Company registration number 03775625 (England and Wales)
EVESHAM SPECIALIST PACKAGING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
EVESHAM SPECIALIST PACKAGING LIMITED
COMPANY INFORMATION
Directors
R P Lynch
R Mitchell
D J Wilson
D MacDonald
Mrs C S Lynch
Secretary
Mr R Mitchell
Company number
03775625
Registered office
4th Floor
Llanthony Warehouse
The Docks
Gloucester
Gloucestershire
GL1 2EH
Auditor
Griffiths Marshall
4th Floor
Llanthony Warehouse
The Docks
Gloucester
GL1 2EH
Business address
Unit 20
Orchard Ind Estate
Toddington
Cheltenham
Glos
GL54 5EB
Bankers
HSBC Plc
11a High Street
Tewkesbury
Gloucestershire
GL20 5AP
EVESHAM SPECIALIST PACKAGING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
3
Directors' responsibilities statement
2
Independent auditor's report
4 - 6
Statement of comprehensive income
8
Balance sheet
7
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
EVESHAM SPECIALIST PACKAGING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

Strategic Report

 

The directors present the strategic report and financial statements for the year ended 28 February 2024.

Review of the business

The company is a supplier of packaging and horticultural sundries and operates from Toddington, Cheltenham

Principal risks and uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies, procedures and controls, all of which are subject to board approval and ongoing review by management.

 

The company has to adhere to European standards in relation to trace metals and acetic acid limits in its pulp products. This is managed by investing in quality control processes and an annual investigation by CCFRA.

 

The principal financial risks is the company's dependence on strong crop yield and its consequential demand for packaging. This is largely affected by weather conditions which have been poor in the year and post year end.

Development and performance

The results for the company are set out pages 7 to 24. They show a profit after taxation of £723,800 (2023 - £809,306). The company held shareholders' funds of £6,924,894 (2023 - £10,201,109) as at 28 February 2024.

 

A decrease in turnover and financial performance in the current year is attributable to the poor crop yield due to weather conditions.

Key performance indicators

The board monitors the progress of the company by reference to the following KPI's:

 

2024 2023

 

Sales 16,460,359 19,271,228

 

Gross Profit 2,382,617 3,314,625

 

Gross Profit Margin 14.5% 17.2%

 

Net Profit Margin 5.0% 5.7%

 

 

The above indicators show an decrease in turnover, with a slight reduction in gross profit and net profit margins.

On behalf of the board

R P Lynch
Director
10 May 2024
EVESHAM SPECIALIST PACKAGING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

The directors are responsible for preparing the annual 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 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:

 

 

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.

EVESHAM SPECIALIST PACKAGING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 29 February 2024.

Principal activities
The principal activity of the company continued to be that of suppliers of packaging and horticultural sundries.
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £4,000,015. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R P Lynch
R Mitchell
D J Wilson
D MacDonald
Mrs C S Lynch
Future developments
The directors look forward to continued successful trading.
Auditor

In accordance with the company's articles, a resolution proposing that Griffiths Marshall be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
R P Lynch
Director
10 May 2024
EVESHAM SPECIALIST PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EVESHAM SPECIALIST PACKAGING LIMITED
- 4 -
Opinion

We have audited the financial statements of Evesham Specialist Packaging Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

EVESHAM SPECIALIST PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVESHAM SPECIALIST PACKAGING LIMITED
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's responsibilities for the audit of the financial statements

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

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

We gained an understanding of the legal and regulatory framework applicable to Evesham Specialist Packaging Limited and the industry in which it operates and, considered the risk of acts by Management and directors of Evesham Specialist Packaging Limited which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with the Companies Act 2006 and Employment Law. We made enquiries of the Directors to obtain further understanding of risks of non-compliance.

 

We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:

 

 

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 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 are to become aware of it.

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

EVESHAM SPECIALIST PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVESHAM SPECIALIST PACKAGING LIMITED
- 6 -

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Humphries
Senior Statutory Auditor
For and on behalf of Griffiths Marshall
10 May 2024
Chartered Accountants
Statutory Auditor
4th Floor
Llanthony Warehouse
The Docks
Gloucester
GL1 2EH
EVESHAM SPECIALIST PACKAGING LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 7 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
228,687
1,195,806
Investments
13
-
0
100
228,687
1,195,906
Current assets
Stocks
15
1,277,166
1,085,694
Debtors
16
4,520,480
4,735,964
Cash at bank and in hand
2,898,969
5,648,918
8,696,615
11,470,576
Creditors: amounts falling due within one year
17
(1,960,735)
(2,404,770)
Net current assets
6,735,880
9,065,806
Total assets less current liabilities
6,964,567
10,261,712
Provisions for liabilities
Deferred tax liability
18
39,673
60,603
(39,673)
(60,603)
Net assets
6,924,894
10,201,109
Capital and reserves
Called up share capital
20
300
300
Profit and loss reserves
6,924,594
10,200,809
Total equity
6,924,894
10,201,109

