Company registration number 01527395 (England and Wales)
EXPAC (PRESTON) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
EXPAC (PRESTON) LIMITED
COMPANY INFORMATION
Directors
G Royle
M C Cummings
J F Eastham
D T Kearns
C Thomson
A L Robinson
(Appointed 21 May 2024)
E Gouveia Moriya
(Appointed 11 November 2024)
Secretary
D T Kearns
Company number
01527395
Registered office
5 Acorn Business Park
Woodseats Close
Sheffield
England
S8 0TB
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Business address
Unit 1 & 2
Tomlinson Road
Leyland
Preston
PR25 2DY
EXPAC (PRESTON) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
EXPAC (PRESTON) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
During 2024, the UK has continued to see high energy & labour costs, combined with the uncertainty caused by a new government that has led to higher costs and tough market conditions, placing additional demands and pressures on industry and the UK economy as a whole.
Despite this, the Company’s performance has been impressive with over £17m turnover (36% growth on 2023) and a PBT of over £700k.
The business has been continually investing in staff, systems, and capital projects for many years. These investments in new products and technologies have greatly benefited the Company in 2024 and will continue to facilitate further significant growth going forwards. The Company is accredited with ISO9001, ISO14001 & ISO45001, as well as many industry-specific accreditations.
During 2024, capital expenditure was £728k, bringing the total capital expenditure to over £4.2m in the last five fiscal years. The Company finished 2024 with £1.6m cash in the bank and with net assets of over £4.2m, and is in a robust position for the future.
The ongoing strategy is to access new international markets, products and technologies, and to ensure that future growth is achieved efficiently with further added benefits for the Company’s customers, suppliers, employees and shareholders.
The Company is fully committed to ongoing improvements in all aspects of the impact of our business on the environment and people. To this end, Expac (Preston) Ltd has accreditations with BRC, Sedex, Soil Association and COSMOS, and is engaged in several projects to reduce the environmental impact and to improve the sustainability of the materials of construction and ingredients used for our products.
On behalf of the Company, we thank our customers, suppliers, and staff for their continued commitment, and we look forward to a mutually rewarding year in 2025.
There were no subsequent events that could have a significant impact on the results of the Company for 2024.
The Company made a very impressive start to 2025, has a very strong order book, and is confident of dramatically surpassing the financial performance of 2024.
EXPAC (PRESTON) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
The Company has carried out an extensive financial risk management analysis, covering aspects such as currency, interest rates & liquidity, credit and market (supply chain and customer base) risks.
Interest rates & liquidity | The Company is well funded and working capital flows are managed via the use of KPI’s within the business. |
| Customers and potential customers are credit checked regularly and given appropriate credit limits based on the financial information available. Credit insurance is also taken out where thought necessary, either due to Company or country risk. |
| Market changes can affect the financial performance of the Company. Expac (Preston) Ltd makes use of the market intelligence and trends noticed that it has at its disposal, and also by the use of more widely available trade data and journals published by the industry. |
The Company is in very good health and is well placed to implement the strategic plans agreed by the Board.
The Company is focused on developing a long-term horizon for its products and services. As such, the strategic plan includes ongoing capital investment, a widening of the customer base and expansion of the range of products and services on offer. A number of exciting innovations are under development to ensure that the plan is met. Environmental control and health and safety remain at the forefront of all strategic planning initiatives and the Company continues to invest in these crucial areas.
Key performance indicators
Expac (Preston) Ltd uses KPI’s to monitor it’s financial performance. These include, but are not limited to;
| The ratio of gross margin to sales, expressed as a % of sales. |
| The level of trade debtors & their ratio to sales, expressed as a number of days. |
| The level of trade creditors & their ratio to purchases, expressed as a number of days. |
| The level of stock & their ratio to purchases, expressed as a number of days. |
| Earnings before interest, taxation, depreciation and amortisation. |
D T Kearns
Director
6 March 2025
EXPAC (PRESTON) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of specialist formulators and contract fillers across a wide range of personal care, household, pet care and health products
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors 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:
G Royle
M C Cummings
J F Eastham
D T Kearns
C Thomson
J Bowers
(Resigned 21 May 2024)
A L Robinson
(Appointed 21 May 2024)
E Gouveia Moriya
(Appointed 11 November 2024)
Auditor
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.
