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REGISTERED NUMBER: 04568580 (England and Wales)












Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 August 2024

for

Advanced Pallet Systems Ltd

Advanced Pallet Systems Ltd (Registered number: 04568580)

Contents of the Financial Statements
for the Year Ended 31 August 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 10

Balance Sheet 11

Cash Flow Statement 12

Notes to the Financial Statements 13


Advanced Pallet Systems Ltd

Company Information
for the Year Ended 31 August 2024







DIRECTORS: Mr A J R Bowes
Mrs K Bowes
Mr M J R Bowes
Mr P J R Bowes



REGISTERED OFFICE: 69 High Street
Bideford
Devon
EX39 2AT



REGISTERED NUMBER: 04568580 (England and Wales)



INDEPENDENT AUDITORS: Sumer Auditco Ltd
Statutory Auditors
69 High Street
Bideford
Devon
EX39 2AT



BUSINESS ADDRESS: Chubb Road
East The Water
Bideford
Devon
EX39 4HE

Advanced Pallet Systems Ltd (Registered number: 04568580)

Strategic Report
for the Year Ended 31 August 2024


The directors present their strategic report for the year ended 31 August 2024.

REVIEW OF BUSINESS
The 2023/2024 financial year saw the business achieve a strong final performance despite an expected reduction in sales level, supported by a focus on tight control over both direct and administrative costs.

The companies key financial indicators showed the turnover for the year decreased by 7.4% to £16,824,931, down from £18,178,241 in 2023. Operating profit for the year was £4,073,376, compared to £4,976,118 in 2023.

The balance sheet shows net assets of £6,696,308 (2023 - £4,803,792) as at 31 August 2024. This includes tangible asset additions of £196,441, reflecting continued investment in and upgrades to machinery.

RESULTS
The results for the year are set out in the statement of comprehensive income on page 10.

PRINCIPAL RISKS AND UNCERTAINTIES
There are several potential risks and uncertainties that could significantly affect the company's performance, leading to outcomes that may differ from both expectations and historical results. The company continuously monitors these operational risks, which are outlined below:

- Operational resources: Ensuring adequate resources to underpin operation is managed through careful financial planning, analysis and continuous forecasting, both financial and operational- as well as maintaining long term relationships with stakeholders.

- Financial risks: The main financial risk is exposure to bad debts. This is mitigated through robust credit control practices, including thorough credit assessments, regular monitoring of customer accounts, and prompt action to address any payment issues.

- Supply chain challenges: Ongoing issues such as raw material shortages, increased transportation costs, and delays, can affect production schedules and increase costs: The company continues to build strategic partnerships with key suppliers to mitigate these risks and enhance overall performance.

The directors consider the principle risks to the business remain unchanged from previous years and will continue with the existing policies and procedures that have successfully supported the business in managing these risks.

The directors are not aware of any significant risks or uncertainties which would cast doubt on the companies ability to continue as a going concern.


Advanced Pallet Systems Ltd (Registered number: 04568580)

Strategic Report
for the Year Ended 31 August 2024

FUTURE DEVELOPMENTS
The company is committed to building on its strong operational foundations and ISO-certified management systems (ISO 9001, ISO 14001and ISO 45001) to support future growth and environmental stewardship. Key areas of development include:

-Sustainable Materials: We are actively reviewing our material sourcing strategy to increase the use of responsibly sourced timber and recycled components, supporting circular economy principles.

- Carbon Footprint Reduction: A roadmap implemented in 2015 continues to evolve as part of our long-term commitment to reducing carbon emissions across operations. This includes ongoing investment in
energy-efficient machinery and potential integration of renewable energy sources.

- Minimising Waste: We are working to further improve our waste management practices, aiming to increase
recycling rates and in alignment with ISO 14001 objectives.

- Sustainable Logistics: Efforts are underway to optimise transport efficiency, reduce fuel usage, and collaborate with logistics partners who share our environmental values.

- Innovation and Technology: The company is exploring the use of digital technologies and automation to improve efficiency and reduce resource consumption across manufacturing and administrative processes.

- Employee Engagement: Sustainability training and awareness programmes are planned to further embed
environmental responsibility across all levels of the business.