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 10 May 2024 and are signed on its behalf by:
R P Lynch
Director
Company registration number 03775625 (England and Wales)
EVESHAM SPECIALIST PACKAGING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
16,460,359
19,271,228
Cost of sales
(14,077,742)
(15,956,603)
Gross profit
2,382,617
3,314,625
Administrative expenses
(1,799,380)
(2,304,788)
Other operating income
-
0
22,729
Operating profit
5
583,237
1,032,566
Interest receivable and similar income
7
240,468
69,498
Interest payable and similar expenses
8
5,704
(6,208)
Amounts written off investments
9
(100)
-
Profit before taxation
829,309
1,095,856
Tax on profit
10
(105,509)
(286,550)
Profit for the financial year
723,800
809,306

The profit and loss account has been prepared on the basis that all operations are continuing operations.

EVESHAM SPECIALIST PACKAGING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
300
9,811,503
9,811,803
Year ended 28 February 2023:
Profit and total comprehensive income
-
809,306
809,306
Dividends
11
-
(420,000)
(420,000)
Balance at 28 February 2023
300
10,200,809
10,201,109
Year ended 29 February 2024:
Profit and total comprehensive income
-
723,800
723,800
Dividends
11
-
(4,000,015)
(4,000,015)
Balance at 29 February 2024
300
6,924,594
6,924,894
EVESHAM SPECIALIST PACKAGING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
444,094
878,218
Interest paid
5,704
(6,208)
Income taxes (paid)/refunded
(362,977)
3,158
Net cash inflow from operating activities
86,821
875,168
Investing activities
Purchase of tangible fixed assets
(48,009)
(576,567)
Proceeds from disposal of tangible fixed assets
970,786
-
0
Interest received
233,522
60,237
Other income received from investments
6,946
9,261
Net cash generated from/(used in) investing activities
1,163,245
(507,069)
Financing activities
Dividends paid
(4,000,015)
(420,000)
Net cash used in financing activities
(4,000,015)
(420,000)
Net decrease in cash and cash equivalents
(2,749,949)
(51,901)
Cash and cash equivalents at beginning of year
5,648,918
5,700,819
Cash and cash equivalents at end of year
2,898,969
5,648,918
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information

Evesham Specialist Packaging Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor, Llanthony Warehouse, The Docks, Gloucester, Gloucestershire, GL1 2EH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised when the goods are physically delivered to the customer.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
2% straight line
Land and buildings Leasehold
6 Years straight line and 20% reducing balance
Plant and machinery
20% Reducing balance
Fixtures, fittings & equipment
20% Reducing balance and 33.3% straight line
Motor vehicles
25% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is based on the weighted average purchase cost of items held at the year end.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
2
Judgements 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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Solid Boards
550,457
419,453
Film
2,726,947
3,063,276
Pulp
3,855,869
4,286,077
Corrugated
6,957,302
7,994,784
Punnets
1,607,934
2,586,894
Trays
290,085
293,796
Other Sales
471,765
626,948
16,460,359
19,271,228
2024
2023
£
£
Other revenue
Interest income
240,468
69,498
Grants received
-
22,729
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Directors
5
5
Administration
7
7
Sales
5
5
Distribution
12
14
Total
29
31
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
4
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
910,155
860,166
Social security costs
81,335
77,023
Pension costs
60,000
40,000
1,051,490
977,189
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
-
0
(29,317)
Government grants
-
(22,729)
Fees payable to the company's auditor for the audit of the company's financial statements
9,100
9,070
Depreciation of owned tangible fixed assets
84,937
98,690
Profit on disposal of tangible fixed assets
(40,595)
-
Operating lease charges
262,759
141,965

Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £- (2023 - £29,317).

