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Registered number: 11938901










EPAC HOLDINGS EUROPE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
EPAC HOLDINGS EUROPE LIMITED
 

COMPANY INFORMATION


Directors
F G Freiha 
B Frem 
F J Frem 
M C Frem 
J Hobeika 
J E Knott (resigned 13 July 2023)
P Patel 
V B Patel 




Registered number
11938901



Registered office
Creative Industries Centre
Wolverhampton Science Park

Glaisher Drive

Wolverhampton

West Midlands

WV10 9TG




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
EPAC HOLDINGS EUROPE LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 9
Consolidated statement of comprehensive income
 
10
Consolidated balance sheet
 
11 - 12
Company balance sheet
 
13
Consolidated statement of changes in equity
 
14 - 15
Company statement of changes in equity
 
16
Consolidated statement of cash flows
 
17 - 18
Notes to the financial statements
 
19 - 44


 
EPAC HOLDINGS EUROPE LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors Present the strategic report for the year ended 31 December 2023. 

Business review
 
In line with our plans for the year, we have successfully established running operations in both Innsbruck and Sheffield, allowing us to service the DACH region locally, and bolstering our production capacity for UK & IRE which is still showing very positive growth results.
Also in line with our expectations, the 2024 focus is on optimization and continuous improvement alongside a consistent ramp-up in overall sales across Europe. 

Principal risks and uncertainties
 
As sales keep growing, the shift of our focus is to maintaining our service levels given an ever increasing pressure on our capacity. Hiring, training, and retaining staff as well as increasing shift patterns will be critical to delivering satisfactory results to our customers.

Financial key performance indicators
 
We are pleased to see our Cost of Goods Sold to be in line with our expectations, especially in the more mature sites. Growth in sales is still as critical as we fill up the new additional capacity created during the year. 


This report was approved by the board and signed on its behalf.



J Hobeika
Director

Date: 11 March 2025

Page 1

 
EPAC HOLDINGS EUROPE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £6,251,723 (2022 - loss £5,101,167).

There were no dividends declared during the year (2022 - £nil).

Directors

The directors who served during the year were:

F G Freiha 
B Frem 
F J Frem 
M C Frem 
J Hobeika 
J E Knott (resigned 13 July 2023)
P Patel 
V B Patel 

Future developments

Future developments are included within the Strategic Report. 

Page 2

 
EPAC HOLDINGS EUROPE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
J Hobeika
Director

Date: 11 March 2025

Page 3

 
EPAC HOLDINGS EUROPE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPAC HOLDINGS EUROPE LIMITED
 

Qualified Opinion


We have audited the financial statements of EPAC Holdings Europe Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: 


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Page 4

 
EPAC HOLDINGS EUROPE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPAC HOLDINGS EUROPE LIMITED (CONTINUED)


Basis for qualified opinion


We were unable to satisfy ourselves concerning the inventory quantities held at 31 December 2022, which are included in the balance sheet at £1,125,044. Consequently we were unable to determine whether any adjustment to this amount at 31 December 2022 was necessary or whether there was any consequential effect on the cost of sales and also closing reserves for the year ended 31 December 2022. As the closing stock balance at 2022 affects the opening stock balance at 2023, there is also a possible effect on the 2023 cost of sales balance. Our audit opinion on the financial statements for the period ended 31 December 2023 was modified accordingly. 


We conducted our qualified audit audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our qualified audit report. We are independent of the Group in accordance with the ethical requirements that are relevant to our qualified audit audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our qualified audit 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 qualified audit opinion.


Page 5

 
EPAC HOLDINGS EUROPE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPAC HOLDINGS EUROPE LIMITED (CONTINUED)


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 or the 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.


Page 6

 
EPAC HOLDINGS EUROPE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPAC HOLDINGS EUROPE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £1,125,044 held at 31 December 2022. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.


