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Registration number: 03858503

NDC Polipak Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

NDC Polipak Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 10

Consolidated Profit and Loss Account

11

Consolidated Statement of Comprehensive Income

12

Consolidated Balance Sheet

13

Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Statement of Cash Flows

18

Notes to the Financial Statements

19 to 38

 

NDC Polipak Limited

Company Information

Directors

Mr P N Cox

Mr G F Grove

Mr N M Grove

Mrs A J Cox

Mr N Clancy

Company secretary

Mr N M Grove

Registered office

C/o Bissell & Brown
Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

Auditors

Bissell & Brown Midlands Ltd
Statutory Auditor
Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

 

NDC Polipak Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for NDC Polipak Limited (hereinafter referred to as "NDC") for the year ended 31 December 2023.

 

Principal activity

The principal activity of the Group is the manufacture and distribution of recycled polythene films, building accessories for the DIY and building industry sectors, packaging products as well as the manufacture of both high-performance polythene bags and bulk polypropylene sacks.
 

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The Group's financial performance was much improved during 2023, the Group continued to develop the customer base along with implementing improvements to production and cost control. The financial results for the year are considered satisfactory. The Directors expect that the group will continue to further grow and are committed to further capital investment to support this.

The group continued to invest in plant and machinery, the key focus being to ensure that it can continue to service its current markets and improve efficiencies.

The Group's key financial and other performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover and earnings before interest, taxation, depreciation and amortisation (EBITDA).

During the financial year turnover increased to £27,594,848 from £26,006,500. EBITDA increased to £2,519,242 from £134,352.

Principal risks and uncertainties

The directors believe that the principal risks and uncertainties which affect the business are:

Market demand
The markets for the Group's products are subject to variations in market demand. This is partly related to the general level of disposable income and the effect on the DIY market and the level of activity in the construction industry.

Waste material prices and availability
The Group's key inputs for recycling and manufacture are a range of flexible plastic and similar waste materials from a wide range of sources. Management seeks to maintain excellent relations with existing suppliers and continually expand the range of sources of feed stock to ensure that its key raw material supply is secure.

Prime material prices
The price of prime compound material fluctuates as it is a widely traded commodity. Though not directly linked, the price of prime compound material has an influence on the general market price level for the waste products and recycled polymer compounds which are its feed stock. Management monitors prime material prices and seeks to manage buying so as to remain competitive on film products.

 

NDC Polipak Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

Government policy
The recycling industry is subject to and is affected by a range of government regulations. Management keeps up to date with regulations through the membership of trade bodies and ensures that the business complies with all its obligations.

Credit risk
The Group sells to customers on credit and is therefore subject to the risk of non-payment due to financial failure of a customer. Credit checks and references are taken on new and existing accounts and credit limits are set. Credit insurance is used by the business where and when it is felt to be appropriate.

Liquidity
Forecast short term and long-term cash generation and usage are regularly reviewed by the directors and management to monitor the Group's free cash resources.

Exchange rates
The Group has some exposure to fluctuations in foreign exchange although this risk is reduced compared to previous years. Management monitors the exchange rates and have facilities in place to use forward exchange contracts to mitigate risk as appropriate.

Energy costs
As a process business and a significant consumer of energy our business can be impacted by major price movements. Management monitor energy prices and look to lock in prices when advantageous. Management are committed to improving the efficiency of production equipment in order to reduce costs at each manufacturing site.

Weather conditions
A number of products are dependent on seasonal weather conditions and certain weather conditions could lead to reduced demand for some of our products. Management are committed to diversifying the market portfolio to mitigate this risk and also closely monitor stock levels for seasonal products.

Going concern

The financial statements have been prepared on the going concern basis. In adopting the going concern basis for preparing the financial statements, the Directors have prepared cash flow forecasts for a period of 14 months from the date of approval of these financial statements which indicate that taking account of reasonably possible downsides, the Group will have sufficient funds to meet its liabilities as they fall due for that period.

The Group is committed to investing in new equipment which by its nature is more energy efficient than the machinery it replaces. To this end there are commitments in place to reduce the energy consumption of the plant through future investment as well as other cost control measures. The business benefits from having a Climate Change Agreement as well as being part of the Energy Intensive Industries Compensation Scheme which is overseen by the Department for Business, Energy and Industrial Strategy (BEIS).

The industry depends significantly on maintaining access to liquidity, including that enabled by governments. NDC is undertaking significant measures internally to preserve cash and liquidity as well as operational efficiency and cost savings.

The consolidated NDC group maintains a strong statement of financial position including substantial bank facilities.