6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
112,278
112,278
Company pension contributions to defined contribution schemes
60,000
40,000
172,278
152,278
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
233,522
60,237
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
6,946
9,261
Total income
240,468
69,498
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
7
Interest receivable and similar income
(Continued)
- 18 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
233,522
60,237
Interest on financial assets measured at fair value through profit or loss
6,946
9,261
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
(5,704)
6,208
9
Amounts written off investments
2024
2023
£
£
Loss on disposal of financial assets held at cost
(100)
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
126,439
118,822
Adjustments in respect of prior periods
-
0
154,688
Total current tax
126,439
273,510
Deferred tax
Origination and reversal of timing differences
(20,930)
13,040
Total tax charge
105,509
286,550
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
829,309
1,095,856
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
207,327
208,213
Tax effect of expenses that are not deductible in determining taxable profit
1,170
601
Gains not taxable
(10,149)
-
0
Adjustments in respect of prior years
-
0
154,688
Effect of change in corporation tax rate
(2,624)
-
0
Permanent capital allowances in excess of depreciation
17,897
8
Patent box allowance
(87,182)
(90,000)
Deferred Tax
(20,930)
13,040
Taxation charge for the year
105,509
286,550
11
Dividends
2024
2023
£
£
Final paid
4,000,015
420,000
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
12
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
971,919
87,397
404,837
137,024
399,682
2,000,859
Additions
-
0
-
0
-
0
2,389
45,620
48,009
Disposals
(971,919)
-
0
(95,855)
(80,061)
(74,336)
(1,222,171)
At 29 February 2024
-
0
87,397
308,982
59,352
370,966
826,697
Depreciation and impairment
At 1 March 2023
74,645
81,167
335,537
133,046
180,658
805,053
Depreciation charged in the year
7,826
1,246
8,305
2,095
65,465
84,937
Eliminated in respect of disposals
(82,471)
-
0
(64,884)
(79,341)
(65,284)
(291,980)
At 29 February 2024
-
0
82,413
278,958
55,800
180,839
598,010
Carrying amount
At 29 February 2024
-
0
4,984
30,024
3,552
190,127
228,687
At 28 February 2023
897,274
6,230
69,300
3,978
219,024
1,195,806
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
-
0
100
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023
100
Disposals
(100)
At 29 February 2024
-
Carrying amount
At 29 February 2024
-
At 28 February 2023
100
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
14
Subsidiaries

These financial statements are separate company financial statements for Evesham Specialist Packaging Limited.

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
ETF 11 Limited
England
Ordinary Shares
0

The shares in ETF 11 Limited were disposed of on the 19th January 2024, therefore no consolidated accounts have been prepared to 29th February 2024.

 

15
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,277,166
1,085,694
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,827,106
1,692,967
Amounts owed by group undertakings
2,596,725
1,670,622
Other debtors
31,345
1,315,331
Prepayments and accrued income
65,304
57,044
4,520,480
4,735,964
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,164,417
922,040
Corporation tax
126,439
362,977
Other taxation and social security
76,318
104,261
Other creditors
555,612
980,489
Accruals and deferred income
37,949
35,003
1,960,735
2,404,770
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
39,673
60,603
2024
Movements in the year:
£
Liability at 1 March 2023
60,603
Credit to profit or loss
(20,930)
Liability at 29 February 2024
39,673

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Of the £20,930 movement in the deferred taxation liability, £17,461 relates to the decrease in net book value of taxable assets and £3,469 relates to the increase in tax written down value.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,000
40,000

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300
300
300
300
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
21
Operating lease commitments
Lessee

Operating lease payments represent rental payable by the company for use of the primary location and units in Toddington. The premises are owned separately by the directors of the company and RCL 2022 Limited. Lease agreements have been put in place for 5 years commencing in 2023.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
250,289
125,000
Between two and five years
844,617
-
0
1,094,906
125,000
22
Directors' transactions

At the year end the amounts owed to each director by the company are disclosed below:

 

Mr R Lynch £133,308 (2023 - £306,352 owed by the company)

Mr R Mitchell £209,503 (2023 - £335,602 owed by the company)

Mr D Wilson £209,503 (2023 - £335,602 owed by the company)

23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
232,330
157,083
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of assets
Purchase of goods/services
2024
2023
2024
2023
£
£
£
£
Trioscape Garden Centre Limited
-
-
231,100
200,000
Moulded Fibre Products Limited
-
-
2,741,746
2,633,670
RCL 2022 Ltd
950,000
-
0
125,379
-
ESP Pension Scheme
-
-
0
125,000
125,000
EVESHAM SPECIALIST PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
23
Related party transactions
(Continued)
- 24 -

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts owed to related parties
£
£
Moulded Fibre Products Limited
273,665
282,936

