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Registered number: 04581446
Photo Paper Direct Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 30 April 2024
Contents
Page
Strategic Report 1—3
Directors' Report 4—5
Independent Auditor's Report 6—9
Income Statement 10
Statement of Comprehensive Income 11
Statement of Financial Position 12—13
Statement of Changes in Equity 14
Statement of Cash Flows 15
Notes to the Statement of Cash Flows 16
Notes to the Financial Statements 17—24
Page 1
Strategic Report
The directors present their strategic report for the year ended 30 April 2024.
Review of the Business
Revenues continue to reduce due to the tough trading conditions for online retailers. The company’s gross margin decreased to 11% due to the increased in the cost. 
Principal Risks and Uncertainties
The principal risks arising from the company's activities are Amazon, Consumer preferences and, Information technology and cyber security. 
Amazon
A significant majority of our revenue results from sales of products on Amazon’s Marketplaces and any change, limitation, or restriction on our ability to operate on Amazon’s platform could have a material adverse impact on our business, operating results and financial condition. 
A substantial percentage of our revenue is from sales of products on Amazon’s United Kingdom, United States and European marketplaces and we are subject to Amazon’s terms of service ("ToS") and various other Amazon seller policies that apply to third parties who sell products on Amazon’s marketplace. Amazon has the right to terminate or suspend our ability to sell on its platform at any time and for any reason. Amazon may also take other actions against us such as suspending or terminating our seller accounts or product listings and withholding payments owed to us indefinitely. From time to time in the past, we have experienced such adverse actions for products and, we can provide no assurance that we will be able to comply with Amazon's ToS.  Further, in the event any of our seller accounts or product listings are suspended for noncompliance, our reinstatement efforts may take significant time and attention or could fail, which could have a material adverse effect on our business, operating results and financial condition. 
In addition, Amazon has made, and we expect will continue to make, changes to its platform that could require us to change the manner in which we operate, limit our ability to successfully launch new products or increase our costs to operate. Such changes and the efforts required to maintain compliance therewith could have an adverse effect on our business, operating results and financial condition. Examples of past changes from Amazon have included platform fee increases (i.e., storage, advertising, fulfilment and selling commissions), inventory warehouse limitations, and restrictions on certain sales and marketing activities.  Any change, limitation or restriction on our ability to sell on Amazon’s platform, even if temporary, could have a material impact on our business, operating results and financial condition. 
We also rely on services provided by Amazon’s fulfilment platform, including its Prime badge program, in which Amazon guarantees expedited shipping of products we sell to the consumer, an important factor in the consumer’s buying decision. Any such inability or limitation, could have a material impact on our business, results of operations, and financial condition. 
We monitor for developments affecting third-party amazon sellers to minimise these disruptions to the business. 
Consumer preferences
Our business is sensitive to the strength of the consumer markets and any weakness in these markets or changes in consumer preferences could adversely affect our business. 
The strength of the economies of the United Kingdom, United States and the EU has a significant impact on our performance. We are dependent on discretionary spending, which is affected by, among other things, unemployment rates, economic and political conditions worldwide, consumer confidence, energy and gasoline prices, interest and mortgage rates, the level of consumer debt and taxation, and financial markets, which are all outside of our control. A continuing softening of demand, whether caused by changes in customer preferences or a weakening of global economies, may result in decreased revenue. 
We manage this risk through geographic diversity and offering products at various price points. 
Information technology and cyber security 
Our business, operating results and financial condition could be adversely impacted if our information technology systems or those of third-parties become subject to a data security breach, are disrupted or cease to operate effectively. 
...CONTINUED
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Principal Risks and Uncertainties - continued
We rely heavily on information technology systems to operate our business and we collect, maintain, transmit and store sensitive data including data about our consumers. We also engage and rely upon third parties who engage in the same activities on our behalf. Accordingly, it is vital to maintain constant operation of these systems and to maintain cybersecurity. Our systems and those of third parties that we use in our operations are vulnerable to security risks, including from viruses and worms, phishing attacks, social engineering, hacking, distributed denial-of-service attacks, ransomware, and similar disruptions from the unauthorised tampering with our servers and computer systems or those of third parties that we use in our operations, which could lead to interruptions, delays, loss of critical and sensitive data, and loss of consumer confidence. In addition, insider actors-malicious or otherwise-could cause technical disruptions and/or confidential data leakage. In addition, if a ransomware attack or other cybersecurity incident occurs, either internally or at our third-party technology service providers, we could be prevented from accessing our data or systems, which may cause interruptions or delays in our business operations, cause us to incur material remediation costs, and could subject us to demands to pay a ransom or damage our reputation. 
