Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-31N J Mellon N J Mellon L Aiolfi (appointed 3 July 2024)2023-12-312023-12-31falsetrue2023-01-01falseNo description of principal activity22false SC493847 2023-01-01 2023-12-31 SC493847 2022-01-01 2022-12-31 SC493847 2023-12-31 SC493847 2022-12-31 SC493847 2022-01-01 SC493847 c:Director1 2023-01-01 2023-12-31 SC493847 c:Director2 2023-01-01 2023-12-31 SC493847 c:Director3 2023-01-01 2023-12-31 SC493847 c:RegisteredOffice 2023-01-01 2023-12-31 SC493847 d:Buildings d:LongLeaseholdAssets 2023-01-01 2023-12-31 SC493847 d:PlantMachinery 2023-01-01 2023-12-31 SC493847 d:MotorVehicles 2023-01-01 2023-12-31 SC493847 d:FurnitureFittings 2023-01-01 2023-12-31 SC493847 d:OfficeEquipment 2023-01-01 2023-12-31 SC493847 d:OfficeEquipment 2023-12-31 SC493847 d:OfficeEquipment 2022-12-31 SC493847 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 SC493847 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 SC493847 d:Goodwill 2023-01-01 2023-12-31 SC493847 d:CurrentFinancialInstruments 2023-12-31 SC493847 d:CurrentFinancialInstruments 2022-12-31 SC493847 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 SC493847 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 SC493847 d:ShareCapital 2023-01-01 2023-12-31 SC493847 d:ShareCapital 2023-12-31 SC493847 d:ShareCapital 2022-12-31 SC493847 d:ShareCapital 2022-01-01 SC493847 d:CapitalRedemptionReserve 2023-01-01 2023-12-31 SC493847 d:CapitalRedemptionReserve 2023-12-31 SC493847 d:CapitalRedemptionReserve 2022-12-31 SC493847 d:CapitalRedemptionReserve 2022-01-01 SC493847 d:OtherMiscellaneousReserve 2023-01-01 2023-12-31 SC493847 d:OtherMiscellaneousReserve 2023-12-31 SC493847 d:OtherMiscellaneousReserve 2022-12-31 SC493847 d:OtherMiscellaneousReserve 2022-01-01 SC493847 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 SC493847 d:RetainedEarningsAccumulatedLosses 2023-12-31 SC493847 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 SC493847 d:RetainedEarningsAccumulatedLosses 2022-12-31 SC493847 d:RetainedEarningsAccumulatedLosses 2022-01-01 SC493847 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 SC493847 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 SC493847 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 SC493847 d:TaxLossesCarry-forwardsDeferredTax 2022-12-31 SC493847 c:OrdinaryShareClass1 2023-01-01 2023-12-31 SC493847 c:OrdinaryShareClass1 2022-12-31 SC493847 c:OrdinaryShareClass2 2023-01-01 2023-12-31 SC493847 c:OrdinaryShareClass2 2023-12-31 SC493847 c:OrdinaryShareClass2 2022-12-31 SC493847 c:OrdinaryShareClass3 2023-01-01 2023-12-31 SC493847 c:OrdinaryShareClass3 2023-12-31 SC493847 c:OrdinaryShareClass3 2022-12-31 SC493847 c:FRS102 2023-01-01 2023-12-31 SC493847 c:Audited 2023-01-01 2023-12-31 SC493847 c:FullAccounts 2023-01-01 2023-12-31 SC493847 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 SC493847 d:Subsidiary1 2023-01-01 2023-12-31 SC493847 d:Subsidiary1 1 2023-01-01 2023-12-31 SC493847 d:Subsidiary2 2023-01-01 2023-12-31 SC493847 d:Subsidiary2 1 2023-01-01 2023-12-31 SC493847 c:Consolidated 2023-12-31 SC493847 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 SC493847 2 2023-01-01 2023-12-31 SC493847 6 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: SC493847









PACKAGING WITH ROBOTS LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
PACKAGING WITH ROBOTS LTD
 
 
COMPANY INFORMATION


Directors
P Mellon 
N J Mellon 
L Aiolfi 




Registered number
SC493847



Registered office
Suite 37
Grovewood Business Centre

Strathclyde Business Park

Bellshill

Lanarkshire
United Kingdom

ML4 3NQ




Independent auditor
CLA Evelyn Partners Limited
Statutory Auditor & Chartered Accountants