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.
EXPAC (PRESTON) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
D T Kearns
Director
6 March 2025
EXPAC (PRESTON) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EXPAC (PRESTON) LIMITED
- 5 -
Opinion
We have audited the financial statements of Expac (Preston) Limited (the 'company') for the year ended 31 December 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:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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.
EXPAC (PRESTON) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EXPAC (PRESTON) LIMITED (CONTINUED)
- 6 -
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 and returns; or
certain disclosures of 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, 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.
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, and from our commercial knowledge and experience of the trade;
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;
we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
EXPAC (PRESTON) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EXPAC (PRESTON) LIMITED (CONTINUED)
- 7 -
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 risks of fraud through management bias and override controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; 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;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.
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 director’s and other management and the inspection of regulatory and legal correspondence.
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.
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.
Paul Winwood (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
2 Rutland Park
Sheffield
S10 2PD
6 March 2025
EXPAC (PRESTON) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
17,027,596
12,531,624
Cost of sales
(12,878,279)
(9,824,655)
Gross profit
4,149,317
2,706,969
Administrative expenses
(3,405,928)
(3,550,053)
Other operating income
6,177
Operating profit/(loss)
4
743,389
(836,907)
Interest payable and similar expenses
8
(39,658)
(44,372)
Profit/(loss) before taxation
703,731
(881,279)
Tax on profit/(loss)
9
120,548
58,757
Profit/(loss) for the financial year
824,279
(822,522)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
EXPAC (PRESTON) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,599,404
3,345,906
Current assets
Stocks
12
2,495,658
2,023,881
Debtors
13
3,551,084
1,681,162
Cash at bank and in hand
1,646,485
947,343
7,693,227
4,652,386
Creditors: amounts falling due within one year
14
(5,830,889)
(3,553,612)
Net current assets
1,862,338
1,098,774
Total assets less current liabilities
5,461,742
4,444,680
Creditors: amounts falling due after more than one year
15
(498,456)
(272,173)
Provisions for liabilities
Deferred tax liability
16
705,500
739,000
(705,500)
(739,000)
Net assets
4,257,786
3,433,507
Capital and reserves
Called up share capital
18
1,100
1,100
Share premium account
916,997
916,997
Profit and loss reserves
3,339,689
2,515,410
Total equity
4,257,786
3,433,507
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
D T Kearns
Director
Company registration number 01527395 (England and Wales)
EXPAC (PRESTON) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
1,100
916,997
3,373,932
4,292,029
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(822,522)
(822,522)
Dividends
10
-
-
(36,000)
(36,000)
Balance at 31 December 2023
1,100
916,997
2,515,410
3,433,507
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
824,279
824,279
Balance at 31 December 2024
1,100
916,997
3,339,689
4,257,786
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Expac (Preston) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Acorn Business Park, Woodseats Close, Sheffield, England, S8 0TB.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of GRI Expac Limited. These consolidated financial statements are available from its registered office 5 Acorn Business Park, Woodseats Close, Sheffield, South Yorkshire. S8 0TB.
1.2
Going concern
Atruet 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.
1.3
Turnover
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 dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation 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:
Leasehold improvements
Over term of lease
Plant and equipment
5% & 10% straight line
Fixtures and fittings
10% straight line
Computers
33% 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
1.8
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.
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
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.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, 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.
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
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.
1.9
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.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
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.
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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 balance sheet 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 leases asset are consumed.
1.15
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.
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values of all asset categories are reviewed on an annual basis to ensure appropriate changes are made for depreciations.
Stock provisions
Stocks are stated at the lower of cost and net realisable value. The Directors will assess the requirement for any provision for obsolete stock or value deterioration as based on historical transactions, stock utilisation patterns, regular inspection and counting of physical items.
