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REGISTERED NUMBER: 07089716 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2024

FOR

PFF PACKAGING (NORTH EAST) LIMITED

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)






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 (NORTH EAST) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2024







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





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





REGISTERED NUMBER: 07089716 (England and Wales)





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

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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 £22.2m. Pro-rated to 12 months, turnover in the previous year was £21.1m, which demonstrates a 5.2% increase year on year. During the year a number of new customer projects came to fruition, mainly in the produce sector, driving the increase.
The company made an EBITDA loss of £0.3m in the year, a significant improvement on the £3m loss seen last period. 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.

Underlying EBITDA reconciliation £m
Reported EBITDA (0.3)
Washington Transition to Sedgefield 0.2
PFF Health Exceptional Costs 0.0
Sirap Exceptional Electricity Costs 0.0
Cost saving expenses 0.1
Underlying EBITDA 0.0

The company incurred £0.2m on exceptional costs to close the Washington site and move to Sedgefield. This included redundancy costs, dual running costs and costs incurred to move equipment between the two sites.
The Group also incurred £0.1m of costs in relation to redundancies and other cost saving activities as the Group worked to return to profitability for 24/25. This has had the desired effect with the Group recording strong EBITDA profitability in every month so far in 24/25.

During the year, we have carried out an impairment review of all of our assets to ensure they are fairly reflected in line with FRS 102. Following the completion of our contract to manufacture aprons for the NHS in 2022, we haven't secured any further work to date in this area. We continue to seek new work and are confident of significant future contracts. The directors have made the decision, however, to be prudent and write down the value of the health assets by £550k to their net realisable value. This has no impact on the cashflow position of the Group or on the trading EBITDA performance, which has recovered well from the previous period.


PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

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 %

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 Group. 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 Group is expecting a good level of growth in the year as new customer projects come to fruition.

ON BEHALF OF THE BOARD:





A R Bairstow - Director


18 October 2024

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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 packaging manufacturing for the food industry.

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
W J Mapstone
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 (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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 (NORTH EAST) LIMITED

Opinion
We have audited the financial statements of PFF Packaging (North East) 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 (NORTH EAST) 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 (NORTH EAST) 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 (NORTH EAST) 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 (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 (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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 22,173,364 20,949,161

Cost of sales 17,079,046 16,460,593
GROSS PROFIT 5,094,318 4,488,568

Distribution costs 1,010,640 915,855
Administrative expenses 5,562,683 5,021,798
6,573,323 5,937,653
(1,479,005 ) (1,449,085 )

Other operating income 15,325 39,443
OPERATING LOSS 4 (1,463,680 ) (1,409,642 )

Exceptional loss due to
relocation of Washington Site 5 (108,007 ) (1,365,109 )
Impairment of health assets 5 (550,000 ) -
(2,121,687 ) (2,774,751 )


Interest payable and similar expenses 6 509,306 322,705
LOSS BEFORE TAXATION (2,630,993 ) (3,097,456 )

Tax on loss 7 (648,061 ) 244,080
LOSS FOR THE FINANCIAL YEAR (1,982,932 ) (3,341,536 )

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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 FOR THE YEAR (1,982,932 ) (3,341,536 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(1,982,932

)

(3,341,536

)

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

BALANCE SHEET
31 JANUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 10,131,878 11,377,149
10,131,878 11,377,149

CURRENT ASSETS
Stocks 10 1,998,177 2,961,449
Debtors 11 3,226,133 3,784,953
Cash at bank and in hand 140,586 97,726
5,364,896 6,844,128
CREDITORS
Amounts falling due within one year 12 15,148,888 14,777,988
NET CURRENT LIABILITIES (9,783,992 ) (7,933,860 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

347,886

3,443,289

CREDITORS
Amounts falling due after more than
one year

13

(2,392,919

)

(2,857,329

)

PROVISIONS FOR LIABILITIES 16 (340,229 ) (988,290 )
NET LIABILITIES (2,385,262 ) (402,330 )

CAPITAL AND RESERVES
Called up share capital 17 1 1
Profit and loss account (2,385,263 ) (402,331 )
SHAREHOLDERS' FUNDS (2,385,262 ) (402,330 )

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 (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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 1 2,939,205 2,939,206

Changes in equity
Deficit for the period - (3,341,536 ) (3,341,536 )
Total comprehensive income - (3,341,536 ) (3,341,536 )
Balance at 31 January 2023 1 (402,331 ) (402,330 )

Changes in equity
Deficit for the year - (1,982,932 ) (1,982,932 )
Total comprehensive income - (1,982,932 ) (1,982,932 )
Balance at 31 January 2024 1 (2,385,263 ) (2,385,262 )

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

1. STATUTORY INFORMATION

PFF Packaging (North East) 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.

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 (North East) 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.

GOODWILL
Goodwill, being the amount paid in connection with the acquisition of a business in 2012, is being amortised evenly over its estimated useful life of ten years.

INTANGIBLE ASSETS
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 10% on cost
Plant and machinery - 20% on cost and 10% on reducing balance
Office equipment - 10% on reducing balance
Motor vehicles - 50% on cost

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


PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

2. ACCOUNTING POLICIES - continued
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.

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 such that the risks and rewards of ownership have transferred to them.

