Company Registration No. SC393211 (Scotland)
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
COMPANY INFORMATION
Directors
Giuseppe Cillario
Luciano Cillario
Gian Franco Cillario
Company number
SC393211
Registered office
Citypoint
3rd Floor
65 Haymarket Terrace
Edinburgh
EH12 5HD
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The period ended December 2023 proved to be a reasonably successful year for the business in terms of being above budgeted profit expectations, despite a challenging second half of the year. Across many business sectors, there are still impacts of global issues and conflicts and this impacted our performance in comparison to 2022 in particular.

 

Although not unique to our customer sector, we witnessed a reduction in demand due to a realignment of inventory levels and other macro economic issues, this led to Revenue falling to £29.82m, a decrease of 10.7% on 2022 sales of £33.41m. This reduction was most notably shown in H2, where Revenue was £1.6m less than H1. In terms of the three print technologies, two performed very similar to 2022, despite the Revenue reduction, with only our PSL technology being less than 2022 by 16%.

 

The Scotch Whisky exports were valued at £5.6bn in 2023 and the industry reflects our own sales reduction with the value of exports down 61% on 2022, but up 14% on pre-pandemic levels (2019). By volume, exports are down 19% on 2022, but up 3% on 2019 figures.

 

For the first time since acquisition by the Eurostampa Group the group has not delivered a consecutive year of growth. In preparation for the new site move we made the strategic decision to redistribute volume across the Group. With our anticipated site move in Q3 of 2024 that will position the business to support returning demand as well as support future growth. Customer forecasts show demand slowly returning and we have taken the opportunity to build stock to help support this increase during the move.

 

Despite the decrease in Revenue, Gross Profit and Net Profit were above budgeted expectations with raw material and energy costs returning closer to 2021 levels after the considerable spike in 2022. The Eurostampa Group Board were satisfied with the financial performance and remain extremely supportive of local management and the investment that they are making, which is the largest in their history.

 

Our raw material resourcing plan continues to remain robust which allows us to react quickly to changes in customer demand and gives those customers security in our supply. Although the revenue was down, operational KPI performance remained fairly consistent with excellent performances in health and safety and quality in particular.

 

With the move to a new site imminent we have a continued focus on quality recruitment across all areas of the business and we have again increased our apprentice pool year on year. The new site will provide a best in class environment for our employees and help secure the future for generations to come. The drive to employ the best people has played a pivotal role in developing staff and retaining the right skills across the business. Our staff retention record in business critical areas remains excellent.

 

2024 will bring a unique set of challenges for the business with dual site operations and the repatriation of work previously done at the Eurostampa Italy site to help underpin growth and operational performance for the future.

Principal risks and uncertainties

Not unique to our customers sector or our industry, in 2024 we expect to see a continuation of the realignment of inventory levels and the lag from other macro-economic issues. This is anticipated to be a fairly short-term phenomenon, but nevertheless moderate growth is still anticipated towards the later stages of the year.

Despite the slowdown the group hasn't altered its investment plans and expects to complete the building and refurbishment of its new factory by the end of September. At this point the company will start to transition machinery and staff to the new site. This is supported by a robust transfer plan with contingency in place and the company doesn’t anticipate any disruption to supply as stock builds have been agreed with all major customers.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

Since the acquisition by the Eurostampa Group the business has delivered strong growth. Although 2023 saw a decrease in turnover this was not unexpected and consistent within the industry. This will be a temporary decrease as our customers realign inventory and streamline their supply chains. We expect a return to normal business levels towards the later part of 2024 and as previously stated approved future investment plans remain in place to add much needed future capacity. As well as delivering financial results more than budget the business also recorded strong performance across all other operational KPIs with some excellent performance particularly in the areas of quality and safety.

This year was no different to previous years with the continued focus on recruitment and selection across all key areas of the business as well increasing our apprentice pool which has played a pivotal role in developing and retaining the right skills across the business. Our staff retention record remains excellent particularly in business-critical areas. As a responsible business we are constantly reviewing our organizational structure and resource levels. We also have as part of the transfer to our new site over 95% of employees signed and committed to moving to the new site which reduces risk and exposure.

