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REGISTERED NUMBER: 03905265 (England and Wales)















MARPAK EXTRUSIONS LIMITED

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2023






MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Independent Auditors' Report 6

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 14


MARPAK EXTRUSIONS LIMITED

Company Information
for the Year Ended 31 December 2023







DIRECTORS: R G Gibson
Miss F J Gibson
A A G Booth





REGISTERED OFFICE: 1 Park View Court
St Paul's Road
Shipley
West Yorkshire
BD18 3DZ





REGISTERED NUMBER: 03905265 (England and Wales)





INDEPENDENT AUDITORS: Armstrong Watson Audit Limited
Number 3 Acorn Business Park
Airedale Business Centre
Keighley Road
Skipton
BD23 2UE

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Review of Business
In what is a very competitive market, Marpak maintained a similar level of tonnage sold as in the previous year and achieved targeted margins based upon that level of production. However, the value of turnover for the year reduced by 24% as much of the Company's sales is based upon agreed contract prices which are benched against global pricing structures for the cost of raw material, which showed reductions over the course of the year. Marpak, through shrewd purchasing and the continued good relations it has with suppliers was able to improve the gross profit percentage and the Directors are pleased to report the resulting net profit before taxation and dividends of £1,090,926. The Company continues to show similar trading in 2024.

The favourable results achieved mean that during the year Retained earnings increased by £919,870. The Company's continued policy of retaining profits within the business, rather than distributing all profits, also contributes to this growth.

Previously, the UK Government provided much needed stimulus to help businesses affected by COVID-19 but because of Marpak's strength and performance it had not relied upon this. Following COVID-19, the Global economy was impacted by the Ukraine War which contributed to the UK's "Cost of Living Crisis". As a responsible employer, the Company evaluated the effect of this on its employees and has implemented higher than normal but fully costed wage increases to all members of staff. The Directors have considered the impact of the above and they believe the Company is in a strong position to continue to trade successfully due, in part, to the benched contract prices preserving gross margins and the varied nature of the end use of the Company's products.

The Company has continued to invest during the year, including spending a total of £723,934 on fixed asset additions. This investment together with Marpak's "Green" emphasis means considerable strides have been made in supplying carbon neutral film to leading retailers. Add to this, the much lower carbon footprint the Company has achieved by down-gauging its products, ensures that Marpak continues to be seen as a market leader in sustainable packaging solutions.

Further, due to stringent European-wide regulations surrounding recycling and sustainability, the Company is seen as more than just a supplier, becoming Packaging Advisers and key to many of its customers' supply chains. Marpak has traded throughout Europe for a number of years and prides itself on the relationships it has fostered. It has made strategic partnerships by supplying products which are unique within the industry and following Brexit, these ties have continued to strengthen. This awareness has spread worldwide, with a substantial and growing export tonnage being achieved in new markets. As Marpak continues to grow globally, the Directors are confident that the Company is well equipped to deal with the future challenges that might arise, given complicated trading arrangements with the EU and beyond, ensuring its continued supply of product from suppliers to customers.

The Company continues to engage external expert support to undertake ongoing review of expenditure, in light of HMRC rules governing "Research & Development" and as a result, taxation savings continue to be achieved. The Company's policy of investment in new manufacturing equipment and development will remain, with further capital purchases and development expenditure envisaged. The Company aims to continue to utilise the Government's currently available Annual Investment Allowance and R&D Enhanced Expenditure rules, intending to use its own resources to fund these, whilst continuing to access borrowing as and when opportunities arise.


Key Performance Indicators
To help the reader of these financial statements better understand the performance of the Company, the following KPI's are summarised:
2023 2022 Movement


Turnover £20,730,375 £27,270,182 24.0% reduction

Gross Profit ("GP") £3,020,980 £3,704,791 18.4% reduction
GP% against Turnover 14.6% 13.6%

Profit before taxation ("PBT") £1,090,926 £1,893,732 57.6% reduction
PBT% against Turnover 5.3% 6.9%

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Strategic Report
for the Year Ended 31 December 2023


Key Performance Indicators - continued
2023 2022 Movement

Total Assets less Current Liabilities ("TALCL") £11,929,606 £11,241,183 6.1% increase

Return on Capital Employed * 9.1% 16.8%
* calculated as PBT as a % of TALCL

Turnover per Employee £423,069 £514,532 17.8% reduction
No. of employees 49 53

Shareholder Funds £10,494,186 £9,833,432 6.7% increase


Conclusion
Overall, the Directors are more than satisfied with the Company's results and are extremely optimistic about the opportunities that will arise in the future.