3
Turnover
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Manufacture of personal care, household, pet care and health products
17,027,596
12,531,624
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
16,378,965
12,182,044
Rest of World
648,631
349,580
17,027,596
12,531,624
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,900
11,325
Depreciation of owned tangible fixed assets
474,658
421,776
Operating lease charges
178,166
166,976
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,900
11,325
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
5
7
Administrative staff
25
26
Production staff
59
58
Total
89
91
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,605,080
2,404,269
Social security costs
256,612
230,612
Pension costs
57,417
57,525
2,919,109
2,692,406
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
378,476
462,507
Company pension contributions to defined contribution schemes
10,562
13,053
389,038
475,560
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
95,501
125,430
Company pension contributions to defined contribution schemes
2,740
3,423
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
24,999
29,949
Interest on finance leases and hire purchase contracts
14,659
14,423
39,658
44,372
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(87,048)
(74,757)
Deferred tax
Origination and reversal of timing differences
(33,500)
16,000
Total tax credit
(120,548)
(58,757)
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
703,731
(881,279)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
175,933
(207,277)
Tax effect of expenses that are not deductible in determining taxable profit
1,884
533
Adjustments in respect of prior years
(87,048)
(74,757)
Research and development tax credit
(83,850)
Other permanent differences
569
Fixed asset differences
3,886
6,554
Remeasurement of deferred tax for changes in tax rates
(12,592)
Movement in deferred tax not recognised
(131,922)
228,782
Taxation credit for the year
(120,548)
(58,757)
10
Dividends
2024
2023
£
£
Final paid
36,000
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2024
736,263
4,528,826
340,651
350,959
5,956,699
Additions
61,800
638,064
3,189
25,103
728,156
Disposals
(121,067)
(115,932)
(236,999)
At 31 December 2024
798,063
5,045,823
343,840
260,130
6,447,856
Depreciation and impairment
At 1 January 2024
388,158
1,744,515
207,870
270,250
2,610,793
Depreciation charged in the year
137,171
272,906
24,545
40,036
474,658
Eliminated in respect of disposals
(121,067)
(115,932)
(236,999)
At 31 December 2024
525,329
1,896,354
232,415
194,354
2,848,452
Carrying amount
At 31 December 2024
272,734
3,149,469
111,425
65,776
3,599,404
At 31 December 2023
348,105
2,784,311
132,781
80,709
3,345,906
12
Stocks
2024
2023
£
£
Raw materials and consumables
2,220,851
1,858,180
Finished goods and goods for resale
274,807
165,701
2,495,658
2,023,881
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,194,466
1,511,064
Corporation tax recoverable
87,048
Other debtors
1,858
Prepayments and accrued income
269,570
168,240
3,551,084
1,681,162
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
200,757
123,449
Trade creditors
2,803,816
1,962,807
Taxation and social security
466,013
232,156
Other creditors
2,189,161
1,111,396
Accruals and deferred income
171,142
123,804
5,830,889
3,553,612
Included within other creditors is an amount of £1,656,997 (2023: £859,030) relating to the invoice discounting facility.
Hire purchase creditors are secured upon the assets to which they relate.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
498,456
272,173
Hire purchase creditors are secured upon the assets to which they relate.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
705,500
739,000
2024
Movements in the year:
£
Liability at 1 January 2024
739,000
Credit to profit or loss
(33,500)
Liability at 31 December 2024
705,500
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,417
57,525
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.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,100
1,100
1,100
1,100
19
Operating lease commitments
Lessee
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
£
£
Within one year
191,165
192,379
Between two and five years
160,375
351,541
351,540
543,920
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
145,254
-
EXPAC (PRESTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
21
Related party transactions
Transactions with related parties
Nature of related party relationship
I Love Cosmetics Limited is a subsidiary of GRI Brands Limited, a company which is under common control. Sales have been made to I Love Cosmetics Limited during the year totaling £1,201,892 (2023: £1,899,938).
Libra Speciality Chemicals Limited is a subsidiary of GRI Libra Limited, a company which is under common control. Purchases have been made from Libra Speciality Chemicals Limited in the year totaling £936,800 (2023: £557,029).
