Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31falsefalsefalseSupply of packaging.2023-04-011716false 03546924 2023-04-01 2024-03-31 03546924 2022-04-01 2023-03-31 03546924 2024-03-31 03546924 2023-03-31 03546924 c:Director1 2023-04-01 2024-03-31 03546924 c:Director2 2023-04-01 2024-03-31 03546924 c:Director3 2023-04-01 2024-03-31 03546924 c:RegisteredOffice 2023-04-01 2024-03-31 03546924 c:Agent1 2023-04-01 2024-03-31 03546924 d:Buildings 2023-04-01 2024-03-31 03546924 d:PlantMachinery 2023-04-01 2024-03-31 03546924 d:PlantMachinery 2024-03-31 03546924 d:PlantMachinery 2023-03-31 03546924 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03546924 d:MotorVehicles 2023-04-01 2024-03-31 03546924 d:MotorVehicles 2024-03-31 03546924 d:MotorVehicles 2023-03-31 03546924 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03546924 d:FurnitureFittings 2023-04-01 2024-03-31 03546924 d:FurnitureFittings 2024-03-31 03546924 d:FurnitureFittings 2023-03-31 03546924 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03546924 d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 03546924 d:CurrentFinancialInstruments 2024-03-31 03546924 d:CurrentFinancialInstruments 2023-03-31 03546924 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 03546924 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 03546924 d:UKTax 2023-04-01 2024-03-31 03546924 d:UKTax 2022-04-01 2023-03-31 03546924 d:ShareCapital 2024-03-31 03546924 d:ShareCapital 2023-03-31 03546924 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 03546924 d:RetainedEarningsAccumulatedLosses 2024-03-31 03546924 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 03546924 d:RetainedEarningsAccumulatedLosses 2023-03-31 03546924 d:RetainedEarningsAccumulatedLosses 2022-04-01 03546924 d:AcceleratedTaxDepreciationDeferredTax 2024-03-31 03546924 d:AcceleratedTaxDepreciationDeferredTax 2023-03-31 03546924 d:TaxLossesCarry-forwardsDeferredTax 2024-03-31 03546924 d:TaxLossesCarry-forwardsDeferredTax 2023-03-31 03546924 c:OrdinaryShareClass1 2023-04-01 2024-03-31 03546924 c:OrdinaryShareClass1 2024-03-31 03546924 c:OrdinaryShareClass1 2023-03-31 03546924 c:OrdinaryShareClass2 2023-04-01 2024-03-31 03546924 c:OrdinaryShareClass2 2024-03-31 03546924 c:OrdinaryShareClass2 2023-03-31 03546924 c:OrdinaryShareClass3 2023-04-01 2024-03-31 03546924 c:OrdinaryShareClass3 2024-03-31 03546924 c:OrdinaryShareClass3 2023-03-31 03546924 c:OrdinaryShareClass4 2023-04-01 2024-03-31 03546924 c:OrdinaryShareClass4 2024-03-31 03546924 c:OrdinaryShareClass4 2023-03-31 03546924 c:FRS102 2023-04-01 2024-03-31 03546924 c:Audited 2023-04-01 2024-03-31 03546924 c:FullAccounts 2023-04-01 2024-03-31 03546924 c:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 03546924 d:WithinOneYear 2024-03-31 03546924 d:WithinOneYear 2023-03-31 03546924 d:BetweenOneFiveYears 2024-03-31 03546924 d:BetweenOneFiveYears 2023-03-31 03546924 d:MoreThanFiveYears 2024-03-31 03546924 d:MoreThanFiveYears 2023-03-31 03546924 e:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 03546924










D A PAK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
D A PAK LIMITED
 
 
COMPANY INFORMATION


Directors
R A Brighton 
J A Brighton 
P A Teasdale 




Registered number
03546924



Registered office
Mort House
Crowcrofts Road, Newstead Industrial Estate

Trentham

Stoke-on-Trent

Staffordshire

ST4 8HX




Independent auditors
Shorts
Chartered Accountants & Registered auditor

2 Ashgate Road

Chesterfield

Derbyshire

S40 4AA




Bankers
National Westminster Bank plc





 
D A PAK LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Balance Sheet
 
10
Notes to the Financial Statements
 
11 - 21


 
D A PAK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their strategic report for the year ended 31 March 2024.