The Directors have concluded that the combination of these circumstances does not represent a material uncertainty that casts doubt upon the Group’s ability to continue as a going concern. Nevertheless, after making enquiries and considering the uncertainties described above, in light of the available bank facilities outlined, the directors have a reasonable expectation that the Group has access to adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

NDC Polipak Limited

Strategic Report for the Year Ended 31 December 2023 (continued)

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................
Mr N M Grove
Company secretary and director

 

NDC Polipak Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the group

The directors who held office during the year were as follows:

Mr P N Cox

Mr G F Grove

Mr N M Grove - Company secretary and director

Mrs A J Cox

Mr N Clancy

Information included in the Strategic Report

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, we have included fair review of the company's business, review of principal risks and uncertainties, financial instruments and review of key performance indicators within the Strategic Report as set out on page 1 to 3.
 

Financial instruments

Objectives and policies

The company's operations are exposed to a range of financial risks including the effects of changes in interest rates on debt, foreign currency rates, credit risk and liquidity risk.

The company's principal financial instruments comprise sterling, US Dollars and Euro cash balances, together with trade debtors and trade creditors that arise directly from its operations.

Price risk, credit risk, liquidity risk and cash flow risk

The directors believe that the principal risks and uncertainties which affect the business are:

Market demand
The markets for the company's products are subject to variations in market demand. This is partly related to the general level of disposable income and the effect on the DIY market and the level of activity in the construction industry.

Waste material prices and availability
The company's key inputs for recycling and manufacture are a range of flexible plastic and similar waste materials from a wide range of sources. Management seeks to maintain excellent relations with existing suppliers and continually expand the range of sources of feed stock to ensure that its key raw material supply is secure.

Prime material prices
The price of prime compound material fluctuates as it is a widely traded commodity. Though not directly linked, the price of prime compound material has an influence on the general market price level for the waste products and recycled polymer compounds which are its feed stock. Management monitors prime material prices and seeks to manage buying so as to remain competitive on film products.

Government policy
The recycling industry is subject to and is affected by a range of government regulations. Management keeps up to date with regulations through the membership of trade bodies and ensures that the business complies with all of its obligations.

 

NDC Polipak Limited

Directors' Report for the Year Ended 31 December 2023 (continued)

Credit risk
The company sells to customers on credit and is therefore subject to the risk of non-payment due to financial failure of a customer. Credit checks and references are taken on new and existing accounts and credit limits are set. Credit insurance is used by the business where and when it is felt to be appropriate.

Liquidity
Forecast short term and long term cash generation and usage are regularly reviewed by the directors and management to monitor the company's free cash resources.

Exchange rates
The company's principal exchange rate exposure is to the US Dollar and the Euro. The company buys in both denominations and as such there is exposure to foreign exchange rate fluctuations. A weak sterling relative to the dollar and Euro has an adverse impact on the business and results in higher priced purchases. Management monitor the exchange rates and have facilities in place to use forward exchange contracts to mitigate risk as appropriate.

Energy costs
As a process business and a significant consumer of energy our business can be impacted by major price movements. Management monitor energy prices and look to lock in prices when advantageous. Management are committed to improving the efficiency of production equipment in order to reduce costs at each manufacturing site.

Weather conditions
A number of products are dependent on seasonal weather conditions and certain weather conditions could lead to reduced demand for some of our products. Management are committed to diversifying the market portfolio to mitigate this risk and also closely monitor stock levels for seasonal products.
 

Future developments

The directors view the prospects for the business confidently. The Company's strategy is to invest in expanding output to take advantage of the growth opportunities which the directors and management believe exist in the market.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................
Mr N M Grove
Company secretary and director

 

NDC Polipak Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

NDC Polipak Limited

Independent Auditor's Report to the Members of NDC Polipak Limited

Opinion

We have audited the financial statements of NDC Polipak Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 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 our understanding of the group and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK and European regulatory principles, and we considered the extent to which non-compliance might have a material effect on the financial statements of the group. We also considered those laws and regulations that have a direct impact on the financial statements of the group, such as the Companies Act 2006 and UK tax legislation and equivalent local laws and regulations applicable to in-scope components.

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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

NDC Polipak Limited

Independent Auditor's Report to the Members of NDC Polipak Limited (continued)

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 7], 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the 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.

Auditor 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 auditor’s 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.

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

Capability of the audit in detecting irregularities, including fraud

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:

 

Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK and European regulatory principles, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company.

 

We also considered those laws and regulations that have a direct impact on the financial statements of the Company, such as the Companies Act 2006 and UK tax legislation and equivalent local laws and regulations applicable to in-scope components.

 

We have also evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements including the risk of override of controls and determined that the principal risks are related to management bias in accounting estimates and judgemental areas of the financial statements.

