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Registration number: 00698834

PB Packaging Group Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 30 November 2023

 

PB Packaging Group Ltd

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Consolidated Profit and Loss Account

9

Consolidated Balance Sheet

10

Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Financial Statements

15 to 30

 

PB Packaging Group Ltd

Company Information

Directors

J H Lomax

J W Davies

G W Davies

J C P Copley

S M Arbuthnott

Company secretary

G W Davies

Registered office

1 Lyon Way
Greenford
Middlesex
UB6 0AQ

Auditors

UHY Ross Brooke
Suite I Windrush Court
Abingdon Business Park
Abingdon
Oxfordshire
OX14 1SY

 

PB Packaging Group Ltd

Strategic Report for the Year Ended 30 November 2023

The directors present their strategic report for the year ended 30 November 2023.

Principal activity

The principal activity of the group is the supply and distribution of flexible packaging and consumables. This is supported through on-site manufacturing of polymer-based products and international supply chains of polymer and paper-based items.

Fair review of the business

An important feature of the business this year was the Bulgaria Packaging partnership to help manufacturing capabilities along with a widening of the product range to maintain the position as the UK's largest range of sustainable flexible packaging 'off the shelf'. The building of a new warehouse planned for completion next year will mean an increase in storage capacity to enable this. The company also offers customised packaging solutions and bespoke contracts were won based on the fast turnaround and service levels in both manufactured and imported solutions. New customers within e-commerce and distribution account for a large proportion of sales with the balance in medical, food and industrial packing. In line with the drive for sustainability and responding to recent PPT legislation, the growth of recycled materials has been significant with up to 50% of manufactured polymers fabricated having 30% or more recycled content. This has been customer-led and driven by environmental and social demands internally and externally. The company has supported customers with cost reduction options on many recycled lines and alongside this new SKUs with recycled material have substituted previous ranges.

Internal changes were made to the sales & customer service team structures. The accounts and marketing department offices were fully refurbished. Improvements were made to IT security and protocols for managing cyber threats. Investment was made in bespoke software supporting sales, payment processing and stock management.

Management decisions are made through monthly surveillance of KPIs which prioritise instances when we see changes in trend of customer activity and margins and overheads. Strategically long-term plans are balanced against month to month performance.

Principal risks and uncertainties

The principal risks and uncertainties are around regulation and taxation, raw material prices and electricity, competition, environmental impacts and technological disruption, with continuing high inflation and poor economic outlook in the UK creating additional concerns.

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
J W Davies
Director

 

PB Packaging Group Ltd

Directors' Report for the Year Ended 30 November 2023

The directors present their report and the for the year ended 30 November 2023.

Directors of the group

The directors who held office during the year were as follows:

J H Lomax

J W Davies

G W Davies - Company secretary and director

J C P Copley

S M Arbuthnott

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Research and development

The company continues to invest in technological research and development to improve operational efficiencies and better promote products through various channels, along with the development of new environmentally friendly materials and products.

Future developments

The directors anticipate that the company will grow in the coming year, paying particular attention to their merchant sales.

Going concern

The board of directors are not aware of any material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern. On this basis the financial statements have been prepared on a going concern basis.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
J W Davies
Director

 

PB Packaging Group Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

PB Packaging Group Ltd

Independent Auditor's Report to the Members of PB Packaging Group Ltd

Opinion

We have audited the financial statements of PB Packaging Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 30 November 2023 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

PB Packaging Group Ltd

Independent Auditor's Report to the Members of PB Packaging Group Ltd

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

 

PB Packaging Group Ltd

Independent Auditor's Report to the Members of PB Packaging Group Ltd

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We have considered:
o the nature of the company and sector, control environment and operating performance;
o the company’s own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;
o any matters we identified having reviewed the company’s policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
o the matters discussed amongst the audit engagement team.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as recognition of income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

 

PB Packaging Group Ltd

Independent Auditor's Report to the Members of PB Packaging Group Ltd

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.