These forward-looking initiatives will help the company reduce its environmental impact, meet stakeholder expectations, and contribute positively to long-term sustainability of the manufacturing and packaging industry.

SIGNED ON BEHALF OF THE BOARD:





Mr M J R Bowes - Director


22 May 2025

Advanced Pallet Systems Ltd (Registered number: 04568580)

Report of the Directors
for the Year Ended 31 August 2024


The directors present their report with the financial statements of the company for the year ended 31 August 2024.

PRINCIPAL ACTIVITY
The company's principal activity is to manufacture packaging solutions using wood as the core product, offering tailored and sustainable solutions across the Southwest. We specialise in the manufacturing of pallets and crates to our customers' exact specification but also distribute a wide range of competitively priced paper, plastic and consumable packaging.

DIVIDENDS
Interim dividends of £1,256,328 (2023 - £2,706,328) were voted during the year.

The directors recommend that no final dividend be paid.

The total distribution for the year ended 31 August 2024 will be £1,256,328 (2023 - £2,706,328).

EVENTS SINCE THE END OF THE YEAR
Since the balance sheet date the company has entered into leases on 2 vehicles for 3 years each at a combined annual rental of £54,600.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report.

Mr A J R Bowes
Mrs K Bowes
Mr M J R Bowes
Mr P J R Bowes

POLITICAL DONATIONS AND EXPENDITURE
During the year the company made charitable contributions totalling £4,121 (2023 - £12,855).

DISCLOSURE IN THE STRATEGIC REPORT
Particulars of the financial risk management objectives and policies of the company and future developments are set out in the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.


Advanced Pallet Systems Ltd (Registered number: 04568580)

Report of the Directors
for the Year Ended 31 August 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

SIGNED ON BEHALF OF THE BOARD:





Mr M J R Bowes - Director


22 May 2025

Report of the Independent Auditors to the Members of
Advanced Pallet Systems Ltd


Qualified Opinion
We have audited the financial statements of Advanced Pallet Systems Ltd (the 'company') for the year ended 31 August 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Financial Statements, including a summary of 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, except for the possible effects of the matters described in the Basis for Qualified Opinion section of our report, the accompanying financial statements:

- give a true and fair view of the state of the company's affairs as at 31 August 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.

Basis for qualified opinion
We were not appointed auditors until after 31 August 2022 and thus did not observe the counting of the stock and work in progress at 31 August 2022. We were unable to obtain sufficient appropriate audit evidence about the existence of stock and work in progress of £1,274,190 at 31 August 2022 by using alternative audit procedures. Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 August 2023. Our audit opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures.

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 Auditors' 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 qualified 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.

Key audit matters
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Report of the Independent Auditors to the Members of
Advanced Pallet Systems Ltd


Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

As described in the basis for qualified opinion of our report, we were unable to satisfy ourselves concerning the stock and work in progress quantities of £1,274,190 held at 31 August 2022. We have concluded that where the other information refers to cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006
We were not appointed as auditor of the company until after 31 August 2022 and thus did not observe the counting of physical inventories at the end of the year. We were unable to obtain sufficient appropriate audit evidence about the existence of stock and work in progress of £1,274,190 at 31 August 2022 by using other audit procedures.

Consequently we were unable to determine whether any adjustments to the carrying value at 31 August 2022 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 August 2023. In addition, were any adjustments to the stock and work in progress balance to be required, the strategic report would also need to be amended.

Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, in 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.

Arising solely from the limitation on the scope of our work relating to stock and work in progress, referred to above:

- we have not obtained all the information and explanations that we consider necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records have been kept.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- returns adequate for our audit have not been received by 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.

Report of the Independent Auditors to the Members of
Advanced Pallet Systems Ltd


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities, 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 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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. In common with all audits under UK ISAs we are also required to perform specific procedures to respond to the threat of management override. This work included testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to these laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Health and Safety Act, UK Companies Act and UK tax legislation.

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, relevant regulators and the Company's legal advisors.

