Company registration number 01894028 (England and Wales)
YORKSHIRE REPAK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
YORKSHIRE REPAK LIMITED
COMPANY INFORMATION
Directors
Mr A Smith
Mr M Cummings
Company number
01894028
Registered office
Summer Lane
Barnsley
South Yorkshire
S70 2NP
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
YORKSHIRE REPAK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 26
YORKSHIRE REPAK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024 (FY24).

 

Fair review of the business

The company operates via the provision of inspection and packing services made predominantly to the glass and drinks manufacturing industry within the United Kingdom and mainland Europe. In addition, the company also offers a range of contract packing services to a wide range of customers across the food and beverage sector.

 

The year under review was a challenging year for the business as a result of the continued knock-on difficulties that the crisis in the Ukraine has caused across a lot of mainland Europe resulting in sluggish economies and patchy demand for our services. This has combined with a small number of customers scheduling their periodic major furnace rebuild/repair programs in the year under review. The company was particularly impacted by the furnace repairs which has resulted in lower demand for our labour provision services across many months in the year. We have reported a higher gross margin in FY24 than in prior years predominantly as a result of changes in the job mix.

 

The company has had to very carefully manage its headcount to match uneven demand levels throughout the year with hiring freezes at periods in the year due to the impact of lower demand for labour provision. The business is likely to continue operating at these lower headcount levels for the foreseeable future as overall customer demand has still not returned to pre-pandemic levels.

 

Despite these challenges the overall result is considered satisfactory by the directors. The company is well placed to continue operating with success over the coming year in both the UK and European markets that we operate in.

 

Principal risks and uncertainties

The principal risks specific to the Company and the Group and how they are managed and mitigated are outlined below.

 

Not all these factors are within the direct control of the Company, or the wider Group, or its directors and the list is not exhaustive. There may be other risks and uncertainties that are currently unknown and the list may change as something that seems immaterial now could assume greater importance in the future, and vice versa.

 

 

YORKSHIRE REPAK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

 

These potential disruptions and uncertainties could have an adverse effect on the company’s business, financial results and day to day operations. The board will continue to assess the potential risks and impacts on the Company's stakeholders.

Analysis using key performance indicators

The directors have monitored the progress of the company strategy and a review of the key performance indicators (KPI’s) is provided below:

 

Turnover

The directors report a 10.7% decrease in turnover during the year (2023: increase of 19.9%). The downturn reflects soft demand in Europe which was down 31.2% in the year, combined with the impact on our labour services, down 22.1%, of customers shutting furnaces as part of their periodic repair program.

 

Gross margin

Gross margin increased from 14.0% to 18.3% in the year. The improvement in gross margin reflects a material change in job and customer mix in the year as we pivoted from long term contractual customers to other customers and projects to utilise the available staff resource productively.

 

Staff numbers

Headcount and recruitment continued to be a challenge in FY24 and this was combined with uneven customer demand. Staff numbers averaging 354 employees (2023: 409) were recorded. These numbers are significantly below the pre Brexit and pandemic numbers employed by the business which approached 500 full time positions. The challenges of recruiting staff with ‘settled status’ continues to provide a more challenging recruitment environment and the directors now do not envisage the business easily returning to the headcount size prior to Brexit, due to the cessation of free movement for EU nationals. Overall the directors are satisfied that the company has maximised its position in this area and they continue to consider alternative recruitment options and flexible working options in conjunction with improved salaries.

 

Cash and net asset position

Despite the challenges in the year the directors remain satisfied with the net asset and cash liquidity position of the business.

 

Net assets of the company changed very little in year from £3.6m to £3.7m and are still considered satisfactory by the directors.

 

The directors also consider the cash and available headroom on group committed facilities satisfactory in the current trading environment. The directors continue to monitor and effectively manage the cash and working capital position of the group through a suite of KPIs and performance measures.

 

As a whole the business is relatively straight forward therefore the directors are able to monitor profitability performance, balance sheet liquidity and KPI’s through weekly sales and labour cost reports and on a monthly basis through management accounts and supporting analysis.

 

During the year, the group completed a re-finance providing further assurances over the liquidity position of the business. Further information is contained in Note 15.

 

YORKSHIRE REPAK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Other performance indicators

Quality

All Yorkshire Repak sites are ISO 9001 accredited and, in addition to our own internal reviews, regular quality audits are carried out by our customers and other third parties acting on behalf of end users. The company continues to monitor performance across all areas of the business with plans to maintain (or improve) standards are agreed with all of our major clients.

