Company registration number 13104334 (England and Wales)
KENTMERE CARTONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KENTMERE CARTONS LTD
COMPANY INFORMATION
Directors
Mr S P Mulvaney
Mr N Bramfitt
Mr J Gillibrand
Mrs N Walsh
Secretary
Mrs K Mulvaney
Company number
13104334
Registered office
Kentmere Road
Staveley
Kendal
Cumbria
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
KENTMERE CARTONS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
KENTMERE CARTONS LTD
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 group are as follows:
2024
2023
£
£
Turnover
7,239,066
7,560,957
Profit before exceptional costs and taxation
1,100,124
1,299,965
Gross profit margin
18.89%
20.93%
Net current assets
2,778,673
2,993,317
Profit and loss reserves
4,312,275
4,326,555
The directors monitor the performance of the group by reference to management information produced on a quarterly basis.
The results for the financial position of the group 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 group 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 (2023: £229,605) have been made to shareholders. The directors support a prudent approach to dividend distribution to ensure that cash reserves are available in the event of unforeseen trading circumstances arising.
The directors are satisfied with the performance of the group during the year.
At the year end, shareholders' funds amounted to £4,735,100 (2023: £4,749,380). The directors believe the group's position to be financially robust, particularly given that current assets excess current liabilities to the extent of £2,778,673.
Having assessed the main risks facing the group, the directors believe that both product quality and the high level of customer service provided are such as to give a realistic expectation of continued growth and satisfactory trading results in the coming year.
KENTMERE CARTONS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
The company is set up as a holding company to, trading subsidiary, Kentmere Limited and incurs very few transactions within their own financial statements.
The trading subsidiary, Kentmere Limited, makes little use of financial instruments other than an operational bank account.
The group'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 group.
The management's main objective is to:
Retain sufficient liquid funds to enable the group to meet its day to day obligations as they fall due whilst maximising return on surplus funds within Kentmere Limited.
The directors have assessed the main risk facing the group 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 group to maintain a strong position. Raw material prices are also considered a key area for focus.
Mr N Bramfitt
Director
18 March 2025
KENTMERE CARTONS LTD
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 Kentmere Cartons Ltd continues to be that of a holding company. The principal activity of the trading subsidiary, Kentmere Limited, is to manufacture and sell 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.
Ordinary dividends were paid amounting to £367,368. The directors do not recommend payment of a further 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
Mr J Gillibrand
Mrs N Walsh
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 group is in a good financial position and that the risks that have been identified are being well managed. The directors believe the group 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.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 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 auditor of the company 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 auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr N Bramfitt
Director
18 March 2025
KENTMERE CARTONS LTD
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 group and company, 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
KENTMERE CARTONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KENTMERE CARTONS LTD
- 5 -
Opinion
We have audited the financial statements of Kentmere Cartons Ltd (the 'parent company') and its subsidiary (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
KENTMERE CARTONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KENTMERE CARTONS LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
KENTMERE CARTONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KENTMERE CARTONS LTD
- 7 -
We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative or potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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
18 March 2025
KENTMERE CARTONS LTD
GROUP 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
27,891
100,573
Other operating income
18,094
5,730
Exceptional item
4
(967,000)
Operating profit
5
89,393
1,318,317
Interest receivable and similar income
9
20,491
1,160
Interest payable and similar expenses
10
(765)
(19,512)
Amounts written off investments
11
24,005
-
Profit before taxation
133,124
1,299,965
Tax on profit
12
(106,631)
(184,919)
Profit for the financial year
26,493
1,115,046
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
353,088
1,022,046
Total comprehensive income for the year is all attributable to the owners of the parent company.
KENTMERE CARTONS LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Negative goodwill
14
(682,229)
(1,266,998)
Tangible assets
15
2,133,370
2,300,566
Investment properties
16
687,499
635,924
2,138,640
1,669,492
Current assets
Stocks
19
1,103,958
745,270
Debtors
20
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
21
(937,428)
(941,474)
Net current assets
2,778,673
2,993,317
Total assets less current liabilities
4,917,313
4,662,809
Creditors: amounts falling due after more than one year
22
(32,040)
(38,506)
Provisions for liabilities
Deferred tax liability
24
(333,173)
(524,923)
(333,173)
(524,923)
Net assets excluding pension surplus
4,552,100
4,099,380
Defined benefit pension surplus
25
183,000
650,000
Net assets
4,735,100
4,749,380
Capital and reserves
Called up share capital
26
183,684
183,684
Share premium account
27
239,141
239,141
Profit and loss reserves
27
4,312,275
4,326,555
Total equity
4,735,100
4,749,380
KENTMERE CARTONS LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 18 March 2025 and are signed on its behalf by:
18 March 2025
Mr N Bramfitt
Director
Company registration number 13104334 (England and Wales)
KENTMERE CARTONS LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
17
3,625,785
3,625,785
Capital and reserves
Called up share capital
26
183,684
183,684
Share premium account
27
239,141
239,141
Profit and loss reserves
27
3,202,960
3,202,960
Total equity
3,625,785
3,625,785
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £367,368 (2023 - £229,605 profit).