Key performance indicators

The group recognises the importance of key financial performance indicators and management monitors these on a monthly basis. The main KPIs of the business are turnover and profitability, both of which have been discussed above and are set out on page 9. Balance sheet position remains strong at £13.7m (2022 - £12m) as set out on page 10.

On behalf of the board

Gian Franco Cillario
Director
27 September 2024
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company was that of a holding company.

The principal activity of the group is the printing of high quality labels.
Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Giuseppe Cillario
Luciano Cillario
Gian Franco Cillario
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group are unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company and group are aware of that information.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of development and performance.

On behalf of the board
Gian Franco Cillario
Director
27 September 2024
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
- 5 -
Opinion

We have audited the financial statements of Eurostampa Packaging Ltd (formerly known as Eurostampa UK Limited) (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

 

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 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent company and their 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

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 parent 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit is considered capable of 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:

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
- 7 -

Extent to which the audit is considered capable of detecting irregularities, including fraud (continued)

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and parent company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the group and parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.

 

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed 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.

 

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
- 8 -

 

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.

James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
30 September 2024
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
29,822,384
33,406,722
Cost of sales
(22,348,057)
(24,428,464)
Gross profit
7,474,327
8,978,258
Administrative expenses
(5,140,325)
(5,076,096)
Other operating income
359,945
213,531
Operating profit
4
2,693,947
4,115,693
Interest payable and similar expenses
7
(394,826)
(201,582)
Profit before taxation
2,299,121
3,914,111
Tax on profit
8
(578,639)
(753,835)
Profit for the financial year
23
1,720,482
3,160,276
Total comprehensive income for the year
1,720,482
3,160,276
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
-
0
-
0
Tangible assets
10
22,322,715
14,773,972
22,322,715
14,773,972
Current assets
Stocks
13
3,974,541
5,153,535
Debtors
14
6,142,939
5,883,578
Cash at bank and in hand
389,332
1,726,817
10,506,812
12,763,930
Creditors: amounts falling due within one year
15
(8,114,250)
(9,040,142)
Net current assets
2,392,562
3,723,788
Total assets less current liabilities
24,715,277
18,497,760
Creditors: amounts falling due after more than one year
16
(9,092,649)
(5,361,604)
Provisions for liabilities
Deferred tax liability
22
888,404
1,066,758
(888,404)
(1,066,758)
Deferred Income
20
(1,055,672)
(111,328)
Net assets
13,678,552
11,958,070
Capital and reserves
Called up share capital
21
600,000
600,000
Profit and loss reserves
23
13,078,552
11,358,070
Total equity
13,678,552
11,958,070
The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
27 September 2024
Gian Franco Cillario
Director
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
618,000
618,000
Current assets
-
-
Creditors: amounts falling due within one year
15
(19,234)
(19,234)
Net current liabilities
(19,234)
(19,234)
Net assets
598,766
598,766
Capital and reserves
Called up share capital
21
600,000
600,000
Profit and loss reserves
23
(1,234)
(1,234)
Total equity
598,766
598,766

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s result for the year was £0 (2022 - £0).