......................................
Caroline Webster (Senior Statutory Auditor)
For and on behalf of UHY Ross Brooke, Statutory Auditor

Suite I Windrush Court
Abingdon Business Park
Abingdon
Oxfordshire
OX14 1SY

27 November 2024

 

PB Packaging Group Ltd

Consolidated Profit and Loss Account for the Year Ended 30 November 2023

Note

2023
£

2022
£

Turnover

3

18,471,132

18,582,592

Cost of sales

 

(11,106,361)

(12,657,052)

Gross profit

 

7,364,771

5,925,540

Administrative expenses

 

(6,590,565)

(5,616,912)

Operating profit

4

774,206

308,628

Other interest receivable and similar income

5

88,764

63,967

Profit before tax

 

862,970

372,595

Tax on profit

9

(184,801)

(39,400)

Profit for the financial year

 

678,169

333,195

Profit/(loss) attributable to:

 

Owners of the company

 

627,595

333,195

Minority interests

 

50,574

-

 

678,169

333,195

 

PB Packaging Group Ltd

(Registration number: 00698834)
Consolidated Balance Sheet as at 30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

10

10,150

-

Tangible assets

11

1,898,118

1,757,248

 

1,908,268

1,757,248

Current assets

 

Stocks

13

2,584,557

2,772,186

Debtors

14

3,074,837

3,223,993

Investments

-

50,000

Other financial assets

3,053,024

1,588,411

Cash at bank and in hand

 

2,386,185

2,198,061

 

11,098,603

9,832,651

Creditors: Amounts falling due within one year

16

(3,987,664)

(3,247,804)

Net current assets

 

7,110,939

6,584,847

Total assets less current liabilities

 

9,019,207

8,342,095

Provisions for liabilities

17

(93,877)

(99,183)

Net assets

 

8,925,330

8,242,912

Capital and reserves

 

Called up share capital

19

953

953

Share premium reserve

91,996

91,996

Capital redemption reserve

47

47

Other reserves

(388,725)

(392,974)

Retained earnings

9,170,485

8,542,890

Equity attributable to owners of the company

 

8,874,756

8,242,912

Minority interests

 

50,574

-

Shareholders' funds

 

8,925,330

8,242,912

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
J W Davies
Director

 

PB Packaging Group Ltd

(Registration number: 00698834)
Balance Sheet as at 30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

1,882,231

1,757,248

Investments

12

100

-

 

1,882,331

1,757,248

Current assets

 

Stocks

13

2,386,529

2,772,186

Debtors

14

2,946,748

3,223,993

Investments

-

50,000

Other financial assets

3,053,024

1,588,411

Cash at bank and in hand

 

2,234,380

2,198,061

 

10,620,681

9,832,651

Creditors: Amounts falling due within one year

16

(3,686,101)

(3,247,804)

Net current assets

 

6,934,580

6,584,847

Total assets less current liabilities

 

8,816,911

8,342,095

Provisions for liabilities

17

(93,877)

(99,183)

Net assets

 

8,723,034

8,242,912

Capital and reserves

 

Called up share capital

19

953

953

Share premium reserve

91,996

91,996

Capital redemption reserve

47

47

Other reserves

(388,725)

(392,974)

Retained earnings

9,018,763

8,542,890

Shareholders' funds

 

8,723,034

8,242,912

The company made a profit after tax for the financial year of £475,873 (2022 - profit of £333,195).

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
J W Davies
Director

 

PB Packaging Group Ltd

Consolidated Statement of Changes in Equity for the Year Ended 30 November 2023
Equity attributable to the parent company

Share capital
£

Share premium
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 December 2021

954

91,996

46

(353,639)

8,219,195

7,958,552

Profit for the year

-

-

-

-

333,195

333,195

Other comprehensive income

-

-

-

(39,335)

-

(39,335)

Purchase of own share capital

(1)

-

1

-

(9,500)

(9,500)

At 30 November 2022

953

91,996

47

(392,974)

8,542,890

8,242,912

Share capital
£

Share premium
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 December 2022

953

91,996

47

(392,974)

8,542,890

8,242,912

-

8,242,912

Profit for the year

-

-

-

-

627,595

627,595

50,574

678,169

Other comprehensive income

-

-

-

4,249

-

4,249

-

4,249

At 30 November 2023

953

91,996

47

(388,725)

9,170,485

8,874,756

50,574

8,925,330

 

PB Packaging Group Ltd

Statement of Changes in Equity for the Year Ended 30 November 2023

Share capital
£

Share premium
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 December 2021

954

91,996

46

(353,639)

8,219,195

7,958,552

Profit for the year

-

-

-

-

333,195

333,195

Other comprehensive income

-

-

-

(39,335)