 

Audit procedures performed by the engagement team included:

discussions with the Board of Directors and management, regarding consideration of known or suspected instances of non-compliance with laws and regulation and fraud

evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

reviewing relevant meeting minutes including those of the Board of Directors;

identifying and testing journal entries based on risk criteria;

 

NDC Polipak Limited

Independent Auditor's Report to the Members of NDC Polipak Limited (continued)

 

We designed our audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and testing transactions entered into outside of the normal course of the Company's business specifically in respect of acquisitions and disposals.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control;

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 auditor’s 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.

......................................
John James Taheny (Senior Statutory Auditor)
For and on behalf of Bissell & Brown Midlands Ltd, Statutory Auditor

Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

26 September 2024

 

NDC Polipak Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

27,594,848

26,006,500

Cost of sales

 

(22,023,973)

(22,832,982)

Gross profit

 

5,570,875

3,173,518

Distribution costs

 

900,563

967,929

Administrative expenses

 

3,168,427

2,415,828

Other operating income

5

-

(35,031)

Operating profit/(loss)

6

1,501,885

(175,208)

Interest payable and similar expenses

7

219,551

419,138

Profit/(loss) before tax

 

1,282,334

(594,346)

Tax on profit/(loss)

11

(374,149)

168,755

Profit/(loss) for the financial year

 

908,185

(425,591)

Profit/(loss) attributable to:

 

Owners of the company

 

908,185

(425,591)

The group has no recognised gains or losses for the year other than the results above.

 

NDC Polipak Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit/(loss) for the year

908,185

(425,591)

Deficit on revaluation of other assets

-

(120,462)

Share of associates and joint ventures other comprehensive income

-

392,992

-

272,530

Total comprehensive income for the year

908,185

(153,061)

Total comprehensive income attributable to:

Owners of the company

908,185

(413,421)

 

NDC Polipak Limited

(Registration number: 03858503)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

149,259

175,597

Tangible assets

13

5,208,394

5,694,807

 

5,357,653

5,870,404

Current assets

 

Stocks

15

2,397,330

2,139,949

Debtors

16

4,876,555

5,266,477

Investments

17

-

708,631

Cash at bank and in hand

 

279,418

1,180,743

 

7,553,303

9,295,800

Creditors: Amounts falling due within one year

19

(6,296,088)

(9,316,662)

Net current assets/(liabilities)

 

1,257,215

(20,862)

Total assets less current liabilities

 

6,614,868

5,849,542

Creditors: Amounts falling due after more than one year

19

(1,332,811)

(1,851,427)

Provisions for liabilities

21

(688,913)

(338,156)

Net assets

 

4,593,144

3,659,959

Capital and reserves

 

Called up share capital

23

1,061,200

1,036,200

Share premium reserve

497,689

497,689

Revaluation reserve

107,643

107,643

Profit and loss account

2,926,612

2,018,427

Equity attributable to owners of the company

 

4,593,144

3,659,959

Total equity

 

4,593,144

3,659,959

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................
Mr N M Grove
Company secretary and director

 

NDC Polipak Limited

(Registration number: 03858503)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

4,901,827

5,319,099

Investments

14

779,727

779,727

 

5,681,554

6,098,826

Current assets

 

Stocks

15

1,696,750

1,588,982

Debtors

16

3,799,320

4,223,447

Investments

-

708,631

Cash at bank and in hand

 

252,542

1,154,035

 

5,748,612

7,675,095

Creditors: Amounts falling due within one year

19

(4,994,901)

(8,013,042)

Net current assets/(liabilities)

 

753,711

(337,947)

Total assets less current liabilities

 

6,435,265

5,760,879

Creditors: Amounts falling due after more than one year

19

(1,332,811)

(1,851,427)

Provisions for liabilities

21

(658,333)

(307,576)

Net assets

 

4,444,121

3,601,876

Capital and reserves

 

Called up share capital

23

1,061,200

1,036,200

Share premium reserve

497,689

497,689

Revaluation reserve

107,643

107,643

Retained earnings

2,777,589

1,960,344

Shareholders' funds

 

4,444,121

3,601,876

The company made a profit after tax for the financial year of £817,245 (2022 - loss of £436,553).