14th Floor

103 Colmore Row

Birmingham

B3 3AG





 
PACKAGING WITH ROBOTS LTD
 

CONTENTS



Page
Group Strategic Report
1
Directors' Report
2
Directors' Responsibilities Statement
3
Independent Auditor's Report
4 - 7
Consolidated Statement of Comprehensive Income
8
Consolidated Balance Sheet
9 - 10
Company Balance Sheet
11 - 12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15 - 16
Consolidated Analysis of Net Debt
17
Notes to the Financial Statements
18 - 39


 
PACKAGING WITH ROBOTS LTD
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Review of the business
 
For the year to 31 December 2023, the directors are pleased to report turnover of £29,228,112 (2022: £26,718,698) and an operating profit of £5,657,283 (2022: £5,756,612) for the group. Net assets of the Group have decreased to £11,416,706 from £13,560,638 at 31 December 2022.
Despite challenging trading conditions, turnover remained strong. Our solutions provide real benefits and efficiencies to our customers' business operations and allows them to continue to fully operate their packaging lines despite a fall in available labour.
2023 saw an increase in repeat orders from existing customers as well as orders from new customers.
In July 2024 Coesia purchased a minority share in Packaging With Robots Ltd (PWR) which will bring   many opportunities to both PWR and Coesia. They will present themselves in the North American market as one supplier and will leverage each other’s experience in automation to offer turnkey solutions which    is an exciting development for our business.  

Principal risks and uncertainties
 
The key business risks affecting the group are the current economic conditions, foreign exchange management, the availability of skilled labour and the rising costs both in materials and hired staff.
The directors will continue to closely monitor the external factors which can affect our business and we have in place a risk management system which aims to manage and reduce the risks to which the Group is exposed. 

Key performance indicators
 
Our KPI's include the following:
Developing of our employees along with continuing to hire the right people who can help maintain    our position as a leading Global Supplier to the food industry Worldwide.
Increasing turnover and maintaining historical profit margins to enable us to further invest in our technology.
Building more sustainable solutions.


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



P Mellon
Director

Date: 9 October 2024

Page 1

 
PACKAGING WITH ROBOTS LTD
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Results and dividends

The profit for the year, after taxation, amounted to £4,498,762 (2022 - £4,586,629).

Ordinary dividends were paid amounting to £Nil (2022 - £3,000,000). The directors do not recommend payment of a further dividend.

Directors

The directors who served during the year or since the year end were:

P Mellon 
N J Mellon
L Aiolfi (appointed 3 July 2024)
 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

In July 2024 Coesia purchased a minority share in Packaging With Robots Ltd (PWR) and this acquisition is expected to bring many opportunities to both Group and Coesia.

Auditor

The auditor, CLA Evelyn Partners Limitedwas appointed during the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





P Mellon
Director

Date: 9 October 2024

Page 2

 
PACKAGING WITH ROBOTS LTD
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Page 3

 
img15ee.png
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACKAGING WITH ROBOTS LTD
 

Opinion

We have audited the financial statements of Packaging with Robots Ltd (the 'Parent Company') and it's subsidiaries (the 'Group') for the year ended  31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated and Company Balance Sheets, Consolidated and Company Statement of Changes in Equity, Consolidated Statement of Cash Flows, Consolidated Analysis of Net Debt and the 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group 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.
Page 4

 
PACKAGING WITH ROBOTS LTD
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACKAGING WITH ROBOTS LTD (CONTINUED)

Other information

The other information comprises the information included in the Annual report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Annual report and financial statements. 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. 


Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
the information given in the Group 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 Group 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 Group and the Parent Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the Parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the 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 Group's and 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. 

Page 5

 
PACKAGING WITH ROBOTS LTD
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACKAGING WITH ROBOTS LTD (CONTINUED)

Auditor’s responsibilities for the audit of the financial statements

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

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:
We obtained a general understanding of the group’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company’s industry and regulation. We obtained this understanding for significant components through discussion with group management and the   component auditors.
We understand that the group complies with the framework through:
Updating operating procedures, manuals and internal controls as legal and regulatory requirements change;
The director's close involvement in the day-to-day running of the business, meaning that any litigation or claims would come to their attention directly; and
Outsourcing payroll and tax compliance to external experts.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, and which are central to the group’s ability to conduct its business    and where there is a risk that failure to comply could result in material penalties. 
We identified the following laws and regulations as being of significance in the context of the Group:
The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.
Relevant health and safety legislation/regulation.

