Company registration number 05866459 (England and Wales)
TECH FOLIEN LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
TECH FOLIEN LTD
COMPANY INFORMATION
Directors
D Lawton
A Lester
Secretary
S Bessant
Company number
05866459
Registered office
Triumph Trading Park
Speke Hall Road
Liverpool
Merseyside
United Kingdom
L24 9GQ
Auditor
Azets Audit Services
98 King Street
Manchester
M2 4WU
Bankers
Lloyds Bank plc
42-46 Market Street
Manchester
M1 1PW
TECH FOLIEN LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 20
TECH FOLIEN 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
2024 was not the rebound we all expected.
Turnover for 2024 was £9,273,119 which was a 14% increase on 2023 although substantially lower than our original budget. After a slow start to 2024 sales began to increase throughout the year due to new markets being explored.
EU sales were £10.5k less than 2023 at £2,490,615 which resulted in a reduction in overall sales from 29.9% to 26.5%.
In April our energy contract ended and we renewed our contract with a new broker at pre-Ukraine war levels.
Principal risks and uncertainties
The petro-chemical industry still remains volatile but increasing volumes of raw materials from the US based on shale gas are readily available. The pressure is now on European oil based producers to compete with this. Potential US tariffs on imports would have some effect although only 2.6% of our business is for the US. Russia still poses a threat and has an influence on energy pricing due to the uncertainty and Trump regaining the Presidency creates a global unpredictability.
Key performance indicators
The directors consider the following to be key performance indicators for the business:
Turnover - The directors monitor turnover as this respresents the overall growth in scale of the business and is an indicator of market penetration. The company achieved turnover of £9,273,119 in the year compared with £8,140,190 in 2023. The result is lower than target for 2024 but the increase on the previous year was due to greater market pentetration for our product range.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) - The directors monitor this performance indicator as this provides a key metric in determining shareholder value. EBITDA for 2024 is £410,900, compared with £73,934 in 2023. Overall growth in turnover and significant improvement in gross profit percentage has driven this improvement in EBITDA.
Financial instrument risks
Liquidity risk
The company's principle source of liquidity comes from its operational activities. The company is not reliant on external debt sources for its cash needs.
Foreign currency risk
The company's principle foreign currency exposure arises from trading with overseas companies. The company holds foreign bank accounts to negate this risk.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
A Lester
Director
11 April 2025
TECH FOLIEN LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company is the manufacture and distribution of speciality Polyethylene and Polypropylene films.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Lester
D Lawton
Auditor
The auditor, Azets Audit Services is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
TECH FOLIEN LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
On behalf of the board
A Lester
Director
11 April 2025
TECH FOLIEN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF TECH FOLIEN LTD
- 4 -
Opinion
We have audited the financial statements of Tech Folien Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet, the 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TECH FOLIEN LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TECH FOLIEN LTD
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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.
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.
TECH FOLIEN LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF TECH FOLIEN LTD
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Ashley Conway
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
TECH FOLIEN LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
9,273,119
8,140,190
Cost of sales
(7,370,174)
(6,807,352)
Gross profit
1,902,945
1,332,838
Distribution costs
(770,729)
(631,067)
Administrative expenses
(954,114)
(858,013)
Operating profit/(loss)
4
178,102
(156,242)
Interest receivable and similar income
23,711
Profit/(loss) before taxation
178,102
(132,531)
Tax on profit/(loss)
7
(23,469)
2,948
Profit/(loss) for the financial year
154,633
(129,583)
Retained earnings brought forward
3,735,455
4,645,699
Dividends
8
(780,661)
Retained earnings carried forward
3,890,088
3,735,455
TECH FOLIEN LTD
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,684,260
1,744,567
Current assets
Stocks
10
1,269,064
1,286,855
Debtors
11
1,964,121
1,441,470
Cash at bank and in hand
1,259,510
1,287,526
4,492,695
4,015,851
Creditors: amounts falling due within one year
12
(1,770,889)
(1,532,454)
Net current assets
2,721,806
2,483,397
Total assets less current liabilities
4,406,066
4,227,964
Provisions for liabilities
Deferred tax liability
13
365,978
342,509
(365,978)
(342,509)
Net assets
4,040,088
3,885,455
Capital and reserves
Called up share capital
16
150,000
150,000
Profit and loss reserves
17
3,890,088
3,735,455
Total equity
4,040,088
3,885,455
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
A Lester
Director
Company Registration No. 05866459
TECH FOLIEN LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
144,475
1,676,447
Investing activities
Purchase of tangible fixed assets
(172,491)
(733,837)
Interest received
23,711
Net cash used in investing activities
(172,491)
(710,126)
Financing activities
Dividends paid
(780,661)
Net cash used in financing activities
-
(780,661)
Net (decrease)/increase in cash and cash equivalents
(28,016)
185,660
Cash and cash equivalents at beginning of year
1,287,526
1,101,866
Cash and cash equivalents at end of year
1,259,510
1,287,526
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
Accounting policies
Company information
Tech Folien Ltd is a private company limited by shares incorporated in England and Wales. The principal place of business is Triumph Trading Park, Speke Hall Road, Liverpool L24 9GQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Long leasehold property
2% straight line
Plant and machinery
20% straight line
Fixtures and fittings
20% straight line
Equipment
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 11 -
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply.
1.6
Stocks
Raw materials are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Work in progress and finished goods are valued on the basis of selling price less the gross margin. Additionally work in progress is reduced by any costs to complete.
Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
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.
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using discounted cash flow and comparable transactions. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.14
Leases
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
Development costs are charged to the profit and loss account as incurred.
1.17
Finance costs are charged to the profit and loss account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
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.
