Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false27false29truetruetruetruefalse2023-01-01Sale of sustainable packagingtrue 04104861 2023-01-01 2023-12-31 04104861 2022-01-01 2022-12-31 04104861 2023-12-31 04104861 2022-12-31 04104861 2022-01-01 04104861 c:Director1 2023-01-01 2023-12-31 04104861 c:Director2 2023-01-01 2023-12-31 04104861 c:Director4 2023-01-01 2023-12-31 04104861 c:Director5 2023-01-01 2023-12-31 04104861 c:Director5 2023-12-31 04104861 c:RegisteredOffice 2023-01-01 2023-12-31 04104861 d:PlantMachinery 2023-01-01 2023-12-31 04104861 d:PlantMachinery 2023-12-31 04104861 d:PlantMachinery 2022-12-31 04104861 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04104861 d:FurnitureFittings 2023-01-01 2023-12-31 04104861 d:FurnitureFittings 2023-12-31 04104861 d:FurnitureFittings 2022-12-31 04104861 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04104861 d:ComputerEquipment 2023-01-01 2023-12-31 04104861 d:ComputerEquipment 2023-12-31 04104861 d:ComputerEquipment 2022-12-31 04104861 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04104861 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 04104861 d:CurrentFinancialInstruments 2023-12-31 04104861 d:CurrentFinancialInstruments 2022-12-31 04104861 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 04104861 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 04104861 e:UnitedKingdom 2023-01-01 2023-12-31 04104861 e:UnitedKingdom 2022-01-01 2022-12-31 04104861 d:UKTax 2023-01-01 2023-12-31 04104861 d:UKTax 2022-01-01 2022-12-31 04104861 d:ShareCapital 2023-01-01 2023-12-31 04104861 d:ShareCapital 2023-12-31 04104861 d:ShareCapital 2022-01-01 2022-12-31 04104861 d:ShareCapital 2022-12-31 04104861 d:ShareCapital 2022-01-01 04104861 d:SharePremium 2023-01-01 2023-12-31 04104861 d:SharePremium 2023-12-31 04104861 d:SharePremium 2022-01-01 2022-12-31 04104861 d:SharePremium 2022-12-31 04104861 d:SharePremium 2022-01-01 04104861 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 04104861 d:RetainedEarningsAccumulatedLosses 2023-12-31 04104861 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 04104861 d:RetainedEarningsAccumulatedLosses 2022-12-31 04104861 d:RetainedEarningsAccumulatedLosses 2022-01-01 04104861 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 04104861 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 04104861 c:OrdinaryShareClass1 2023-01-01 2023-12-31 04104861 c:OrdinaryShareClass1 2023-12-31 04104861 c:OrdinaryShareClass1 2022-12-31 04104861 c:FRS102 2023-01-01 2023-12-31 04104861 c:Audited 2023-01-01 2023-12-31 04104861 c:FullAccounts 2023-01-01 2023-12-31 04104861 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 04104861 d:WithinOneYear 2023-12-31 04104861 d:WithinOneYear 2022-12-31 04104861 d:BetweenOneFiveYears 2023-12-31 04104861 d:BetweenOneFiveYears 2022-12-31 04104861 d:MoreThanFiveYears 2023-12-31 04104861 d:MoreThanFiveYears 2022-12-31 04104861 2 2023-01-01 2023-12-31 04104861 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04104861
















BIOPAK (UK) LTD




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


































img7075.png


BIOPAK (UK) LTD

 
COMPANY INFORMATION


DIRECTORS
L Lemark 
M Lindroth 
G Smith 
E Graham (resigned 28 March 2024)




REGISTERED NUMBER
04104861



REGISTERED OFFICE
Unit 13 Nunnery Park
Hornhill Road

Worcester

Worcestershire

WR4 0SX




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

1-3 College Yard

Worcester

WR1 2LB






BIOPAK (UK) LTD


CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 23



BIOPAK (UK) LTD

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
The Directors present their Strategic Report together with the audited financial statements for the year ended 31 December 2023.
Principal activities
The Company’s activity is to offer high quality catering supplies and packaging, specialising in biodegradable and compostable materials.