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 

.........................................
Mr N M Grove
Company secretary and director

 

NDC Polipak Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Share premium
£

Revaluation reserve
£

Financial instruments loan present value reserve
£

Retained earnings
£

Total
£

At 1 January 2022

1,036,200

497,689

228,105

260,360

2,051,026

4,073,380

Loss for the year

-

-

-

-

(425,591)

(425,591)

Other comprehensive income

-

-

(120,462)

(260,360)

392,992

12,170

Total comprehensive income

-

-

(120,462)

(260,360)

(32,599)

(413,421)

At 31 December 2022

1,036,200

497,689

107,643

-

2,018,427

3,659,959


 

Share capital
£

Share premium
£

Revaluation reserve
£

Financial instruments loan present value reserve
£

Retained earnings
£

Total
£

At 1 January 2023

1,036,200

497,689

107,643

-

2,018,427

3,659,959

Profit for the year

-

-

-

-

908,185

908,185

New share capital subscribed

25,000

-

-

-

-

25,000

At 31 December 2023

1,061,200

497,689

107,643

-

2,926,612

4,593,144

 

NDC Polipak Limited

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

Share capital
£

Share premium
£

Revaluation reserve
£

Financial instruments loan present value reserve
£

Profit and loss account
£

Total
£

At 1 January 2022

1,036,200

497,689

228,105

260,360

2,003,905

4,026,259

Loss for the year

-

-

-

-

(436,553)

(436,553)

Other comprehensive income

-

-

(120,462)

(260,360)

392,992

12,170

Total comprehensive income

-

-

(120,462)

(260,360)

(43,561)

(424,383)

At 31 December 2022

1,036,200

497,689

107,643

-

1,960,344

3,601,876


 

Share capital
£

Share premium
£

Revaluation reserve
£

Financial instruments loan present value reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

1,036,200

497,689

107,643

-

1,960,344

3,601,876

Profit for the year

-

-

-

-

817,245

817,245

Total comprehensive income

-

-

-

-

817,245

817,245

New share capital subscribed

25,000

-

-

-

-

25,000

At 31 December 2023

1,061,200

497,689

107,643

-

2,777,589

4,444,121


 

 

NDC Polipak Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit/(loss) for the year

 

908,185

(425,591)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

1,017,357

309,560

Loss on disposal of tangible assets

41,868

125,446

Finance costs

7

205,416

419,138

Income tax expense

11

374,149

(168,755)

 

2,546,975

259,798

Working capital adjustments

 

(Increase)/decrease in stocks

15

(257,381)

979,734

Decrease/(increase) in trade debtors

16

380,148

(322,567)

(Decrease)/increase in trade creditors

19

(2,789,409)

1,718,413

Decrease in deferred income, including government grants

 

-

(35,031)

Cash generated from operations

 

(119,667)

2,600,347

Income taxes paid

11

(2,337)

(37,540)

Net cash flow from operating activities

 

(122,004)

2,562,807

Cash flows from investing activities

 

Acquisitions of tangible assets

(640,166)

(1,988,851)

Proceeds from sale of tangible assets

 

93,692

80,921

Cash receipts from repayment of loans, classified as investing activities

 

708,631

-

Net cash flows from investing activities

 

162,157

(1,907,930)

Cash flows from financing activities

 

Interest paid

7

(205,416)

(419,138)

Proceeds from issue of ordinary shares, net of issue costs

 

25,000

-

Proceeds from bank borrowing draw downs

 

(320,000)

(320,000)

Repayment of other borrowing

 

(102,312)

(679,038)

Payments to finance lease creditors

 

(338,750)

950,034

Net cash flows from financing activities

 

(941,478)

(468,142)

Net (decrease)/increase in cash and cash equivalents

 

(901,325)

186,735

Cash and cash equivalents at 1 January

 

1,180,743

994,008

Cash and cash equivalents at 31 December

 

279,418

1,180,743

 

NDC Polipak Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit/(loss) for the year

 

817,245

(436,553)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

921,878

198,543

Loss on disposal of tangible assets

41,868

125,446

Finance costs

160,824

381,331

Income tax expense

11

350,757

(181,153)

 

2,292,572

87,614

Working capital adjustments

 

(Increase)/decrease in stocks

15

(107,768)

578,854

Decrease in trade debtors

16

424,127

259,213

(Decrease)/increase in trade creditors

19

(2,826,780)

1,551,183

Decrease in deferred income, including government grants

 

-

(35,031)

Net cash flow from operating activities

 

(217,849)

2,441,833

Cash flows from investing activities

 

Acquisitions of tangible assets

(640,166)

(1,980,723)

Proceeds from sale of tangible assets

 

93,692

80,921

Cash receipts from repayment of loans, classified as investing activities

 

708,631

-

Net cash flows from investing activities

 

162,157

(1,899,802)

Cash flows from financing activities

 

Interest paid

(160,824)

(381,331)

Proceeds from issue of ordinary shares, net of issue costs

 

25,000

-

Proceeds from bank borrowing draw downs

 

(320,000)

(320,000)

Repayment of other borrowing

 

(102,312)

(679,038)

Payments to finance lease creditors

 

(287,665)

1,002,699

Net cash flows from financing activities

 

(845,801)

(377,670)

Net (decrease)/increase in cash and cash equivalents

 

(901,493)

164,361

Cash and cash equivalents at 1 January

 

1,154,035

989,674

Cash and cash equivalents at 31 December

 

252,542

1,154,035

 

NDC Polipak Limited

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

1

General information

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

The address of its registered office is:
C/o Bissell & Brown
Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ
United Kingdom

The principal place of business is:
1 Garratts Lane
Old Hill
Cradley Heath
West Midlands
B64 5RE

These financial statements were authorised for issue by the Board on 24 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

 

NDC Polipak Limited

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

2

Accounting policies (continued)

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on the going concern basis. In adopting the going concern basis for preparing the financial statements, the Directors have prepared cash flow forecasts for a period of 14 months from the date of approval of these financial statements which indicate that taking account of reasonably possible downsides, the Group will have sufficient funds to meet its liabilities as they fall due for that period.

The Group holds cash reserves and has available funding in place

The industry depends significantly on maintaining access to liquidity, including that enabled by governments. NDC is undertaking significant measures internally to preserve cash and liquidity as well as operational efficiency and cost savings.

The consolidated NDC group maintains a strong statement of financial position including substantial bank facilities.

The Directors have concluded that the combination of these circumstances does not represent a material uncertainty that casts doubt upon the Group’s ability to continue as a going concern. Nevertheless, after making enquiries and considering the uncertainties described above, in light of the available bank facilities outlined, the directors have a reasonable expectation that the Group has access to adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Materials and parts are also imported from within the EU and dependent on future trade talks may extend lead times however NDC will continue to choose the most efficient suppliers which will have the least impact on our production and maintenance schedules.

 

NDC Polipak Limited

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

2

Accounting policies (continued)

Revenue recognition

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

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

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attached to them and the grants will be received.
Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity, with no future related costs, are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Foreign currency transactions and balances

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Tax

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

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

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

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

NDC Polipak Limited

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

2

Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

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

Depreciation

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

Asset class

Depreciation method and rate

Short leasehold property

straight line over the life of the lease

Plant and machinery

15-30% of net book value

Fixtures and fittings

15-30% of net book value

Hybrid motor vehicles

25% straight line

Other motor vehicles

25% of net book value

Business combinations

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

Goodwill

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

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

10% Straight line

Investments

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

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

Cash and cash equivalents

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

 

NDC Polipak Limited

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

2

Accounting policies (continued)

Trade debtors

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

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade Creditors

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

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

Borrowings

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

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

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

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

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

 

NDC Polipak Limited

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

2

Accounting policies (continued)

Share capital

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

Defined contribution pension obligation

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

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

Share based payments

The company issues equity-settled and cash-settled share-based payments to certain employees (including directors). Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, together with a corresponding increase in equity, based upon the company's estimate of the shares that will eventually vest.

Fair value is measured using the Black-Scholes Pricing Model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

Where the terms of an equity-settled transaction are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification.

Where an equity-settled transaction is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the transaction is recognised immediately. However, if a new transaction is substituted for the cancelled transaction, and designated as a replacement transaction on the date that it is granted, the cancelled and new transactions are treated as if they were a modification of the original transaction, as described in the previous paragraph.

For cash-settled share-based payments, a liability equal to the portion of the goods and services received is recognised at the current fair value determined at each balance sheet date.

Financial instruments

Classification
Trade debtors
Trade debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a trade debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

 

NDC Polipak Limited

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

2

Accounting policies (continued)

Recognition and measurement
Financial instruments are classified as liabilities and equity instruments 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.

Trade creditors
Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Where the arrangement with a trade creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.

Borrowings
Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Commitments to receive a loan are measured at cost less impairment.

Impairment
A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

27,594,848

26,006,500

The analysis of the group's Turnover for the year by market is as follows:

2023
£

2022
£

UK

20,858,815

18,075,247

Europe

6,736,033

7,931,253

27,594,848

26,006,500

4

Government grants

The company has received various local regional growth and CJRS grants to support local employment.

The amount of grants recognised in the financial statements was £Nil (2022 - £35,031).

There are no unfulfilled conditions attaching to the grants.

