Brooklands Place
Brooklands Road
Sale
Cheshire
M33 3SD

24 September 2024

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 13,091,425 13,992,763

Cost of sales 5,093,647 5,654,758
GROSS PROFIT 7,997,778 8,338,005

Administrative expenses 6,241,062 6,451,335
OPERATING PROFIT 5 1,756,716 1,886,670


Interest payable and similar expenses 7 16,146 40,973
PROFIT BEFORE TAXATION 1,740,570 1,845,697

Tax on profit 8 393,417 487,542
PROFIT FOR THE FINANCIAL YEAR 1,347,153 1,358,155

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,347,153 1,358,155


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,347,153

1,358,155

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 72,528 32,059
Tangible assets 11 1,632,275 1,513,340
1,704,803 1,545,399

CURRENT ASSETS
Stocks 12 902,393 1,177,508
Debtors 13 5,003,612 5,411,346
Cash at bank and in hand 908,180 878,748
6,814,185 7,467,602
CREDITORS
Amounts falling due within one year 14 3,003,136 3,723,593
NET CURRENT ASSETS 3,811,049 3,744,009
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,515,852

5,289,408

PROVISIONS FOR LIABILITIES 17 586,536 707,245
NET ASSETS 4,929,316 4,582,163

CAPITAL AND RESERVES
Called up share capital 18 5,000 5,000
Retained earnings 19 4,924,316 4,577,163
SHAREHOLDERS' FUNDS 4,929,316 4,582,163

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





A P Harding - Director


PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 5,000 4,312,760 4,317,760

Changes in equity
Dividends - (1,093,752 ) (1,093,752 )
Total comprehensive income - 1,358,155 1,358,155
Balance at 31 December 2022 5,000 4,577,163 4,582,163

Changes in equity
Dividends - (1,000,000 ) (1,000,000 )
Total comprehensive income - 1,347,153 1,347,153
Balance at 31 December 2023 5,000 4,924,316 4,929,316

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Protective Packaging Limited is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office is Unit 3, Gateway, 1 Opus Close, Carrington, Manchester, M31 4RQ and its registered number is 02312465. The nature of the company's operations and its principal activities are set out in the strategic report.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared for the company as a single entity. The presentation and functional currency is GBP £.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Betronics Limited as at 31 December 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors have made no material judgements but have made estimates in preparing these financial statements. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accrued costs
Accrued expenditure is estimated by the directors at each year end, to ensure that all known liabilities are accounted for in the financial statements.

Provisions
A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Management estimate and make provision for costs that will be incurred in returning a leased property to the condition that it was in at the inception of the lease. The actual costs of work that needs to be completed could vary from the estimates. The amount recognised is the estimated cost of dilapidations and is reassessed each year in accordance with local conditions and requirements. Changes in the estimated timing of dilapidations or dilapidations cost estimates are dealt with prospectively by recording an adjustment to the provision.

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of four years.

Development costs are in respect of the company's new ERP system which was not brought into use at the year end. Once in use the asset will be amortised over its estimated useful life of four years.

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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 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.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following bases:

Leasehold property improvementsstraight line over term of the lease
Motor vehicles25% reducing balance
Plant & machinery10% reducing balance

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 the statement of comprehensive income.

Assets under construction represent machinery not yet complete. They are subject to depreciation once complete and brought into use.

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

Stocks are comprised of packaging materials and completed packaging items.

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include trade debtors, other debtors, amounts owed by group undertakings, amounts owed by related parties and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

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

Basic financial liabilities, including trade creditors, other creditors, amounts owed to group undertakings, and amounts owed to related parties, that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under the appropriate format heading depending on the nature of the derivative.

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.

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Going concern
In preparing these financial statements, the Directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Company will continue in business. In satisfaction of this responsibility, the Directors have considered the Company's ability to meet its liabilities as they fall due for a period of at least twelve months from the signing date of the financial statements.

The Company continues to manufacture at its new factory production facility with no plans to stop production. To date, the Company has not experienced any significant disruption from employee absence, its supply chain or its distribution networks and none is anticipated in the foreseeable future due to the fact that the Company has significant current orders as at the date of signing these accounts as well as holding appropriate levels of stock.

The Directors have prepared what they consider to be a realistic forecast for the period to the end of December 2025. This indicates that for a period of 16 months from the date of signing these accounts, the Company continues to generate cash. There are various cost saving measures that the Directors could implement if the fall in revenue was worse than this.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Directors therefore believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 8,773,488 7,341,607
Europe 3,901,064 4,767,038
Rest of the world 416,873 1,884,118
13,091,425 13,992,763

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 5,463,941 5,718,589
Social security costs 252,972 276,548
Other pension costs 68,656 73,281
5,785,569 6,068,418

The average number of employees during the year was as follows:
2023 2022

Production staff 28 31
Administrative staff 32 28
Management staff 5 5
65 64

Directors are deemed to be key management personnel.

2023 2022
£    £   
Directors' remuneration 3,856,173 3,697,913
Directors' pension contributions to money purchase schemes 9,690 14,370

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 3,137,976 3,106,567

Amounts paid to third parties in respect of directors services £42,000 (2022: £42,000).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director was £nil (2022: £nil).

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 10,317 11,424
Other operating leases 247,369 127,287
Depreciation - owned assets 145,154 90,402
Auditors' remuneration 16,000 15,000
Foreign exchange differences - (155,527 )

Services provided by the auditors for non audit services were £1,000 (2022: £1,000).