Business review
 
The primary activity of the Company is the supply of innovative flexible bulk packaging and handling solutions, using products sourced from trusted partners in the UK, Europe, and Asia.
Our customers value our reputation for responsiveness and reliability to meet their changing needs.  This vital part of our service is managed from our head-office and main distribution centre, situated in Stoke-on-Trent, UK.  
This location has extensive modern storage capacity with easy access to the UK’s motorway network.  Together with our selected logistics partners, we can provide additional on-demand storage facilities and fast-response distribution capabilities, to deliver the flexible customer response we pride ourselves on.    
The war in Ukraine and piracy off the horn of Africa continues to destabilise global supply chains, but because of the global spread of our supplier base, we can mitigate some of the effects of this disruption for our customers.  
However, some lead times have increased from foreign suppliers, but these are affecting all UK competitors equally.
Despite the challenges, the company traded strongly during the year under review with robust performances in tonnage throughput and profitability in line with the company’s growth strategy since the management buyout in 2022.
Sales of £12.1m down from £14.1m in 2023 reflected falls in the feedstock price  but profit before tax came in at £1.325m compared to £1.428m before exceptional profits on property disposals of £0.644m in 2023.  
The key management aims are to continue improving the quality and sustainability of earnings whilst driving cash generation.  
The Directors are satisfied with the financial position of the Company.
Sustainability
The company is committed to ensuring the sustainability of human, social, environmental, and economic resources and complies with all relevant environmental policies. 
The UK government implemented a plastic packaging tax in April 2022.  The company in line with its manufacturing partners is implementing more sustainable products, where permissible supplying products containing a minimum of 30% recycled materials instead of virgin polymer. 
The company has completed a baseline carbon footprint assessment for the business covering Scopes 1 & 2 and has scoped the data needed to complete a full carbon footprint for the business.
The company is continuing its work to successfully deliver its commitments to an improved ESG  (Environmental, Sustainability, and Governance) culture within the business. 

Page 1

 
D A PAK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties
 
Pricing
The Company is exposed to fluctuations in market prices of raw materials.  This position is monitored daily but using our global network of suppliers, we can mitigate some of this risk. However, although variations in feedstock prices affects all competitors,  the company’s strength and liquidity shields it from the more extreme pressures. 
Market
The flexible packaging industry within which the company operates is highly competitive.  The company understands and lives by its core values and strengths to ensure we maintain standards for both the company and our customers. 
Credit risk
The company vets all customers prior to conducting business.  New customers are assessed against our criteria for improving the quality of our earnings.  If they require a credit facility they must pass our credit-checks and adhere to our terms and conditions of sale.  Trade debtor balances are continuously monitored to minimising exposure to credit risks.
Foreign currency risk
The company conducts limited trading in foreign currencies and doesn’t require the provision of accounts in foreign currencies. 

Future Developments
 
Continued challenging trading conditions remain in 2024, namely due to the ongoing conflict in Ukraine and the still-high level of interest rates in the UK.  However, the company is confident that based on the policies and strategy being implemented, it will deliver continued improvement in 2024.
 


This report was approved by the board on 7 October 2024 and signed on its behalf.



R A Brighton
Director

Page 2

 
D A PAK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

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 judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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.

Results and dividends

The profit for the year, after taxation, amounted to £965,120 (2023 - £1,775,069).

Directors

The directors who served during the year were:

R A Brighton 
J A Brighton 
P A Teasdale 

Qualifying third party indemnity provisions

The directors have been granted a qualifying third party indemnity provision under section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Page 3

 
D A PAK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 7 October 2024 and signed on its behalf.
 





R A Brighton
Director

Page 4

 
D A PAK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF D A PAK LIMITED
 

Opinion


We have audited the financial statements of D A pak limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


Page 5

 
D A PAK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF D A PAK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


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.


Page 6

 
D A PAK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF D A PAK LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the Company operates in, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
considered journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing any correspondence with HMRC, relevant regulators and the Company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Page 7

 
D A PAK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF D A PAK LIMITED (CONTINUED)


Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as theymay involve deliberate concealment or collusion.


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Howard Freeman (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Registered auditor
  
2 Ashgate Road
Chesterfield
Derbyshire
S40 4AA

7 October 2024
Page 8

 
D A PAK LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
12,082,772
14,127,028

Cost of sales
  
(9,066,462)
(11,200,580)

Gross profit
  
3,016,310
2,926,448

Administrative expenses
  
(1,590,989)
(795,175)

Operating profit
 5 
1,425,321
2,131,273

Interest receivable and similar income
 9 
2,882
70

Interest payable and similar expenses
 10 
(103,582)
(60,053)

Profit before tax
  
1,324,621
2,071,290

Tax on profit
 11 
(359,501)
(296,221)

Profit after tax
  
965,120
1,775,069

  

  

Retained earnings at the beginning of the year
  
3,772,246
3,590,937

Profit for the year
  
965,120
1,775,069

Dividends declared and paid
  
(1,593,760)
(1,593,760)

Retained earnings at the end of the year
  
3,143,606
3,772,246
The notes on pages 11 to 21 form part of these financial statements.

Page 9

 
D A PAK LIMITED
REGISTERED NUMBER: 03546924

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
352,617
270,172

Current assets
  

Stocks
 13 
3,133,363
3,699,661

Debtors: amounts falling due within one year
 14 
3,633,679
4,111,387

Cash at bank and in hand
  
281,064
154,909

  
7,048,106
7,965,957

Creditors: amounts falling due within one year
 15 
(4,256,589)
(4,461,016)

Net current assets
  
 
 
2,791,517
 
 
3,504,941

Total assets less current liabilities
  
3,144,134
3,775,113

Provisions for liabilities
  

Deferred tax
 16 
-
(2,339)

Net assets
  
3,144,134
3,772,774


Capital and reserves
  

Called up share capital 
 17 
528
528

Profit and loss account
 18 
3,143,606
3,772,246

  
3,144,134
3,772,774


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 October 2024.




