The directors present the strategic report for the year ended 31 May 2024.
Principal Activities
Using natural materials to change the world, our principal activity continues to be that of designing, developing, manufacturing and supplying insulated packaging and temperature control solutions internationally. We strive to provide quality products, excellent customer service with a collaborative and future looking approach. We have worked with a significant number of our customers and key suppliers for many years, and we believe that strength and business security results from building strong partnerships, in which all parties can draw value, both measurable and holistic. This strategy has allowed us to target, meet and go on to exceed the significant growth demands of our key markets, and will continue to do so comfortably and confidently.
As a family business whose foundation in 2009 was based on an environmentally responsible product and family ethos, we believe in business as a force for good and that in the pursuit of profitability we should not forget our responsibilities to protect and support our planet and people. That is why, even in Board Level discussions, our decision making considers our environmental and social impact, as well as all of our stakeholders.
We have Five Woolcool Pillars which are underpinned by our commitment to innovation and creativity, both in terms of our group activities and our continual development through to improvement of our products and service. These Pillars allow us to monitor, measure and ensure meaningful impact of our decisions.
Our Pillars: -
° Our Customers
° Our Team
° Our Processes
° Our Environment & Community
° Our Finance
Our Values: -
° Be Honest
° Be Kind
° Be Responsible
° Be Creative
° Be Open-minded
° Get Sheep Done
After the global economic instability of last four to five years, including the impact of Brexit, Covid, Governmental changes and the Energy Crisis, the main focus of the last 12 months has been on ensuring we continue to innovate, to become as efficient as we can in our processes, invest in the development of our people and expand our reach within key sectors nationally and internationally. Whilst we are an ambitious, family owned, female led entity, we want to ensure that our growth rate is measured, creating business sustainability long into the future.
Key points from 2023-2024: -
° Growth in turnover of 20.91% - Driven in part by organic growth of e-commerce in the food sector. Although always part of our customer base, in the last three years we have also been intentional and targeted in our investments to expand into the Pharmaceutical Sector, and this year we have begun to see the positive results of this investment.
° Global Expansion – whilst the figures are relatively modest in their growth pattern, there has been a significant increase in our export activity, with new territories and opportunities unlocked on a monthly basis. We are purposely targeting certain overseas regions due to new market opportunities in both e-commerce and Pharmaceutical.
° Gross profit margin remained consistent with the prior year of 18.66% - despite a number of material increases at the beginning of the financial year heavily impacting our figures, we have worked hard in the second half to negate these increases where possible, predominantly through driving efficiencies, review of supply chain and investment.
° At the year end, the group’s net current assets remained strong, with an increase of £140k to £1,079k (2023: £939K).
° At the balance sheet date, net assets have remained consistent at the year-end increasing by £120k to £1.44m (2023: £1.32m). After what has been a tumultuous economic landscape, we are extremely pleased with these results and our financial position at the year-end. We continue to strive to improve our product, processes and business practices. We are looking forward to delivering further milestones against our objectives for the next 12 months and beyond, and to delighting our customers, suppliers, our team and all our other stakeholders in the process.
We are a design-led entity, something instilled by our Founder. As a result, R&D activity is ongoing and a busy department: -
° Pallet cover launch – 2023-2024 saw the launch of FreightGUARDIAN, an insulative and protective cover for larger freight items.
° Consumer products – Following our FreightGUARDIAN launch, several other potential product opportunities which we are currently assessing.
° Pharmaceutical developments – Our LifeGUARDIAN project is ongoing, developing a solution for the more stringent and extreme requirements for the shipment of specific sensitive products in this sector.
° Hortiwool – After researching the use of our packaging product in Horticulture, we have been reviewing the feasibility and opportunities to diversify with a new product range in an alternative sector.
Our Environment & Community and Our Team form two of our core business pillars. As with all pillars, both are continually evolving, and areas in which we can always find improvement. This year was no exception. We aim for meaningful and measured impact.
Our Environment & Community
° Following a site review, the business re-certified its B Corp accreditation, increasing its score by 15 points. Only 10% of B Corps are randomly selected for a site reviewed each year. This type of review is a magnified version of the usual assessment and saw areas of our submission closely scrutinised by the B Corp assessors. Following this process, our score increased by 15 points, and saw us join the ranks of the higher scoring companies in the Environmental section of the assessment.
° EcoVadis Silver Medal – We were awarded the EcoVadis Silver Medal – joining the top 15% of Companies Globally
° Charitable & Community Engagement – we have continued our support of the local causes and the community, both internally through supporting our team members and externally through charitable donations in time and money, supporting Youth Engagement, Health & Wellbeing and Family support charities across the area. We also pledged at least 2 hrs per team member annually to go towards charitable activity. Our MD sits as a Trustee on two local charities as well as volunteering on the Board of the Local University and Chamber of Commerce.