Qualified opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

Except for the matter described in the basis for qualified opinion section of our report, 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 Directors' report.
Arising solely from the limitation of scope of our work relating to the stock, referred to above:
- we have not obtained all the information and explanations that we considered necessary for the purpose   of our audit; and 
-  we were unable to determine whether adequate accounting records have been kept
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:
-        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 directors' remuneration specified by law are not made


Page 7

 
EPAC HOLDINGS EUROPE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPAC HOLDINGS EUROPE LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' 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 Auditors' report that includes our qualified audit 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our qualified audit responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our qualified audit procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 
We understood how the Company and Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
 
Page 8

 
EPAC HOLDINGS EUROPE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EPAC HOLDINGS EUROPE LIMITED (CONTINUED)




A further description of our qualified audit responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our qualified audit Auditors' report.


Use of our qualified audit 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 2006Our 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 Auditors' 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 qualified audit audit work, for this report, or for the opinions we have formed.





Andrew Malpass BA FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
11 March 2025
Page 9

 
EPAC HOLDINGS EUROPE LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
17,945,317
10,548,544

Cost of sales
  
(14,199,600)
(9,295,373)

Gross profit
  
3,745,717
1,253,171

Administrative expenses
  
(10,247,262)
(6,283,672)

Operating loss
 5 
(6,501,545)
(5,030,501)

Interest payable and similar expenses
 9 
(508,231)
(212,286)

Loss before taxation
  
(7,009,776)
(5,242,787)

Tax on loss
 10 
758,053
81,620

Loss for the financial year
  
(6,251,723)
(5,161,167)

  

Currency translation differences
  
154,486
(254,192)

Other comprehensive income for the year
  
154,486
(254,192)

Total comprehensive income for the year
  
(6,097,237)
(5,415,359)

(Loss) for the year attributable to:
  

Non-controlling interests
  
(174,218)
(468,868)

Owners of the parent Company
  
(6,077,505)
(4,692,299)

  
(6,251,723)
(5,161,167)

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
(174,218)
(468,868)

Owners of the parent Company
  
(5,923,019)
(4,946,491)

  
(6,097,237)
(5,415,359)

The notes on pages 19 to 44 form part of these financial statements.

Page 10

 
EPAC HOLDINGS EUROPE LIMITED
REGISTERED NUMBER: 11938901

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
12,474,366
9,710,506

  
12,474,366
9,710,506

Current assets
  

Stocks
 14 
1,687,056
2,357,863

Debtors: amounts falling due after more than one year
 15 
435,285
-

Debtors: amounts falling due within one year
 15 
3,892,665
4,549,335

Cash at bank and in hand
 16 
1,026,025
936,005

  
7,041,031
7,843,203

Creditors: amounts falling due within one year
 17 
(18,543,502)
(10,576,380)

Net current liabilities
  
 
 
(11,502,471)
 
 
(2,733,177)

Total assets less current liabilities
  
971,895
6,977,329

Creditors: amounts falling due after more than one year
 18 
(4,858,895)
(4,277,600)

Provisions for liabilities
  

Deferred taxation
 21 
-
(489,492)

  
 
 
-
 
 
(489,492)

Net (liabilities)/assets
  
(3,887,000)
2,210,237

Page 11

 
EPAC HOLDINGS EUROPE LIMITED
REGISTERED NUMBER: 11938901

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 22 
13,625,246
13,625,246

Profit and loss account
 23 
(16,754,830)
(10,831,811)

Equity attributable to owners of the parent Company
  
(3,129,584)
2,793,435

Non-controlling interests
  
(757,416)
(583,198)

  
(3,887,000)
2,210,237


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J Hobeika
Director

Date: 11 March 2025

The notes on pages 19 to 44 form part of these financial statements.

Page 12

 
EPAC HOLDINGS EUROPE LIMITED
REGISTERED NUMBER: 11938901

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
19,490
16,972

Investments
 13 
4,767,506
3,984,557

  
4,786,996
4,001,529

Current assets
  

Stocks
 14 
274,211
1,125,044

Debtors: amounts falling due within one year
 15 
11,472,384
7,266,537

Cash at bank and in hand
 16 
334,139
780,175

  
12,080,734
9,171,756

Creditors: amounts falling due within one year
 17 
(10,894,420)
(4,640,374)

Net current assets
  
 
 
1,186,314
 
 
4,531,382

Total assets less current liabilities
  
5,973,310
8,532,911

  

  

Net assets
  
5,973,310
8,532,911


Capital and reserves
  

Called up share capital 
 22 
13,625,246
13,625,246

Profit and loss account
 23 
(7,651,936)
(5,092,335)

  
5,973,310
8,532,911


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J Hobeika
Director

Date: 11 March 2025

The notes on pages 19 to 44 form part of these financial statements.