We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Report of the Independent Auditors to the Members of
Advanced Pallet Systems Ltd


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




David Sims BSc FCA (Senior Statutory Auditor)
for and on behalf of Sumer Auditco Ltd
Statutory Auditors
69 High Street
Bideford
Devon
EX39 2AT

27 May 2025

Advanced Pallet Systems Ltd (Registered number: 04568580)

Statement of Income and Retained Earnings
for the Year Ended 31 August 2024

2024 2023
Notes £    £   

TURNOVER 4 16,824,931 18,178,241

Cost of sales 11,141,978 11,816,838
GROSS PROFIT 5,682,953 6,361,403

Administrative expenses 1,724,164 1,472,988
3,958,789 4,888,415

Other operating income 114,587 87,703
OPERATING PROFIT 6 4,073,376 4,976,118

Interest receivable and similar income 144,999 51,004
4,218,375 5,027,122

Interest payable and similar expenses 8 3,721 879
PROFIT BEFORE TAXATION 4,214,654 5,026,243

Tax on profit 9 1,065,810 1,084,102
PROFIT FOR THE FINANCIAL YEAR 3,148,844 3,942,141

Retained earnings at beginning of year as
previously reported

4,803,580

3,348,839

Dividends 10 (1,256,328 ) (2,706,328 )
Prior year adjustment - 218,928

RETAINED EARNINGS AT END OF
YEAR

6,696,096

4,803,580

Advanced Pallet Systems Ltd (Registered number: 04568580)

Balance Sheet
31 August 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 8,286 10,526
Tangible assets 12 1,150,804 1,277,259
1,159,090 1,287,785

CURRENT ASSETS
Stocks 13 1,293,644 1,373,497
Debtors 14 2,500,130 2,408,856
Cash at bank and in hand 5,155,983 2,541,468
8,949,757 6,323,821
CREDITORS
Amounts falling due within one year 15 3,293,238 2,608,517
NET CURRENT ASSETS 5,656,519 3,715,304
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,815,609

5,003,089

CREDITORS
Amounts falling due after more than one
year

16

-

(2,241

)

PROVISIONS FOR LIABILITIES 19 (119,301 ) (197,056 )
NET ASSETS 6,696,308 4,803,792

CAPITAL AND RESERVES
Called up share capital 20 212 212
Retained earnings 21 6,696,096 4,803,580
SHAREHOLDERS' FUNDS 6,696,308 4,803,792

The financial statements were approved by the Board of Directors and authorised for issue on 22 May 2025 and were signed on its behalf by:





Mr M J R Bowes - Director


Advanced Pallet Systems Ltd (Registered number: 04568580)

Cash Flow Statement
for the Year Ended 31 August 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 28 5,169,574 5,569,459
Interest paid (879 ) -
Tax paid (1,181,811 ) (1,071,195 )
Net cash from operating activities 3,986,884 4,498,264

Cash flows from investing activities
Purchase of intangible fixed assets (2,050 ) (11,375 )
Purchase of tangible fixed assets (196,441 ) (816,889 )
Sale of tangible fixed assets 10,500 62,046
Interest received 97,328 51,004
Net cash from investing activities (90,663 ) (715,214 )

Cash flows from financing activities
Capital repayments in year (26,894 ) (24,653 )
Amount introduced by directors 1,516 1,516
Amount withdrawn by directors (500,000 ) -
Equity dividends paid (756,328 ) (2,706,328 )
Net cash from financing activities (1,281,706 ) (2,729,465 )

Increase in cash and cash equivalents 2,614,515 1,053,585
Cash and cash equivalents at beginning of
year

29

2,541,468

1,487,883

Cash and cash equivalents at end of year 29 5,155,983 2,541,468

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements
for the Year Ended 31 August 2024


1. STATUTORY INFORMATION

Advanced Pallet Systems Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous period, and also have been consistently applied within the same accounts.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimated useful lives
In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change is expected useful life of tangible assets. The depreciation charge for the year ended 31 August 2024 was £322,896 (2023 - £262,061).

Work in progress
The labour cost associated to jobs in progress is estimated based on an average of labour time spent. The total value of work in progress at 31 August 2024 was £182,840 (2023 - £195,025).

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill representing the excess of the purchase price over the fair value of the net assets of undertakings acquired is capitalised in the balance sheet and is amortised by equal annual instalments over the expected useful economic life of 20 years.

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


3. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Planning costs - Written off in year of purchase
Improvements to property - 10% straight line
Plant and machinery - 33% straight line and 20% straight line
Fixtures and fittings - 33% straight line
Motor vehicles - 25% straight line

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management.