Management charges
GRI Group Limited is a subsidiary of GRI Whirlow Limited, a company which is under common control. Management charges of £Nil were paid to GRI Group Limited during the year (2023: £375,000).
Outstanding balances
At year end £134,932 (2023: £192,304) was owed from I Love Cosmetics Limited. This amount is included within trade debtors.
At year end £226,558 (2023: £102,072) was owed to Libra Specialty Chemicals Limited. This amount is included within trade creditors.
At year end £406,948 (2023: £216,949) was owed to GRI Group Limited. This amount is included within other creditors.
At year end £82,360 (2023: £Nil) was owed to Expac Commercial Limited. This amount is included within other creditors.
22
Ultimate controlling party
The company's parent company is GRI Expac Limited, a company registered in England and Wales, which is under the control of the director, G Royle.
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310G RoyleM C CummingsJ F EasthamC ThomsonJ BowersA L RobinsonE Gouveia MoriyaE Gouveia MoriyaD T Kearns015273952024-01-012024-12-3101527395bus:Director12024-01-012024-12-3101527395bus:Director22024-01-012024-12-3101527395bus:Director32024-01-012024-12-3101527395bus:CompanySecretaryDirector12024-01-012024-12-3101527395bus:Director42024-01-012024-12-3101527395bus:Director62024-01-012024-12-3101527395bus:Director72024-01-012024-12-3101527395bus:CompanySecretary12024-01-012024-12-3101527395bus:Director52024-01-012024-12-3101527395bus:Director82024-01-012024-12-3101527395bus:RegisteredOffice2024-01-012024-12-31015273952024-12-31015273952023-01-012023-12-3101527395core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3101527395core:RetainedEarningsAccumulatedLosses2024-01-012024-12-31015273952023-12-3101527395core:LeaseholdImprovements2024-12-3101527395core:PlantMachinery2024-12-3101527395core:FurnitureFittings2024-12-3101527395core:ComputerEquipment2024-12-3101527395core:LeaseholdImprovements2023-12-3101527395core:PlantMachinery2023-12-3101527395core:FurnitureFittings2023-12-3101527395core:ComputerEquipment2023-12-3101527395core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3101527395core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3101527395core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3101527395core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3101527395core:CurrentFinancialInstruments2024-12-3101527395core:CurrentFinancialInstruments2023-12-3101527395core:ShareCapital2024-12-3101527395core:ShareCapital2023-12-3101527395core:SharePremium2024-12-3101527395core:SharePremium2023-12-3101527395core:RetainedEarningsAccumulatedLosses2024-12-3101527395core:RetainedEarningsAccumulatedLosses2023-12-3101527395core:ShareCapital2022-12-3101527395core:SharePremium2022-12-3101527395core:RetainedEarningsAccumulatedLosses2022-12-3101527395core:LeaseholdImprovements2024-01-012024-12-3101527395core:PlantMachinery2024-01-012024-12-3101527395core:FurnitureFittings2024-01-012024-12-3101527395core:ComputerEquipment2024-01-012024-12-3101527395core:UKTax2024-01-012024-12-3101527395core:UKTax2023-01-012023-12-310152739512024-01-012024-12-310152739512023-01-012023-12-310152739522024-01-012024-12-310152739522023-01-012023-12-310152739532024-01-012024-12-310152739532023-01-012023-12-310152739542024-01-012024-12-310152739542023-01-012023-12-3101527395core:LeaseholdImprovements2023-12-3101527395core:PlantMachinery2023-12-3101527395core:FurnitureFittings2023-12-3101527395core:ComputerEquipment2023-12-31015273952023-12-3101527395core:Non-currentFinancialInstruments2024-12-3101527395core:Non-currentFinancialInstruments2023-12-3101527395core:WithinOneYear2024-12-3101527395core:WithinOneYear2023-12-3101527395core:BetweenTwoFiveYears2024-12-3101527395core:BetweenTwoFiveYears2023-12-3101527395bus:PrivateLimitedCompanyLtd2024-01-012024-12-3101527395bus:FRS1022024-01-012024-12-3101527395bus:Audited2024-01-012024-12-3101527395bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP