Polarseal Tapes and Conversions Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 10164939 (England and Wales)
Polarseal Tapes and Conversions Limited
Company Information
Directors
J Rich
M D Rich
S F Rich
T Rich
Secretary
M D Rich
Company number
10164939
Registered office
Polarseal Tapes and Conversions
Guildford Road Trading Estate
Farnham
Surrey
GU9 9PZ
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Polarseal Tapes and Conversions Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 28
Polarseal Tapes and Conversions Limited
Strategic Report
For the year ended 31 December 2024
Page 1

The directors have pleasure in presenting the strategic report for the year ended 31 December 2024, which can be read in conjunction with the Directors’ Report.

 

The principal activity of the Company in the year under review was the converting of flexible materials into medical products and packaging of ancillary products. This includes partnering with specialist sterilisation service providers driving value and simplicity for our customers.

Business Review

The Company experienced yet another year of growth during FY 2024 increasing its business levels whilst investing in people and operations to scale the business and deliver excellent service to existing and potential customers as the sales pipeline continues to build-out.

 

Following the investment made during the FY 2023 period, the performance outturn for FY 2024 has significantly improved.

 

The performance highlights are summarised in the below section.

Financial Performance and Key Indicators

The business tracks a number of financial, operational, regulatory and quality metrics, albeit fey financial KPIs are revenues, underlying gross profit and underlying EBITDA.

 

During 2024, the overall turnover of the Company increased by 7% from £12,093,424 to £12,934,977 (increase of £841,553).

 

The Underlying Gross Margin for the FY 2024 year was c30.7% (2023 26.4%) this is within the range expected by the directors and ahead of the current market conditions.

 

Administration expenses remained stable during the year.

 

Net of interest and tax, the net result for the year was £1,156,142 (2023 £476,433).

 

Adjusted EBITDA generated during FY 2024 period rose considerably against FY 2023, £2,042,312 (15.8%) versus £1,218,094 (10.1%), indicating a large uptick in performance during the period.

 

At the end of the year the Company had shareholders’ funds of c£3.172m and, aside shareholder loans of c£756k– on which no repayment obligations are attached – the business remained in a net cash position. Accordingly, the directors believe the Company to be in a strong financial position.

 

The directors will continue to look for opportunities which will further the development of the Company. Due to the investments made during 2023 and 2024 the company is ready for the growth predicted for 2025 and beyond.

 

Polarseal Tapes and Conversions Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 2
2024
2023
Change
Revenue
12,934,977
12,093,424
841,553
Gross profit
3,974,943
3,189,092
785,851
Add exceptional costs - o/w stock write-down
-
-
-
Adjusted gross profit
3,974,943
3,189,092
785,851
Adjusted gross profit %
30.73%
26.37%
4.36%
Admin expenses
2,658,717
2,712,659
Operating profit
1,316,226
476,433
Add: depreciation and amortisation
571,286
589,811
Add: charitable donations
154,800
151,850
Adjusted EBITDA
2,042,312
1,218,094
824,218
Adjusted EBTIDA %
15.79%
10.07%
5.72%
2023
2022
Change
Revenue
12,093,424
10,725,521
1,367,903
Gross profit
3,189,092
2,839,196
349,896
Add exceptional costs - o/w stock write-down
-
440,347
440,347
Adjusted gross profit
3,189,092
3,279,543
90,451
Adjusted gross profit %
26.37%
30.58%
4.21%
Admin expenses
2,712,659
2,658,064
Operating profit
476,433
621,479
Add: depreciation and amortisation
589,811
626,281
Add: charitable donations
151,850
-
Adjusted EBITDA
1,218,094
1,247,760
29,666
Adjusted EBTIDA %
10.07%
11.63%
1.56%
Future Developments and Post Balance Sheet Events

The business has traded well into the FY 2025 period with an extremely buoyant order book and sales pipeline. Operational activities in the US are expanding rapidly and expected to continue to pick up throughout the period.

 

The organisation continues to invest in attracting and retaining new key talent to support ongoing long term growth strategies.

Polarseal Tapes and Conversions Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 3
Principle Risks and Uncertainties

The directors believe the Company is well placed to manage its business risks. As an expanding business the company carefully manages its cashflows and compiles a 13 week cash flow forecast. Budgets are produced annually and a rolling Forecast monthly.

 

Competitive pressure in the UK is a continuing risk for any company, this is managed by providing a high-quality service to its customers and by maintaining strong working relationships and balance sheet.

 

Because of the increase in export activity the Company is indirectly exposed to exchange rate risk, consistent monitoring and negotiating supports the Company’s competitive position in export markets. The Company is working closely with export institutions and government bodies to create a more robust plan for international territories.

 

The Company keeps exposure to credit risk and cash flow risk to a minimum by making sales on normal credit terms and maintaining robust credit control procedures.

 

The Company analyses its development and performance on a monthly basis using key performance indicators to ensure risks and uncertainties are managed and effectively reversed. Company wide KPIs are in place which cover all departments and are monitored weekly to ensure all areas of the company are performing to optimum efficiency.