The financial statements were approved by the board of directors and authorised for issue on 27 September 2024 and are signed on its behalf by:
27 September 2024
Gian Franco Cillario
Director
Company Registration No. SC393211
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
600,000
8,197,794
8,797,794
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
3,160,276
3,160,276
Balance at 31 December 2022
600,000
11,358,070
11,958,070
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,720,482
1,720,482
Balance at 31 December 2023
600,000
13,078,552
13,678,552
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
600,000
(1,234)
598,766
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 December 2022
600,000
(1,234)
598,766
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 December 2023
600,000
(1,234)
598,766
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
5,192,392
2,097,898
Interest paid
(394,826)
(201,582)
Income taxes paid
(601,487)
(909,568)
Net cash inflow from operating activities
4,196,079
986,748
Investing activities
Purchase of tangible fixed assets
(9,286,987)
(5,196,812)
Proceeds on disposal of tangible fixed assets
33,237
-
Net cash used in investing activities
(9,253,750)
(5,196,812)
Financing activities
Grants received
1,000,000
-
Movement on group loans
49,222
3,638,044
New bank loans advanced
4,700,000
-
Repayment of bank loans
(1,188,865)
(1,741,078)
Payment of finance leases obligations
(352,250)
(342,127)
Net cash generated from financing activities
4,208,107
1,554,839
Net decrease in cash and cash equivalents
(849,564)
(2,655,225)
Cash and cash equivalents at beginning of year
1,238,896
3,894,121
Cash and cash equivalents at end of year
389,332
1,238,896
Relating to:
Cash at bank and in hand
389,332
1,726,817
Bank overdrafts included in creditors payable within one year
-
(487,921)
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Eurostampa Packaging Ltd (Formerly known as Eurostampa UK Limited) (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Citypoint, 3rd Floor, 65 Haymarket Terrace, Edinburgh, EH12 5HD.

 

The group consists of Eurostampa Packaging Ltd (Formerly known as Eurostampa UK Limited) and all of its subsidiaries (see note 12).

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Eurostampa Packaging Ltd (Formerly known as Eurostampa UK Limited) and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 December 2023.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. 2024 will witness the eagerly anticipated new site move that will position the business to support future growth and will also provide a best in class environment for our employees which will help retain and attract staff. The capital expenditure on the new site will be funded by way of a loan from the ultimate parent entity, alongside bank funding and grant assistance. A loan facility is in place of up to £20.5m, with repayments commencing late 2025. The directors have assessed the group's cash flow forecast and existing funding facilities in making the going concern assessment and are comfortable that the business remains robust. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Other income is recognised when it is virtually certain the income will be received.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful life of ten years.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
40 years straight line
Plant and machinery
4 to 12 years straight line
Motor vehicles
4 years straight line
Assets under construction
Not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Work in progress is valued at the lower of cost and net realisable value, and includes direct expenditure and an appropriate proportion of fixed and variable overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, 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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the asset's fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation (2023: £3,974,541 (2022: £5,153,535))

Stock is valued by deducting margins earned from selling prices, which the directors believe is a fair approximation of cost. Judgement is also applied to elements of excess stock, and whether these items retain value. Excess stock older than one year is fully written off, whilst excess stock less than one year old is written down by 75%.

 

Finished goods stock which is older than one year is written off with the loss recognised in the profit and loss account. Items may be excluded from write off if the directors believe that there is reasonable certainty that the item will be sold.

Useful lives of tangible assets (2023: £22,322,715 (2022: £14,773,972))

The estimated useful lives of assets are outlined in note 1.6, and are based on historical experience and the periods over which management believe future economic benefits to be derived.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
29,822,384
33,406,722
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
27,969,731
28,645,406
EU
1,837,024
4,718,320
USA
15,629
42,996
29,822,384
33,406,722
2023
2022
£
£
Other significant revenue
Grants received
55,656
55,664
Rent receivable
293,622
142,867

Rent receivable relates to a short term rental of the property purchased in the prior year. The property is included in assets under construction.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(8,518)
9,838
Government grants
(55,656)
(55,664)
Depreciation of owned tangible fixed assets
1,516,815
1,466,577
Depreciation of tangible fixed assets held under finance leases
209,101
209,101
Profit on disposal of tangible fixed assets
(20,910)
-
Stocks impairment losses recognised or reversed
(298,715)
239,006
Operating lease charges
62,475
173,612
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,500
2,500
Audit of the financial statements of the company's subsidiaries
22,700
18,000
25,200
20,500
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Direct factory staff
144
150
-
-
Other administrative staff
56
48
-
-
Total
200
198
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,125,133
7,222,715
-
0
-
0
Social security costs
696,194
738,087
-
-
Pension costs
216,894
180,922
-
0
-
0
8,038,221
8,141,724
-
0
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
382,451
197,297
Interest on finance leases and hire purchase contracts
12,375
4,285
Total finance costs
394,826
201,582
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
758,200
636,022
Adjustments in respect of prior periods
(1,207)
1,346
Total current tax
756,993
637,368
Deferred tax
Origination and reversal of timing differences
(173,896)
90,397
Changes in tax rates
-
0
28,547
Adjustment in respect of prior periods
(4,458)
(2,477)
Total deferred tax
(178,354)
116,467
Total tax charge
578,639
753,835