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:
Enquired of management and those charged with governance as to the risks of non-compliance and any instances thereof;
Reviewed minutes of meetings of those charged with governance; and
Obtained written management representations regarding disclosure of any non-compliance with laws and regulations.

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were with regard to the risk of manipulation of the financial statements through manual journals and incorrect recognition of machine revenue. These areas were communicated to other members of the engagement team not present at the discussion.
Page 6

 
PACKAGING WITH ROBOTS LTD
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACKAGING WITH ROBOTS LTD (CONTINUED)

The procedures we carried out to gain evidence in the above areas included:
Testing of revenue transactions close to the year end to ensure revenue has been recorded in the correct period;
Testing of a sample of manual journal entries, selected through applying specific risk assessments to ensure they had a proper business purpose.

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

Use of our report

This report is made solely to the Parent 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 Parent 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 Parent Company and the Parent Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.



Benjamin Stapleton (Senior Statutory Auditor)
  
for and on behalf of
CLA Evelyn Partners Limited
 
Statutory Auditor
Chartered Accountants
  
14th Floor
103 Colmore Row
Birmingham
B3 3AG

9 October 2024
Page 7

 
PACKAGING WITH ROBOTS LTD
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
29,228,112
26,718,698

Cost of sales
  
(12,983,543)
(12,000,463)

Gross profit
  
16,244,569
14,718,235

Administrative expenses
  
(10,587,286)
(8,961,623)

Operating profit
 5 
5,657,283
5,756,612

Interest receivable and similar income
 9 
197,289
-

Interest payable and similar expenses
 10 
(43,335)
(31,641)

Profit before taxation
  
5,811,237
5,724,971

Tax on profit
 11 
(1,312,475)
(1,138,342)

Profit for the financial year
  
4,498,762
4,586,629

  

Currency translation differences
  
(24,215)
323,730

Total comprehensive income for the year
  
4,474,547
4,910,359

  

  

Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 18 to 39 form part of these financial statements.

Page 8

 
PACKAGING WITH ROBOTS LTD
REGISTERED NUMBER:SC493847

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
1,143,940
1,338,575

Tangible assets
 14 
471,921
396,584

  
1,615,861
1,735,159

Current assets
  

Stocks
 16 
1,335,175
1,785,210

Debtors: amounts falling due within one year
 17 
9,988,897
13,084,986

Cash at bank and in hand
  
5,728,106
12,820,852

  
17,052,178
27,691,048

Creditors: amounts falling due within one year
 18 
(7,193,859)
(15,742,771)

Net current assets
  
 
 
9,858,319
 
 
11,948,277

Total assets less current liabilities
  
11,474,180
13,683,436

Provisions for liabilities
  

Deferred tax
  
(2,338)
(421)

Other provisions
 20 
(55,136)
(122,377)

  
 
 
(57,474)
 
 
(122,798)

Net assets
  
11,416,706
13,560,638


Capital and reserves
  

Called up share capital 
 21 
238
280

Capital redemption reserve
 22 
(6,618,437)
-

Merger relief reserve
 22 
5,702,907
5,702,907

Profit and loss reserves
 22 
12,331,998
7,857,451

Shareholders' funds
  
11,416,706
13,560,638


Page 9

 
PACKAGING WITH ROBOTS LTD
REGISTERED NUMBER:SC493847
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




P Mellon
Director

Date: 9 October 2024

The notes on pages 18 to 39 form part of these financial statements.

Page 10

 
PACKAGING WITH ROBOTS LTD
REGISTERED NUMBER:SC493847

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
54
176

Investments
 15 
7,837,494
7,837,494

  
7,837,548
7,837,670

Current assets
  

Debtors: amounts falling due within one year
 17 
17,895
3,059,897

Cash at bank and in hand
  
128,935
83,306

  
146,830
3,143,203

Creditors: amounts falling due within one year
 18 
(1,460,030)
(4,436,723)

Net current liabilities
  
 
 
(1,313,200)
 
 
(1,293,520)

Total assets less current liabilities
  
6,524,348
6,544,150

  

Provisions for liabilities
  

Deferred taxation
  
(13)
(44)

Net assets
  
6,524,335
6,544,106


Capital and reserves
  

Called up share capital 
 21 
238
280

Capital redemption reserve
 22 
(6,618,437)
-

Merger relief reserve
 22 
6,430,719
6,430,719

Profit and loss reserves
 22 
6,711,815
113,107

Shareholders' funds
  
6,524,335
6,544,106


Page 11

 
PACKAGING WITH ROBOTS LTD
REGISTERED NUMBER:SC493847
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company's profit for the year was £6,598,708 (2022 - £2,908,303).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


P Mellon
Director

Date: 9 October 2024

The notes on pages 18 to 39 form part of these financial statements.