R A Brighton
Director

The notes on pages 11 to 21 form part of these financial statements.

Page 10

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

D.A. Pak Limited is a private Company limited by shares, incorporated in England and Wales (registered number 03546924). Its registered office is Mort House, Crowcrofts Road, Newstead Industrial Estate, Trentham, Stoke-on-Trent, Staffordshire, ST4 8HX. The principal activity of the Company throughout the year continued to be that of the supply of packaging.

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The Company's functional and presentational currency is pounds sterling

The following principal accounting policies have been applied:

 
2.2

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.

 
2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.4

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 11

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

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 the Statement of Income and Retained Earnings.
The current 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.

 
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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

The Depreciation rates used are:

Freehold property
-
2%
straight line
Plant and machinery
-
15%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
15%
reducing balance

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

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

Page 12

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
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

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measure, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measure, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below:
(i) Stock provisioning
When calculating the stock provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of stock. The carrying value of stock after making such a provision was £3,113,363 (2023: £3,699,661).
ii) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. The amount of trade and other debtors after making such provision was £2,270,790 (2023: £2,353,982).

Page 13

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
60,412
53,278

(Profit)/Loss on disposal of tangible fixed asset
-
(643,661)

Other operating lease rentals
45,931
48,980

Operating lease rentals - Land and buildings
197,767
108,622

Defined contribution pension costs
184,526
160,315


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,000
12,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 14

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
562,565
517,746

Social security costs
62,514
52,423

Cost of defined contribution scheme
184,526
160,315

809,605
730,484


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


        2024
        2023
            No.
            No.







Employees
17
16


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
19,484
17,894

Company contributions to defined contribution pension schemes
60,000
40,000

79,484
57,894


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
2,882
70

Page 15

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
103,582
60,053


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
366,673
313,212

Adjustments in respect of previous periods
291
-


366,964
313,212


Total current tax
366,964
313,212

Deferred tax


Origination and reversal of timing differences
(6,357)
(3,695)

Movement in provision
(1,106)
(13,296)

Total deferred tax
(7,463)
(16,991)


Tax on profit
359,501
296,221
Page 16

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,324,621
2,071,290


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
331,155
393,545

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
28,055
(100,089)

Remeasurement of deferred tax for changes in tax rates
-
2,765

Adjustments to tax charge in respect of prior periods
291
-

Total tax charge for the year
359,501
296,221

Page 17

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 April 2023
45,214
277,176
268,769
591,159


Additions
-
137,972
4,885
142,857



At 31 March 2024

45,214
415,148
273,654
734,016



Depreciation


At 1 April 2023
34,007
117,332
169,648
320,987


Charge for the year on owned assets
1,707
43,544
15,161
60,412



At 31 March 2024

35,714
160,876
184,809
381,399



Net book value



At 31 March 2024
9,500
254,272
88,845
352,617



At 31 March 2023
11,207
159,844
99,121
270,172


13.


Stocks

2024
2023
£
£

Finished goods and goods for resale
3,133,363
3,699,661


Stock recognised in cost of sales during the year as an expense was £8,500,163 (2023: £10,856,210).

Page 18

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Debtors

2024
2023
£
£


Trade debtors
2,270,790
2,353,982

Amounts owed by group undertakings
1,352,736
1,752,373

Prepayments and accrued income
5,030
5,032

Deferred taxation
5,123
-

3,633,679
4,111,387



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,012,148
2,418,083

Corporation tax
206,790
154,013

Other taxation and social security
263,904
206,948

Other creditors
1,773,747
1,681,972

4,256,589
4,461,016



16.


Deferred taxation




2024


£






At beginning of year
(2,339)


Charged to profit or loss
7,462



At end of year
5,123

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(23,838)
(30,195)

Movement in provision
28,961
27,856

5,123
(2,339)

Page 19

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



250 (2023 - 250) Ordinary A shares of £1.00 each
250
250
125 (2023 - 125) Ordinary B shares of £1.00 each
125
125
125 (2023 - 125) Ordinary C shares of £1.00 each
125
125
28 (2023 - 28) Ordinary D shares of £1.00 each
28
28

528

528



18.


Reserves

Profit and loss account

Profit and loss account represents all current and prior period retained profits and losses and is all considered to be distributable.


19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund amounted to £184,526 (2023: £160,315). Contributions totalling £4,284 (2023: £2,337) were payable to the fund at the balance sheet date and are included in creditors.


20.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
162,896
184,460

Later than 1 year and not later than 5 years
620,450
627,347

Later than 5 years
51,667
206,667

835,013
1,018,474

Page 20

 
D A PAK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Controlling party

The immediate and ultimate parent undertaking is DA Pak Holdings Limited, a company registered in England and Wales. The ultimate controlling party is R A Brighton, who together with his wife, controls 100% of the issued share capital in the ultimate parent undertaking DA Pak Holdings Limited.

 
Page 21