The financial statements were approved by the board of directors and authorised for issue on 18 March 2025 and are signed on its behalf by:
18 March 2025
Mr N Bramfitt
Director
Company registration number 13104334 (England and Wales)
KENTMERE CARTONS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
183,684
239,141
3,534,114
3,956,939
Year ended 31 December 2023:
Profit for the year
-
-
1,115,046
1,115,046
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 for the year
-
-
1,022,046
1,022,046
Dividends
13
-
-
(229,605)
(229,605)
Balance at 31 December 2023
183,684
239,141
4,326,555
4,749,380
Year ended 31 December 2024:
Profit for the year
-
-
26,493
26,493
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 for the year
-
-
353,088
353,088
Dividends
13
-
-
(367,368)
(367,368)
Balance at 31 December 2024
183,684
239,141
4,312,275
4,735,100
KENTMERE CARTONS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
183,684
239,141
3,202,960
3,625,785
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
229,605
229,605
Dividends
13
-
-
(229,605)
(229,605)
Balance at 31 December 2023
183,684
239,141
3,202,960
3,625,785
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
367,368
367,368
Dividends
13
-
-
(367,368)
(367,368)
Balance at 31 December 2024
183,684
239,141
3,202,960
3,625,785
KENTMERE CARTONS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
88,562
2,124,986
Interest paid
(765)
(19,512)
Income taxes paid
(170,419)
(329,885)
Net cash (outflow)/inflow from operating activities
(82,622)
1,775,589
Investing activities
Purchase of tangible fixed assets
(40,519)
(128,679)
Proceeds from disposal of tangible fixed assets
500
39,554
Purchase of investment property improvements
(27,570)
-
Interest received
20,491
1,160
Net cash used in investing activities
(47,098)
(87,965)
Financing activities
Repayment of bank loans
-
(463,986)
Payment of finance leases obligations
(6,466)
(6,466)
Dividends paid to equity shareholders
(367,368)
(229,605)
Net cash used in financing activities
(373,834)
(700,057)
Net (decrease)/increase in cash and cash equivalents
(503,554)
987,567
Cash and cash equivalents at beginning of year
1,935,066
947,499
Cash and cash equivalents at end of year
1,431,512
1,935,066
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information
Kentmere Cartons Ltd ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is Kentmere Road, Staveley, Kendal.
The group consists of Kentmere Cartons Ltd and its subsidiary.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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 33.
1.3
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination.
The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
Investments in subsidiaries are accounted for at cost less impairment.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Kentmere Cartons Ltd together with all entities controlled by the parent company (its subsidiary).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.5
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.6
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.
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.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.8
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 recognised in the profit and loss account.
1.9
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.
1.10
Fixed asset investments
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.11
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs to sell and value in use. 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.
1.12
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.
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.
1.13
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Financial instruments
The group 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 group's balance sheet when the group 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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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 group's contractual obligations expire or are discharged or cancelled.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.15
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.16
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.
1.17
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.
1.18
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 CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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.
1.19
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 group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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 CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£
£
Other 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 profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
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)
Release of negative goodwill
(584,769)
(584,769)
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,800
3,800
Audit of the financial statements of the company's subsidiaries
16,000
15,000
19,800
18,800
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
8
8
4
4
Production
43
47
-
-
Total
51
55
4
4
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Employees
(Continued)
- 22 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
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
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
292,212
350,287
Company pension contributions to defined contribution schemes
11,268
10,776
303,480
361,063
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above includes 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.
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
20,491
1,160
10
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
765
19,512
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
11
Fair value profit and loss adjustments
2024
2023
£
£
Fair value gains on financial instruments
Change in value of financial assets held at fair value through profit or loss
24,005
-
12
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 charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
133,124
1,299,965
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
33,281
305,752
Tax effect of expenses that are not deductible in determining taxable profit
204,093
(45,993)
Tax effect of income not taxable in determining taxable profit
(146,192)
(137,538)
Gains not taxable
5,876
Permanent capital allowances in excess of depreciation
39,728
22,057
Deferred tax at 25/19%
(30,155)
40,641
Taxation charge
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)
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Taxation
(Continued)
- 24 -
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 the group corporation tax charge for the year ended 31 December 2023.
13
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
367,368
229,605
14
Intangible fixed assets
Group
Negative goodwill
£
Cost
At 1 January 2024 and 31 December 2024
(2,923,843)
Amortisation and impairment
At 1 January 2024
(1,656,845)
Amortisation charged for the year
(584,769)
At 31 December 2024
(2,241,614)
Carrying amount
At 31 December 2024
(682,229)
At 31 December 2023
(1,266,998)
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
15
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
1,270,599
1,220,281
31,911
308,042
2,830,833
Additions
4,945
8,124
27,450
40,519
At 31 December 2024
1,275,544
1,220,281
40,035
335,492
2,871,352
Depreciation and impairment
At 1 January 2024
172,666
208,359
28,072
121,170
530,267
Depreciation charged in the year
58,705
66,150
3,681
79,179
207,715
At 31 December 2024
231,371
274,509
31,753
200,349
737,982
Carrying amount
At 31 December 2024
1,044,173
945,772
8,282
135,143
2,133,370
At 31 December 2023
1,097,933
1,011,922
3,839
186,872
2,300,566
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
30,188
47,438
16
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024 and 31 December 2024
635,924
-
Additions through external acquisition
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)
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
17
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
18
3,625,785
3,625,785
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
3,625,785
Carrying amount
At 31 December 2024
3,625,785
At 31 December 2023
3,625,785
18
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Kentmere Limited
Staveley, Kendal
Manufacture and sale of plain and printed packaging to a wide customer base covering a range of diverse industries.