Page 12

 
PACKAGING WITH ROBOTS LTD
 

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


Called up share capital
Capital redemption reserve
Merger relief reserve
Profit and loss reserves
Total equity

£
£
£
£
£


At 1 January 2022
280
-
5,702,907
5,947,092
11,650,279


Comprehensive income for the year

Profit for the year
-
-
-
4,586,629
4,586,629

Currency translation differences
-
-
-
323,730
323,730


Contributions by and distributions to owners

Dividends paid
-
-
-
(3,000,000)
(3,000,000)



At 1 January 2023
280
-
5,702,907
7,857,451
13,560,638


Comprehensive income for the year

Profit for the year
-
-
-
4,498,762
4,498,762

Currency translation differences
-
-
-
(24,215)
(24,215)


Contributions by and distributions to owners

Shares cancelled during the year
(42)
-
-
-
(42)

Shares cancelled during the year
-
(6,618,437)
-
-
(6,618,437)


At 31 December 2023
238
(6,618,437)
5,702,907
12,331,998
11,416,706


Page 13

 
PACKAGING WITH ROBOTS LTD
 

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


Called up share capital
Capital redemption reserve
Merger relief reserve
Profit and loss reserves
Total equity

£
£
£
£
£


At 1 January 2022
280
-
6,430,719
204,804
6,635,803


Comprehensive income for the year

Profit for the year
-
-
-
2,908,303
2,908,303


Contributions by and distributions to owners

Dividends paid
-
-
-
(3,000,000)
(3,000,000)



At 1 January 2023
280
-
6,430,719
113,107
6,544,106


Comprehensive income for the year

Profit for the year
-
-
-
6,598,708
6,598,708


Contributions by and distributions to owners

Shares cancelled during the year
(42)
-
-
-
(42)

Shares cancelled during the year
-
(6,618,437)
-
-
(6,618,437)


At 31 December 2023
238
(6,618,437)
6,430,719
6,711,815
6,524,335


Page 14

 
PACKAGING WITH ROBOTS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
4,498,762
4,586,629

Adjustments for:

Amortisation of intangible assets
195,842
195,391

Depreciation of tangible assets
137,453
169,918

Loss on disposal of tangible assets
-
(10,216)

Finance costs
-
31,641

Interest paid
43,335
(31,641)

Interest received
(197,289)
-

Taxation charge
1,312,475
1,138,342

Decrease/(increase) in stocks
450,035
(1,312,703)

Decrease/(increase) in debtors
3,071,987
(3,396,073)

(Decrease)/increase in creditors
(8,114,375)
5,942,926

Increase/(decrease) in provisions
-
(39,622)

Corporation tax paid
(1,747,012)
(1,077,934)

Decrease in provisions
(41,222)
-

Cancellation of share capital
(42)
-

Net cash (used in)/generated by operating activities

(390,051)
6,196,658


Cash flows from investing activities

Purchase of intangible fixed assets
(1,207)
-

Purchase of tangible fixed assets
(212,790)
(281,068)

Sale of tangible fixed assets
-
44,200

Interest received
197,289
-

Net cash used in investing activities

(16,708)
(236,868)
Page 15

 
PACKAGING WITH ROBOTS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows used in financing activities

Dividends paid
-
(3,000,000)

Interest paid
(43,335)
-

Share buy back
(6,618,437)
-

Net cash used in financing activities
(6,661,772)
(3,000,000)

Net (decrease)/increase in cash and cash equivalents
(7,068,531)
2,959,790

Cash and cash equivalents at beginning of year
12,820,852
9,537,332

Foreign exchange gains and losses
(24,215)
323,730

Cash and cash equivalents at the end of year
5,728,106
12,820,852


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,728,106
12,820,852


Page 16

 
PACKAGING WITH ROBOTS LTD
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
Other non-cash changes
At 31 December 2023
£

£

£

£

Cash at bank and in hand

12,820,852

(7,068,531)

(24,215)

5,728,106







12,820,852
(7,068,531)
(24,215)
5,728,106

The non-cash changes relate to the translation differences on the cash held in foreign subsidiaries.

Page 17

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Packaging with Robots Ltd is a private company, limited by shares, domiciled and incorporated in Scotland (registered number: SC493847). The registered office address is Suite 37, Grovewood Business Centre, Strathclyde Business Park, Scotland, ML4 3NQ.
The group consists of Packaging With Robots Ltd and all of its subsidiaries.

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Packaging With Robots Ltd together with all entities controlled by the Parent Company (its subsidiaries).
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. 
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.
In the Parent Company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment. 
 
Page 18

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.2
Basis of consolidation (continued)

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the equity method and the amounts that can be deducted or assessed for tax, considering the manner In which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

 
2.3

Going concern

The directors are required to prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in business. In satisfaction of this responsibility the director's consider the group's ability to meet its liabilities as they fall due. 
The Group meets its day to day working capital requirements through cash reserves with no extended borrowings. Management information tools including budgets and cashflow forecasts are used to monitor and manage current and future liquidity. 
The current and future financial position of the Group, its cashflows and liquidity position have been reviewed by the directors. Based on management's projections covering at least the next 12 months and level of cash reserves the directors consider it appropriate to prepare the financial statements on a going concern basis.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 19

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

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.
Turnover generated from manufacturing contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
On the balance sheet a contract represents an asset where the gross value of work done exceeds payments to account on that contact. These are disclosed within amounts recoverable on contracts. Payments on account received in excess of the value of work done are included in creditors.
Sales of parts are recognised on shipment and service revenue is recognised as the service is provided.

 
2.6

Operating leases: the Group as lessee

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.

 
2.7

Research and development

Research expenditure is written off against profits In the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

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 20

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Income and Retained Earnings over its useful economic life.

Other intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. 
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity. 

Amortisation 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:

Development costs
-
10%
straight line

 
2.11

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:

Leashold land and buildings
-
10% straight line
Plant and equipment
-
20 - 33% straight line
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance
Computers
-
25% straight line


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.

Page 21

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available. 
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.

  
2.13

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. 
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment. 
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.

Page 22

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

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. 
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential. 
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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

 
2.15

Provision

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. 
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises. 
Warranty provisions 
The provision for warranties is recorded on behalf of the estimated costs expected to arise from the current warranties on account of goods and services delivered. Warranty claims are deducted from this provision. 
Employee benefits provisions
The provision for employee benefits is recorded on behalf of the estimated anniversary payments for the 25 year and 40 year tenure.

 
2.16

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 23

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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

 
2.18

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Page 24

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

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, with 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

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

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Page 25

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.19

Dividends

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

Page 26

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies 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. 
Key sources of estimation uncertainty 
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. 
Accounting for contracts
Turnover generated from manufacturing contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
On the balance sheet a contract represents an asset where the gross value of work done exceeds payments to account on that contact. These are disclosed within amounts recoverable on contracts. Payments on account received in excess of the value of work done are included in creditors.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Manufacture and distribution of robotic equipment
26,489,512
23,888,728

Sale of parts and services
2,687,142
2,778,997

Sundry income
51,458
50,973

29,228,112
26,718,698


Page 27

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange (gains)/losses
(168,987)
193,890

Depreciation of tangible fixed assets
137,453
169,918

Profit on disposal of tangible fixed assets
-
(10,216)

Amortisation of intangible assets
195,842
195,391

Operating lease charges
335,015
8,492


6.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent Company's financial statements
87,178
67,339

Fees payable to the Company's auditor and its associates in respect of:

All non-audit services not included above
48,033
12,650

The non-audit services relate to management accounts preparation, financial statement preparation and tax services.


7.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,248,290
4,292,047
317,833
297,523

Social security costs
829,855
733,393
41,923
40,065

Cost of defined contribution scheme
707,362
500,875
64,336
66,664

6,785,507
5,526,315
424,092
404,252


Page 28

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.Employees (continued)

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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Management
10
10
2
2



Technical
87
76
-
-

97
86
2
2


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
317,833
297,523

Group contributions to defined contribution pension schemes
64,336
66,664

382,169
364,187


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £214,534 (2022 - £203,054).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £32,168 (2022 - £33,332).


