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REGISTERED NUMBER: 02648722 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024

FOR

PFF PACKAGING LIMITED

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss account 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


PFF PACKAGING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2024







DIRECTORS: N H Bairstow
M A Bairstow
A R Bairstow
K S Robbins
R V Atkin
I Smith
L G Wilkinson





SECRETARY: M A Bairstow





REGISTERED OFFICE: Unit 3 Airedale Park
Royd Ings Avenue
Keighley
West Yorkshire
BD21 4BZ





REGISTERED NUMBER: 02648722 (England and Wales)





AUDITORS: Walter Dawson & Son
Chartered Accountants
1 Valley Court
Canal Road
Bradford
West Yorkshire
BD1 4SP

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

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

REVIEW OF BUSINESS
The primary activities of the company continued to be the manufacture of plastic food packaging.
Turnover for the year was £18.9m. Pro-rating the previous period's turnover to 12 months (£21.5m), this is a 12% decrease year on year.
The company made an EBITDA profit of £0.2m in the year. This was a pleasing result, considering the challenging economic environment. During the year, the focus for the Company was improving the EBITDA performance of the business. This meant moving away from unprofitable business and making space to grow with enhanced margin products.
The business suffered from escalating costs due to the cost-of-living crisis and a lack of skilled labour in the UK market. This was also coupled with soft retail demand in the second half of the year due to the impact of the cost of living on consumers.
The Company responded to those cost challenges proactively in Q3 and Q4 by cutting operating costs within the business to reflect the lower demand being seen. This was vital to make sure the Company could sustain itself but was done so as not to hamper anticipated growth in 24/25. The full benefit of this work was seen in Q1 of 24/25 with the Company returning to strong EBITDA profitability.

PRINCIPAL RISKS AND UNCERTAINTIES
Raw material prices continue to be a key risk to the business. The Group has quarterly review mechanisms in place with all key customers and will continue to pro-actively pass costs on where further price increases are seen.
Unprecedented overhead inflation seen in the last year on packaging, carriage, electricity and labour has been a challenge to the Group. The cost-of-living crisis and the various conflicts around the world have led to high inflation, which has applied pressure to the Group in the year. The Group has and will continue to monitor overhead price increases and will pro-actively pass these on to customers promptly.
PRN ("Plastic Recycling Notes") are externally traded and have seen significant price volatility in the past couple of years. This is a challenge to all plastic producing businesses and needs careful management to ensure that margin is maintained by adjusting commercial pricing to reflect any fluctuations experienced.

The media led drive for less plastic in packaging is a risk to the sector. The PFF Group has always been committed to innovation and for driving change in our industry. We remain committed to this and continue to look for ways to use less plastic and to use high levels of recycled materials in all of our manufacturing processes.
Competition and threat to market share continues to be a key risk. This is alleviated by continuing to innovate and develop quality products, reacting efficiently to customer requirements, and by strengthening the core team.
Legislative changes around the plastics and packaging industry could negatively affect the business. Management monitors new legislation, or changes to legislation, that affect the business and ensures the business puts plans in place to comply on a timely basis

KEY PERFORMANCE INDICATORS
The key performance indicators that are used to manage the business are:

- Gross margin on materials %
- Operating profit %
- EBITDA %


PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

FUTURE PROSPECTS
Following a difficult period, the company is now in a strong position to grow again and increase profitability.

Tough decisions were taken in the year to reduce the cost base of the Company. This has set the organisation up well to deliver strong profitability in 24/25, which has been borne out by the EBITDA performance year to date.

The company is fully focused on expanding volume into the new year and has a number of significant contracts ready to launch in the new year.

ON BEHALF OF THE BOARD:





A R Bairstow - Director


18 October 2024

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present their report with the financial statements of the company for the year ended 31 January 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture of thermoformed rigid plastic food packaging.

DIVIDENDS
No dividends will be distributed for the year ended 31 January 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report.