5

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

35,031

 

NDC Polipak Limited

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

6

Operating profit/(loss)

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

991,019

283,222

Amortisation expense

26,338

26,338

Operating lease expense - other

-

1,967

Loss on disposal of property, plant and equipment

41,868

125,446

7

Interest payable and similar expenses

2023
£

2022
£

Interest on obligations under finance leases and hire purchase contracts

75,419

37,649

Interest expense on other finance liabilities

129,997

381,489

Foreign exchange gains

14,135

-

219,551

419,138

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

4,588,871

4,459,254

Social security costs

425,366

433,784

Pension costs, defined contribution scheme

156,750

154,238

Other employee expense

44,715

30,480

5,215,702

5,077,756

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

106

125

Administration and support

33

33

139

158

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

425,713

426,669

Contributions paid to money purchase schemes

79,822

64,616

505,535

491,285

 

NDC Polipak Limited

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

9

Directors' remuneration (continued)

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Received or were entitled to receive shares under long term incentive schemes

-

1

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2023
£

2022
£

Remuneration

128,261

100,000

Company contributions to money purchase pension schemes

7,576

4,321

10

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

20,000

20,000

Audit of the financial statements of subsidiaries of the company pursuant to legislation

7,336

6,046

27,336

26,046


 

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

23,392

12,398

Deferred taxation

Arising from origination and reversal of timing differences

350,757

(181,153)

Tax expense/(receipt) in the income statement

374,149

(168,755)

Deferred tax

Group

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

1,052,990

Revaluation of tangible assets

-

54,076

Unused tax losses

448,733

-

448,733

1,107,066

 

NDC Polipak Limited

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

11

Taxation (continued)

2022

Asset
£

Liability
£

Accelerated capital allowances

-

1,092,529

Revaluation of tangible assets

-

66,461

Unused tax losses

820,834

-

820,834

1,158,990

 

NDC Polipak Limited

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

11

Taxation (continued)

Company

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

1,052,990

Revaluation of tangible assets

-

54,076

Unused tax losses

448,733

-

448,733

1,107,066

2022

Asset
£

Liability
£

Accelerated capital allowances

-

1,092,529

Revaluation of tangible assets

-

35,881

Unused tax losses

820,834

-

820,834

1,128,410

12

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

Acquired through business combinations

263,385

263,385

At 31 December 2023

263,385

263,385

Amortisation

At 1 January 2023

87,788

87,788

Amortisation charge

26,338

26,338

At 31 December 2023

114,126

114,126

Carrying amount

At 31 December 2023

149,259

149,259

At 31 December 2022

175,597

175,597

 

NDC Polipak Limited

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

13

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant & machinery
£

Total
£

Cost or valuation

At 1 January 2023

589,946

669,659

268,619

9,264,945

10,793,169

Additions

71,348

30,824

190,699

347,295

640,166

Disposals

-

(38,174)

(92,201)

(261,997)

(392,372)

At 31 December 2023

661,294

662,309

367,117

9,350,243

11,040,963

Depreciation

At 1 January 2023

531,408

439,055

140,139

3,987,760

5,098,362

Charge for the year

60,303

35,966

47,771

846,979

991,019

Eliminated on disposal

-

(32,918)

(51,142)

(172,752)

(256,812)

At 31 December 2023

591,711

442,103

136,768

4,661,987

5,832,569

Carrying amount

At 31 December 2023

69,583

220,206

230,349

4,688,256

5,208,394

At 31 December 2022

58,538

230,604

128,480

5,277,185

5,694,807


 

Included within the net book value of land and buildings above is £69,583 (2022 - £58,538) in respect of short leasehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2023
£

2022
£

Plant and machinery

1,880,817

2,215,121

Motor vehicles

226,664

122,327

2,107,481

2,337,448

 

NDC Polipak Limited

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

13

Tangible assets (continued)

Company

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant & machinery
£

Total
£

Cost or valuation

At 1 January 2023

589,946

669,659

268,619

8,537,175

10,065,399

Additions

71,348

30,824

190,699

347,295

640,166

Disposals

-

(38,174)

(92,201)

(261,997)

(392,372)

At 31 December 2023

661,294

662,309

367,117

8,622,473

10,313,193

Depreciation

At 1 January 2023

531,408

439,055

140,139

3,635,698

4,746,300

Charge for the year

60,303

35,966

47,771

777,838

921,878

Eliminated on disposal

-

(32,918)

(51,142)

(172,752)

(256,812)

At 31 December 2023

591,711

442,103

136,768

4,240,784

5,411,366

Carrying amount

At 31 December 2023

69,583

220,206

230,349

4,381,689

4,901,827

At 31 December 2022

58,538

230,604

128,480

4,901,477

5,319,099


 

Included within the net book value of land and buildings above is £69,583 (2022 - £58,538) in respect of short leasehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2023
£

2022
£

Plant and machinery

1,820,817

2,148,345

Motor vehicles

220,823

115,787

2,041,640

2,264,132

 