BUSINESS REVIEW
 
For BioPak (UK) Ltd, 2023 showed growth sales within the distribution sector but a decline in end users/QSR. The decline was due to a modification in the business’s strategy, with moving away from end users towards the distribution sector and two price reductions in the year to ensure the business remained competitive.

PRINCIPAL RISKS AND UNCERTAINTIES
 
BioPak’s faces several challenges that will require proactive management, including supply chain disruptions due to Houthi militant attacks on the Suez Canal, which has increased container transit time from 12 weeks up to 16 weeks, which has also contributed to an increase in operational costs.

FUTURE OUTLOOK
 
Looking ahead to 2024, with the BioPak Group’s acquisition of the innovative coffee cup company Huskee Pty (Huskee). The acquisition follows upon BioPak Group’s acquisition of Decent Packaging in January, we are poised for growth, and this will strengthen BioPak’s brand within the UK.

Driven by escalating environmental concerns, legislations & consumer preferences, BioPak is positioned well to benefit from opportunities that may arise.

The company continues to invest in technology, new products, and collaborative partnerships to deliver innovative and sustainable solutions that meet the evolving needs of customers which will contribute to a more circular economy.

Overall, the Company considers its customer portfolio to be well balanced across multiple sectors and continues to receive new customer enquiries which should help to improve the balance further. Management feels the company is well placed to mitigate any market volatility, whilst continuing to grow profitability in a controlled manner.

Page 1


BIOPAK (UK) LTD


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

SECTION 172 STATEMENT
 
The Directors consider that, as set out under 172(1) of the Companies Act 2006, they have, in good faith, acted in a way that they consider is most likely to promote the success of the Company for the benefit of its members as a whole. In doing so, the Directors have given due regard to the interests of key stakeholder groups and have assessed the likely consequences of decisions on the Company’s long-term performance and its reputation. The following elements inform all of the boards decision-making processes:

Strategy
During Board and operations meetings, the Directors review the strategic process and key performance indicators (KPIs) alongside the Senior Management Team to ensure that the Company remains aligned with its strategic and long-term objectives. Using a collaborative approach at all levels across the business ensures that all stakeholders’ views are heard and considered, helping to achieve a balanced decision-making process to ensure the long-term financial success of the Company.

Performance
BioPak has established KPIs across all strategic areas of the business and operations. The Directors focus on reviewing and analysing the Company performance against these KPI’s to ensure that the Company is delivering the best performance for stakeholders.

Governance
The Directors at BioPak are committed to ensuring good governance. This is ensured by our governing business principles, code of conduct and various other compliance policies across the business, all of which are regularly reviewed and updated to meet the changing regulatory and business needs.
Below are our key stakeholders and how we have engaged with them in the decision-making process:

Customers
BioPak’s vision is to be the UK leading provider of biodegradable and compostable packaging and supplies which is underpinned by our mission of ensuring our customers have their products at the right place, at the right time and in the right condition. This is delivered by working closely with our customers to understand their business needs and tailor our services to ensure that we provide the best service possible as one of their trusted business partners.

We value the feedback we receive from our customers and use this as a means to continuously improve the service that we offer in order to achieve leading customer satisfaction levels as part of our focus on a customer centric culture.

Employees
BioPak has a strong commitment to its workforce. We attract, retain and develop talented people who care about the service that they deliver which enables us to clearly differentiate from our competitors on service quality. We recognise that people support the BioPak brand and are fundamental to meeting each of our stakeholders’ needs. The Directors and Senior Management recognise the important of our employees’ contributions to the on-going performance of the business and there are a variety of internal channels available aimed at facilitating communication and feedback.