 

 

Health & safety

The company is Safe Contractor accredited and as such workplace incidents are monitored and recorded as part of the continuous management review.

 

Development and performance

Along with a level of uncertainty surrounding the ability of the business to recruit solely from the UK, the external commercial environment is expected to remain competitive throughout FY25, however, the directors believe that the company is well placed to remain successful and will continue to be seen as a market leader within the industry.

On behalf of the board

Mr M Cummings
Director
13 December 2024
YORKSHIRE REPAK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

The directors present their report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activities of the company are those of the inspection, packaging and quality control of glass containers along with the provision of services to the glass manufacturing industry. The company also offers contract packaging services to the food and beverage industry and has a subsidiary, Yorkshire Repak Europe BV, which undertakes similar activities within Europe.

Results and dividends

The results for the year are set out on page 10.

The directors paid interim Ordinary dividends amounting to £1,236,000. They do not recommend payment of a final dividend.

Directors

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

Mr N Askham
(Resigned 28 July 2023)
Mr T Foy
(Resigned 28 July 2023)
Mr A Smith
Mr M Cummings
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, staff councils and at meetings, matters likely to affect employees' interests.

 

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

YORKSHIRE REPAK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
On behalf of the board
Mr M Cummings
Director
13 December 2024
YORKSHIRE REPAK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 6 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

YORKSHIRE REPAK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF YORKSHIRE REPAK LIMITED
- 7 -
Opinion

We have audited the financial statements of Yorkshire Repak Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

YORKSHIRE REPAK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF YORKSHIRE REPAK LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

 

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

 

YORKSHIRE REPAK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF YORKSHIRE REPAK LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Daisy Marsden
Senior Statutory Auditor
For and on behalf of Azets Audit Services Limited
13 December 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
YORKSHIRE REPAK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
2024
2023
Notes
£000
£000
Turnover
3
15,473
17,328
Cost of sales
(12,649)
(14,897)
Gross profit
2,824
2,431
Distribution costs
(120)
(96)
Administrative expenses
(1,309)
(1,389)
Other operating income
91
141
Operating profit
4
1,486
1,087
Interest receivable and similar income
7
307
295
Interest payable and similar expenses
8
(150)
(178)
Profit before taxation
1,643
1,204
Tax on profit
9
(329)
(258)
Profit for the financial year
1,314
946

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

YORKSHIRE REPAK LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 11 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
11
327
354
Current assets
Stocks
13
14
22
Debtors falling due after more than one year
14
3,407
4,347
Debtors falling due within one year
14
3,471
4,420
Cash at bank and in hand
122
110
7,014
8,899
Creditors: amounts falling due within one year
16
(2,991)
(4,403)
Net current assets
4,023
4,496
Total assets less current liabilities
4,350
4,850
Creditors: amounts falling due after more than one year
17
(576)
(1,144)
Provisions for liabilities
Deferred tax liability
19
58
68
(58)
(68)
Net assets
3,716
3,638
Capital and reserves
Called up share capital
20
1
1
Capital redemption reserve
250
250
Profit and loss reserves
3,465
3,387
Total equity
3,716
3,638
The financial statements were approved by the board of directors and authorised for issue on 13 December 2024 and are signed on its behalf by:
Mr M Cummings
Director
Company Registration No. 01894028
YORKSHIRE REPAK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
Balance at 1 June 2022
1
250
4,170
4,421
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
946
946
Dividends
10
-
-
(1,729)
(1,729)
Balance at 31 May 2023
1
250
3,387
3,638
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
1,314
1,314
Dividends
10
-
-
(1,236)
(1,236)
Balance at 31 May 2024
1
250
3,465
3,716
YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
1
Accounting policies
Company information

Yorkshire Repak Limited is a company limited by shares incorporated in England and Wales. The registered office is Summer Lane, Barnsley, S70 2NP.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

On the grounds that the company's results are consolidated into its parent, the company has taken advantage of certain exemptions conferred by section 1.11 of FRS 102 as follows:

 

 

The company has also taken advantage of the exemptions conferred by section 33.11 of FRS 102 allowing it to not disclose transactions and balances within its group as otherwise required by section 33.7, on the grounds that those entities are related by virtue of having the same control as defined in 33.11(b).

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

The ultimate parent company is Yorkshire Repak Group Limited and is the smallest and largest group into which these financial statements are consolidated. Yorkshire Repak Group Limited's registered office is Summer Lane, Barnsley, S70 2NP.