9.


Interest receivable

2023
2022
£
£


Interest receivable
197,289
-


10.


Interest payable and similar expenses

2023
2022
£
£

Interest on financial liabilities measured at amortised cost:


Interest and charges
43,335
31,641

Page 29

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,335,036
1,161,511

Adjustments in respect of previous periods
(48,593)
-

Deferred tax


Origination and reversal of timing differences
26,032
(23,169)


Tax on profit
1,312,475
1,138,342

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:
2023
2022
£
£


Profit on ordinary activities before tax
5,811,237
5,724,971


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
1,365,641
1,087,744

Effects of:


Non-tax deductible amortisation of goodwill and impairment
27,976
10,859

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
22,882
47,328

Capital allowances for year in excess of depreciation
(3,300)
(2,028)

Adjust deferred tax at closing rate
1,541
(5,561)

Adjustments to tax charge in respect of prior periods
(48,593)
-

Non-taxable income
(104,152)
-

Investment allowance
(3,645)
-

Difference in overseas tax rate
54,125
-

Total tax charge for the year
1,312,475
1,138,342


Factors that may affect future tax charges

Finance Act 2021 included legislation to increase the main rate of corporation tax from 19% to 25% from 1 April 2023. The effects of this increase are reflected in the above. There were no factors that may affect future tax charges.

Page 30

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Dividends

2023
2022
£
£

Recognised as distributions to equity holders:


Final paid
-
3,000,000


13.


Intangible assets

Group





Development costs
Goodwill
Total

£
£
£



Cost


At 1 January 2023
147,763
1,806,984
1,954,747


Additions
1,207
-
1,207



At 31 December 2023

148,970
1,806,984
1,955,954



Amortisation


At 1 January 2023
20,482
595,690
616,172


Charge for the year
15,144
180,698
195,842



At 31 December 2023

35,626
776,388
812,014



Net book value



At 31 December 2023
113,344
1,030,596
1,143,940



At 31 December 2022
127,281
1,211,294
1,338,575



The Company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

Page 31

 

PACKAGING WITH ROBOTS LTD
 
 
 

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


14.


Tangible fixed assets


Group







Leasehold land and buildings
Plant and equipment
Motor vehicles
Fixtures and fittings
Computers
Total

£
£
£
£
£
£



Cost


At 1 January 2023
130,520
1,004,185
271,970
11,445
814
1,418,934


Additions
11,403
47,812
153,575
-
-
212,790



At 31 December 2023

141,923
1,051,997
425,545
11,445
814
1,631,724



Depreciation


At 1 January 2023
61,232
769,367
186,195
5,126
430
1,022,350


Charge for the year
35,942
56,307
43,563
1,438
203
137,453



At 31 December 2023

97,174
825,674
229,758
6,564
633
1,159,803



Net book value



At 31 December 2023
44,749
226,323
195,787
4,881
181
471,921



At 31 December 2022
69,288
234,818
85,775
6,319
384
396,584

Page 32

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)


Company






Computers

£

Cost


At 1 January 2023
491



At 31 December 2023

491



Depreciation


At 1 January 2023
315


Charge for the year
122



At 31 December 2023

437



Net book value



At 31 December 2023
54



At 31 December 2022
176






Page 33

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2023
12,862,494



At 31 December 2023

12,862,494



Impairment


At 1 January 2023
5,025,000



At 31 December 2023

5,025,000



Net book value



At 31 December 2023
7,837,494



At 31 December 2022
7,837,494


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Country of incorporation

Class of shares

Direct holdings

PWR Pack International B.V.
Netherlands
Ordinary
100%
PWR Pack Ltd
Scotland
Ordinary
100%

Companies with registered offices in Scotland have a registered office address of Suite 37, Grovewood Business Centre, Strathclyde Business Park, Bellshill, UK, ML4 3NQ. 
PWR Pack International B.V. has a registered office of Maxwellstraat 41, 6716 BX Ede, Netherlands.
During the year PWR Pack Holdings Limited was dissolved, the strike off date of the company was 7th November 2023, the dissolution date of the company was 14th November 2023.

Page 34

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
1,335,175
1,785,210



17.