N H Bairstow
M A Bairstow
A R Bairstow
K S Robbins
R V Atkin
I Smith

Other changes in directors holding office are as follows:

L G Wilkinson - appointed 5 October 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2024


AUDITORS
The auditors, Walter Dawson & Son, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A R Bairstow - Director


18 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING LIMITED

Opinion
We have audited the financial statements of PFF Packaging Limited (the 'company') for the year ended 31 January 2024 which comprise the Profit and Loss account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its loss 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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING LIMITED


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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING LIMITED


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussion with directors and other management, and form our commercial knowledge and experience of the sector;
- we focussed on specific laws and regulations which considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was a susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and overide of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 and where indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PFF PACKAGING LIMITED

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

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

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




John Richard Hall FCA (Senior Statutory Auditor)
for and on behalf of Walter Dawson & Son
Chartered Accountants
1 Valley Court
Canal Road
Bradford
West Yorkshire
BD1 4SP

18 October 2024

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024

Year Ended Period
31.1.24 1.8.21 to 31.1.23
Notes £    £    £    £   

TURNOVER 18,912,997 32,395,074

Cost of sales 14,130,096 24,161,791
GROSS PROFIT 4,782,901 8,233,283

Distribution costs 876,085 1,448,960
Administrative expenses 4,189,096 6,109,884
5,065,181 7,558,844
(282,280 ) 674,439

Other operating income 3,200 11,886
OPERATING (LOSS)/PROFIT 4 (279,080 ) 686,325


Interest payable and similar expenses 5 382,812 488,185
(LOSS)/PROFIT BEFORE TAXATION (661,892 ) 198,140

Tax on (loss)/profit 6 (163,451 ) 138,955
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(498,441

)

59,185

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

Period
1.8.21
Year Ended to
31.1.24 31.1.23
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (498,441 ) 59,185


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(498,441

)

59,185

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

BALANCE SHEET
31 JANUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 2,944,236 3,227,796

CURRENT ASSETS
Stocks 8 1,206,563 1,744,801
Debtors 9 7,543,025 8,237,252
Cash at bank and in hand 501 2,075
8,750,089 9,984,128
CREDITORS
Amounts falling due within one year 10 8,048,987 8,538,107
NET CURRENT ASSETS 701,102 1,446,021
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,645,338

4,673,817

CREDITORS
Amounts falling due after more than
one year

11

(592,272

)

(956,837

)

PROVISIONS FOR LIABILITIES 15 (456,252 ) (621,725 )
NET ASSETS 2,596,814 3,095,255

CAPITAL AND RESERVES
Called up share capital 16 100 100
Profit and loss account 2,596,714 3,095,155
SHAREHOLDERS' FUNDS 2,596,814 3,095,255

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2024 and were signed on its behalf by:




A R Bairstow - Director



M A Bairstow - Director


PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024

Called up Profit
share and loss Total
capital account equity
£    £    £   
Balance at 1 August 2021 100 3,035,970 3,036,070

Changes in equity
Profit for the period - 59,185 59,185
Total comprehensive income - 59,185 59,185
Balance at 31 January 2023 100 3,095,155 3,095,255

Changes in equity
Deficit for the year - (498,441 ) (498,441 )
Total comprehensive income - (498,441 ) (498,441 )
Balance at 31 January 2024 100 2,596,714 2,596,814

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1. STATUTORY INFORMATION

PFF Packaging Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

The consolidated financial statements, including cash flow, which incorporates the subsidiary PFF Packaging Limited have been prepared by the parent company PFF Group Limited and are publicly available at Companies House.