 

The Company provides products into the heavily regulated medical markets, and its objective is to minimise risks and uncertainties to the level of the market place in which it operates and it achieves this through its internal control and review procedures. The Company is also accredited to ISO 13485:2016.

 

The Company continues to be registered with EcoVadis who operate an evidence-based platform, providing the Company with sustainability ratings and allowing the Company to assess the ESG performance of its own environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.

On behalf of the board

J Rich
Director
2 June 2025
Polarseal Tapes and Conversions Limited
Directors' Report
For the year ended 31 December 2024
Page 4

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company and group continued to be that of converting flexible materials into medical products and packaging of ancillary products. This includes partnering with specialist sterilisation service providers driving value and simplicity for our customers.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £595,574. 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:

J Rich
M D Rich
S F Rich
T Rich
Auditor

Moore Kingston Smith LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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:

 

 

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.

Polarseal Tapes and Conversions Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 5
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
J Rich
Director
2 June 2025
Polarseal Tapes and Conversions Limited
Independent Auditor's Report
To the Members of Polarseal Tapes And Conversions Limited
Page 6
Opinion

We have audited the financial statements of Polarseal Tapes and Conversions Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 7

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

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

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 8
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 9

Explanation as to what extent 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, 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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion.

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 10

Use of our report

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

Steven Rushmer
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
3 June 2025
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Polarseal Tapes and Conversions Limited
Statement of Comprehensive Income
For the year ended 31 December 2024
Page 11
2024
2023
Notes
£
£
Turnover
3
12,934,977
12,093,424
Cost of sales
(8,960,034)
(8,904,332)
Gross profit
3,974,943
3,189,092
Administrative expenses
(2,658,717)
(2,712,659)
Other operating income
9,848
-
0
Exceptional item
4
(169,932)
-
0
Operating profit
5
1,156,142
476,433
Interest receivable and similar income
8
11,518
33
Interest payable and similar expenses
9
(2,452)
(41,269)
Profit before taxation
1,165,208
435,197
Tax on profit
10
(385,156)
(193,481)
Profit for the financial year
780,052
241,716

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Polarseal Tapes and Conversions Limited
Balance Sheet
As at 31 December 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
495,822
845,822
Other intangible assets
12
68,274
49,047
Total intangible assets
564,096
894,869
Tangible assets
13
552,153
630,834
1,116,249
1,525,703
Current assets
Stock
15
2,491,557
2,515,176
Debtors
16
1,954,402
3,844,785
Cash at bank and in hand
791,813
523,358
5,237,772
6,883,319
Creditors: amounts falling due within one year
17
(3,036,196)
(5,010,446)
Net current assets
2,201,576
1,872,873
Total assets less current liabilities
3,317,825
3,398,576
Creditors: amounts falling due after more than one year
18
(17,297)
(262,005)
Provisions for liabilities
Deferred tax liability
21
(128,069)
(148,590)
(128,069)
(148,590)
Net assets
3,172,459
2,987,981
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
3,172,359
2,987,881
Total equity
3,172,459
2,987,981
The financial statements were approved by the board of directors and authorised for issue on 2 June 2025 and are signed on its behalf by:
J  Rich
Director
Company Registration No. 10164939
Polarseal Tapes and Conversions Limited
Statement of Changes in Equity
For the year ended 31 December 2024
Page 13
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
100
3,304,079
3,304,179
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
241,716
241,716
Dividends
11
-
(557,914)
(557,914)
Balance at 31 December 2023
100
2,987,881
2,987,981
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
780,052
780,052
Dividends
11
-
(595,574)
(595,574)
Balance at 31 December 2024
100
3,172,359
3,172,459
Polarseal Tapes and Conversions Limited
Statement of Cash Flows
For the year ended 31 December 2024
Page 14
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,160,067
301,539
Interest paid
(2,452)
-
Income taxes paid
(295,096)
-
Net cash inflow from operating activities
1,862,519
301,539
Investing activities
Purchase of intangible assets
(47,490)
(17,440)
Purchase of tangible fixed assets
(114,483)
(99,526)
Proceeds from disposal of tangible fixed assets
141
-
0
Interest received
11,518
33
HP interest paid
-
(13,535)
Net cash used in investing activities
(150,314)
(130,468)
Financing activities
Other new loan
(559,008)
510,489
Payment of finance leases obligations
(289,168)
(70,686)
Dividends paid
(595,574)
(557,914)
Interest paid
-
(27,734)
Net cash used in financing activities
(1,443,750)
(145,845)
Net increase in cash and cash equivalents
268,455
25,226
Cash and cash equivalents at beginning of year
523,358
498,132
Cash and cash equivalents at end of year
791,813
523,358
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 15
1
Accounting policies
Company information

Polarseal Tapes and Conversions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Polarseal Tapes and Conversions, Guildford Road Trading Estate, Farnham, Surrey, GU9 9PZ.