Debtors



Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
6,217,035
7,482,757
-
-

Gross amounts owed by contract customers
2,307,157
1,703,138
-
-

Amounts owed by group undertakings
-
-
-
3,022,459

Other debtors
202,969
99,282
895
13,336

Prepayments and accrued income
1,261,736
3,775,707
17,000
-

Deferred taxation (note 19)
-
24,102
-
24,102

9,988,897
13,084,986
17,895
3,059,897



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,772,952
1,745,127
-
104

Amounts owed to group undertakings
-
-
1,405,512
4,400,024

Corporation tax payable
409,151
843,688
-
-

Other taxation and social security
269,138
394,397
35,450
19,448

Other creditors
3,058
857,545
46
46

Accruals and deferred income
4,739,560
11,902,014
19,022
17,101

7,193,859
15,742,771
1,460,030
4,436,723


Page 35

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
23,681
1,224


Charged to profit or loss
(26,019)
22,457



At end of year
(2,338)
23,681

Company


2023
2022


£

£






At beginning of year
24,058
(75)


Charged to profit or loss
(24,071)
24,133



At end of year
(13)
24,058

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(3,770)
(421)
(13)
(44)

Tax losses carried forward
1,432
24,102
-
24,102

(2,338)
23,681
(13)
24,058

Comprising:

Asset - due within one year
-
24,102
-
24,102

Liability
(2,338)
(421)
(13)
(44)

(2,338)
23,681
(13)
24,058


Page 36

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Provisions


Group



Warranty provisions
Employee benefit provisions
Total

£
£
£





At 1 January 2023
77,466
44,911
122,377


Additional provision in the year
-
10,225
10,225


Reversal of provision
(77,466)
-
(77,466)



At 31 December 2023
-
55,136
55,136


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



Nil (2022 - 42) Ordinary A shares of £1.00 each
-
42
237 (2022 - 237) Ordinary B shares of £1.00 each
237
237
1 (2022 - 1) Ordinary C share of £1.00
1
1

238

280

Each class of ordinary share entitles the holder to full rights with regard to voting participation and dividends.
On the 31st October 2023 42 Ordinary A Shares were cancelled.
On the 3rd July 2024, 25% of the ownership was sold.


Page 37

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Reserves

Capital redemption reserve

This reserve relates to shares that the Company has bought back.

Merger relief reserve

The merger relief reserve arose on a business combination that was accounted for as a merger in accordance with UK GAAP.

Profit and loss reserves

This reserve relates to the cumulative retained earnings less amounts distributed to shareholders.


23.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £707,362 (2022 - £500,875). Contributions totalling £5,729 (2022 - £3,824) were payable to the fund at the reporting date.


24.


Financial commitments, guarantees and contingent liabilities

At 31 December 2023, the Group has bank guarantee facilities of €4,100,000. There is a bond and floating charge in favour of Rabobank over the assets of the subsidiary, PWR Pack International B.V., in respect of this and a personal guarantee of €175,000 from the shareholders. 
HSBC Bank PLC holds a floating charge over all assets and undertakings of PWR Pack Ltd. 
HSBC Bank PLC has granted guarantees in favour of certain customers for the sum of £1,646,590.


25.


Commitments under operating leases

At 31 December 2023 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
956,010
323,325

Later than 1 year and not later than 5 years
2,332,136
488,733

Later than 5 years
4,265,616
-

7,553,762
812,058
The Parent Company has no operating leases.

Page 38

 
PACKAGING WITH ROBOTS LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Related party transactions

The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.
During the year, the Company incurred expenses totalling £895 
(2022 - £Nil) on behalf of PNA Robots Ltd, a company under common control. At the year end, the balanced owed by PNA Robots Ltd was £895 (2022 - £Nil) and is included within other debtors.
During the year, loans to directors were advanced totalling £5,459 
(2022 - £Nil). At the year end £5,459 (2022 - £Nil) was outstanding and included within other debtors. This loan is interest free, and at the date of signing has been repaid in full.


27.


Controlling party

The ultimate controlling party is P Mellon, by virtue of his majority shareholding in Packaging with Robots Ltd.


28.


Post balance sheet events

In July 2024 Coesia purchased a minority share in Packaging With Robots Ltd (PWR) and this acquisition is expected to bring many opportunities to both Group and Coesia.

 
Page 39