NDC Polipak Limited

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

14

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2023

2022

Subsidiary undertakings

Qualpack Limited*

Unit 3 St Nicholas House
Crossagalla Industrial Estate
Ballysimon Road
Limerick

Ordinary

100%

100%

Ireland

* indicates direct investment of the company

Subsidiary undertakings

Qualpack Limited

Company

2023
£

2022
£

Investments in subsidiaries

779,727

779,727

Subsidiaries

£

Cost or valuation

At 1 January 2023

779,727

Provision

At 31 December 2023

-

Carrying amount

At 31 December 2023

779,727

At 31 December 2022

779,727

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Raw materials and consumables

762,616

922,790

762,616

922,790

Finished goods and goods for resale

1,634,714

1,217,159

934,134

666,192

2,397,330

2,139,949

1,696,750

1,588,982

 

NDC Polipak Limited

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

16

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

4,621,795

4,945,935

3,149,461

3,091,751

Amounts owed by related parties

28

-

110,925

500,746

1,016,035

Other debtors

 

-

15,649

-

-

Prepayments

 

254,760

184,194

149,113

115,661

Income tax asset

11

-

9,774

-

-

   

4,876,555

5,266,477

3,799,320

4,223,447

17

Current asset investments

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Other investments

-

708,631

-

708,631

18

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

375

904

375

904

Cash at bank

279,043

1,179,839

252,167

1,153,131

279,418

1,180,743

252,542

1,154,035

19

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

20

814,520

1,056,966

749,462

940,823

Trade creditors

 

2,372,884

2,620,135

1,983,861

2,305,018

Amounts due to related parties

28

-

805,666

-

805,666

Social security and other taxes

 

690,139

526,961

552,339

496,470

Outstanding defined contribution pension costs

 

16,293

1,203

16,293

1,203

Other payables

 

63,646

103,157

63,646

61,730

Accruals

 

873,433

678,952

784,515

624,776

Corporation tax liability

11

11,281

-

-

-

CID facility

 

1,453,892

3,523,622

844,785

2,777,356

 

6,296,088

9,316,662

4,994,901

8,013,042

Due after one year

 

Loans and borrowings

20

1,332,811

1,851,427

1,332,811

1,851,427

 

NDC Polipak Limited

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

19

Creditors (continued)

HSBC Bank Plc CID facility of £844,785 (2022: £2,777,356) relates to advances against debtors under the terms of an invoice finance facility with HSBC Bank Plc

HSBC Bank Plc, HSBC Invoice Finance (UK) Limited and HSBC Asset Finance (UK) Limited hold debentures, fixed and floating charges over certain company assets.

AIB Commercial Services Limited have registered a fixed and floating charge over the assets of the company as security for its invoice discounting facility provided to the company. The charge was registered on 23rd February, 2012.

AIB Commercial Services Limited overdraft facility of €20,000 is secured by joint and several personal guarantees from the Qualpack Limited directors, Niall Clancy and Michael Doyle.

AIB Commercial Services Limited have secured joint and several personal guarantees from the directors Niall Clancy and Michael Doyle in the sum of €30,000 in support of the forward contract facility.

20

Loans and borrowings

Current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

320,000

320,000

320,000

320,000

Hire purchase contracts

494,520

634,654

429,462

518,511

Other borrowings

-

102,312

-

102,312

814,520

1,056,966

749,462

940,823

Company

Bank borrowings

HSBC UK is denominated in GBP with a nominal interest rate of the following rate above base, 3.9%, and the final instalment is due on 31 May 2026. The carrying amount at year end is £773,333 (2022 - £1,093,333).

General letter of pledge dated 7th July 2011.
Contract monies charge dated 23rd August 2013.
Debenture, including fixed charge, over all present freehold and leasehold property.
First fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future.
First floating charge over all assets and undertaking, both present and future, dated 19th May 2011.

Non-current loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Bank borrowings

453,333

773,333

453,333

773,333

Hire purchase contracts

879,478

1,078,094

879,478

1,078,094

1,332,811

1,851,427

1,332,811

1,851,427

 

NDC Polipak Limited

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

21

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 January 2023

338,156

338,156

Increase (decrease) in existing provisions

350,757

350,757

At 31 December 2023

688,913

688,913

Company

Deferred tax
£

Total
£

At 1 January 2023

307,576

307,576

Increase (decrease) in existing provisions

350,757

350,757

At 31 December 2023

658,333

658,333

22

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £156,750 (2022 - £154,238).

Contributions totalling £16,293 (2022 - £1,203) were payable to the scheme at the end of the year and are included in creditors.