Our failure to prevent or mitigate data loss, theft, misuse, or other security breaches or vulnerabilities affecting our or our vendors’ technology and systems, could: expose us or our customers to a risk of loss, disclosure, or misuse of such information; result in litigation, fines, liability, or regulatory action (including under laws related to privacy, data use, data protection, data security, network security, and consumer protection); deter customers from using our stores to buy our products; and harm our business, operating results, financial condition and reputation. We use third party technology and systems for a variety of reasons, including, without limitation, encryption and authentication technology, employee email, content delivery to customers, back-office support, hosting, payment processing and other functions. Despite our security efforts, some of our systems have experienced past security breaches, and, although they did not have a material adverse effect on our operations or financial results, there can be no assurance that future incidents, which we expect to have, will not have material adverse effects on our business, operating results or financial condition.  For example, on April 25, 2022, we were alerted by a payment processor of a potential data security incident regarding our UK websites. This has not resulted in nor do we believe this will result in a material impact on our business.  In addition, because the techniques, tools and tactics used in cyber-attacks frequently change and may be difficult to detect for periods of time, we may face difficulties in anticipating and implementing adequate preventative measures or fully mitigating harms after such an attack. It is possible for security vulnerabilities to remain undetected for an extended time period, up to and including several years as was the case in the prior non-material security breach identified in April 2022. The Company’s adoption of remote working, initially driven by the pandemic, may also introduce additional threats or disruptions to our information technology networks and infrastructure. Although we have developed systems and processes that are designed to protect customer data and prevent such incidents, including systems and processes designed to reduce the impact of a security breach at a third-party vendor or customer, such measures cannot provide absolute security and may fail to operate as intended or be circumvented. In addition, our insurance may not provide sufficient coverage to compensate for related losses. 
Our information technology systems and those of our third parties may be vulnerable from time to time to damage, interruptions and other technical malfunctions including but not limited to breaches, human error, power outages, telecommunication or utility failures, systems failures, natural disasters or other catastrophic events.  In addition, growth in our transaction volume or surges in online traffic place additional demands on our systems and could cause or exacerbate slowdowns or interruptions. If any such systems are damaged, or fail to function properly, we may have to make monetary investments to repair or replace the systems and could endure delays in operations. From time to time, we have experienced disruptions to our systems and we expect to continue to experience disruptions. Any material disruption or slowdown of such systems, including the failure to successfully upgrade systems, could have a material impact on many aspects of our operations including our ability to operate on e-commerce marketplaces. Such a loss or delay could have a material adverse impact on our business, operating results and financial condition. Our systems are not fully redundant and our disaster recovery planning may not be sufficient. 
With the assistance of our parent company we have implemented comprehensive security policies and procedures. We also perform risk assessments to identify and prioritise potential threats, vulnerabilities, and their potential impact on the business. 
On behalf of the board
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A Rodriguez
Director
30 January 2025
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Directors' Report
The directors present their report and the financial statements for the year ended 30 April 2024.
Principal Activity
The company's principal activity continues to be that of sale of paper and related products.
Directors
The directors who held office during the year were as follows:
A Rodriguez
J Risico Appointed 26/07/2023 Resigned 25/06/2024
Y Sarig Resigned 27/07/2023
J Feldman Appointed 02/07/2024
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Hamilton Coopers , have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
A Rodriguez
Director
30 January 2025
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Independent Auditor's Report
Opinion
We have audited the financial statements of Photo Paper Direct Limited for the year ended 30 April 2024 which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
  • the information given in the Strategic Report and 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.
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Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or 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 Directors' Responsibilities Statement set out on page 4—5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
Capability of the audit in detecting irregularities, including fraud.
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the company and industry, and through discussion with the management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to their FCA permissions and requirements. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgmental areas of the financial statements such as accrued income.
Audit procedures performed by the engagement team included:
• Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations and fraud; and
• Assessment of identified fraud risk factors; and
• Challenging assumptions and judgements made by management in its significant accounting estimates; and
...CONTINUED
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Auditor's Responsibilities for the Audit of the Financial Statements - continued
• Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
• Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
• Reading minutes of meetings of those charged with governance; and
• Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
• Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
There are inherent limitations in the audit procedures described above and the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 that 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.