Page 13

 
EPAC HOLDINGS EUROPE LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£

At 1 January 2023
13,625,246
(10,831,811)
2,793,435
(583,198)
2,210,237


Comprehensive income for the year

Loss for the year

-
(6,077,505)
(6,077,505)
(174,218)
(6,251,723)

Currency translation differences
-
154,486
154,486
-
154,486


Other comprehensive income for the year
-
154,486
154,486
-
154,486


Total comprehensive income for the year
-
(5,923,019)
(5,923,019)
(174,218)
(6,097,237)


Total transactions with owners
-
-
-
-
-


At 31 December 2023
13,625,246
(16,754,830)
(3,129,584)
(757,416)
(3,887,000)


The notes on pages 19 to 44 form part of these financial statements.

Page 14

 
EPAC HOLDINGS EUROPE LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£

At 1 January 2022
5,204,400
(5,885,320)
(680,920)
(925,578)
(1,606,498)


Comprehensive income for the year

Loss for the year

-
(4,692,299)
(4,692,299)
(468,868)
(5,161,167)

Currency translation differences
-
(254,192)
(254,192)
-
(254,192)


Other comprehensive income for the year
-
(254,192)
(254,192)
-
(254,192)


Total comprehensive income for the year
-
(4,946,491)
(4,946,491)
(468,868)
(5,415,359)


Contributions by and distributions to owners

Shares issued during the year
8,420,846
-
8,420,846
-
8,420,846

Shares issued - non controlling interest
-
-
-
811,248
811,248


Total transactions with owners
8,420,846
-
8,420,846
811,248
9,232,094


At 31 December 2022
13,625,246
(10,831,811)
2,793,435
(583,198)
2,210,237


The notes on pages 19 to 44 form part of these financial statements.

Page 15

 
EPAC HOLDINGS EUROPE LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
5,204,400
(2,087,910)
3,116,490


Comprehensive income for the year

Loss for the year
-
(3,004,425)
(3,004,425)
Total comprehensive income for the year
-
(3,004,425)
(3,004,425)


Contributions by and distributions to owners

Shares issued during the year
8,420,846
-
8,420,846


Total transactions with owners
8,420,846
-
8,420,846



At 1 January 2023
13,625,246
(5,092,335)
8,532,911


Comprehensive income for the year

Loss for the year
-
(2,559,601)
(2,559,601)
Total comprehensive income for the year
-
(2,559,601)
(2,559,601)


Total transactions with owners
-
-
-


At 31 December 2023
13,625,246
(7,651,936)
5,973,310


The notes on pages 19 to 44 form part of these financial statements.

Page 16

 
EPAC HOLDINGS EUROPE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(6,251,723)
(5,161,167)

Adjustments for:

Depreciation of tangible assets
2,206,880
1,752,261

Interest paid
508,231
212,286

Taxation charge
(758,053)
(81,620)

Decrease/(increase) in stocks
670,807
(1,237,707)

Decrease/(increase) in debtors
476,069
(2,121,057)

(Increase)/decrease in amounts owed by groups
(26,721)
204,886

Increase in creditors
756,944
2,650,505

(Decrease)/increase in amounts owed to groups
(358,190)
407,936

Corporation tax received
40,598
28,736

Foreign exchange difference
70,229
(257,691)

Net cash generated from operating activities

(2,664,929)
(3,602,632)


Cash flows from investing activities

Purchase of tangible fixed assets
(3,332,335)
(3,963,083)

Sale of tangible fixed assets
154,787
-

HP interest paid
(236,989)
(47,368)

Net cash from investing activities

(3,414,537)
(4,010,451)
Page 17

 
EPAC HOLDINGS EUROPE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Issue of ordinary shares
-
8,420,846

Issue of non-controlling interest shares
-
811,248

New secured loans
1,005,945
-

Other new loans
6,484,947
-

Repayment of other loans
-
(1,963,158)