Suppliers and other business partners
The maintenance of our supply chain is a critical function. We work closely with our suppliers, contractors and other business partners to ensure flexibility, strength and reliability throughout our supply chain. The success of these relationships has been proven during the COVID-19 pandemic, when our long-standing relationships with our business partners have helped maintain supply continuity.

Community and the environment
The Company is committed to a sustainable planet, not only through the provision of its products but also by the education often provided to potential customers who may not be aware of the impact conventional supplies and packaging have on the planet. The Company aims to maintain or improve on our current level of quality that we offer customers and help make their transition to greener products as seamless as possible.

Page 2


BIOPAK (UK) LTD


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


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





G Smith
Director

Date: 21 October 2024

Page 3


BIOPAK (UK) 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.

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 £248,611 (2022: £747,338).

No dividends were declared during the year (2022: £NIL).

DIRECTORS

The Directors who served during the year were:

L Lemark 
M Lindroth 
G Smith 
E Graham (resigned 28 March 2024)

FUTURE DEVELOPMENTS

Future developments are disclosed in the Company's Strategic Report.

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.

Page 4


BIOPAK (UK) LTD
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
POST BALANCE SHEET EVENTS

There have been no significant post balance sheet events, other than those of a macroeconomic nature, such as the Ukraine-Russia conflict and the cost of living crisis.

AUDITORS

The auditorsBishop Fleming LLPwill 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.
 






G Smith
Director

Date: 21 October 2024

Unit 13 Nunnery Park
Hornhill Road
Worcester
Worcestershire
WR4 0SX

Page 5


BIOPAK (UK) LTD

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BIOPAK (UK) LTD
OPINION


We have audited the financial statements of BIOPAK (UK) LTD (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


BASIS FOR OPINION


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.


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.


Page 6


BIOPAK (UK) LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BIOPAK (UK) LTD (CONTINUED)

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 4, 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 7


BIOPAK (UK) LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BIOPAK (UK) LTD (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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
results of our enquiries of management and the board about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
°identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
°the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue and management override of controls using manual journal entries, and these were identified as the greatest potential area for fraud.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included occupational health and safety regulations and employment legislation.

Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
enquiring of management and those charged with governance concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance; and

Page 8


BIOPAK (UK) LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BIOPAK (UK) LTD (CONTINUED)

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and assessing whether the judgements made in making accounting estimates are indicative of a potential bias.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.






Andrew Wood FCCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
1-3 College Yard
Worcester
WR1 2LB

21 October 2024
Page 9


BIOPAK (UK) LTD

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,136,767
13,735,119

Cost of sales
  
(8,607,408)
(9,388,819)

Gross profit
  
3,529,359
4,346,300

Distribution costs
  
(660,670)
(725,762)

Administrative expenses
  
(2,538,508)
(2,674,252)

Operating profit
 5 
330,181
946,286

Interest receivable and similar income
 9 
8,916
-

Interest payable and similar expenses
 10 
(18,812)
(19,927)

Other finance income
  
89
-

Profit before tax
  
320,374
926,359

Tax on profit
 11 
(71,763)
(179,021)

Profit for the financial year
  
248,611
747,338

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

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

The notes on pages 13 to 23 form part of these financial statements.

Page 10


BIOPAK (UK) LTD
REGISTERED NUMBER:04104861

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
244,913
290,492

Current assets
  

Stocks
 13 
3,148,556
3,375,292

Debtors: amounts falling due within one year
 14 
2,122,848
1,454,097

Cash at bank and in hand
 15 
283,918
901,131

  
5,555,322
5,730,520

Creditors: amounts falling due within one year
 16 
(2,145,526)
(2,598,696)

Net current assets
  
3,409,796
3,131,824

Total assets less current liabilities
  
3,654,709
3,422,316

Provisions for liabilities
  

Deferred tax
 17 
(58,508)
(74,726)

Net assets
  
3,596,201
3,347,590


Capital and reserves
  

Called up share capital 
 18 
135,711
135,711

Share premium account
 19 
103,731
103,731

Profit and loss account
 19 
3,356,759
3,108,148

  
3,596,201
3,347,590


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





G Smith
Director

Date: 21 October 2024

The notes on pages 13 to 23 form part of these financial statements.