1.2
Going concern

The directors have considered all factors, including the upcoming employer National Insurance contributions (NIC) and National Living Wage changes from the October 2024 budget, forecast changes in the Official Base Rate and the wider economy, as part of their assessment of going concern. Although the forecast 2025 economic climate and increased employer NIC values creates some cashflow and profitability risks for the company, the company continues to trade profitably and is cash generative. Budgets and cashflows have been prepared using assumptions for customer demand and updated labour and supply chain costs. true

 

These budgets and cashflows indicate continuing profitability and cash generation, consequently the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.

 

1.3
Turnover

Turnover represents amounts receivable net of VAT and trade discounts for rework, labour and decorating services, along with haulage recharges and other types of sales where applicable.

 

Turnover for services is recognised based on the daily activity performed by employed and subcontract labour as instructed by customers, with other sales recognised according to the date the service is performed.

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Tangible fixed assets

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

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements
Over the life of the lease
Plant and machinery
20-33% Straight line
Fixtures, fittings and equipment
20-50% Straight line
Motor vehicles
20% Straight line

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

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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

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

1.6
Cash at bank and in hand

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.

1.7
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.

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

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

Other financial assets

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

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

Derecognition of financial liabilities

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

1.8
Equity instruments

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

1.9
Taxation

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

Current tax

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

Deferred tax

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

 

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

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

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

1.12
Leases

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.13
Government grants

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

 

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

1.14
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

 

The directors are of the opinion that there no key judgements or estimates made in these financial statements.

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
3
Turnover

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

2024
2023
£000
£000
Turnover analysed by class of business
Rework and decorating
4,800
3,704
Labour and service provision
10,559
13,562
Other sales
114
62
15,473
17,328
2024
2023
£000
£000
Turnover analysed by geographical market
United Kingdom
14,113
15,351
Rest of Europe
1,360
1,977
15,473
17,328
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£000
£000
Exchange losses/(gains)
12
(10)
Government grants
-
(17)
Fees payable to the company's auditor for the audit of the company's financial statements
16
12
Depreciation of owned tangible fixed assets
128
132
Operating lease charges
337
231
5
Employees

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

2024
2023
Number
Number
Administration staff and directors
9
10
Direct labour
345
399
Total
354
409
YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£000
£000
Wages and salaries
9,417
10,758
Social security costs
1,053
988
Pension costs
246
257
10,716
12,003
6
Directors' remuneration
2024
2023
£000
£000
Remuneration for qualifying services
7
14
7
Interest receivable and similar income
2024
2023
£000
£000
Interest income
Interest receivable from group companies
307
295
8
Interest payable and similar expenses
2024
2023
£000
£000
Interest on bank overdrafts and loans
38
137
Interest on invoice finance arrangements
72
35
Interest payable to group undertakings
31
-
0
Other interest
9
6
150
178
9
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
373
277
Adjustments in respect of prior periods
-
0
16
Total current tax
373
293
YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
9
Taxation
2024
2023
£000
£000
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(44)
(35)
Total tax charge
329
258

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

2024
2023
£000
£000
Profit before taxation
1,643
1,204
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
411
241
Tax effect of expenses that are not deductible in determining taxable profit
1
4
Adjustments in respect of prior years
(1)
16
Group relief
(72)
-
0
Permanent capital allowances in excess of depreciation
3
-
0
Deferred tax adjustments in respect of prior years
(10)
-
0
Other adjustments
(3)
(3)
Taxation charge for the year
329
258
10
Dividends
2024
2023
£000
£000
Interim paid
1,236
1,729

Equity dividends were paid to holders of the Ordinary shares only.

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£000
£000
£000
£000
£000
Cost
At 1 June 2023
421
599
196
-
0
1,216
Additions
8
64
2
27
101
At 31 May 2024
429
663
198
27
1,317
Depreciation and impairment
At 1 June 2023
273
447
142
-
0
862
Depreciation charged in the year
40
62
26
-
0
128
At 31 May 2024
313
509
168
-
0
990
Carrying amount
At 31 May 2024
116
154
30
27
327
At 31 May 2023
148
152
54
-
0
354
12
Fixed asset investments
2024
2023
£000
£000
Investments in subsidiaries
26
-
-
0
The cost of investment in subsidiary is £72 (2023 - £72) so has rounded to zero in these accounts.
13
Stocks
2024
2023
£000
£000
Consumables
14
22
YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
14
Debtors
2024
2023
Amounts falling due within one year:
£000
£000
Trade debtors
2,926
3,952
Prepayments and accrued income
437
394
3,363
4,346
Deferred tax asset (note 19)
108
74
3,471
4,420
2024
2023
Amounts falling due after more than one year:
£000
£000
Amounts owed by group undertakings
3,407
4,347
Total debtors
6,878
8,767

Amounts owed by group undertakings relates to a long term intercompany loan between Yorkshire Repak Limited and Yorkshire Repak Holdings Limited. Interest is charged on the loan at the average external bank debt rate with no fixed repayment terms.

