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Registered Number:11827476













ARJOBEX POLYART LIMITED






FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023











 
ARJOBEX POLYART LIMITED
 

 
COMPANY INFORMATION


Directors
D Lawton 
S Daveau 
S Rabaiotti 




Registered number
11827476



Registered office
10 Stephenson Road
Gorse Lane Industrial Estate

Clacton-On-Sea

Essex

CO15 4NS




Independent auditor
SB Audit LLP
Chartered Accountants & Statutory Auditor

820 The Crescent

Colchester Business Park

Colchester

Essex

CO4 9YQ






 
ARJOBEX POLYART LIMITED
 


CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditor's Report
4 - 7
Statement of Comprehensive Income (including the Profit and Loss Account)
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 22



 
ARJOBEX POLYART LIMITED
 

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their strategic report for the period ended 31 December 2023.

Principal activities
 
The Company's principal activity is the manufacture of polyethylene based synthetic paper. 
Given the straightforward nature of the business, the company's Directors are of the opinion that analysis using complex KPIs is not necessary for the understanding of the development, performance or position of the business. Therefore, the focus is on monitoring and controlling the performance of turnover, gross margin and operating expenses.

Fair review of the business
 
The profit for the financial year after tax is £330,202. The net asset position at the 31 December 2023 is £5,262,008.
A key strategic investment in widening one of our stretcher lines and increasing capacity by 25% was completed during Q4 2023 and will allow us to better serve our European based customers and reduce overall carbon emissions.

Principal risks and uncertainties
 
The management of the business and the execution of the company's strategy are subject to a number of risks.
The key business risks and uncertainties are considered to relate to a significant downturn in the world market for synthetic paper and upward spiralling costs of raw materials to the production process.

Wider economy risk
 
Inflation and the increased costs of living impacted demand for labels, packaging and printing materials and resulted in the full supply chain reducing inventories, especially during the second half of 2023. 
Order books have increased at the start of 2024.


This report was approved by the board on 26 March 2024 and signed on its behalf.



................................................
D Lawton
Director


- 1 -



 
ARJOBEX POLYART LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

D Lawton 
S Daveau 
S Rabaiotti 

Future developments
2024 will be focusing on improving quality and filtration, to enable the company to provide quality sheet to go into the high-ends markets.

The site will be looking to introduce the next generation of products to expand the range of the company's portfolio.
Research and development activities
The company continues to be involved in the development of synthetic paper products based on oriented polyethylene.


Financial risk management

Objectives and policies
The company is exposed to a variety of financial risks that include credit risk, liquidity risk, interest rate risk, price risk and foreign exchange risk.

Liquidity risk, price risk and foreign exchange risk

Liquidity risk
The Directors regularly review the company's financial position and actively discuss matters with the parent company to ensure that there are sufficient funds available to continue in operational existence and meet liabilities as and when they fall due.
Price risk
The company's exposure to price risk is minimal as a result of the nature of its operations. Hence given the size and nature of the company's operations, the costs of managing exposure to price risk exceed any potential benefits. The Directors will revisit the appropriateness of this policy should the company's operations change in size or nature.
Foreign exchange risk
The company's exposure to foreign exchange risk is minimal as a result of the nature of its operations. Hence given the size and nature of the company's operations, the costs of managing exposure to foreign exchange risk exceed any potential benefits. The Directors will revisit the appropriateness of this policy should the company's operations change in size or nature.


- 2 -



 
ARJOBEX POLYART LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
the director has taken all the steps that ought to have been taken as a director in order to be aware of any
relevant audit information and to establish that the Company's auditor is aware of that information.

This report was approved by the board on 26 March 2024 and signed on its behalf.
 





D Lawton
Director


- 3 -



 
ARJOBEX POLYART LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARJOBEX POLYART LIMITED

Opinion


We have audited the financial statements of Arjobex Polyart Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 United Kingdom, including the Financial Reporting Council'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.



- 4 -



 
ARJOBEX POLYART LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARJOBEX POLYART LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's Report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 Directors' Report.


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.




- 5 -



 
ARJOBEX POLYART LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARJOBEX POLYART LIMITED (CONTINUED)

Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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's 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:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors (as required by auditing standards), inspection of the company's regulatory and legal correspondence and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, anti-bribery and corruption, human rights and employment law, GDPR, trade/export compliance. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the diectors and other management and inspection of regulatory and legal correspondence, if any.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
 

- 6 -



 
ARJOBEX POLYART LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARJOBEX POLYART LIMITED (CONTINUED)


There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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 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 2006Our 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.