It is the directors' opinion that there are no significant judgements or key sources of estimation uncertainty within these financial statements.
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
6,496,146
5,286,448
Europe
2,566,562
2,679,363
Rest of the World
210,411
174,379
9,273,119
8,140,190
2024
2023
£
£
Other revenue
Interest income
23,711
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange losses
61,950
47,996
Fees payable to the company's auditor for the audit of the company's financial statements
25,500
23,650
Depreciation of owned tangible fixed assets
232,798
230,176
Operating lease charges
132,227
140,680
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and admin
9
9
Production
25
23
Total
34
32
2024
2023
£
£
Wages and salaries
1,353,091
1,217,832
Social security costs
133,199
121,432
Pension costs
106,334
105,183
1,592,624
1,444,447
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
165,460
139,742
Company pension contributions to defined contribution schemes
24,646
24,305
190,106
164,047
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
The number of directors who are entitled to receive shares under long term incentive schemes during the year was 1 (2023 - 1).
7
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(112,068)
Deferred tax
Origination and reversal of timing differences
23,469
109,120
Total tax charge/(credit)
23,469
(2,948)
2024
2023
£
£
Profit/(loss) before taxation
178,102
(132,531)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
44,526
(31,171)
Tax effect of expenses that are not deductible in determining taxable profit
12,803
283
Adjustments in respect of prior years
(112,068)
Effect of change in corporation tax rate
6,457
Group relief
(39,294)
138,732
Depreciation on assets not qualifying for tax allowances
5,434
5,551
Super deduction allowance
(10,732)
Taxation charge/(credit) for the year
23,469
(2,948)
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
8
Dividends
2024
2023
£
£
Final paid
780,661
9
Tangible fixed assets
Long leasehold property
Plant and machinery
Fixtures and fittings
Equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
943,356
3,739,197
178,909
148,753
5,010,215
Additions
162,152
9,365
974
172,491
At 31 December 2024
943,356
3,901,349
188,274
149,727
5,182,706
Depreciation and impairment
At 1 January 2024
267,643
2,703,304
165,354
129,347
3,265,648
Depreciation charged in the year
19,360
196,944
9,661
6,833
232,798
At 31 December 2024
287,003
2,900,248
175,015
136,180
3,498,446
Carrying amount
At 31 December 2024
656,353
1,001,101
13,259
13,547
1,684,260
At 31 December 2023
675,713
1,035,893
13,555
19,406
1,744,567
10
Stocks
2024
2023
£
£
Raw materials and consumables
758,069
796,128
Finished goods and goods for resale
510,995
490,727
1,269,064
1,286,855
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,696,708
1,318,891
Amounts owed by group undertakings
148,427
Other debtors
5,801
13,547
Prepayments and accrued income
113,185
109,032
1,964,121
1,441,470
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Debtors
(Continued)
- 18 -
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,267,353
1,134,569
Amounts owed to group undertakings
149,867
149,867
Taxation and social security
139,941
43,226
Other creditors
11,405
Accruals and deferred income
202,323
204,792
1,770,889
1,532,454
13
Deferred taxation
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
368,771
371,458
Tax losses
-
(28,949)
Short term timing differences
(2,793)
-
365,978
342,509
2024
Movements in the year:
£
Liability at 1 January 2024
342,509
Charge to profit or loss
23,469
Liability at 31 December 2024
365,978
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,334
105,183
The company operates a defined contribution pension scheme for all qualifying employees. At the balance sheet date, the company owed £11,225 (2023: £nil) to the scheme.
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
15
Share-based payment transactions
The company participates in share based payment plan from the parent company for certain employees, and recognises and measures its share based payment expense on the basis of a reasonable allocation of the expense recognised for the group. The allocation is based on the number of employees benefiting from the share based payment plan employed by the entity.
At the balance sheet date, there are 3,336 share options outstanding (2023: 3,336).
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
150,000
150,000
150,000
150,000
The rights of the ordinary shares are detailed in the articles of association.
17
Profit and loss reserves
Profit and loss reserves represent accumulated profits less equity dividends paid.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
113,937
111,464
Between two and five years
441,835
420,000
In over five years
481,849
587,317
1,037,621
1,118,781
19
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
82,081
TECH FOLIEN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
20
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption provided in FRS 102 from disclosing transactions with members of the same group that are wholly owned.
At the balance sheet date, the company owed monies to fellow group companies MDV Papier GmbH of £nil (2023: £4,400), and Arjobex Polyart Ltd £131,904 (2023: £131,904), Arjobex SAS £nil (2023: £1,355) and Arjobex America Inc of £127 (2023: £56,049 owed from).
Also at the balance sheet date, there are monies owing from Arjobex Holding UK Limited £130,468 (2023: £4,461), a fellow group company. These balances are repayable on demand.
Interest was charged by the company on the balance with Arjobex Holding UK Limited of £nil (2023: £8,567) and Arjobex America £nil (2023: £10,832). The movement in the balances in the year represents cash movements between the group companies.
21
Ultimate controlling party
The immediate parent company is Arjobex Holding UK Ltd. The ultimate parent company is Prudentia Capital, a company incorporated in France.
22
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
154,633
(129,583)
Adjustments for:
Taxation charged/(credited)
23,469
(2,948)
Investment income
(23,711)
Depreciation and impairment of tangible fixed assets
232,798
230,176
Movements in working capital:
Decrease in stocks
17,791
354,831
(Increase)/decrease in debtors
(522,651)
747,414
Increase in creditors
238,435
500,268
Cash generated from operations
144,475
1,676,447
23
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,287,526
(28,016)
1,259,510
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