-

(39,335)

Purchase of own share capital

(1)

-

1

-

(9,500)

(9,500)

At 30 November 2022

953

91,996

47

(392,974)

8,542,890

8,242,912

Share capital
£

Share premium
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 December 2022

953

91,996

47

(392,974)

8,542,890

8,242,912

Profit for the year

-

-

-

-

475,873

475,873

Other comprehensive income

-

-

-

4,249

-

4,249

At 30 November 2023

953

91,996

47

(388,725)

9,018,763

8,723,034

 

PB Packaging Group Ltd

Consolidated Statement of Cash Flows for the Year Ended 30 November 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

678,169

333,195

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

309,707

256,840

Profit on disposal of tangible assets

(30,400)

(7,639)

Finance income

5

(88,764)

(63,967)

Income tax expense

9

184,801

39,400

 

1,053,513

557,829

Working capital adjustments

 

Decrease/(increase) in stocks

13

187,629

(102,580)

Decrease/(increase) in trade debtors

14

153,405

(216,507)

Increase in trade creditors

16

581,010

607,430

Cash generated from operations

 

1,975,557

846,172

Income taxes paid

9

(31,257)

(62,808)

Net cash flow from operating activities

 

1,944,300

783,364

Cash flows from investing activities

 

Interest received

24,151

6,892

Acquisitions of tangible assets

(450,509)

(480,273)

Proceeds from sale of tangible assets

 

30,400

7,639

Acquisition of intangible assets

10

(10,218)

-

Acquisition of listed shares

(1,400,000)

-

Proceeds from sale of listed shares

 

-

250,000

Cash receipts from repayment of loans, classified as investing activities

 

50,000

-

Net cash flows from investing activities

 

(1,756,176)

(215,742)

Cash flows from financing activities

 

Payments for purchase of own shares

 

-

(9,500)

Net increase in cash and cash equivalents

 

188,124

558,122

Cash and cash equivalents at 1 December

 

2,198,061

1,639,939

Cash and cash equivalents at 30 November

 

2,386,185

2,198,061

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
1 Lyon Way
Greenford
Middlesex
UB6 0AQ
United Kingdom

These financial statements were authorised for issue by the Board on 26 November 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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 £1.

The parent company has taken advantage of the exemption under Section 408 of the Companies Act 2006 from presenting its own profit and loss account.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2023.

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The board of directors are not aware of any material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Judgements

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 relevent. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

Taxation

Determining income tax provisions involves judgement on the tax treatment of certain transactions. Deferred tax is recognised on accelerated capital allowances where a temporary difference occurs due to the estimated useful economic life of qualifying plant and machinery.

Other loans made under Section 11
Where loans made to related parties are interest free and under common control. The company (lender) is required to include financial assets at present value. To calculate this balance the directors have made judgements that alternative finance arrangements would typically bear interest of 4% based on the size, nature and the likely guarantees the company would be required to present to a commercial lender. In making this decision an estimation is made on the present value of the loan and its annual interest.

Useful economic life of tangible assets
The annual depreciation charge of tangible assets is sensitive to changes in the estimated useful economic life and residual values of recognised assets. These estimates are annually reviewed for an amendment in the adopted policy in the assets that are typically exposed to technological advancement, future investments, changes in economic utilisation, and the physical condition of the asset.

Revenue recognition

Turnover represents amounts receivable for the manufacture and sale of polythene bags and other polythene based wrapping materials, net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (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.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset
received or receivable. Grants relating to revenue are recognised in income over the period in which the
related costs are recognised.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Gains and losses arising on translation are included in the income statement for the period.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax payable and deferred tax.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

The tax currently payable is based on taxable profit for the year. Taxable profit differs from the net profit as reported in the income statement because it excludes items of income and 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.

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 not the accounting profit.

The carrying amount of deferred tax assetss 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 income statement, 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 authority.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

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 the profit or loss.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings freehold

2% straight line

Land and buildings leasehold

Over the life of the lease

Plant and machinery

20% straight line

Fixtures, fittings & equipment

10% - 20% straight line

Motor vehicles

20% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

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 replacement cost and cost, adjusted where applicable for any loss of service potential.

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

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Financial instruments

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

 Recognition and measurement
Financial instruments are recognised in the company's statement of financial position 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, 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.