Timothy O'Connor (Senior Statutory Auditor)
  
for and on behalf of
SB Audit LLP
 
Chartered Accountants
Statutory Auditor
  
820 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ

26 March 2024

- 7 -



 
ARJOBEX POLYART LIMITED
 

 
STATEMENT OF COMPREHENSIVE INCOME (INCLUDING THE PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
8,096,740
10,787,715

Cost of sales
  
(5,089,676)
(6,789,299)

Gross profit
  
3,007,064
3,998,416

Administrative expenses
  
(3,053,709)
(3,228,459)

Other operating income
 4 
337,045
555

Operating profit
 5 
290,400
770,512

Interest receivable and similar income
  
14,968
-

Profit before tax
  
305,368
770,512

Tax on profit
 8 
24,834
(100,718)

Profit for the financial year
  
330,202
669,794

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 22 form part of these financial statements.


- 8 -



 
ARJOBEX POLYART LIMITED
REGISTERED NUMBER:11827476


BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 9 
3,046,240
2,146,543

  
3,046,240
2,146,543

Current assets
  

Stocks
 10 
538,555
628,045

Debtors: amounts falling due after more than one year
 11 
196,060
220,854

Debtors: amounts falling due within one year
 11 
1,513,035
1,607,112

Cash at bank and in hand
 12 
828,534
1,315,744

  
3,076,184
3,771,755

Creditors: amounts falling due within one year
 13 
(860,416)
(747,251)

Net current assets
  
 
 
2,215,768
 
 
3,024,504

Total assets less current liabilities
  
5,262,008
5,171,047

  

Net assets
  
5,262,008
5,171,047


Capital and reserves
  

Called up share capital 
  
3
3

Share premium account
  
2,098,598
2,098,598

Profit and loss account
  
3,163,407
3,072,446

  
5,262,008
5,171,047




The financial statement were approved and authorised for issue by the board and were signed on its behalf on 26 March 2024.




................................................
D Lawton
Director


- 9 -



 
ARJOBEX POLYART LIMITED
 


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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
3
2,098,598
2,402,652
4,501,253


Comprehensive income for the year

Profit for the year
-
-
669,794
669,794
Total comprehensive income for the year
-
-
669,794
669,794



At 1 January 2023
3
2,098,598
3,072,446
5,171,047


Comprehensive income for the year

Profit for the year
-
-
330,202
330,202
Total comprehensive income for the year
-
-
330,202
330,202


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(239,241)
(239,241)


At 31 December 2023
3
2,098,598
3,163,407
5,262,008


The notes on pages 11 to 22 form part of these financial statements.


- 10 -



 
ARJOBEX POLYART LIMITED
 

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

1.


General information

The Company is a private limited company, incorporated in the United Kingdom and registered in England. The registration number is 11827476. 
The address of its registered office is 10 Stephenson Road, Gorse Lane Industrial Estate, Clacton-on-Sea, Essex, CO15 4NS.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The Directors have opted to report under FRS 102 reduced disclosure framework as allowed in FRS
102. The Company has therefore applied the exemption from the following:
a) presenting a statement of cash flows, on the basis that it is a qualifying entity and its ultimate
parent company, Financière Polyart, includes the company's cash flow in its own consolidated
financial statements;
b) disclosing key management personnel compensation;
c) the requirements of section 11 Basic Financial Instruments paragraph 11.41(b) and 11.41(e); and
d) disclosing related party transactions entered into between two or more companies wholly owned
within the Financière Polyart Group.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have prepared cashflow forecasts which anticipate that the company will be able to continue to meet it’s liabilities as they fall due and the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future, and for a period of at least 12 months from the date of approving these financial statements. The directors have also received confirmation of group support from the ultimate parent company  Financière Polyart. For this reason the directors adopt the going concern basis in preparing the accounts. 


- 11 -



 
ARJOBEX POLYART LIMITED
 

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

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.


- 12 -



 
ARJOBEX POLYART LIMITED
 

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

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.


- 13 -



 
ARJOBEX POLYART LIMITED
 

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

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
5-25 years
Plant and machinery
-
2-15 years
Computer equipment
-
2-5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Assets in course of construction are stated at cost. These assets are not depreciated until they are
available for use.
No depreciation is provided on freehold land.

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.


- 14 -



 
ARJOBEX POLYART LIMITED
 

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

2.Accounting policies (continued)

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

Europe
8,096,740
10,787,715

8,096,740
10,787,715



- 15 -



 
ARJOBEX POLYART LIMITED
 

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

4.


Other operating income

2023
2022
£
£

Other operating income
337,045
555

337,045
555



5.


Operating profit

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

2023
2022
£
£

Depreciation expense
263,442
270,265

Auditors' remuneration
15,950
14,575

Exchange differences
10,160
(26,076)


6.


