Company registration number 00087803 (England and Wales)
KENTMERE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KENTMERE LIMITED
COMPANY INFORMATION
Directors
Mr S P Mulvaney
Mr N Bramfitt
Company number
00087803
Registered office
Staveley
Kendal
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
KENTMERE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 27
KENTMERE 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
The key performance indicators for the company are as follows:
2024
2023
£
£
Turnover
7,239,066
7,560,957
Operating profit pre exceptional costs
471,624
733,548
Gross profit margin
18.89%
20.93%
Net current assets
2,778,673
2,993,317
Profit and loss reserves
3,496,729
4,095,778

The directors monitor the performance of the business by reference to management information produced on a quarterly basis.

 

The results for the financial position of the company are shown in the financial statements.

 

Turnover has decreased by £321,891 in comparison to 2023 a decrease of 4.26%, with gross profit decreasing by 13.6%. This is a reflection of the correction in pricing and stock holding/ordering throughout the packaging industry, prices have reduced significantly for raw material purchases which has led to price reduction demands from customers.

 

The operating result for the year is distorted due to the loss realised on the sale of the company's defined benefit pension scheme, which amounted to £967,000. This is an exceptional, one off cost within the financial statements.

 

The directors have continued to manage their administrative costs throughout the period. There have been some additional legal and professional fees incurred due to the disposal of the defined benefit scheme, however these costs will not be repeated in the future.

 

Dividend payments of £367,368 have been made to the holding company, Kentmere Cartons Ltd. The directors continue to support a prudent approach to dividend distribution to ensure that cash reserves are available in the event of unforeseen adverse trading circumstances arising. There is no proposal for a final dividend.

 

The directors are satisfied with the performance of the business during the year.

 

At the year end, shareholders' funds amounted to £5,417,329. The directors believe the company's position to be financially robust particularly given that current assets exceed current liabilities to the extent of £2,778,673.

 

Having assessed the main risks facing the company the directors believe that both product quality and the high level of customer service provided are such as to give a realistic expectation of satisfactory trading results in the coming year.

 

KENTMERE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

The company makes little use of financial instruments other than an operational bank account.

 

The company's exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit of the company.

 

The management's main objective is to:

 

Retain sufficient liquid funds to enable the company to meet its day to day obligations as they fall due whilst maximising return on surplus funds.

 

The directors have assessed the main risk facing the company as being the competition within the market for printed cartons. However the directors consider that the quality of service and continued investment in the packaging business will enable the company to maintain a strong position. Raw material prices are also considered a key area for focus.

On behalf of the board

Mr N Bramfitt
Director
13 March 2025
KENTMERE 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 the manufacture and sale of plain and printed packaging to a wide customer base covering a range of diverse industries.

Results and dividends

The results for the year are set out on page 8.

Interim ordinary dividends were paid amounting to £367,368. 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:

Mr S P Mulvaney
Mr N Bramfitt
Future developments

The directors anticipate the business environment will remain competitive. The market place appears to have now settled and there is beginning to be signs of stability in prices. Raw materials are now readily available.The directors believe that the company is in a good financial position and that the risks that have been identified are being well managed. The directors believe the company will continue to trade successfully in the foreseeable future.

Auditor

The auditor, Barlow Andrews LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Matters of strategic importance

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has been done so in respect of financial instruments.

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.

On behalf of the board
Mr N Bramfitt
Director
13 March 2025
KENTMERE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

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

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

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

KENTMERE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENTMERE LIMITED
- 5 -
Opinion

We have audited the financial statements of Kentmere 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

KENTMERE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENTMERE 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:

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.

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

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

KENTMERE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENTMERE LIMITED (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Cornes (Senior Statutory Auditor)
For and on behalf of Barlow Andrews LLP, Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
13 March 2025
KENTMERE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
7,239,066
7,560,957
Cost of sales
(5,871,343)
(5,978,110)
Gross profit
1,367,723
1,582,847
Distribution costs
(357,315)
(370,833)
Administrative expenses
(556,878)
(484,196)
Other operating income
18,094
5,730
Exceptional item
4
(967,000)
-
0
Operating (loss)/profit
5
(495,376)
733,548
Interest receivable and similar income
8
20,491
1,160
Interest payable and similar expenses
9
(765)
(19,512)
Amounts written off investments
10
24,005
-
(Loss)/profit before taxation
(451,645)
715,196
Tax on (loss)/profit
11
(106,631)
(184,919)
(Loss)/profit for the financial year
(558,276)
530,277
Other comprehensive income
Actuarial gain/(loss) on defined benefit pension schemes
165,000
(124,000)
Tax relating to other comprehensive income
161,595
31,000
Total comprehensive income for the year
(231,681)
437,277

The profit and loss account has been prepared on the basis that all operations are continuing operations.