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.

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.

Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

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

 Impairment
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 berween 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 occuring 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.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

18,451,132

18,562,341

Other revenue

20,000

20,251

18,471,132

18,582,592

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

309,639

256,840

Amortisation expense

68

-

Foreign exchange losses

3,789

9,875

Profit on disposal of property, plant and equipment

(30,400)

(7,639)

5

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

19,375

6,892

Other finance income

69,389

57,075

88,764

63,967

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

4,609,385

3,713,878

Social security costs

507,272

428,050

Pension costs, defined contribution scheme

191,926

141,331

Other employee expense

2,755

4,688

5,311,338

4,287,947

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

2023
No.

2022
No.

Production

84

45

Administration and support

26

18

Sales

27

21

Marketing

5

5

142

89

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

1,388,000

1,138,000

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

1

1

In respect of the highest paid director:

2023
£

2022
£

Remuneration

690,000

563,000

8

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

15,725

19,465


 

9

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

190,107

15,835

Deferred taxation

Arising from origination and reversal of timing differences

(5,306)

23,565

Tax expense in the income statement

184,801

39,400

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

862,970

372,595

Corporation tax at standard rate

163,964

70,793

Increase from effect of different UK tax rates on some earnings

30,444

-

Effect of expense not deductible in determining taxable profit (tax loss)

3,819

15,766

Effect of foreign tax rates

(25,925)

-

Tax increase/(decrease) from effect of capital allowances and depreciation

21,185

(1,295)

Tax (decrease)/increase from other short-term timing differences

(5,306)

23,565

Tax decrease from effect of adjustment in research and development tax credit

-

(80,748)

Other tax effects for reconciliation between accounting profit and tax expense (income)

(3,380)

11,319

Total tax charge

184,801

39,400

10

Intangible assets

Group

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 December 2022

185,000

-

185,000

Additions acquired separately

-

10,218

10,218

At 30 November 2023

185,000

10,218

195,218

Amortisation

At 1 December 2022

185,000

-

185,000

Amortisation charge

-

68

68

At 30 November 2023

185,000

68

185,068

Carrying amount

At 30 November 2023

-

10,150

10,150

Company

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Goodwill
 £

Total
£

Cost or valuation

At 1 December 2022

185,000

185,000

At 30 November 2023

185,000

185,000

Amortisation

At 1 December 2022

185,000

185,000

At 30 November 2023

185,000

185,000

Carrying amount

At 30 November 2023

-

-

11

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 December 2022

1,847,994

2,696,347

151,427

4,695,768

Additions

189,510

185,630

75,369

450,509

Disposals

-

(1,950)

(59,807)

(61,757)

At 30 November 2023

2,037,504

2,880,027

166,989

5,084,520

Depreciation

At 1 December 2022

587,665

2,222,215

128,640

2,938,520

Charge for the year

84,797

191,512

33,330

309,639

Eliminated on disposal

-

(1,950)

(59,807)

(61,757)

At 30 November 2023

672,462

2,411,777

102,163

3,186,402

Carrying amount

At 30 November 2023

1,365,042

468,250

64,826

1,898,118

At 30 November 2022

1,260,329

474,132

22,787

1,757,248

Included within the net book value of land and buildings above is £841,000 (2022 - £857,500) in respect of freehold land and buildings and £524,042 (2022 - £402,829) in respect of short leasehold land and buildings.
 

Company

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 December 2022

1,847,994

2,696,347

151,427

4,695,768

Additions

189,510

167,605

75,369

432,484

Disposals

-

(1,950)

(59,807)

(61,757)

At 30 November 2023

2,037,504

2,862,002

166,989

5,066,495

Depreciation

At 1 December 2022

587,665

2,222,215

128,640

2,938,520

Charge for the year

84,797

189,374

33,330

307,501

Eliminated on disposal

-

(1,950)

(59,807)

(61,757)

At 30 November 2023

672,462

2,409,639

102,163

3,184,264

Carrying amount

At 30 November 2023

1,365,042

452,363

64,826

1,882,231

At 30 November 2022

1,260,329

474,132

22,787

1,757,248

Included within the net book value of land and buildings above is £841,000 (2022 - £857,500) in respect of freehold land and buildings and £524,042 (2022 - £402,829) in respect of short leasehold land and buildings.
 