RELATED PARTY EXEMPTION
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

TURNOVER
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 20% on cost and 10% on reducing balance
Motor vehicles - 25% on reducing balance

STOCKS
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

2. ACCOUNTING POLICIES - continued

DERIVATIVE FINANCIAL INSTRUMENTS
The company uses derivative financial instruments to reduce exposure to foreign exchange risk. The company does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recorded at their fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit and loss immediately unless the derivative is designed and effective as a hedging instrument, in which event the timing of the recognition of profit or loss depends on the nature of the hedge relationship.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

HIRE PURCHASE AND LEASING COMMITMENTS
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future charges, are included in creditors.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

2. ACCOUNTING POLICIES - continued

FINANCE COSTS OF DEBT
The finance costs of debt, including interest and issue costs, are allocated to each period over the term of the debt and charged to the profit and loss account at a constant rate on the outstanding amount.

INCOME RECOGNITION
Income is recognised when services have been completed and goods have been delivered to customers such that the risks and rewards of ownership have transferred to them.

3. EMPLOYEES AND DIRECTORS
Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Wages and salaries 3,405,726 4,450,766
Social security costs 372,787 562,876
Other pension costs 126,552 207,650
3,905,065 5,221,292

The average number of employees during the year was as follows:
Period
1.8.21
Year Ended to
31.1.24 31.1.23

Distribution and selling 7 7
Production 79 81
Administration 16 15
102 103

Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Directors' remuneration 588,467 876,000
Directors' pension contributions to money purchase schemes 55,850 91,800

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 7 6

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Emoluments etc 126,000 189,000
Pension contributions to money purchase schemes 15,000 27,000

4. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Hire of plant and machinery 64,500 100,333
Other operating leases 436,238 590,149
Depreciation - owned assets 395,779 660,595
Profit on disposal of fixed assets (6,075 ) (36,513 )
Auditors' remuneration 13,400 19,125

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Bank interest 37,620 35,501
Other Interest 51,708 94,759
Hire purchase interest 84,965 134,982
Interest on debt factoring advances 208,519 222,943
382,812 488,185

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

6. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Current tax:
UK corporation tax 2,022 (33,293 )

Deferred tax (165,473 ) 172,248
Tax on (loss)/profit (163,451 ) 138,955

RECONCILIATION OF TOTAL TAX (CREDIT)/CHARGE INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
(Loss)/profit before tax (661,892 ) 198,140
(Loss)/profit multiplied by the standard rate of corporation tax in
the UK of 24.030% (2023 - 19%)

(159,053

)

37,647

Effects of:
Capital allowances in excess of depreciation (129,234 ) -
Depreciation in excess of capital allowances - 136,744
Utilisation of tax losses 122,814 -
Adjustments to tax charge in respect of previous periods 2,022 (33,293 )
Group relief - (2,143 )
corporation tax rate on carry
Total tax (credit)/charge (163,451 ) 138,955

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

7. TANGIBLE FIXED ASSETS
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 February 2023 9,465,136 272,084 9,737,220
Additions 112,219 - 112,219
Disposals (20,066 ) - (20,066 )
At 31 January 2024 9,557,289 272,084 9,829,373
DEPRECIATION
At 1 February 2023 6,403,292 106,132 6,509,424
Charge for year 358,729 37,050 395,779
Eliminated on disposal (20,066 ) - (20,066 )
At 31 January 2024 6,741,955 143,182 6,885,137
NET BOOK VALUE
At 31 January 2024 2,815,334 128,902 2,944,236
At 31 January 2023 3,061,844 165,952 3,227,796

The net book value of tangible fixed assets includes £366,529(2023: £1,493,163) in respect of assets held under hire purchase contracts and finance leases. The deprecation charge for the year on those assets amounted to £63,022(2023: £252,813).