KENTMERE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,133,370
2,300,566
Investment property
14
687,499
635,924
2,820,869
2,936,490
Current assets
Stocks
15
1,103,958
745,270
Debtors
16
1,180,631
1,254,455
Cash at bank and in hand
1,431,512
1,935,066
3,716,101
3,934,791
Creditors: amounts falling due within one year
17
(937,428)
(941,474)
Net current assets
2,778,673
2,993,317
Total assets less current liabilities
5,599,542
5,929,807
Creditors: amounts falling due after more than one year
18
(32,040)
(38,506)
Provisions for liabilities
Deferred tax liability
20
(333,173)
(524,923)
(333,173)
(524,923)
Net assets excluding pension surplus
5,234,329
5,366,378
Defined benefit pension surplus
21
183,000
650,000
Net assets
5,417,329
6,016,378
Capital and reserves
Called up share capital
22
1,912,600
1,912,600
Capital redemption reserve
23
8,000
8,000
Profit and loss reserves
23
3,496,729
4,095,778
Total equity
5,417,329
6,016,378
KENTMERE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -

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 13 March 2025 and are signed on its behalf by:
Mr N Bramfitt
Director
Company registration number 00087803 (England and Wales)
KENTMERE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
1,912,600
8,000
3,888,106
5,808,706
Year ended 31 December 2023:
Profit
-
-
530,277
530,277
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
(124,000)
(124,000)
Tax relating to other comprehensive income
-
-
31,000
31,000
Total comprehensive income
-
-
437,277
437,277
Dividends
12
-
-
(229,605)
(229,605)
Balance at 31 December 2023
1,912,600
8,000
4,095,778
6,016,378
Year ended 31 December 2024:
Loss
-
-
(558,276)
(558,276)
Other comprehensive income:
Actuarial losses on defined benefit plans
-
-
165,000
165,000
Tax relating to other comprehensive income
-
-
161,595
161,595
Total comprehensive income
-
-
(231,681)
(231,681)
Dividends
12
-
-
(367,368)
(367,368)
Balance at 31 December 2024
1,912,600
8,000
3,496,729
5,417,329
KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Kentmere Limited is a private company limited by shares incorporated in England and Wales. The registered office is Staveley, Kendal.

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, modified to include investment properties and certain financial instruments at fair value. 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:

 

 

The financial statements of the company are consolidated in the financial statements of Kentmere Cartons Ltd. These consolidated financial statements are available from its registered office, Staveley, Kendal.

1.2
Prior period error

An adjustment has been made to correct a prior year error in regard to raw material stocks. Raw material stock, in the balance sheet, has been reduced by £111,142 and cost of sales increased by £111,142. The prior period adjustment has resulted in a reduction corporation tax of £26,141. See note 26.

1.3
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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attached to the product have been transferred to the customer.

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Turnover 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.

1.5
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% and 10% on cost
Plant and equipment
10% on cost
Computers
25% on cost
Motor vehicles
25% on cost

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.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
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). Recoverable amount is the higher of fair value less costs to sell and value in use. 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.

1.8
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.

 

Finished goods stocks are stated at sales price less gross profit margin.

 

Cost is calculated using the FIFO method.

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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.10
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

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, 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.

 

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.

Derecognition of financial liabilities

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

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
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.

1.12
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences. Such liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged in the profit and loss account, except when it relates to items charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax liabilities are offset when the company has a legally enforceable right to offset current tax liabilities and the deferred tax liabilities relate to taxes levied by the same tax authority.

1.13
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.

 

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

1.14
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.15
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.

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

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.

Tangible fixed assets

Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of packaging
7,239,066
7,560,957
KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other significant revenue
Interest income
20,491
1,160
4
Exceptional item
2024
2023
£
£
Expenditure
Loss on sale of defined benefit pension scheme
967,000
-
5
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
15,000
Depreciation of owned tangible fixed assets
190,465
199,269
Depreciation of tangible fixed assets held under finance leases
17,250
17,250
Profit on disposal of tangible fixed assets
(500)
(27,494)
6
Employees

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

2024
2023
Number
Number
Administrative staff
8
8
Production staff
43
47
Total
51
55

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,872,779
1,886,900
Social security costs
182,376
194,496
Pension costs
35,893
26,302
2,091,048
2,107,698
KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
231,682
290,298
Company pension contributions to defined contribution schemes
10,319
9,828
242,001
300,126

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
112,913
172,097
Company pension contributions to defined contribution schemes
10,319
9,828

The directors are considered to be the key management personnel.