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

3. EMPLOYEES AND DIRECTORS
Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Wages and salaries 4,556,536 4,833,209
Social security costs 430,185 673,231
Other pension costs 119,100 108,753
5,105,821 5,615,193

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 6 6
Production 103 91
Administration 9 8
118 105

Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Directors' remuneration - -

4. OPERATING LOSS

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

Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Hire of plant and machinery 290,020 140,479
Other hire of equipment 34,505 30,444
Depreciation - owned assets 1,143,808 645,359
Loss on disposal of fixed assets - 17,700
Goodwill amortisation - 54,274
Auditors' remuneration 10,200 25,359
Foreign exchange differences 121 (10,742 )

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

5. EXCEPTIONAL ITEMS
Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Exceptional loss due to
relocation of Washington Site (108,007 ) (1,365,109 )
Impairment of health assets (550,000 ) -
(658,007 ) (1,365,109 )

During the year, we have carried out an impairment review of all of our assets to ensure they are fairly reflected in line with FRS 102. Following the completion of our contract to manufacture aprons for the NHS in 2022, we haven't secured any further work to date in this area. We continue to seek new work and are confident of significant future contracts. The directors have made the decision, however, to be prudent and write down the value of the health assets by £550k to their net realisable value. This has no impact on the cashflow position of the Group or on the trading EBITDA performance, which has recovered well from the previous period.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.8.21
Year Ended to
31.1.24 31.1.23
£    £   
Bank interest (2,259 ) (575 )
Debt Factoring Interest 259,763 125,202
Other interest (699 ) 3,251
Hire purchase interest 252,501 194,827
509,306 322,705

7. 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 - (174,621 )

Deferred tax (648,061 ) 418,701
Tax on loss (648,061 ) 244,080

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

7. TAXATION - continued

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 before tax (2,630,993 ) (3,097,456 )
Loss multiplied by the standard rate of corporation tax in the UK
of 24.030% (2023 - 19%)

(632,228

)

(588,517

)

Effects of:
Expenses not deductible for tax purposes 1,388 -
Capital allowances in excess of depreciation (492,727 ) -
Depreciation in excess of capital allowances - 571,162
Utilisation of tax losses 475,506 208,798
Depreciation on excluded assets - 42,325
Amortisation of goodwill - 10,312
Total tax (credit)/charge (648,061 ) 244,080

The company has corporation tax losses of £5,820,105(2023: £3,841,803 to carry forward against future profits.

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 February 2023
and 31 January 2024 513,349
AMORTISATION
At 1 February 2023
and 31 January 2024 513,349
NET BOOK VALUE
At 31 January 2024 -
At 31 January 2023 -

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

9. TANGIBLE FIXED ASSETS
Long Plant and Office Motor
leasehold machinery equipment vehicles Totals
£    £    £    £    £   
COST
At 1 February 2023 568,613 20,258,158 313,709 5,917 21,146,397
Additions - 448,537 - - 448,537
At 31 January 2024 568,613 20,706,695 313,709 5,917 21,594,934
DEPRECIATION
At 1 February 2023 368,974 9,275,854 118,503 5,917 9,769,248
Charge for year 32,973 1,080,076 30,759 - 1,143,808
Impairments - 550,000 - - 550,000
At 31 January 2024 401,947 10,905,930 149,262 5,917 11,463,056
NET BOOK VALUE
At 31 January 2024 166,666 9,800,765 164,447 - 10,131,878
At 31 January 2023 199,639 10,982,304 195,206 - 11,377,149

The net book value of tangible fixed assets includes £4,458,705 (2023: £4,994,590) in respect of assets held under hire purchase contracts and finance leases. The depreciation charge on those assets amounted to £535,885 (2023: £600,292).

10. STOCKS
2024 2023
£    £   
Raw materials 1,275,619 1,171,844
Packaging 80,788 141,020
Finished goods 641,770 1,648,585
1,998,177 2,961,449

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,961,738 3,362,421
Other debtors 891 174,621
Prepayments and accrued income 263,504 247,911
3,226,133 3,784,953

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 14) 1,008,758 853,377
Trade creditors 2,264,183 3,301,309
Amounts owed to group undertakings 7,369,476 6,942,486
Amounts owed to associates 38,980 41,090
Social security and other taxes 262,262 114,476
VAT 471,472 198,312
Other creditors 95,840 103,241
Debt factoring advances 2,618,099 2,835,742
Directors' loan accounts 14,536 14,536
Accruals and deferred income 996,992 362,791
Deferred government grants 8,290 10,628
15,148,888 14,777,988

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 14) 2,392,919 2,857,329

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 1,008,758 853,377
Between one and five years 2,392,919 2,857,329
3,401,677 3,710,706

Non-cancellable operating leases
2024 2023
£    £   
Within one year 672,238 451,241
Between one and five years 2,663,953 1,168,005
3,336,191 1,619,246

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Hire purchase contracts 3,401,677 3,710,706
Debt factoring advances 2,618,099 2,835,742
6,019,776 6,546,448

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.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 340,229 988,290

Deferred
tax
£   
Balance at 1 February 2023 988,290
Provided during year (648,061 )
Balance at 31 January 2024 340,229

17. CALLED UP SHARE CAPITAL

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

18. PENSION COMMITMENTS

The pension 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 £119,100 (2023: £108,753). Contributions totalling £64,965 (2023: £11,546) were payable to the fund at the year end and are included in creditors.

19. ULTIMATE PARENT COMPANY

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

PFF PACKAGING (NORTH EAST) LIMITED (REGISTERED NUMBER: 07089716)

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

20. 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 £2,922,057 (2023: £3,493,226).

21. RELATED PARTY DISCLOSURES

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

As at 31 January 2024 Mr W Mapstone was owed £14,536 (2023: £14,536) by way of his directors loan account.