Stocks
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments
Basic financial instruments with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


3. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern
Having regard to the company's anticipated future revenues and costs including repayment of debt where appropriate, together with the expected availability of working capital, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 16,824,931 18,178,241
16,824,931 18,178,241

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,768,232 1,643,888
Social security costs 160,677 147,438
Other pension costs 271,483 222,617
2,200,392 2,013,943

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2024 2023

Directors 4 4
Production 52 53
Administration 7 6
63 63

2024 2023
£    £   
Directors' remuneration 42,184 36,400
Directors' pension contributions to money purchase schemes 220,129 180,086

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 307,956 248,365
Depreciation - assets on hire purchase contracts 14,940 13,696
Profit on disposal of fixed assets (10,500 ) (30,342 )
Goodwill amortisation - 1,312
Computer software amortisation 4,290 849

7. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

18,000

12,000

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Interest payable 3,721 879

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 1,143,565 977,732

Deferred tax (77,755 ) 106,370
Tax on profit 1,065,810 1,084,102

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 4,214,654 5,026,243
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.515%)

1,053,664

1,081,396

Effects of:
Property improvements depreciation and loss on disposals 11,685 12,052
Amortisation - 282
Effect of super deductions - (22,487 )
Movement in general bad debt provision 461 (1,974 )
Impact of change in tax rate on deferred tax - 14,833
Total tax charge 1,065,810 1,084,102

10. DIVIDENDS

Interim dividends of £1,256,328 (2023 - £2,706,328) were voted during the year.

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


11. INTANGIBLE FIXED ASSETS
Computer
Goodwill software Totals
£    £    £   
COST
At 1 September 2023 63,000 11,375 74,375
Additions - 2,050 2,050
At 31 August 2024 63,000 13,425 76,425
AMORTISATION
At 1 September 2023 63,000 849 63,849
Amortisation for year - 4,290 4,290
At 31 August 2024 63,000 5,139 68,139
NET BOOK VALUE
At 31 August 2024 - 8,286 8,286
At 31 August 2023 - 10,526 10,526

12. TANGIBLE FIXED ASSETS
Improvements
Planning to Plant and
costs property machinery
£    £    £   
COST
At 1 September 2023 49,644 688,838 1,742,912
Additions - 11,821 172,855
Disposals - - (19,750 )
At 31 August 2024 49,644 700,659 1,896,017
DEPRECIATION
At 1 September 2023 49,644 347,730 974,431
Charge for year - 52,343 212,861
Eliminated on disposal - - (19,750 )
At 31 August 2024 49,644 400,073 1,167,542
NET BOOK VALUE
At 31 August 2024 - 300,586 728,475
At 31 August 2023 - 341,108 768,481

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


12. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 September 2023 59,740 353,636 2,894,770
Additions 11,765 - 196,441
Disposals (575 ) - (20,325 )
At 31 August 2024 70,930 353,636 3,070,886
DEPRECIATION
At 1 September 2023 32,330 213,376 1,617,511
Charge for year 14,088 43,604 322,896
Eliminated on disposal (575 ) - (20,325 )
At 31 August 2024 45,843 256,980 1,920,082
NET BOOK VALUE
At 31 August 2024 25,087 96,656 1,150,804
At 31 August 2023 27,410 140,260 1,277,259

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 September 2023
and 31 August 2024 59,764
DEPRECIATION
At 1 September 2023 13,696
Charge for year 14,940
At 31 August 2024 28,636
NET BOOK VALUE
At 31 August 2024 31,128
At 31 August 2023 46,068

13. STOCKS
2024 2023
£    £   
Stocks 1,110,804 1,178,472
Work-in-progress 182,840 195,025
1,293,644 1,373,497

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,435,218 2,344,883
Other debtors 55,191 57,616
Directors' current accounts - 629
Corporation tax 683 683
Prepayments and accrued income 9,038 5,045
2,500,130 2,408,856

At 31 August 2024, the provision for doubtful debts totalled £49,699 (2023 - £47,855).