° UN’s Sustainable Development Goals – We recognise these goals as a guide to align our objectives with best sustainability practice. A number of these goals naturally lend themselves to our activity, such as those focusing on industry, innovation, infrastructure, consumption, and sustainability. As part of our company culture and ethos, we also align with equality, well-being, education, and community goals through purposeful practises and fostering an inclusive work environment.
Our Team
Without our team, there is no Woolcool, which is why we actively invest in team development and ensure our team feel Safe, Supported and Engaged.
° Team development – We commit that every team member has access to personal development, with qualifications from practical FLT licences through to NVQs and Degrees. This year, 96% of our team have engaged in courses or training.
° Training opportunities have also included social and environmental education, such as Diversity Training, Carbon Literacy Course and Domestic Abuse Awareness.
° Retention rates continue to track below the national average, with a number of the team reaching their 5, 7 and 10 year anniversaries this year.
° As always H&S is a key area of focus, to ensure a safe and healthy working space and team.
We are continually reviewing opportunities to develop, improve and diversify. Whilst there are always plenty of ideas and projects in the pipeline, the next 12 months will see our focus on four key areas.
° Carbon and Biodiversity monitoring – We will be reviewing our Carbon Footprint once again this year, extending this beyond just Carbon to our Biodiversity impact.
° Investment in Automation & Process efficiencies – We have plans to further expand our automation and machine capabilities.
° Export beyond EU and USA – Our eyes are on the emerging markets; we are beginning to formulate our strategy for these new regions.
° New Product Development
As with all businesses, we are faced with risks. We complete a SWOT analysis annually, and regularly assess any risks that are highlighted as a growing concern.
° Cash flow
° Credit risks & Bad Debt
° Operational risks e.g. supply chain disruption
° Unstable energy market
° Geo-Political Climate
° Climate Change
Thanks, and appreciation must be expressed to our committed and passionate team, our suppliers, partners, customers and wider supporters, without whom this business would not be possible. We look forward to building upon this year’s strong foundation in the coming 12 months, which is already shaping up to be full of exciting opportunities and energised potential.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 May 2024.
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £297,119 (2023 - £252,268). The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of The Wool Packaging Company (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of income and retained earnings, the group statement of financial position, the company statement of financial position, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 group and parent 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 group's and parent 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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,
including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;
we assessed the extent of compliance with the laws and regulations through making enquiries of management and reviewing legal and professional fee invoices.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries posted during the period and at the period end to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed
procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence and agreements with HMRC; and
reviewing legal and professional fees incurred during the period to identify any potential indications of non-compliance with laws and regulations.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Other matters which we are required to address
The prior period financial statements are not audited, therefore the corresponding figures are unaudited.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £415,821 (2023 - £202,449 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The Wool Packaging Company (Holdings) Limited (“the company”) is a private limited company limited by shares, domiciled and incorporated in England and Wales. The registered office is Units 1a & 1b, Tungsten Park, Opal Way, Stone Business Park, Stone, Staffordshire, England, ST15 0SS.
The group consists of The Wool Packaging Company (Holdings) Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’;
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
The consolidated group financial statements consist of the financial statements of the parent company The Wool Packaging Company (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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 recognised in the income statement.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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).
Recoverable amount is the higher of fair value less costs to sell and value in use.
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.
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.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are 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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The 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 net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
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.
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.
In the application of the group’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 average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
Amortisation is charged to administrative expenses within the statement of income and retained earnings.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 May 2024 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Balances are secured by the assets to which they relate. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Capital grants of £2,875 (2023 - £7,733) were released in relation to certain items of plant and machinery.
Revenue grants of £nil (2023 - £3,468) were released in relation to training and apprenticeships.
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.
At the year-end contributions totalling £8,151 (2023 - £5,933) were payable to the fund and are included in other creditors.
Each ordinary A, B, C, D and E share has full voting rights, full dividend rights and the right to participate in capital distributions.
Each ordinary X and Y share has no voting rights, no dividend rights and the right to participate in capital distributions above specified limits.
Profit and loss reserves are made up of accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The remuneration of key management personnel is as follows.
Group transactions and balances
During the year The Wool Packaging Company (Holdings) Limited received dividends totalling £480,000 (2023 - £252,268) from The Wool Packaging Company Limited.
Total balances outstanding to this company at the year end totalled £208,396 (2023 - £342,906).
Dividends totalling £297,119 (2023 - £252,268) were paid in the year in respect of shares held by the company's directors.