Page 11


BIOPAK (UK) LTD


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


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

£
£
£
£


At 1 January 2022
135,711
103,731
2,360,810
2,600,252


Comprehensive income for the year

Profit for the year
-
-
747,338
747,338
Total comprehensive income for the year
-
-
747,338
747,338



At 1 January 2023
135,711
103,731
3,108,148
3,347,590


Comprehensive income for the year

Profit for the year
-
-
248,611
248,611
Total comprehensive income for the year
-
-
248,611
248,611


At 31 December 2023
135,711
103,731
3,356,759
3,596,201


The notes on pages 13 to 23 form part of these financial statements.

Page 12


BIOPAK (UK) LTD

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

1.


GENERAL INFORMATION

BioPak (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 13 Nunnery Park, Hornhill Road, Worcester, Worcestershire, WR4 0SX.
The principal activity of the Company is to offer high quality catering supplies and packaging, specialising in biodegradable and compostable materials.

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 following principal accounting policies have been applied:

 
2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Duni AB as at 31 December 2023 and these financial statements may be obtained from Duni AB, Box 237, SE-201 22 MALMO, Sweden.

 
2.3

GOING CONCERN

The Directors have reviewed budgets and forecasts for a period of 12 months from the approval of the financial statements. Considering this and the profits generated by the Company, as well as the level of resources held by the Company, the Directors consider that the Company is in such a position as to continue normal operations for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements.
In particular, the Directors have also considered the strength of the growth of the sustainable packaging market and the significant demand that is being seen currently. This demand is expected to only increase further in the coming 12 months. The Directors have also considered the current supply issues seen around the globe and the potential impact of this in the future with regards to inflationary pressures seen in developed economies.

Page 13


BIOPAK (UK) LTD

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

2.ACCOUNTING POLICIES (continued)

 
2.4

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP, and the accounts are rounded to the nearest GBP.

Transactions and balances

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

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

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

 
2.5

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.

 
2.6

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.

 
2.7

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

Page 14


BIOPAK (UK) LTD

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

2.ACCOUNTING POLICIES (continued)

 
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.

 
2.10

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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.11

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 reporting 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 reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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


 
2.12

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.

Page 15


BIOPAK (UK) LTD

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

2.ACCOUNTING POLICIES (continued)


2.12
TANGIBLE FIXED ASSETS (CONTINUED)

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

The estimated useful lives range as follows:

Plant and machinery
-
5 years
Fixtures and fittings
-
2 - 5 years
Computer equipment
-
3 - 5 years

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

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

 
2.13

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 reporting 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.

 
2.14

DEBTORS

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

 
2.15

CASH AND CASH EQUIVALENTS

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

 
2.16

CREDITORS

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

 
2.17

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 16


BIOPAK (UK) LTD

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

2.ACCOUNTING POLICIES (continued)

 
2.18

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.


3.


JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company'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.
The Directors consider that there are no significant accounting estimates that impact the financial statements.


4.


TURNOVER

The whole of the Company's turnover is attributable to the procurement and sale of sustainable packaging.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
12,136,767
13,735,119



5.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
136,861
116,215

Exchange differences
29,759
1,814

Other operating lease rentals
304,555
304,628

Page 17


BIOPAK (UK) LTD

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

6.


AUDITORS' REMUNERATION

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
16,650
12,050

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.


7.


EMPLOYEES

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


2023
2022
£
£

Wages and salaries
1,136,508
1,079,076

Social security costs
89,690
73,818

Cost of defined contribution scheme
28,210
25,188

1,254,408
1,178,082


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


        2023
        2022
            No.
            No.