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,299,121
3,914,111
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
540,753
743,681
Tax effect of expenses that are not deductible in determining taxable profit
22,780
34,523
Adjustments in respect of prior years
(1,207)
1,346
Other permanent differences
-
0
1,080
Deferred tax adjustments in respect of prior years
(4,458)
(2,477)
Changes in tax rates
(10,290)
28,547
Fixed asset differences
31,720
(52,865)
Other differences
(659)
-
0
Taxation charge
578,639
753,835
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
(986,930)
Amortisation and impairment
At 1 January 2023 and 31 December 2023
(986,930)
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

Negative goodwill arose when the group acquired Unicorn Graphics Limited in the period ended 31 December 2011.

10
Tangible fixed assets
Group
Freehold buildings
Assets under construction
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
4,501,881
3,866,839
17,417,975
90,326
25,877,021
Additions
-
0
8,943,626
313,096
30,265
9,286,987
Disposals
-
0
-
0
(33,352)
(36,583)
(69,935)
At 31 December 2023
4,501,881
12,810,465
17,697,719
84,008
35,094,073
Depreciation and impairment
At 1 January 2023
777,904
-
0
10,286,874
38,271
11,103,049
Depreciation charged in the year
102,285
-
0
1,603,492
20,139
1,725,916
Eliminated in respect of disposals
-
0
-
0
(29,084)
(28,523)
(57,607)
At 31 December 2023
880,189
-
0
11,861,282
29,887
12,771,358
Carrying amount
At 31 December 2023
3,621,692
12,810,465
5,836,437
54,121
22,322,715
At 31 December 2022
3,723,977
3,866,839
7,131,101
52,055
14,773,972
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Tangible fixed assets
(Continued)
- 25 -

Included within freehold buildings is land of £280,000 (2022: £280,000).

 

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
1,028,081
1,237,182
-
0
-
0

The assets under construction balance consists of additions to property accounted for at cost, which includes all directly attributable costs necessary to bring the asset to its intended use.

 

Standard security has been granted to Intesa Sanpaolo S.P.A. over the new site at 3 Hunt Hill, Cumbernauld, G68 9LF.

11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
618,000
618,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
618,000
Carrying amount
At 31 December 2023
618,000
At 31 December 2022
618,000
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Eurostampa UK Ltd
See below
Ordinary
-
100.00
Unicorn Graphics Limited
See below
Ordinary
100.00
-

The registered office of Eurostampa UK Ltd and Unicorn Graphics Limited is Citypoint, 65 Haymarket Terrace, Edinburgh, EH12 5HD.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
989,167
1,786,119
-
-
Work in progress
168,339
219,138
-
-
Finished goods and goods for resale
2,817,035
3,148,278
-
0
-
0
3,974,541
5,153,535
-
-
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,765,531
4,707,528
-
0
-
0
Other debtors
865,473
12,307
-
0
-
0
Prepayments and accrued income
1,511,935
1,163,743
-
0
-
0
6,142,939
5,883,578
-
-
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
780,543
1,685,199
-
0
-
0
Obligations under finance leases
18
197,749
353,175
-
0
-
0
Other borrowings
17
550,269
501,047
-
0
-
0
Trade creditors
4,606,596
4,014,470
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
19,234
19,234
Corporation tax payable
296,594
141,088
-
0
-
0
Other taxation and social security
184,539
875,235
-
-
Other creditors
55,342
3,172
-
0
-
0
Accruals and deferred income
1,442,618
1,466,756
-
0
-
0
8,114,250
9,040,142
19,234
19,234

Obligations under hire purchase contracts are secured on the assets to which they relate.

 

Bank loans and overdrafts are secured by a bond and floating charge over the assets of the company and those of its subsidiaries.