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Asim Malik, FCA (Senior Statutory Auditor)
for and on behalf of Hamilton Coopers , Statutory Auditor
30 January 2025
Hamilton Coopers
Chartered Accountants
66 Earl Street
Maidstone
Kent
ME14 1PS
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Income Statement
2024 2023
Notes £ £
TURNOVER 3 7,091,685 9,106,506
Cost of sales (6,290,449 ) (7,406,226 )
GROSS PROFIT 801,236 1,700,280
Administrative expenses (706,687 ) (375,216 )
Other operating income - 1,725
OPERATING PROFIT 5 94,549 1,326,789
Interest payable and similar charges 9 (16,134 ) (10,953 )
PROFIT BEFORE TAXATION 78,415 1,315,836
Tax on Profit 10 (12,384 ) (274,393 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 66,031 1,041,443
The notes on pages 16 to 24 form part of these financial statements.
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Statement of Comprehensive Income
2024 2023
£ £
PROFIT FOR THE FINANCIAL YEAR 66,031 1,041,443
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 66,031 1,041,443
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Statement of Financial Position
Registered number: 04581446
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 12 440,092 474,104
440,092 474,104
CURRENT ASSETS
Stocks 13 1,204,035 2,182,070
Debtors 14 1,541,892 1,312,279
Cash at bank and in hand 2,955,721 2,260,908
5,701,648 5,755,257
Creditors: Amounts Falling Due Within One Year 15 (953,672 ) (1,070,550 )
NET CURRENT ASSETS (LIABILITIES) 4,747,976 4,684,707
TOTAL ASSETS LESS CURRENT LIABILITIES 5,188,068 5,158,811
Creditors: Amounts Falling Due After More Than One Year 16 (215,030 ) (228,143 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 18 - (23,661 )
NET ASSETS 4,973,038 4,907,007
CAPITAL AND RESERVES
Called up share capital 19 100 100
Revaluation reserve 86,573 86,573
Income Statement 4,886,365 4,820,334
SHAREHOLDERS' FUNDS 4,973,038 4,907,007
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On behalf of the board
A Rodriguez
Director
30 January 2025
The notes on pages 16 to 24 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Revaluation reserve Income Statement Total
£ £ £ £
As at 1 May 2022 100 86,573 3,778,891 3,865,564
Profit for the year and total comprehensive income - - 1,041,443 1,041,443
As at 30 April 2023 and 1 May 2023 100 86,573 4,820,334 4,907,007
Profit for the year and total comprehensive income - - 66,031 66,031
As at 30 April 2024 100 86,573 4,886,365 4,973,038
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Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from/(used in) operations 1 1,130,763 (805,009 )
Interest paid (16,134 ) (10,953 )
Tax paid (312,398 ) (610,859 )
Net cash generated from/(used in) operating activities 802,231 (1,426,821 )
Cash flows from financing activities
Repayment of bank borrowings (10,722 ) (11,793 )
Increase/(decrease) in cash and cash equivalents 791,509 (1,438,614 )
Cash and cash equivalents at beginning of year 2 2,260,908 3,583,698
Foreign exchange (losses)/gains on cash and cash equivalents (96,696 ) 115,824
Cash and cash equivalents at end of year 2 2,955,721 2,260,908
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from/(used in) operations
2024 2023
£ £
Profit for the financial year 66,031 1,041,443
Adjustments for:
Tax on profit 12,384 274,393
Interest expense 16,134 10,953
Depreciation of tangible assets 34,012 90,542
Foreign exchange losses/(gains) 96,696 (115,824)
Movements in working capital:
Decrease/(increase) in stocks 978,035 (1,015,313 )
Increase in trade and other debtors (229,613 ) (262,943 )
Increase/(decrease) in trade and other creditors 157,084 (828,260 )
Net cash generated from/(used in) operations 1,130,763 (805,009 )
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 2,955,721 2,260,908
3. Analysis of changes in net funds
As at 1 May 2023 Cash flows As at 30 April 2024
£ £ £
Cash at bank and in hand 2,260,908 694,813 2,955,721
Debts falling due after more than one year (225,752) 10,722 (215,030)
2,035,156 705,535 2,740,691
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Notes to the Financial Statements
1. General Information
Photo Paper Direct Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04581446 . The registered office is Unit 8, Shakespeare Industrial Estate,, Shakespeare Street,, Watford, WD24 5RR.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
2.2. Going Concern Disclosure
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the
financial statements.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
2.4. Research and Development
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademark and licences 5 years straight line
