Registration number:
PB Packaging Group Ltd
for the Year Ended 30 November 2023
PB Packaging Group Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
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 |
|
Notes to the Financial Statements |
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 |
|
Auditors |
|
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
......................................... |
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:
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
......................................... |
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.
......................................
For and on behalf of
Suite I Windrush Court
Abingdon Business Park
Oxfordshire
OX14 1SY
PB Packaging Group Ltd
Consolidated Profit and Loss Account for the Year Ended 30 November 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Minority interests |
|
- |
|
|
|
PB Packaging Group Ltd
(Registration number: 00698834)
Consolidated Balance Sheet as at 30 November 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
- |
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Investments |
- |
|
|
Other financial assets |
3,053,024 |
1,588,411 |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
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
......................................... |
PB Packaging Group Ltd
(Registration number: 00698834)
Balance Sheet as at 30 November 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
- |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Investments |
- |
|
|
Other financial assets |
3,053,024 |
1,588,411 |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
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
......................................... |
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 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
- |
( |
- |
( |
Purchase of own share capital |
(1) |
- |
1 |
- |
(9,500) |
(9,500) |
At 30 November 2022 |
|
|
|
( |
|
|
Share capital |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
Non- controlling interests |
Total equity |
|
At 1 December 2022 |
|
|
|
( |
|
|
- |
|
Profit for the year |
- |
- |
- |
- |
|
|
|
|
Other comprehensive income |
- |
- |
- |
|
- |
|
- |
|
At 30 November 2023 |
|
|
|
( |
|
|
|
|
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 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
- |
( |
- |
( |
Purchase of own share capital |
(1) |
- |
1 |
- |
(9,500) |
(9,500) |
At 30 November 2022 |
|
|
|
( |
|
|
Share capital |
Share premium |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
|
At 1 December 2022 |
|
|
|
( |
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
- |
|
- |
|
At 30 November 2023 |
|
|
|
( |
|
|
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 |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
- |
|
Acquisition of listed shares |
( |
- |
|
Proceeds from sale of listed shares |
- |
|
|
Cash receipts from repayment of loans, classified as investing activities |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Payments for purchase of own shares |
- |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 December |
|
|
|
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
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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
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
Recognition and measurement
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 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
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Other revenue |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
- |
Foreign exchange losses |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
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 |
2022 |
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
Marketing |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
15,725 |
19,465 |
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
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
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase from effect of different UK tax rates on some earnings |
|
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of foreign tax rates |
( |
- |
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax (decrease)/increase from other short-term timing differences |
( |
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
|
Total tax charge |
|
|
Intangible assets |
Group
Goodwill |
Other intangible assets |
Total |
|
Cost or valuation |
|||
At 1 December 2022 |
|
- |
|
Additions acquired separately |
- |
|
|
At 30 November 2023 |
|
|
|
Amortisation |
|||
At 1 December 2022 |
|
- |
|
Amortisation charge |
- |
|
|
At 30 November 2023 |
|
|
|
Carrying amount |
|||
At 30 November 2023 |
- |
|
|
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 |
|
|
At 30 November 2023 |
|
|
Amortisation |
||
At 1 December 2022 |
|
|
At 30 November 2023 |
|
|
Carrying amount |
||
At 30 November 2023 |
- |
- |
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 December 2022 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
Depreciation |
||||
At 1 December 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
Carrying amount |
||||
At 30 November 2023 |
|
|
|
|
At 30 November 2022 |
|
|
|
|
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 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
Depreciation |
||||
At 1 December 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
At 30 November 2023 |
|
|
|
|
Carrying amount |
||||
At 30 November 2023 |
|
|
|
|
At 30 November 2022 |
|
|
|
|
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.
Investments |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
- |
Subsidiaries |
£ |
Cost or valuation |
|
Additions |
|
Provision |
|
Carrying amount |
|
At 30 November 2023 |
|
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 |
||||
|
1b Lyon Way
UK |
|
|
|
|
4122
Bulgaria |
|
|
|
Subsidiary undertakings |
Polybags UK Limited Polybags UK Limited is |
Bulgaria Packaging Ltd Bulgaria Packaging Ltd is |
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Raw materials and consumables |
|
|
|
|
Work in progress |
|
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
|
|
Debtors |
Group |
Company |
||||
Current |
Note |
2023 |
2022 |
2023 |
2022 |
Trade debtors |
|
|
|
|
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
|
|
PB Packaging Group Ltd
Notes to the Financial Statements for the Year Ended 30 November 2023
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash at bank |
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Trade creditors |
|
|
|
|
|
Amounts due to related parties |
- |
- |
|
- |
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Income tax liability |
174,827 |
15,977 |
174,827 |
15,977 |
|
|
|
|
|
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 December 2022 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 30 November 2023 |
|
|
|
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 £
Contributions totalling £
PB Packaging Group Ltd
Notes to the Financial Statements for the Year Ended 30 November 2023
Share capital |
Allotted, called up and not fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
950 |
|
950 |
|
|
3 |
|
3 |
|
953 |
|
953 |
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 |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
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.
Commitments |
Company
Capital commitments
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
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.
Parent and ultimate parent undertaking |
The ultimate controlling party is