8. STOCKS
2024 2023
£    £   
Raw materials 461,639 621,177
Packaging 79,662 93,153
Machine spares 228,962 228,962
Finished goods 436,300 801,509
1,206,563 1,744,801

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,885,669 3,405,110
Amounts owed by group undertakings 3,787,271 3,770,558
Amounts owed by related parties 745,229 857,568
Other debtors 5,376 24,893
Directors' loan accounts 21,082 99,264
Tax on overdrawn directors
loan 6,708 6,708
Prepayments and accrued income 91,690 73,151
7,543,025 8,237,252

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 12) 349,949 505,549
Hire purchase contracts (see note 13) 333,110 212,976
Trade creditors 3,949,737 4,392,687
Amounts owed to group undertakings 330 -
Amounts owed to associates - 17,431
Social security and other taxes 245,179 92,416
VAT 440,105 153,820
Other creditors 50,045 40,528
Debt factoring advances 2,572,108 2,987,677
Directors' loan accounts 10,943 10,943
Accruals and deferred income 97,481 124,080
8,048,987 8,538,107

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 13) 592,272 956,837

12. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 349,949 349,993
CBILS Loan - 155,556
349,949 505,549

13. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 333,110 212,976
Between one and five years 592,272 956,837
925,382 1,169,813

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

13. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 530,991 431,665
Between one and five years 1,844,378 1,415,618
In more than five years 1,856,250 1,466,667
4,231,619 3,313,950

14. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 349,949 349,993
Bank loans - 155,556
Hire purchase contracts 925,382 1,169,813
1,275,331 1,675,362

The overdraft is secured by a debenture over the assets of the company, by a group cross guarantee and the assets of J&H Property Management Limited.

The obligations under finance leases and hire purchase contract are secured by a charge on the assets purchased under these agreements.

The debt factoring loan is secured on the trade book debts of the company.

The bank loan is secured by a fixed charge over the Company and groups assets and the assets of J&H Property Management Limited.

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 456,252 621,725

Deferred
tax
£   
Balance at 1 February 2023 621,725
Provided during year (165,473 )
Balance at 31 January 2024 456,252

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1 100 100

17. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the pension scheme are held separately from those of the company in an independently administered fund. The pension cost represents contributions payable by the company to the fund and amounted to £126,552 (2023: £207650). Contributions totalling £37,873 (2023: £16,256) were payable to the fund at the year end and are included in creditors.

18. ULTIMATE PARENT COMPANY

PFF Group Limited is regarded by the directors as being the company's ultimate parent company.

19. CONTINGENT LIABILITIES

The companys' bankers and finance providers hold as security cross guarantee's against the borrowings of other group companies. As at 31 January 2024 this liability amounted to £2,618,099 (2023: £2,835,742).

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the year ended 31 January 2024 and the period ended 31 January 2023:

2024 2023
£    £   
A R Bairstow and M A Bairstow
Balance outstanding at start of year 96,989 96,092
Amounts advanced - 897
Amounts repaid (75,907 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 21,082 96,989

K S Robbins
Balance outstanding at start of year 2,275 2,275
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 2,275 2,275

PFF PACKAGING LIMITED (REGISTERED NUMBER: 02648722)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2024

21. RELATED PARTY DISCLOSURES

Mr A Bairstow and Mrs M Bairstow through their control over the majority of shares in the parent company, and together with their involvement in its day to day management, are deemed to be the controlling parties for the purpose of Financial Reporting Standard No. 102.

The company operates from premises owned by J & H Property Management Limited who is a related party due to being under the control of Mr A Bairstow and Mrs M Bairstow. Rent of £341,250 (2023: £480,000) was paid in the period. Electricity was recharged from PFF Packaging Limited to J & H Property Management of £Nil (2023: £11,695).

As at 31 January 2024 PFF Packaging Limited was owed £745,228 (2023: £857,568) from J & H Property Management Limited.

The company trades with Fetera Limited who is a related party due to Mr A Bairstow and Mrs M Bairstow both being shareholders and Mr A Bairstow also being a director. Total purchases in the year were£Nil(2023: £297,781). As at 31 January 2024 £Nil (2023: £17,431) was owed to Fetera Limited by PFF Packaging Limited.

As at 31 January 2024 Mr N Bairstow was owed £10,943 (2023: 10,943) by way of his directors loan account.