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 17) 2,241 26,894
Trade creditors 1,768,195 1,388,558
Corporation tax 463,666 501,912
Social security and other taxes 45,393 37,216
VAT 434,976 363,429
Other creditors 12,278 8,353
Directors' current accounts 3,776 2,889
Accrued expenses 562,713 279,266
3,293,238 2,608,517

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Hire purchase contracts (see note 17) - 2,241

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 2,241 26,894
Between one and five years - 2,241
2,241 29,135

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


17. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 150,000 67,088
Between one and five years 636,781 -
In more than five years 808,405 -
1,595,186 67,088

18. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Hire purchase contracts 2,241 29,135

The hire purchase contracts are secured over the assets to which they relate.

19. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 119,301 197,056

Deferred
tax
£   
Balance at 1 September 2023 197,056
Deferred tax charge for year (77,755 )
Balance at 31 August 2024 119,301

Deferred tax is in respect of accelerated capital allowances and is not expected to change significantly in the year to 31 August 2025.

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
200 Ordinary A £1 200 200
11 Ordinary B £1 11 11
1 Ordinary C £1 1 1
212 212

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


20. CALLED UP SHARE CAPITAL - continued

Shares rank equally for voting purposes. On a show of hands each member shall have one vote and on a poll each member shall have one vote per share held. The voting rights are more particularly described in the Articles of Association.

There are no rights, preferences or restrictions including restrictions on the payment of dividends and the repayment of capital on shares.

21. RESERVES
Retained
earnings
£   

At 1 September 2023 4,803,580
Profit for the year 3,148,844
Dividends (1,256,328 )
At 31 August 2024 6,696,096

22. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost and charge represents contributions payable by the company to the fund and amounted to £271,483 (2023 - £222,617). Included in creditors at 31 August 2024 were contributions payable to the fund of £8,557 (2023 - £7,474) and £400,000 (2023 - £180,000) relating to contributions accrued for the directors.

23. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements - 81,326

24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 August 2024 and 31 August 2023:

2024 2023
£    £   
Mr A J R Bowes and Mrs K Bowes
Balance outstanding at start of year 629 1,565
Amounts advanced 499,927 -
Amounts repaid (500,556 ) (936 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - 629

The maximum overdrawn balance during the year was £499,927.

The loans were interest free and had no fixed date for repayment.

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


25. RELATED PARTY DISCLOSURES

During the year, total dividends of £1,256,328 (2023 - £2,706,328) were paid to the directors .

During the year the company made purchases of £70,416 (2023 - £64,598) from Four Square Bowes Ltd, a company controlled by the directors. The transactions were carried out at arms length in the normal course of business. At the balance sheet date £19,664 (2023 - £17,330) was outstanding.

During the year the company was charged rent of £129,588 (2023 - £115,008) by Bowes Family Pension Trust, a trust controlled by the directors. The transactions were carried out at arms length in the normal course of business. At the balance sheet date £nil (2023 - £nil) was outstanding.

The total compensation payable for the year to those individuals whom the directors consider to be key management personnel was £264,054 (2023 - £216,486).

26. POST BALANCE SHEET EVENTS

Since the balance sheet date the company has entered into leases on 2 vehicles for 3 years each at a combined annual rental of £54,600.

27. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the directors.

28. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 4,214,654 5,026,243
Depreciation charges 327,186 264,222
Profit on disposal of fixed assets (10,500 ) (30,342 )
Finance costs 3,721 879
Finance income (144,999 ) (51,004 )
4,390,062 5,209,998
Decrease/(increase) in stocks 79,853 (99,307 )
(Increase)/decrease in trade and other debtors (44,232 ) 559,744
Increase/(decrease) in trade and other creditors 743,891 (100,976 )
Cash generated from operations 5,169,574 5,569,459

Advanced Pallet Systems Ltd (Registered number: 04568580)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024


29. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2024
31.8.24 1.9.23
£    £   
Cash and cash equivalents 5,155,983 2,541,468
Year ended 31 August 2023
31.8.23 1.9.22
£    £   
Cash and cash equivalents 2,541,468 1,487,883


30. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23 Cash flow At 31.8.24
£    £    £   
Net cash
Cash at bank and in hand 2,541,468 2,614,515 5,155,983
2,541,468 2,614,515 5,155,983
Debt
Finance leases (29,135 ) 26,894 (2,241 )
(29,135 ) 26,894 (2,241 )
Total 2,512,333 2,641,409 5,153,742