Employees
27
29


8.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
37,500
117,267

Company contributions to defined contribution pension schemes
-
1,478

37,500
118,745


During the year retirement benefits were accruing to no Directors (2022: NIL) in respect of defined contribution pension schemes.

Page 18


BIOPAK (UK) LTD

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

9.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
8,916
-

8,916
-


10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Loans from group undertakings
18,812
19,927


11.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
87,981
195,980


TOTAL CURRENT TAX
87,981
195,980

DEFERRED TAX


Origination and reversal of timing differences
(16,218)
(16,959)

TOTAL DEFERRED TAX
(16,218)
(16,959)


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
71,763
179,021
Page 19


BIOPAK (UK) LTD

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than the effective rate of Corporation Tax in the UK of 23.52% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
320,374
926,359


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
75,354
176,008

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,293
10,189

Capital allowances for year in excess of depreciation
(50)
(3,106)

Adjustments to tax charge in respect of prior periods - deferred tax
(5,180)
-

Remeasurement of deferred tax for changes in tax rates
(654)
(4,070)

TOTAL TAX CHARGE FOR THE YEAR
71,763
179,021


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

The Finance Act 2021 increased the main rate of corporation tax from 19% to 25% with effect from 1 April 2023.

Page 20


BIOPAK (UK) LTD

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

12.


TANGIBLE FIXED ASSETS





Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£



COST OR VALUATION


At 1 January 2023
491,079
17,479
302,854
811,412


Additions
51,119
20,974
19,189
91,282



At 31 December 2023

542,198
38,453
322,043
902,694



DEPRECIATION


At 1 January 2023
229,377
4,384
287,159
520,920


Charge for the year on owned assets
103,004
13,930
19,927
136,861



At 31 December 2023

332,381
18,314
307,086
657,781



NET BOOK VALUE



At 31 December 2023
209,817
20,139
14,957
244,913



At 31 December 2022
261,702
13,095
15,695
290,492


13.


STOCKS

2023
2022
£
£

Goods for resale
3,148,556
3,375,292



14.


DEBTORS

2023
2022
£
£


Trade debtors
1,615,722
1,066,163

Other debtors
7,360
3,924

Prepayments and accrued income
463,277
335,878

Tax recoverable
36,489
48,132

2,122,848
1,454,097


Page 21


BIOPAK (UK) LTD

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

15.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
283,918
901,131

283,918
901,131



16.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
863,468
665,698

Amounts owed to group undertakings
158,980
384,198

Other taxation and social security
9,640
62,013

Other creditors
321,967
480,323

Accruals and deferred income
791,471
1,006,464

2,145,526
2,598,696





17.


DEFERRED TAXATION




2023


£






At beginning of year
(74,726)


Charged to profit or loss
16,218



AT END OF YEAR
(58,508)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(58,508)
(74,726)

Page 22


BIOPAK (UK) LTD

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

18.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



135,711 (2022: 135,711) Class A shares of £1.00 each
135,711
135,711



19.


RESERVES

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses, all of which are considered distributable.


20.


PENSION COMMITMENTS

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an indepedently administered fund. The pension cost charge represents contributions payable by the Company to the fund amounted to £28,210 (2022: £25,323). Contributions totalling £4,199 (2022: £4,824) were payable to the fund as at the reporting date and are included in other creditors.


21.


COMMITMENTS UNDER OPERATING LEASES

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

2023
2022
£
£


Not later than 1 year
358,263
330,154

Later than 1 year and not later than 5 years
1,267,245
1,311,696

Later than 5 years
410,200
1,008,293

2,035,708
2,650,143


22.


RELATED PARTY TRANSACTIONS

The Company has taken exemption from disclosure of related party balances with wholly owned group entities under Section 33 of FRS 102.


23.


CONTROLLING PARTY

The immediate parent company is Kindtoo Limited, a company incorporated in England and Wales. The ultimate parent company is Duni AB, a company incorporated in Sweden.

 
Page 23