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2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold over 20 years
Fixtures & Fittings 25% reducing balance
Computer Equipment 25% reducing balance
2.6. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.8. Financial Instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
2.9. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
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2.10. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
3. Turnover
Analysis of turnover by geographical market is as follows:
2024 2023
£ £
United Kingdom 1,393,969 1,553,522
Rest of the world 5,697,716 7,552,964
7,091,685 9,106,486
4. Other Operating Income
2024 2023
£ £
Other operating income - 1,725
- 1,725
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5. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Bad debts - 62
Research and Development Costs 1,127 -
Depreciation of tangible fixed assets - finance leases and hire purchase contracts 34,012 90,542
Impairment losses - intangible fixed assets - 2,032
6. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 7,500 7,500
7. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 598,603 611,241
Social security costs 55,044 62,422
Other pension costs 6,837 9,523
660,484 683,186
8. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 2 2
Sales, marketing and distribution 9 10
11 12
9. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 16,134 10,953
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10. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 25.0% 28,288 274,393
Prior period adjustment 7,757 -
36,045 274,393
Deferred Tax
Deferred taxation (23,661 ) -
Total tax charge for the period 12,384 274,393
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 78,415 1,315,836
Tax on profit at 25% (UK standard rate) 19,604 328,959
Expenses not deductible for tax purposes 8,684 (77,201 )
Capital allowances - 22,635
Prior period adjustment 7,757 -
Total tax charge for the period 36,045 274,393
11. Intangible Assets
Development Costs
£
Cost
As at 1 May 2023 2,032
As at 30 April 2024 2,032
Amortisation
As at 1 May 2023 2,032
As at 30 April 2024 2,032
Net Book Value
As at 30 April 2024 -
As at 1 May 2023 -
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Development cost is being written off in equal annual instalments over its estimated economic life of 5 years.
12. Tangible Assets
Land & Property
Freehold Fixtures & Fittings Total
£ £ £
Cost
As at 1 May 2023 625,000 84,237 709,237
As at 30 April 2024 625,000 84,237 709,237
Depreciation
As at 1 May 2023 161,945 73,188 235,133
Provided during the period 31,250 2,762 34,012
As at 30 April 2024 193,195 75,950 269,145
Net Book Value
As at 30 April 2024 431,805 8,287 440,092
As at 1 May 2023 463,055 11,049 474,104
13. Stocks
2024 2023
£ £
Stock 1,204,035 2,182,070
14. Debtors
2024 2023
£ £
Due within one year
Trade debtors 195,309 182,632
Other debtors 216,898 167,579
412,207 350,211
Due after more than one year
Amounts owed by group undertakings 1,129,685 962,068
1,541,892 1,312,279
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15. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 189,884 161,019
Corporation tax 28,288 304,641
Taxation and social security 312,314 196,748
Accruals and deferred income 423,186 408,142
953,672 1,070,550
16. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Bank loans 215,030 225,752
Other creditors - 2,391
215,030 228,143
17. Loans
An analysis of the maturity of loans is given below:
2024 2023
£ £
Amounts falling due between one and five years:
Bank loans 215,030 225,752
The bank loans are secured on the assets of the company by way of fixed and floating charge.
18. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences - 23,661
19. Share Capital
2024 2023
Allotted, called up and fully paid £ £
100 Ordinary Shares of £ 1 each 100 100
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20. Financial Instruments
The company has the following financial instruments:
2024 2023
£ £
Financial assets
Financial assets measured at fair value through profit and loss 1,324,994 3,494,349
Financial liabilities
Financial liabilities measured at fair value through profit and loss 842,049 1,070,550
21. Controlling Parties
The company's immediate parent undertaking is Truweo LLC .
The ultimate parent undertaking is Aterian. Inc (incorporated in United States). Its registered office is 350 Springfield Ave, Ste 200, Summit, NJ 07901, USA .
Copies of the group accounts may be obtained from the company's registered office.
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