Repayment of/new finance leases
(1,052,053)
851,470

Interest paid
(271,242)
(164,918)

Net cash used in financing activities
6,167,597
7,955,488

Net increase in cash and cash equivalents
88,131
342,405

Cash and cash equivalents at beginning of year
933,833
591,428

Cash and cash equivalents at the end of year
1,021,964
933,833


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,026,025
936,005

Bank overdrafts
(4,061)
(2,172)

1,021,964
933,833


Page 18

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

EPAC Holdings Europe Limited (company number 11938901) is a private company, limited by shares, incorporated in England and Wales and domiciled in the United Kingdom. Its registered office and principal place of business is Creative Industries Centre Wolverhampton Science Park, Glaisher Drive, Wolverhampton, WV10 9TG. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

  
2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".       
-  the requirements of Section 7 Statement of Cash Flows;
-  the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
-  the requirements of Section 33 Related Party Disclosures paaragaraph 33.7.

Page 19

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

The Directors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. The Directors make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements. 
The Group's forecasts and projections show that the Group expects to receive further support from its shareholders over the next 12 months in order to support the development and expansion of the Group. The Group retains the support of its shareholders who are satisfied with current performance.  The Group therefore continues to adopt the going concern basis in preparing its financial statements on this basis.
Merpas (UK) Limited, the immediate parent company, has pledged a letter of support, underlining its commitment to support the Group financially for the foreseeable future.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 20

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 21

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 22

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
10 years
Short-term leasehold property
-
10 years
Plant and machinery
-
5.25 / 7 years
Fixtures and fittings
-
5 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 23

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 24

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance sheet when the Group 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 25

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 26

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company and Group make estimates and assumptions concerning the future. The resulting accounting estimates, will by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Investment carrying value
 
Investments in subsidiary undertakings are carried at cost less accumulated impairment with annual impairment reviews performed.
 
Management have performed an investment impairment review based on 2 year forecasts which include projected performance as at the date of signing the financial statements. Forecasts consider the general trend of all subsidiaries and how this impacts the future position of the newer investments. The carrying value of investments in the Company are £4,767,506 (2022: £3,984,557).

Page 27

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

The whole of the turnover is attributable to the principal activities of the Group.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
14,429,989
8,023,745

Rest of Europe
3,515,328
2,524,799

17,945,317
10,548,544



5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
289,903
65,389

Other operating lease rentals
385,543
545,544

Page 28

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Group's financial statements
41,800
26,100

Page 29

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,539,277
3,826,193
1,498,148
1,214,201

Social security costs
961,609
570,383
192,819
132,171

Cost of defined contribution scheme
277,289
186,317
64,568
42,232

6,778,175
4,582,893
1,755,535
1,388,604


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Administration
39
29
22
17



Sales
20
12
-
-



Production
75
51
-
-

134
92
22
17


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
206,175
176,316

Group contributions to defined contribution pension schemes
7,593
6,216

213,768
182,532


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £206,175 (2022 - £176,316).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,593 (2022 - £6,216).

Page 30

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
61,865
14,102

Other loan interest payable
208,158
103,105

Loans from group undertakings
1,219
-

Finance leases and hire purchase contracts
236,989
95,079

508,231
212,286


10.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
(28,736)
-


(28,736)
-


Total current tax
(28,736)
-

Deferred tax


Origination and reversal of timing differences
(729,317)
(81,620)

Total deferred tax
(729,317)
(81,620)


Taxation on loss on ordinary activities
(758,053)
(81,620)
Page 31

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(7,009,776)
(5,242,787)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(1,647,297)
(996,130)

Effects of:


Expenses not deductible for tax purposes
63,187
1,667

Capital allowances for year in excess of depreciation
-
1,844

Utilisation of tax losses
(242,472)
-

Adjustments to tax charge in respect of prior periods
(28,736)
-

Timing differences net of movement in tax rates
12,245
(18,414)

Non-taxable income
-
(11,859)

Unrelieved tax losses carried forward
1,085,020
941,272

Total tax charge for the year
(758,053)
(81,620)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £2,559,601 (2022 - loss £3,004,425).