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts owed by related parties
£
£
ETF 11 Ltd
2,596,725
1,670,622
RCL 2022 Limited
31,345
-
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
723,800
809,307
Adjustments for:
Taxation charged
105,509
286,550
Finance costs
(5,704)
6,208
Investment income
(240,468)
(69,498)
Gain on disposal of tangible fixed assets
(40,595)
-
Depreciation and impairment of tangible fixed assets
84,937
98,690
Amounts written off investments
100
-
Movements in working capital:
(Increase)/decrease in stocks
(191,472)
110,683
Decrease in debtors
215,484
32,648
(Decrease) in creditors
(207,497)
(396,369)
Cash generated from operations
444,094
878,218
2024-02-292023-03-01falseCCH SoftwareCCH Accounts Production 2024.210R P LynchD J WilsonD MacDonaldMrs C S LynchMrs C S LynchMr R Mitchellfalsefalse037756252023-03-012024-02-2903775625bus:Director12023-03-012024-02-2903775625bus:CompanySecretaryDirector12023-03-012024-02-2903775625bus:Director22023-03-012024-02-2903775625bus:Director32023-03-012024-02-2903775625bus:Director42023-03-012024-02-2903775625bus:CompanySecretary12023-03-012024-02-2903775625bus:Director52023-03-012024-02-2903775625bus:RegisteredOffice2023-03-012024-02-2903775625bus:Agent12023-03-012024-02-29037756252024-02-29037756252023-02-2803775625core:LandBuildingscore:OwnedOrFreeholdAssets2024-02-2903775625core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-02-2903775625core:PlantMachinery2024-02-2903775625core:FurnitureFittings2024-02-2903775625core:MotorVehicles2024-02-2903775625core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2803775625core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-2803775625core:PlantMachinery2023-02-2803775625core:FurnitureFittings2023-02-2803775625core:MotorVehicles2023-02-2803775625core:CurrentFinancialInstrumentscore:WithinOneYear2024-02-2903775625core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2803775625core:CurrentFinancialInstruments2024-02-2903775625core:CurrentFinancialInstruments2023-02-2803775625core:ShareCapital2024-02-2903775625core:ShareCapital2023-02-2803775625core:RetainedEarningsAccumulatedLosses2024-02-2903775625core:RetainedEarningsAccumulatedLosses2023-02-2803775625core:ShareCapital2022-02-2803775625core:RetainedEarningsAccumulatedLosses2022-02-28037756252022-03-012023-02-2803775625core:RetainedEarningsAccumulatedLosses2022-03-012023-02-2803775625core:RetainedEarningsAccumulatedLosses2023-03-012024-02-290377562512023-03-012024-02-290377562512022-03-012023-02-28037756252023-02-2803775625core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-012024-02-2903775625core:LandBuildingscore:LongLeaseholdAssets2023-03-012024-02-2903775625core:PlantMachinery2023-03-012024-02-2903775625core:FurnitureFittings2023-03-012024-02-2903775625core:MotorVehicles2023-03-012024-02-2903775625core:OwnedAssets2023-03-012024-02-2903775625core:OwnedAssets2022-03-012023-02-2803775625core:UKTax2023-03-012024-02-2903775625core:UKTax2022-03-012023-02-280377562522023-03-012024-02-290377562522022-03-012023-02-280377562532023-03-012024-02-290377562532022-03-012023-02-2803775625core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2803775625core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-2803775625core:PlantMachinery2023-02-2803775625core:FurnitureFittings2023-02-2803775625core:MotorVehicles2023-02-2803775625core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-012024-02-2903775625core:Non-currentFinancialInstruments2024-02-2903775625core:Non-currentFinancialInstruments2023-02-280377562512023-03-012024-02-2903775625core:WithinOneYear2024-02-2903775625core:WithinOneYear2023-02-2803775625core:BetweenTwoFiveYears2024-02-2903775625core:BetweenTwoFiveYears2023-02-2803775625core:KeyManagementPersonnelcore:SaleOrPurchaseGoods2022-03-012023-02-2803775625core:OtherRelatedPartiescore:SaleOrPurchaseGoods2022-03-012023-02-2803775625bus:PrivateLimitedCompanyLtd2023-03-012024-02-2903775625bus:FRS1022023-03-012024-02-2903775625bus:Audited2023-03-012024-02-2903775625bus:FullAccounts2023-03-012024-02-29xbrli:purexbrli:sharesiso4217:GBP