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Exceptional items 175,958 (52,000 )

Exceptional items relate to the company's dilapidation provision movement in the year.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Other interest received (3,178 ) (338 )
Invoice factoring fees 19,324 41,311
16,146 40,973

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 320,085 356,407

Deferred tax 73,332 131,135
Tax on profit 393,417 487,542

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,740,570 1,845,697
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2022 -
19%)

435,143

350,682

Effects of:
Expenses not deductible for tax purposes (65,246 ) 42,052
Capital allowances in excess of depreciation (27,116 ) (33,147 )
Deferred tax 73,332 131,135
Prior year over provision (2,411 ) (3,180 )
Effect of tax rate change in year (20,285 ) -
Total tax charge 393,417 487,542

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares shares of £1 each
Final 1,000,000 1,093,752

Dividends are paid on ordinary shares only.

10. INTANGIBLE FIXED ASSETS
Development
costs
£   
COST
At 1 January 2023 32,059
Additions 40,469
At 31 December 2023 72,528
NET BOOK VALUE
At 31 December 2023 72,528
At 31 December 2022 32,059

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


11. TANGIBLE FIXED ASSETS
Improvements Asset
to Plant and under
property machinery construction Totals
£    £    £    £   
COST
At 1 January 2023 782,702 2,041,210 154,619 2,978,531
Additions 24,661 239,428 - 264,089
Reclassification/transfer - 154,619 (154,619 ) -
At 31 December 2023 807,363 2,435,257 - 3,242,620
DEPRECIATION
At 1 January 2023 68,614 1,396,577 - 1,465,191
Charge for year 54,013 91,141 - 145,154
At 31 December 2023 122,627 1,487,718 - 1,610,345
NET BOOK VALUE
At 31 December 2023 684,736 947,539 - 1,632,275
At 31 December 2022 714,088 644,633 154,619 1,513,340

12. STOCKS
2023 2022
£    £   
Raw materials 862,314 1,125,639
Finished goods 40,079 51,869
902,393 1,177,508

No impairment loss has been recognised in cost of sales against stock during the year or in the prior year due to slow-moving and obsolete stock.
There is no material difference between replacement cost of stocks and the amounts stated above.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,628,480 2,088,801
Amounts owed by group undertakings 2,274,800 2,231,048
Other debtors 334,052 149,922
Amounts owed by related
parties 474,585 750,362
Prepayments and accrued income 291,695 191,213
5,003,612 5,411,346

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Trade debtors of £1,483,280 (2022: £1,834,431) were factored at 31 December 2023 and are included above as an outstanding trade balance due from the facility provider as the cash has not been received from them at the year end. Factoring debt is secured by a fixed charge in favour of Close Brothers Limited.

The impairment loss recognised in the company statement of comprehensive income for the year in respect of bad and doubtful trade debtors was £nil (2022: £nil).

Amounts owed by group undertakings are interest free and due on demand.

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 586,422 1,106,012
Tax 115,279 63,553
Social security and other taxes 354,744 347,155
Other creditors 1,426,925 1,548,252
Accruals and deferred income 519,766 658,621
3,003,136 3,723,593

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 310,084 310,084
Between one and five years 1,031,443 1,102,583
In more than five years 1,792,076 2,031,019
3,133,603 3,443,686

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Other creditors - 146,826

Factoring debts are secured by a debenture in favour of Close Brothers Limited.

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 335,332 261,999
Other provisions 251,204 445,246
586,536 707,245

Deferred Dilapidati
tax on
£    £   
Balance at 1 January 2023 261,999 445,246
Provided during year 73,333 52,000
Credit to Income Statement during year - (246,042 )
Balance at 31 December 2023 335,332 251,204

The provision for deferred taxation comprises accelerated capital allowances of £400,866 (2022: £371,997), less the short term timing differences of £65,534 (2022: £109,998).

Provision for dilapidations includes amounts in respect of the company's current premises in addition to the previous premises.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,000 Ordinary shares £1 5,000 5,000

Ordinary shares have full voting, dividend and capital rights.

19. RESERVES
Retained
earnings
£   

At 1 January 2023 4,577,163
Profit for the year 1,347,153
Dividends (1,000,000 )
At 31 December 2023 4,924,316

20. PENSION COMMITMENTS

The company operates a defined contribution 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 £61,712 (2022: £61,791). Contributions totalling £917 (2022: £nil) were payable to the fund at 31 December 2023.

PROTECTIVE PACKAGING LIMITED (REGISTERED NUMBER: 02312465)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


21. ULTIMATE PARENT COMPANY

Betronics Limited is regarded by the directors as being the company's ultimate parent company.

In the opinion of the directors this is the company's ultimate parent company.
Betronics Limited is incorporated in England and Wales and the registered office is Unit 3, Gateway, 1 Opus Close, Carrington, Manchester, M31 4RQ. Group accounts are available from Companies House.
Betronics Limited is ultimately controlled by C G Lewis.

22. CAPITAL COMMITMENTS

The company had capital commitments of £72,310 (2022: £181,172) as at 31 December 2023.

23. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The company paid consultancy fees of £42,000 (2022: £42,000) to Boxburn Limited, a company in which J H Law is a director. At the year end the balance of £23,000 (2022: £23,000) was due to Boxburn Limited. The amount is included within creditors.

As at 31 December 2023 the company owed £1,409,375 (2022: £1,529,687) to C G Lewis a director of the company. The amount is included in other creditors. The balance is interest free and repayable on demand.

The company is also related to 3D Barrier Bags, Inc. a company under common control. During the year the company made sales of £44,213 (2022: £54,974) to 3D Barrier Bags. At the year end £474,585 (2022: £750,362) was owed by 3D Barrier Bags. This is included in debtors amounts owed by related parties.