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
20,491
1,160
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
765
19,512
10
Fair value gains
2024
2023
£
£
Fair value gains on financial instruments
Change in value of financial assets held at fair value through profit or loss
24,005
-
0
KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Taxation
2024
2023
As restated
£
£
Current tax
UK corporation tax on profits for the current period
136,786
144,278
Deferred tax
Origination and reversal of timing differences
(30,155)
40,641
Total tax charge
106,631
184,919

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

2024
2023
£
£
(Loss)/profit before taxation
(451,645)
715,196
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(112,911)
168,214
Tax effect of expenses that are not deductible in determining taxable profit
204,093
(45,993)
Gains not taxable
5,876
-
0
Permanent capital allowances in excess of depreciation
39,728
22,057
Deferred tax
(30,155)
40,641
Taxation charge for the year
106,631
184,919

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(161,595)
(31,000)

Change in tax rates

The corporation tax rate increased from 19% to 25% from 1 April 2023. This was substantively enacted by the UK government on the 14 October 2022.

 

As two corporation tax rates were used in the comparative financial year, a hybrid tax rate has been apportioned in determining Kentmere Limited's corporation tax charge for the year ended 31 December 2023.

 

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
12
Dividends
2024
2023
£
£
Interim paid
367,368
229,605
13
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
1,483,671
1,828,956
123,094
333,542
3,769,263
Additions
4,945
-
0
8,124
27,450
40,519
At 31 December 2024
1,488,616
1,828,956
131,218
360,992
3,809,782
Depreciation and impairment
At 1 January 2024
385,735
817,037
119,257
146,668
1,468,697
Depreciation charged in the year
58,705
66,150
3,681
79,179
207,715
At 31 December 2024
444,440
883,187
122,938
225,847
1,676,412
Carrying amount
At 31 December 2024
1,044,176
945,769
8,280
135,145
2,133,370
At 31 December 2023
1,097,936
1,011,919
3,837
186,874
2,300,566

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
30,188
47,438
KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
14
Investment property
2024
£
Fair value
At 1 January 2024
635,924
Purchase of investment property improvements
27,570
Net gains or (losses) through fair value adjustments
24,005
At 31 December 2024
687,499

Investment properties were revalued at 22 January 2025 by Edwin Thompson LLP, an independent valuers not connected with the company on the bases of market value. The valuation dated 22 January 2025 is deemed appropriate for the valuation as at the balance sheet date. The valuation conforms to International Valuation Standards.

 

The historical cost of the investment property is £60,789 (2023: £33,219)

15
Stocks
2024
2023
As restated
£
£
Raw materials and consumables
571,263
365,896
Work in progress
215,085
125,988
Finished goods and goods for resale
317,610
253,386
1,103,958
745,270
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,046,903
1,189,878
Corporation tax recoverable
26,141
-
0
Other debtors
1,000
1,000
Prepayments and accrued income
106,587
63,577
1,180,631
1,254,455
KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
17
Creditors: amounts falling due within one year
2024
2023
As restated
Notes
£
£
Obligations under finance leases
19
6,466
6,466
Trade creditors
373,737
336,478
Corporation tax
136,786
144,278
Other taxation and social security
165,268
261,823
Other creditors
7,309
9,685
Accruals and deferred income
247,862
182,744
937,428
941,474

Included within accruals is a £183,000 balance in relation to the provision against the pension scheme balance. Post year end the scheme is in the process of being closed and no monies will be returned to Kentmere Limited.

18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
32,040
38,506
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
6,466
6,466
In two to five years
32,040
38,506
38,506
44,972

Finance lease payments represent rentals payable by the company for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the asset. The lease term is 49 months from October 2022, with the lease ending September 2026 . All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
244,898
272,418
Revaluations
88,275
90,910
Short term timing differences
-
161,595
333,173
524,923
2024
Movements in the year:
£
Liability at 1 January 2024
524,923
Credit to profit or loss
(30,155)
Credit to other comprehensive income
(161,595)
Liability at 31 December 2024
333,173

The deferred taxation liability in regard to the accelerated capital allowances is expected to reverse over the life of the assets.

 

The deferred taxation balance in regard to the investment property revaluations will reverse on the sale of the properties.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
75,346
34,302

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.

Defined benefit schemes

The company operates a defined benefit scheme for qualifying employees. Under the scheme the employees are entitled to retirement benefits as a proportion of final salary on attainment of a retirement age of 65. No other post retirement benefits are provided.

 

The most recent comprehensive actuarial valuation of the plan assets and the present value of the defined benefit obligation was carried out at 30 September 2021.

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Retirement benefit schemes
(Continued)
- 24 -
2024
2023
Key assumptions
%
%
Discount rate
5.5
4.8
Expected rate of increase of pensions in payment
3.7
3.7
Expected rate of salary increases
0.0
3.0
Retail price inflation
3.4
3.4
Consumer price inflation
3.0
3.0
Deferred pension revaluation
2.5
2.5
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
21.9
21.9
- Females
24.7
24.7
Retiring in 20 years
- Males
24.1
24.1
- Females
27.0
27.0
Amounts recognised in the profit and loss account
2024
2023
Costs/(income):
£
£
Current service cost
10,000
26,000
Net interest on net defined benefit liability/(asset)
(33,000)
(34,000)
The effect of any curtailment or settlement
784,000
-
Total costs/(income)
761,000
(8,000)
Amounts recognised in other comprehensive income
2024
2023
Costs/(income):
£
£
Actual return on scheme assets
(80,000)
(128,000)
Less: calculated interest element
438,000
478,000
Return on scheme assets excluding interest income
358,000
350,000
Actuarial changes related to obligations
(523,000)
(226,000)
Total costs/(income)
(165,000)
124,000
KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Retirement benefit schemes
(Continued)
- 25 -

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

2024
2023
Liabilities/(assets):
£
£
Present value of defined benefit obligations
-
8,883,000
Fair value of plan assets
(183,000)
(9,533,000)
Surplus in scheme
(183,000)
(650,000)

The £183,000 asset surplus relates to monies held by the pension scheme to cover future liabilities upon final closure of the full scheme. An accrual of £183,000 has been provided (see note 17) to account for these expenses.

2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 January 2024
8,883,000
Current service cost
10,000
Plan introductions, changes, curtailments and settlements
(8,288,000)
Benefits paid
(490,000)
Contributions from scheme members
3,000
Actuarial gains and losses
(523,000)
Interest cost
405,000
At 31 December 2024
-

The defined benefit obligations arise from plans which are wholly or partly funded.

2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 January 2024
9,533,000
Interest income
438,000
Return on plan assets (excluding amounts included in net interest)
(358,000)
Plan introductions, changes, curtailments and settlements
(9,072,000)
Benefits paid
(490,000)
Contributions by the employer
129,000
Contributions by scheme members
3,000
At 31 December 2024
183,000

The £183,000 asset surplus relates to monies held by the pension scheme to cover future liabilities upon final closure of the full scheme. An accrual of £183,000 has been provided (see note 17) to account for these expenses.

 

The actual return on plan assets was £80,000 (2023 - £128,000).

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Retirement benefit schemes
(Continued)
- 26 -
2024
2023
Fair value of plan assets
£
£
Equity instruments
-
1,450,000
Property
-
284,000
Bonds
-
881,000
Insured pensions
-
6,690,000
Cash
183,000
228,000
183,000
9,533,000
Other long term benefits

The English High Court ruling in Lloyds Banking Group Pension Trustees Limited v Lloyds Bank plc and others was published on 20 November 2020 and held that UK pension schemes with Guaranteed Minimum Pensions (GMPs) accrued from 17 May 1990 must equalise for the different effects of these GMPs between men and women. The case also gave some guidance on related matters, including the methods for equalisation.

 

The company plan did not contract out until 2003 when GMPs were no longer available and so the pension scheme is unaffected by this legislation

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share capital of £1 each
1,875,100
1,875,100
1,875,100
1,875,100
Ordinary shares of 50p each
75,000
75,000
37,500
37,500
1,950,100
1,950,100
1,912,600
1,912,600

All shares rank pari passu with all other classes of shares with respect to having the right to attend and vote at general meetings and rights to dividends.

23
Reserves
Capital redemption reserve

A non-distributable reserve into which amounts are transferred following the redemption of purchases of the company's own shares.

Profit and loss reserves

Cumulative profit and loss net of distributions to it's owners. Included within the profit and loss reserve is £632,423 (2023: £608,418) of un-distributable reserves relating to previous property revaluations.

24
Related party transactions

Officers of the parent company, that are not directors of the company, and close family members, have received employee benefits of £164,983 (2023: £159,321) during the year.

KENTMERE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
25
Parent company

The parent company is Kentmere Cartons Ltd, a company registered in England and Wales. The

registered office of the parent is Staveley, Kendal.

 

Kentmere Cartons Ltd is under the control of the Mulvaney family.

 

Kentmere Cartons Ltd prepares group financial statements and copies can be obtained from Companies House, Crown Way, Maindy, Cardiff.

 

26
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2023
2023
£
£
Adjustments to prior year
Raw materials deemed obsolete
-
(111,142)
Corporation tax
-
26,141
Total adjustments
-
(85,001)
Equity as previously reported
5,808,706
6,101,379
Equity as adjusted
5,808,706
6,016,378
Analysis of the effect upon equity
Profit and loss reserves
-
(85,001)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Raw materials deemed obsolete
(111,142)
Corporation tax
26,141
Total adjustments
(85,001)
Profit as previously reported
615,278
Profit as adjusted
530,277
Notes to reconciliation
Raw materials

An adjustment has been made to correct a prior year error in regard to raw material stocks. Raw material stock, in the balance sheet, has been reduced by £111,142 and cost of sales increased by £111,142. The prior period adjustment has resulted in a reduction corporation tax of £26,141.

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