ON BEHALF OF THE BOARD:





A A G Booth - Director


25 September 2024

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

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 polymer extrusion.

DIVIDENDS
Interim dividends per share were paid as follows:
5.0p - 31 March 2023
19.0p - 31 October 2023
13.5p - 31 December 2023
37.5p

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 150,000 .

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

R G Gibson
Miss F J Gibson
A A G Booth

Other changes in directors holding office are as follows:

J G Gibson - resigned 15 June 2023

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, Armstrong Watson Audit Limited, will be deemed to be reappointed and will therefore continue in office.

ON BEHALF OF THE BOARD:





A A G Booth - Director


25 September 2024

Independent Auditors' Report to the Members of
MARPAK EXTRUSIONS LIMITED

Opinion
We have audited the financial statements of MARPAK EXTRUSIONS LIMITED (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 2022 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 Auditors' Report 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.

Independent Auditors' Report to the Members of
MARPAK EXTRUSIONS 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 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.

Independent Auditors' Report to the Members of
MARPAK EXTRUSIONS 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management and review of appropriate industry knowledge;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships.
- tested journal entries to identify unusual transactions; and tested the operating effectiveness of key controls over purchase cycles on a sample basis.
- reviewed the application of accounting policies with focus on those with heightened estimation uncertainty. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to agreeing financial statement disclosures to underlying supporting documentation and enquiring of management as to actual and potential litigation and claims.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Rohan Day (Senior Statutory Auditor)
for and on behalf of Armstrong Watson Audit Limited
Number 3 Acorn Business Park
Airedale Business Centre
Keighley Road
Skipton
BD23 2UE

25 September 2024

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Statement of Comprehensive
Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 20,730,375 27,270,182

Cost of sales 17,709,395 23,565,391
GROSS PROFIT 3,020,980 3,704,791

Administrative expenses 1,922,834 1,810,038
OPERATING PROFIT 4 1,098,146 1,894,753

Interest receivable and similar income 4,000 4,000
1,102,146 1,898,753

Interest payable and similar expenses 5 11,220 5,021
PROFIT BEFORE TAXATION 1,090,926 1,893,732

Tax on profit 6 280,172 509,340
PROFIT FOR THE FINANCIAL YEAR 810,754 1,384,392

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

810,754

1,384,392

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Statement of Financial Position
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 127 22,176
Tangible assets 9 5,893,617 5,881,645
5,893,744 5,903,821

CURRENT ASSETS
Stocks 10 1,014,843 1,105,406
Debtors 11 4,510,101 6,194,284
Cash at bank 6,214,047 4,431,798
11,738,991 11,731,488
CREDITORS
Amounts falling due within one year 12 5,703,129 6,394,126
NET CURRENT ASSETS 6,035,862 5,337,362
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,929,606

11,241,183

CREDITORS
Amounts falling due after more than one
year

13

(46,477

)

(56,104

)

PROVISIONS FOR LIABILITIES 16 (1,388,943 ) (1,351,647 )
NET ASSETS 10,494,186 9,833,432

CAPITAL AND RESERVES
Called up share capital 17 400,001 400,001
Revaluation reserve 2,332,043 2,591,159
Retained earnings 7,762,142 6,842,272
SHAREHOLDERS' FUNDS 10,494,186 9,833,432

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by:





A A G Booth - Director


MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 400,001 5,263,441 2,913,598 8,577,040
Profit for the year - 1,384,392 - 1,384,392
Total comprehensive income - 1,384,392 - 1,384,392
Dividends - (128,000 ) - (128,000 )
Release of Revaluation reserve - 322,439 (322,439 ) -
Balance at 31 December 2022 400,001 6,842,272 2,591,159 9,833,432
Profit for the year - 810,754 - 810,754
Total comprehensive income - 810,754 - 810,754
Dividends - (150,000 ) - (150,000 )
Release of Revaluation reserve - 259,116 (259,116 ) -
Balance at 31 December 2023 400,001 7,762,142 2,332,043 10,494,186

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Statement of Cash Flows
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,754,978 2,041,180
Interest paid (10,396 ) (3,373 )
Interest element of hire purchase payments
paid

(824

)

(1,648

)
Tax paid (117,597 ) (141,520 )
Net cash from operating activities 2,626,161 1,894,639

Cash flows from investing activities
Purchase of tangible fixed assets (723,934 ) (485,920 )
Sale of tangible fixed assets 32,600 -
Interest received 4,000 4,000
Net cash from investing activities (687,334 ) (481,920 )