12

Investments

Company

2023
£

2022
£

Investments in subsidiaries

100

-

Subsidiaries

£

Cost or valuation

Additions

100

Provision

Carrying amount

At 30 November 2023

100

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Polybags UK Limited

1b Lyon Way
Greenford
Middlesex
UB6 0AQ

UK

Ordinary

100%

0%

Bulgaria Packaging Ltd

4122
Sadovo
Plovdiv

Bulgaria

Ordinary

75%

0%

Subsidiary undertakings

Polybags UK Limited

Polybags UK Limited is a dormant company.

Bulgaria Packaging Ltd

Bulgaria Packaging Ltd is the supply and distribution of flexible packaging and consumables. This is supported through on-site manufacturing of polymer-based products and international supply chains of polymer and paper-based items.

13

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Raw materials and consumables

419,110

451,999

286,083

451,999

Work in progress

32,282

44,620

32,282

44,620

Finished goods and goods for resale

2,133,165

2,275,567

2,068,164

2,275,567

2,584,557

2,772,186

2,386,529

2,772,186

14

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

2,155,642

2,407,200

2,125,520

2,407,200

Amounts owed by related parties

22

565,081

586,751

565,081

586,751

Other debtors

 

140,477

29,213

42,510

29,213

Prepayments

 

213,637

200,829

213,637

200,829

   

3,074,837

3,223,993

2,946,748

3,223,993

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

15

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

2,386,185

2,198,061

2,234,380

2,198,061

16

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Trade creditors

 

1,444,986

1,368,079

1,215,513

1,368,079

Amounts due to related parties

22

-

-

100

-

Social security and other taxes

 

592,808

508,006

592,808

508,006

Outstanding defined contribution pension costs

 

50,500

6,458

50,500

6,458

Other payables

 

184,867

55,946

112,677

55,946

Accruals

 

1,539,676

1,293,338

1,539,676

1,293,338

Income tax liability

9

174,827

15,977

174,827

15,977

 

3,987,664

3,247,804

3,686,101

3,247,804

17

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 December 2022

99,183

99,183

Increase (decrease) in existing provisions

(5,306)

(5,306)

At 30 November 2023

93,877

93,877

18

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £191,926 (2022 - £141,331).

Contributions totalling £50,500 (2022 - £6,458) were payable to the scheme at the end of the year and are included in creditors.

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

19

Share capital

Allotted, called up and not fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

950

950

950

950

Ordinary A shares of £1 each

3

3

3

3

 

953

953

953

953

20

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

306,250

306,250

Later than one year and not later than five years

1,225,000

1,225,000

1,531,250

1,531,250

The amount of non-cancellable operating lease payments recognised as an expense during the year was £306,250 (2022 - £306,250).

Operating lease payments represent rentals payable by the company for Unit 1B Lyon Way, Greenford, Middlesex. The lease expired on 29 September 2021, with an obligation to make a contingent rental payments
until a new lease is agreed or the lease is assigned to a new tenant. In addition, a professional appraisal was undertaken during the year, whereby the annual rent chargeable from 30 September 2021 onwards was estimated to be £306,250 per annum.

21

Commitments

Company

Capital commitments

Acquisition of tangible fixed assets
The total amount contracted for but not provided in the financial statements was £Nil (2022 - £Nil).

 

PB Packaging Group Ltd

Notes to the Financial Statements for the Year Ended 30 November 2023

22

Related party transactions

The company rents its main property from Polybags Limited Retirement and Death Benefit Scheme for £306,250 (2022: £306,250) per annum. The controlling shareholder is also a Trustee of the scheme.

During the year the company made purchases of £530,495 (2022: £2,619,457) from Bulgarian Polythene Industries EOOD, a Bulgarian company both controlled by Mr G Davies. At the reporting date an amount of £Nil (2022: £Nil) was owed to the company relating to its trade.

At the reporting date Bulgarian Polythene Industries EOOD also owed the company £1,205,275 (2022: £1,212,861) with a present value of £816,550 (2022: £819,887) from interest free loans provided by the company. Included in other reserves is a debit amount of £388,725 which represents the unwinding of the discount charge for the year. The discount will continue to be unwound until the loan has been fully paid.
 

23

Parent and ultimate parent undertaking

The ultimate controlling party is Mr G W Davies, a director of the company.