Page 32

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets

Group






Freehold property
ST l/hold property
Plant & machinery
Fixtures & fittings
Office equip.
Computer equip.
Total

£
£
£
£
£
£
£



Cost or valuation


At 1 January 2023
347,899
730,998
11,894,054
99,296
136,746
36,153
13,245,146


Additions
822,485
17,128
4,091,670
28,437
7,413
74,137
5,041,270


Disposals
-
-
(715,244)
-
-
-
(715,244)


Exchange adjustments
310
(7,335)
80,595
(1,088)
(1,232)
988
72,238



At 31 December 2023

1,170,694
740,791
15,351,075
126,645
142,927
111,278
17,643,410



Depreciation


At 1 January 2023
2,937
185,443
3,177,324
46,943
105,908
16,085
3,534,640


Charge for the year on owned assets
75,314
75,409
1,167,890
24,148
22,516
23,833
1,389,110


Charge for the year on financed assets
-
-
817,770
-
-
-
817,770


Disposals
-
-
(560,457)
-
-
-
(560,457)


Exchange adjustments
168
(1,441)
(9,904)
(384)
(631)
173
(12,019)



At 31 December 2023

78,419
259,411
4,592,623
70,707
127,793
40,091
5,169,044



Net book value



At 31 December 2023
1,092,275
481,380
10,758,452
55,938
15,134
71,187
12,474,366



At 31 December 2022
344,962
545,555
8,716,730
52,353
30,838
20,068
9,710,506

Page 33

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           12.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
7,080,424
7,008,719

7,080,424
7,008,719


Company






Fixtures and fittings
Computer equipment
Total

£
£
£

Cost or valuation


At 1 January 2023
27,982
18,906
46,888


Additions
-
12,405
12,405



At 31 December 2023

27,982
31,311
59,293



Depreciation


At 1 January 2023
16,848
13,068
29,916


Charge for the year on owned assets
5,422
4,465
9,887



At 31 December 2023

22,270
17,533
39,803



Net book value



At 31 December 2023
5,712
13,778
19,490



At 31 December 2022
11,134
5,838
16,972






Page 34

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
3,984,557


Additions
782,949



At 31 December 2023
4,767,506




Page 35

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

EPAC UK Silverstone Limited
Creative Industries Centre, Wolverhampton Science Park, Glaisher Drive, Wolverhampton, WV10 9TG
Ordinary
70%
EPAC Lyon SAS
5 Avenue de Chantereine, 38300 Bourgoin-Jallieu, France
Ordinary
91.75%
EPAC UK Sheffield Limited
Creative Industries Centre, Wolverhampton Science Park, Glaisher Drive, Wolverhampton, WV10 9TG
Ordinary
100%
EPAC GmbH
Tuchlauben 8/1. OG. 1010 Vienna, Austria
Ordinary
100%
EPAC Poland sp. Z.o.o
ul. SW. Mikolaja 7, 50-125 Wroclaw, Poland
Ordinary
49%

EPAC Poland sp. Z.o.o is deemed to be a subsidiary by virtue of the Company having overall control and full voting rights.

Page 36

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(loss)
£
£

EPAC UK Silverstone Limited
322,350
1,714,339

EPAC Lyon SAS
(1,618,306)
(1,504,568)

EPAC UK Sheffield Limited
(1,245,411)
(1,173,540)

EPAC GmbH
(1,551,465)
(1,332,719)

EPAC Poland sp. Z.o.o
(722,883)
(1,095,013)

Page 37

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
1,559,197
2,271,226
274,211
1,125,044

Work in progress (goods to be sold)
127,859
86,637
-
-

1,687,056
2,357,863
274,211
1,125,044


The difference between purchase price or production cost of stocks and their replacement cost is not material.