Cash flows from financing activities
Hire purchase repayments in year (6,578 ) (15,788 )
Equity dividends paid (150,000 ) (128,000 )
Net cash from financing activities (156,578 ) (143,788 )

Increase in cash and cash equivalents 1,782,249 1,268,931
Cash and cash equivalents at beginning of
year

2

4,431,798

3,162,867

Cash and cash equivalents at end of year 2 6,214,047 4,431,798

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 1,090,926 1,893,732
Depreciation charges 716,613 693,584
Profit on disposal of fixed assets (15,202 ) -
Amortisation charges - 22,049
Finance costs 11,220 5,021
Finance income (4,000 ) (4,000 )
1,799,557 2,610,386
Decrease/(increase) in stocks 90,563 (165,510 )
Decrease in trade and other debtors 1,684,183 289,718
Decrease in trade and other creditors (819,325 ) (693,414 )
Cash generated from operations 2,754,978 2,041,180

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 6,214,047 4,431,798
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 4,431,798 3,162,867


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 4,431,798 1,782,249 6,214,047
4,431,798 1,782,249 6,214,047
Debt
Finance leases (6,578 ) 6,578 -
(6,578 ) 6,578 -
Total 4,425,220 1,788,827 6,214,047

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

MARPAK EXTRUSIONS LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A- ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

The directors have considered the ongoing situation with regard to "The Cost of Living Crisis" as part of their going concern assessment. The view of the directors is that, while they acknowledge the significant disruption that the "Crisis" is bringing, the directors feel that the company is well placed to negotiate the unique set of circumstances facing the UK economy. Contingency plans have been implemented to mitigate risk through consideration of the company's key supply requirements for the coming months.

The company's current level of cash is positive and it's post year end performance is in line with forecasts and budgets covering a period of at least 12 months from the date of signing this report.

Therefore, after consideration of all known factors, the directors continue to adopt the going concern basis in preparing the financial statements.

Turnover
Turnover is measured at 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.

Expenditure on Development is amortised and written-off evenly over a period of ten years from the date it is incurred.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Plant & equipment - 10% on reducing balance
Motor vehicles - 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 statement of financial position date.


MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 statement of financial position 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
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 1,781,035 1,782,306
Other pension costs 87,764 84,347
1,868,799 1,866,653

The average number of employees during the year was as follows:
31.12.23 31.12.22

Directors 3 4
Other management 4 4
Office & administration 5 5
Sales & marketing 2 2
Production & engineering 35 38
49 53

31.12.23 31.12.22
£    £   
Directors' remuneration 149,752 120,060

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Depreciation - owned assets 694,564 686,646
Depreciation - assets on hire purchase contracts - 6,938
Profit on disposal of fixed assets (15,202 ) -
Development costs amortisation 22,049 22,049
Auditors' remuneration 15,000 12,000

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank interest & charges 6,050 3,116
Interest on overdue taxation 4,346 257
Hire purchase 824 1,648
11,220 5,021

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 242,876 381,752
Adjustments to tax charge in respect of previous
periods

-

(58,076

)
Interest on overdue taxation - 375
Interest supplement - (1,076 )
Total current tax 242,876 322,975

Deferred tax 37,296 186,365
Tax on profit 280,172 509,340

UK corporation tax has been charged at 23.52% (2022 - 19%).

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. 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:

31.12.23 31.12.22
£    £   
Profit before tax 1,090,926 1,893,732
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

256,586

359,809

Effects of:
Expenses not deductible for tax purposes 1,022 7,720
Capital allowances in excess of depreciation (14,732 ) -
Depreciation in excess of capital allowances - 14,223
Adjustments to tax charge in respect of previous periods - (58,076 )
Interest on overdue taxation - 375
Interest supplement - (1,076 )
Movement in deferred taxation liability 37,296 186,365
Total tax charge 280,172 509,340

An increase in the UK corporate tax rate from 19% to 25% was announced in the 2021 budget and took effect from April 2023. Whilst the rate for small profits under £50,000 remains at 19%, there is taper relief for businesses with profits between £50,000 and £250,000. The effect of the reversal of timing differences relates to deferred taxation being calculated at the potential highest rate.

7. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary shares of £1 each
Interim 150,000 128,000

8. INTANGIBLE FIXED ASSETS
Development
costs
£   
COST
At 1 January 2023
and 31 December 2023 220,498
AMORTISATION
At 1 January 2023 198,322
Amortisation for year 22,049
At 31 December 2023 220,371
NET BOOK VALUE
At 31 December 2023 127
At 31 December 2022 22,176

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS
Improvements
to Plant & Motor
property equipment vehicles Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 464,640 6,856,572 217,765 7,538,977
Additions - 723,934 - 723,934
Disposals - - (58,707 ) (58,707 )
At 31 December 2023 464,640 7,580,506 159,058 8,204,204
DEPRECIATION
At 1 January 2023 258,980 1,263,637 134,715 1,657,332
Charge for year 46,464 631,687 16,413 694,564
Eliminated on disposal - - (41,309 ) (41,309 )
At 31 December 2023 305,444 1,895,324 109,819 2,310,587
NET BOOK VALUE
At 31 December 2023 159,196 5,685,182 49,239 5,893,617
At 31 December 2022 205,660 5,592,935 83,050 5,881,645

Cost or valuation at 31 December 2023 is represented by:

Improvements
to Plant & Motor
property equipment vehicles Totals
£    £    £    £   
Valuation in 2009 - 183,122 - 183,122
Valuation in 2011 - (51,823 ) - (51,823 )
Valuation in 2013 - 345,300 - 345,300
Valuation in 2020 - 691,400 - 691,400
Cost 464,640 6,412,507 159,058 7,036,205
464,640 7,580,506 159,058 8,204,204

If Plant & equipment had not been revalued they would have been included at the following historical cost:

31.12.23 31.12.22
£    £   
Cost 6,412,507 5,688,573
Aggregate depreciation 3,339,081 2,997,589

Plant & equipment was valued on a replacement value basis on 31 December 2020 by Altec Services, machinery merchants .

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Plant & equipment are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Statement of Financial Position date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in the Statement of Comprehensive Income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 January 2023 87,710
Transfer to ownership (87,710 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 66,897
Transfer to ownership (66,897 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 20,813

10. STOCKS
31.12.23 31.12.22
£    £   
Raw materials 1,014,843 1,093,201
Finished goods - 12,205
1,014,843 1,105,406

11. DEBTORS
31.12.23 31.12.22
£    £   
Amounts falling due within one year:
Trade debtors 4,294,606 5,875,439

Amounts falling due after more than one year:
Other debtors 215,495 318,845

Aggregate amounts 4,510,101 6,194,284

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Hire purchase contracts (see note 14) - 6,578
Trade creditors & accruals 5,172,129 5,981,827
Taxation 531,000 405,721
5,703,129 6,394,126

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Shareholder's loan 46,477 56,104

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31.12.23 31.12.22
£    £   
Net obligations repayable:
Within one year - 6,578

15. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Hire purchase contracts - 6,578

The Company's bank borrowings are secured by way of a Debenture dated 23 September 2022 giving a fixed and floating charge over all of the assets of the Company.

The Hire purchase contracts (note 14) are secured against the specific fixed assets to which they relate (note 9).

16. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 1,388,943 1,351,647

Deferred
tax
£   
Balance at 1 January 2023 1,351,647
Charge to Statement of Comprehensive Income during year 37,296
Balance at 31 December 2023 1,388,943

MARPAK EXTRUSIONS LIMITED (Registered number: 03905265)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
400,001 Ordinary £1 400,001 400,001

18. PENSION COMMITMENTS

The company makes payments to several defined contribution pension schemes, the assets of which are held separately from those of the company in independently administered funds. The pension cost charge for the year amounted to £87,764 (2022 - £84,347).

19. TRANSACTIONS WITH DIRECTORS

During the year, the Company paid the following amounts to M.P.S.(Leeds) Limited, a company in which R.G.Gibson and Miss F.J.Gibson are directors and shareholders:

Other goods & services £160,000 (2022 - £290,000)

At the year end, the company was owed £215,495 (2022 - £318,845) by M.P.S. (Leeds) Limited (see note 11), charging an interest rate of 2.0% (2022 - 1.25%) per annum and receiving interest totalling £4,000 (2022 - £4,000) during the year, against this balance.

20. RELATED PARTY DISCLOSURES

During the year, the Company paid the following amounts to Talos Packaging Limited, a company in which former director J.G.Gibson was director:

Other goods & services £158,500 (2022 - £31,000)

At the year end, the company owed Talos Packaging Limited £Nil (2022 - £Nil).

During the year, the Company paid the following amounts to Talos Recycling Limited, a company in which former director J.G.Gibson was director:

Other goods & services £74,586 (2022 - £629,200)

At the year end, the company owed Talos Recycling Limited £Nil (2022 - £236,492).

21. ULTIMATE CONTROLLING PARTY

The Company is controlled by R.G.Gibson and his wife who together with other family members and directors control 100% (2022 - 100%) of the Ordinary Share Capital of the Company.