 

Other borrowings relate to a loan from an entity with control over the company.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
5,602,356
1,674,487
-
0
-
0
Obligations under finance leases
18
-
0
196,824
-
0
-
0
Other borrowings
17
3,490,293
3,490,293
-
0
-
0
9,092,649
5,361,604
-
-

Obligations under hire purchase contracts are secured on the assets to which they relate.

 

Bank loans and overdrafts are secured by a bond and floating charge over the assets of the subsidiaries.

Other borrowings relate to a loan from an entity with control over the company.

17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
6,382,899
2,871,765
-
0
-
0
Bank overdrafts
-
0
487,921
-
0
-
0
Loans from group undertakings
4,040,562
3,991,340
-
0
-
0
10,423,461
7,351,026
-
-
Payable within one year
1,330,812
2,186,246
-
0
-
0
Payable after one year
9,092,649
5,164,780
-
0
-
0

The long-term loans are secured by bond and floating charges over the assets of the relevant group company and those of the company's subsidiaries.

Bank loans are repayable over 5 to 10 years and are charged a market rate of interest.

 

Loans from fellow group undertakings are charged a market rate of interest, with no capital repayment payable before 2026.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
18
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
199,761
365,550
-
0
-
0
In two to five years
-
0
198,836
-
0
-
0
199,761
564,386
-
-
Less: future finance charges
(2,012)
(14,387)
-
0
-
0
197,749
549,999
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
216,894
180,922

The group operates a defined contribution scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Creditors totalling £13,157 (2022: £14,000) were payable to the fund at the end of the year and are included in creditors.

20
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
1,055,672
111,328
-
-

The grants received in the year relate to assistance provided for the facility relocation project as described in the strategic report. The release of the grant income will commence on completion of the property.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
600,000
600,000
600,000
600,000
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
891,229
1,068,508
Tax losses
(2,825)
(1,750)
888,404
1,066,758
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,066,758
-
Credit to profit or loss
(178,354)
-
Liability at 31 December 2023
888,404
-

The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances.

23
Reserves
Profit and loss reserves

Profit and loss reserves represent accumulated comprehensive income.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
197,749
123,017
-
-
Between two and five years
-
211,788
-
-
197,749
334,805
-
-
EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
25
Related party transactions
Remuneration of key management personnel

Directors are not remunerated through the group. Key management remuneration is as follows:

2023
2022
£
£
Aggregate compensation
285,090
311,693
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities with control, joint control or significant influence over the group
163,420
277,998
1,365,981
2,519,107

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
4,040,562
3,991,340
Other information

In addition to the above, the group incurred fees of £14,002 (2022: £23,083) in relation to fees in respect of a guarantee from an entity with control over the group.

 

The company has taken advantage of the exemption within FRS 102 Section 33 paragraph 33.1A from the requirement to disclose transactions with wholly owned companies in the same group.

26
Controlling party

The ultimate parent undertaking at the balance sheet date was Eurostampa S.p.A., a company registered in Italy.

EUROSTAMPA PACKAGING LTD (FORMERLY KNOWN AS EUROSTAMPA UK LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,720,482
3,160,276
Adjustments for:
Taxation charged
578,639
753,835
Finance costs
394,826
201,582
Gain on disposal of tangible fixed assets
(20,910)
-
Depreciation and impairment of tangible fixed assets
1,725,916
1,675,678
Decrease in deferred income
(55,656)
(55,664)
Movements in working capital:
Decrease/(increase) in stocks
1,178,994
(1,912,357)
Increase in debtors
(259,361)
(3,080,927)
(Decrease)/increase in creditors
(70,538)
1,355,475
Cash generated from operations
5,192,392
2,097,898
28
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,726,817
(1,337,485)
389,332
Bank overdrafts
(487,921)
487,921
-
0
1,238,896
(849,564)
389,332
Borrowings excluding overdrafts
(6,863,105)
(3,560,356)
(10,423,461)
Obligations under finance leases
(549,999)
352,250
(197,749)
(6,174,208)
(4,057,670)
(10,231,878)
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