15.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Deferred tax asset
435,285
-
-
-

435,285
-
-
-


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due within one year

Trade debtors
2,711,052
2,443,736
74,542
4,586

Amounts owed by group undertakings
27,116
395
10,525,367
5,979,793

Other debtors
1,067,307
1,652,047
820,802
1,058,646

Prepayments and accrued income
282,650
453,157
51,673
223,512

Deferred taxation
(195,460)
-
-
-

3,892,665
4,549,335
11,472,384
7,266,537


Page 38

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,026,025
936,005
334,139
780,175

Less: bank overdrafts
(4,061)
(2,172)
-
-

1,021,964
933,833
334,139
780,175



17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
4,061
2,172
-
-

Bank loans
1,132,261
63,158
-
-

Other loans
8,864,396
2,379,449
8,864,396
2,379,449

Trade creditors
3,924,364
4,126,278
1,299,876
1,475,529

Amounts owed to group undertakings
97,691
455,881
113,670
449,162

Other taxation and social security
413,403
357,373
230,408
71,714

Obligations under finance lease and hire purchase contracts
2,336,694
1,931,187
-
-

Other creditors
589,179
278,571
12,851
10,587

Accruals and deferred income
1,181,453
982,311
373,219
253,933

18,543,502
10,576,380
10,894,420
4,640,374


Page 39

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
110,526
173,684

Net obligations under finance leases and hire purchase contracts
4,748,369
4,103,916

4,858,895
4,277,600


Page 40

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

.Creditors: Amounts falling due after more than one year (continued)





19.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
1,132,261
63,158
-
-

Other loans
8,864,396
2,379,449
8,864,396
2,379,449


9,996,657
2,442,607
8,864,396
2,379,449

Amounts falling due 1-2 years

Bank loans
110,526
63,158
-
-


110,526
63,158
-
-

Amounts falling due 2-5 years

Bank loans
-
110,526
-
-


-
110,526
-
-


10,107,183
2,616,291
8,864,396
2,379,449


Page 41

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
2,336,694
1,931,187

Between 1-5 years
4,748,369
4,103,916

7,085,063
6,035,103


21.


Deferred taxation


Group



2023


£






At beginning of year
(489,492)


Charged to profit or loss
729,317



At end of year
239,825







Group
Group
2023
2022
£
£

Accelerated capital allowances
(755,698)
(489,492)

Tax losses carried forward
992,653
-

Other short term timing differences
2,870
-

239,825
(489,492)

Page 42

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



13,625,246 (2022 - 13,625,246) Ordinary shares of $1.00 each
13,625,246
13,625,246



23.


Reserves

Profit and loss account

The profit and loss account represents the cumulative profits and losses by the Group since incorporation less distributions.

24.


Analysis of net debt





At 1 January 2023
Cash flows
New finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

936,005

90,020

-

1,026,025

Bank overdrafts

(2,172)

(1,889)

-

(4,061)

Debt due after 1 year

(173,684)

63,158

-

(110,526)

Debt due within 1 year

(2,443,440)

(7,553,217)

-

(9,996,657)

Finance leases

(6,035,103)

658,975

(1,708,935)

(7,085,063)


(7,718,394)
(6,742,953)
(1,708,935)
(16,170,282)


25.


Contingent liabilities

The Group has pledged security in place through fixed and floating debenture charges relating to facilities accessible by the Group.

Page 43

 
EPAC HOLDINGS EUROPE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Capital commitments




At 31 December 2023 the Group and Company had capital commitments as follows:


Group
Group
2023
2022
£
£

Contracted for but not provided in these financial statements
-
2,238,839


27.


Pension commitments

The Group operates defined contributions pension schemes. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension cost charges represent contributions payable by the Group to the funds and amounted to £277,289 (2022: £186,317). Contributions totalling £12,138 (2022: £28,777) were payable to the funds at the balance sheet date and are included within creditors.


28.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
518,470
440,007

Later than 1 year and not later than 5 years
1,773,542
1,474,376

Later than 5 years
921,896
1,826,654

3,213,908
3,741,037

29.


Related party transactions

The Company has taken advantage of the exemptions under FRS102 to not disclose transactions with the 100% group companies.
In the year the Company made management charges totalling £39,985 (2022: £494,776) and sales totalling £3,609,114 (2022: £2,550,591) to companies with common shareholders. Balances totalling £4,697,709 (2022: £6,134,435) were due to the Company from the companies with common shareholders at the balance sheet date and included within debtors.

30.


Controlling party

Merpas (UK) Limited, a company registered in England & Wales, owns 85% of the share capital in the Company.


Page 44