Ordinary
100.00
19
Stocks
Group
Company
2024
2023
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
-
-
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
20
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,046,903
1,189,878
Corporation tax recoverable
26,141
Other debtors
1,000
1,000
Prepayments and accrued income
106,587
63,577
1,180,631
1,254,455
-
-
21
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
As restated
Notes
£
£
£
£
Obligations under finance leases
23
6,466
6,466
Trade creditors
373,737
336,478
Corporation tax payable
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.
22
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
23
32,040
38,506
23
Finance lease obligations
Group
Company
2024
2023
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
-
-
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
23
Finance lease obligations
(Continued)
- 28 -
Finance lease payments represent rentals payable by the group 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.
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
244,898
272,418
Revaluations
88,275
90,910
Short term timing differences
-
161,595
333,173
524,923
The company has no deferred tax assets or liabilities.
Group
Company
2024
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.
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
75,346
34,302
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Retirement benefit schemes
(Continued)
- 29 -
Defined benefit schemes
The group 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.
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
The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:
2024
2023
Group
£
£
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 liabilties upon final closure of the scheme. An accruals of £183,000 has been provided (see note 21) to account for these expenses.
The group had no post employment benefits at 31 December 2024 or 1 January 2024.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Retirement benefit schemes
(Continued)
- 30 -
Group
2024
2023
Amounts recognised in the profit and loss account
£
£
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)
Group
2024
2023
Amounts taken to other comprehensive 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
Group
2024
Movements in the present value of defined benefit obligations
£
Liabilities at acquisition
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.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
25
Retirement benefit schemes
(Continued)
- 31 -
Group
2024
Movements in the fair value of plan assets
£
Fair value of assets at acquisition
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 value of the plan assets relates to monies held for future liabilities within the next 12 months. A provision has been provided (see note 21) to account for these expenses.
The actual return on plan assets was £80,000 (2023: £128,000).
Fair value of plan assets at the reporting period end
Group
2024
2023
£
£
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 groups plan did not contract out until 2003 when GMPs were no longer available and so the pension scheme is unaffected by this legislation
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share capital of £1 each
183,684
183,684
183,684
183,684
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
26
Share capital
(Continued)
- 32 -
The holders of ordinary shares are entitled to full voting rights and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets.
27
Reserves
Share premium
The share premium account includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.
Profit and loss reserves
Cumulative profit and loss net of distributions to it's owners. Included within the profit and loss reserve is £72,246 (2023: £54,242) of un-distributable reserves relating to previous property revaluations.
28
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
24,356
35,000
-
-
Between two and five years
-
24,356
-
-
24,356
59,356
-
-
29
Directors' transactions and related party transactions
Dividends totalling £367,368 (2023: £229,605) were paid in the year in respect of shares held by the company's directors and their close family.
Officers of the parent company, that are not directors of the subsidiary company, and close family members, have received employee benefits of £115,250 (2023: £109,452) during the year.
30
Controlling party
Kentmere Cartons Ltd is under the control of the Mulvaney family.
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
31
Cash generated from group operations
2024
2023
As restated
£
£
Profit after taxation
26,493
1,115,046
Adjustments for:
Taxation charged
106,631
184,919
Finance costs
765
19,512
Investment income
(20,491)
(1,160)
Gain on disposal of tangible fixed assets
(500)
(27,494)
Amortisation and impairment of intangible assets
(584,769)
(584,769)
Depreciation and impairment of tangible fixed assets
207,715
216,519
Other gains and losses
(24,005)
-
Pension scheme non-cash movement
632,000
(198,000)
Movements in working capital:
(Increase)/decrease in stocks
(358,688)
371,728
Decrease in debtors
99,965
1,224,626
Increase/(decrease) in creditors
3,446
(195,941)
Cash generated from operations
88,562
2,124,986
32
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,935,066
(503,554)
1,431,512
Obligations under finance leases
(44,972)
6,466
(38,506)
1,890,094
(497,088)
1,393,006
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
33
Prior period adjustment
Reconciliation of changes in equity - group
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
3,956,939
4,834,381
Equity as adjusted
3,956,939
4,749,380
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
1,200,047
Profit as adjusted
1,115,046
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
229,605
Profit as adjusted
229,605
KENTMERE CARTONS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
33
Prior period adjustment
(Continued)
- 35 -
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.
The prior period adjustment relates to the subsidiary company and therefore the consolidated financial statements as detailed above. This doesn't have any effect upon equity or profit in the parent company's individual financial statements.
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