23

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

A Ordinary Shares of £1

800,000

800,000

800,000

800,000

B Ordinary Shares of £1

200,000

200,000

200,000

200,000

C Ordinary Shares of £1

25,000

25,000

-

-

D Ordinary Shares of £1

36,200

36,200

36,200

36,200

 

1,061,200

1,061,200

1,036,200

1,036,200

 

NDC Polipak Limited

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

23

Share capital (continued)

Rights, preferences and restrictions

A Ordinary shares have the following rights, preferences and restrictions:
Holders of the A ordinary £1 shares have the right to receive dividends, the right to participate in a return of capital and are not redeemable.

B Ordinary shares have the following rights, preferences and restrictions:
Holders of the B ordinary £1 shares have the right to receive dividends, the right to participate in a return of capital and are not redeemable.

C Ordinary shares have the following rights, preferences and restrictions:
Holders of C Ordinary £1 shares have the right to receive dividends are entitled to participate in a return of capital and are not redeemable.

D Ordinary shares have the following rights, preferences and restrictions:
Holders of the D ordinary £1 shares have the right to receive dividends, the right to participate in a return of capital and are not redeemable.

24

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

471,618

634,654

Later than one year and not later than five years

902,378

1,078,094

1,373,996

1,712,748

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

21,456

179,353

Later than one year and not later than five years

-

21,079

21,456

200,432

The amount of non-cancellable operating lease payments recognised as an expense during the year was £179,352 (2022 - £343,006).

Company

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

429,462

518,511

Later than one year and not later than five years

879,478

1,078,094

1,308,940

1,596,605

 

NDC Polipak Limited

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

24

Obligations under leases and hire purchase contracts (continued)

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

3,384

121,312

Later than one year and not later than five years

-

3,384

3,384

124,696

The amount of non-cancellable operating lease payments recognised as an expense during the year was £318,602 (2022 - £287,699).

25

Share-based payments

Employee share option scheme

Scheme details and movements

At the start of the year, the company had a share option scheme for one director. The vesting period was 8 months. The options are settled in equity once exercised. On 29th August 2023, the option was exercised and 25,000 C Ordinary shares were acquired for £1 per share.

Options are forfeited if the employee leaves the company before the options vest.

The inputs into the Black-Scholes pricing model are as follows:
Weighted average share price £3 (2022 £3)
Weighted average exercise price £1 (2022 £1)
Expected volatility 100% (2022 100%)
Expected life 8 months (2022 8 months)
Expected dividend yield 2% (2021 2%)

The movements in the number of share options during the year were as follows:

2023
Number

2022
Number

Outstanding, start of period

25,000

25,000

Exercised during the period

(25,000)

-

Outstanding, end of period

-

25,000

The movements in the weighted average exercise price of share options during the year were as follows:

2023
£

2022
£

Outstanding, start of period

38,000

38,000

Exercised during the period

(38,000)

-

Outstanding, end of period

-

38,000

 

NDC Polipak Limited

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

26

Commitments

Group

Capital commitments

Fixed Assets
The total amount contracted for but not provided in the financial statements was £Nil (2022 - £Nil).

Company

Capital commitments

Fixed Assets
The total amount contracted for but not provided in the financial statements was £Nil (2022 - £Nil).

27

Contingent liabilities

Group

At the balance sheet date, the group have letter of credits of £Nil (2022: £51,159l)

Company

The company has a guarantee dated 09 September 2011 in favour HM Revenue & Customs for £30,000.

28

Related party transactions

Group

Summary of transactions with other related parties

Included in creditors falling due within one year is £Nil (2022: £805,666) due to Summerbay Estates Limited. Included in creditors falling due more than one year after the balance sheet date is £Nil (2022: £Nil) due to Summerbay Estates Limited

Summerbay Estates Limited is a related party by virtue of P N Cox being a director and the ultimate controlling party in both companies. No interest is being charged on the loan.

Included in debtors is an amount of £Nil (2022: £100,925) owing from Evesham Properties Limited, a company in which P N Cox is a director. During the period the company was charged rent of £192,708 (2022: £162,707). No interest is being charged on the loan.

During the year the company paid rent £125,000 (2022: £125,000) to Park Lane Developments (Midlands) Limited, a company G F Grove, P N Cox and N M Grove are directors of.

The company is exempt from disclosing other related party transactions, as they are with other group companies that are wholly owned within the NDC Polipak Limited group.

 

29

Financial instruments

Financial liabilities measured at fair value

Summerbay Estates Limited
There was a loan included in creditors due over one year, due to Summerbay Estates Limited, a company in which P N Cox is a director. The loan had no interest or repayment terms attached to it. The loan was repaid in September 2023.

In December 2022 it was agreed that the loan would be repaid in 2023, therefore the discount has been unwound and the liability has been included in creditors due within one year.

The result is that the fair value of the loan has been calculated at £Nil (2022: £805,666) and included in creditors due within one year.