15
Loans and overdrafts
2024
2023
£000
£000
Bank loans
-
0
1,896
Bank overdrafts
599
1,108
599
3,004
Payable within one year
599
1,860
Payable after one year
-
0
1,144

Bank Loans

 

The bank loan facility was repayable over 4 years, with interest charged at 3% over the Bank of England Base Rate. Monthly capital repayments of approximately £67,000 are made with the company having the ability to overpay annually when the conditions are met. The loan was secured by fixed and floating charges over the assets of the company and a cross-company guarantee with the parent company, Yorkshire Repak Holdings Limited. This loan was fully repaid as at 27 July 2023.

 

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Loans and overdrafts
(Continued)
- 23 -

Bank Finance

 

Bank finance is secured against trade debtors, by fixed and floating charges over the assets of the company and by a cross-company guarantee with Yorkshire Repak Holdings Limited and Yorkshire Repak Group Limited.

16
Creditors: amounts falling due within one year
2024
2023
Notes
£000
£000
Bank loans and overdrafts
15
599
1,860
Trade creditors
382
358
Amounts owed to group undertakings
12
28
Corporation tax
233
137
Other taxation and social security
355
640
Other creditors
28
214
Accruals and deferred income
1,382
1,166
2,991
4,403
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£000
£000
Bank loans and overdrafts
15
-
0
1,144
Amounts owed to group undertakings
576
-
0
576
1,144

Amounts owed to group undertakings relates to a long term intercompany loan between Yorkshire Repak Limited and Yorkshire Repak Group Limited. Interest is charged on the loan at the average external bank debt rate with no fixed repayment terms.

18
Provisions for liabilities
2024
2023
Notes
£000
£000
Deferred tax liabilities
19
58
68
YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
19
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£000
£000
£000
£000
Accelerated capital allowances
58
68
-
-
Provisions
-
-
108
74
58
68
108
74
2024
Movements in the year:
£000
Asset at 1 June 2023
(6)
Credit to profit or loss
(44)
Asset at 31 May 2024
(50)
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary, 'A' Ordinary and 'B' Ordinary shares of £1 each
1,000
1,000
1
1

The above share capital comprises 80 Ordinary, 590 'A' Ordinary and 330 'B' Ordinary shares of £1 each in both years. All classes of shares rank pari-passu with equal voting, dividend and capital rights.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
246
257

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

22
Financial commitments, guarantees and contingent liabilities

Yorkshire Repak Group Limited has a bank loan and Yorkshire Repak Limited has an invoice finance facility, for which the company has provided cross-company guarantees. The total guarantee at the year end of £2,733,000 (2023 - £3,004,000 ) is therefore a contingent liability of the company.

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
23
Related party transactions
Transactions with related parties

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

Rent of premises
2024
2023
£000
£000
Other related parties
9
53

The parent company, Yorkshire Repak Group Limited, has provided guarantees regarding this company's bank finance facilities, as disclosed in note 15.

24
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain properties and vehicles. Leases are negotiated for an average term of 7.5 years for properties and 3-4 years for vehicles, and rentals are fixed.

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

2024
2023
£000
£000
Within one year
324
248
Between two and five years
1,061
652
In over five years
498
-
0
1,883
900
25
Controlling party

As at the year end, the company’s ultimate parent company was Yorkshire Repak Group Limited, with a registered office of Summer Lane, Barnsley, S70 2NP.  Yorkshire Repak Group Limited is the smallest and largest group into which Yorkshire Repak Limited is consolidated.

 

 

YORKSHIRE REPAK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
26
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Yorkshire Repak Europe B.V.
Netherlands
Sorting and repacking of glass containers
Ordinary
100.00
0

The registered office of the above is Lindenburg 43, 4707 CR, Roosendaal, The Netherlands.

 

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