Employees

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


2023
2022
£
£



Wages and salaries
2,259,070
2,350,349

Social security costs
246,946
272,853

Pension costs
261,720
282,726

2,767,736
2,905,928

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales
1
1



Administration
7
7



Production
38
41

46
49


- 16 -



 
ARJOBEX POLYART LIMITED
 

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

7.


Directors' remuneration

2023
2022
£
£



Emoluments
290,415
311,550

Contributions to defined contribution pension schemes
29,559
30,858

319,974
342,408

During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £169,551 (2022 - £186,515).
During the year directors received benefits in kind of £24,977 (2022 - £23,529).
The value of the Company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £17,159 (2022 - £17,989).
Of the directors' remuneration stated above £186,710 (2022 - £204,504) was recharged within the Financière Polyart Group.


8.


Taxation


2023
2022
£
£



Group taxation relief
-
49,628


-
49,628


Deferred tax


Movement in deferred tax
24,794
51,090

Group relief
(49,628)
-


Taxation on (loss)/profit on ordinary activities
(24,834)
100,718

- 17 -



 
ARJOBEX POLYART LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The standard rate of corporation tax in the UK increased from 19% to 25%
on 1 April 2023 and therefore the rate used to calculate the tax charge for the year ended 31 December
2023 was 23.52%, being the average rate.
The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
305,368
770,512


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
71,823
146,397

Effects of:


Expenses not deductible for tax purposes
7,400
15,396

Adjustments to tax charge in respect of prior periods
(101,233)
-

Non-taxable income
(7,347)
-

Superdeduction
-
(8,070)

Movement due to changes in tax rates
4,523
(53,005)

Total tax charge for the year
(24,834)
100,718


- 18 -



 
ARJOBEX POLYART LIMITED
 

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

9.


Tangible fixed assets





Freehold property
Plant and machinery
Computer equipment
Assets under the course of construction
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
1,368,148
1,125,607
23,535
341,724
2,859,014


Additions
-
-
-
1,163,139
1,163,139


Transfers between classes
23,215
1,264,778
9,778
(1,297,771)
-



At 31 December 2023

1,391,363
2,390,385
33,313
207,092
4,022,153



Depreciation


At 1 January 2023
140,407
557,678
14,386
-
712,471


Charge for the year
51,761
205,250
6,431
-
263,442



At 31 December 2023

192,168
762,928
20,817
-
975,913



Net book value



At 31 December 2023
1,199,195
1,627,457
12,496
207,092
3,046,240



At 31 December 2022
1,227,741
567,929
9,149
341,724
2,146,543


- 19 -



 
ARJOBEX POLYART LIMITED
 

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

10.


Stocks

2023
2022
£
£

Stocks
538,555
628,045

538,555
628,045


The carrying value of stocks are stated net of impairment losses totalling £8,987 (2022 - £Nil). Impairment losses totalling £8,987 (2022 - £Nil) were recognised in profit and loss.


11.


Debtors

2023
2022
£
£

Due after more than one year

Deferred taxation
196,060
220,854

196,060
220,854


2023
2022
£
£

Due within one year

Amounts owed by group undertakings
1,258,649
1,114,151

Other debtors
167,997
286,667

Prepayments and accrued income
86,389
206,294

1,513,035
1,607,112



12.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
828,534
1,315,744

828,534
1,315,744



- 20 -



 
ARJOBEX POLYART LIMITED
 

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

13.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
503,883
326,743

Amounts owed to group undertakings
-
75,291

Other taxation and social security
81,466
110,615

Other creditors
67,131
10,870

Accruals and deferred income
207,936
223,732

860,416
747,251



14.


Deferred taxation




2023


£






At beginning of year
220,854


Charged to profit or loss
24,834


Transfer of group relief
(49,628)



At end of year
196,060

The deferred tax asset is made up as follows:

2023
2022
£
£


Fixed asset timing differences
(109,767)
220,854

Tax losses carried forward
305,827
-

196,060
220,854


- 21 -



 
ARJOBEX POLYART LIMITED
 

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

15.


Capital commitments


At 31 December 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
2,250
94,612

2,250
94,612


16.


Related party transactions

The company is exempt from disclosing related party transactions as all transactions are with other companies that are wholly owned within the Financière Polyart Group. 


17.


Controlling party

The Company's immediate parent is Arjobex Holding UK Limited. Financière Polyart, incorporated in France is the parent undertaking of the smallest and largest group to consolidate these financial statements. A copy of these financial statements are available from Arjobex Holding SAS, 88 rue du Dome, 92100 Boulogne Billancourt, France.
 


- 22 -