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue 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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 16
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
20% straight line
1.7
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:

Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
Office equipment
33% reducing balance
Other fixed assets
20% straight line
Property Improvements
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.

1.8
Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials only.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 17

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

1.11
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.

1.12
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.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 18
1.13
Retirement benefits

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

1.14
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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

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.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 19
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.

Useful economic lives of intangible assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 12 for the carrying amount of the intangible assets and note 1.6 for the useful economic lives for each class of asset.

Useful economic lives of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the property, plant and equipment and note 1.7 for the useful economic lives for each class of asset.

Stock

The level of stocks and the stock provision are set out in note 14. For each line of stock, a provision is made against the cost of the stock, where the Net Realisable Value is less than cost. Net Realisable Value is the estimated selling price for stocks less all estimated costs of completion and costs necessary to make the sale. The estimated selling price for each stock line is a judgement based mainly on recent selling patterns for that product.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales
12,934,977
12,093,424
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
8,695,701
8,075,075
Rest of the World
4,239,276
4,018,349
12,934,977
12,093,424
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
3
Turnover and other revenue
(Continued)
Page 20
2024
2023
£
£
Other significant revenue
Interest income
11,518
33
Grants received
2,933
7,372
4
Exceptional item
2024
2023
£
£
Expenditure
Product recall and restructuring costs
169,932
-

Exceptional costs relate to an overseas product recall in New Zealand as well as costs associated with this issue.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(14,536)
9,541
Research and development costs
96
11,466
Government grants
(2,933)
(7,372)
Fees payable to the company's auditor for the audit of the company's financial statements
38,020
25,532
Depreciation of owned tangible fixed assets
192,874
219,982
Loss on disposal of tangible fixed assets
149
-
Amortisation of intangible assets
378,263
369,829
Operating lease charges
235,131
284,766
6
Employees

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

2024
2023
Number
Number
Office staff
31
39
Production staff
58
55
Total
89
94
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
6
Employees
(Continued)
Page 21

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,098,158
3,035,963
Social security costs
302,322
296,921
Pension costs
58,574
57,241
3,459,054
3,390,125
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
150,825
85,770
Company pension contributions to defined contribution schemes
2,151
1,407
152,976
87,177

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023: 4).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
11,518
33

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
11,518
33
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,452
27,734
Other finance costs:
Interest on finance leases and hire purchase contracts
-
13,535
2,452
41,269
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 22
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
405,677
171,388
Deferred tax
Origination and reversal of timing differences
(20,521)
22,093
Total tax charge
385,156
193,481

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
1,165,208
435,197
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
291,302
102,358
Tax effect of expenses that are not deductible in determining taxable profit
6,354
2,142
Effect of change in corporation tax rate
-
0
2,118
Deferred tax adjustments in respect of prior years
87,500
-
0
Capital allowances for year in deficit of depreciation
-
0
86,863
Taxation charge for the year
385,156
193,481
11
Dividends
2024
2023
£
£
Final paid
595,574
557,914
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 23
12
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2024
3,500,000
232,823
3,732,823
Additions
-
0
47,490
47,490
At 31 December 2024
3,500,000
280,313
3,780,313
Amortisation and impairment
At 1 January 2024
2,654,178
183,776
2,837,954
Amortisation charged for the year
350,000
28,263
378,263
At 31 December 2024
3,004,178
212,039
3,216,217
Carrying amount
At 31 December 2024
495,822
68,274
564,096
At 31 December 2023
845,822
49,047
894,869

The carrying amount of the goodwill above is £495,822 (2023: £845,822). The remaining amortisation period is just over one year.

13
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Office equipment
Other fixed assets
Total
£
£
£
£
£
£
Cost
At 1 January 2024
1,298,694
209,948
15,000
114,755
161,542
1,799,939
Additions
88,082
24,588
-
0
1,813
-
0
114,483
Disposals
-
0
-
0
-
0
(5,132)
-
0
(5,132)
At 31 December 2024
1,386,776
234,536
15,000
111,436
161,542
1,909,290
Depreciation and impairment
At 1 January 2024
780,430
143,808
8,023
82,053
154,791
1,169,105
Depreciation charged in the year
151,588
22,684
1,745
11,372
5,485
192,874
Eliminated in respect of disposals
-
0
-
0
-
0
(4,842)
-
0
(4,842)
At 31 December 2024
932,018
166,492
9,768
88,583
160,276
1,357,137
Carrying amount
At 31 December 2024
454,758
68,044
5,232
22,853
1,266
552,153
At 31 December 2023
518,264
66,140
6,977
32,702
6,751
630,834
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
13
Tangible fixed assets
(Continued)
Page 24

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

2024
2023
£
£
Plant and equipment
29,834
39,779
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,846,751
3,742,624
Carrying amount of financial liabilities
Measured at amortised cost
2,534,759
5,289,297
15
Stock
2024
2023
£
£
Stock
2,491,557
2,515,176

The carrying value of stocks are stated net of impairment losses recognised in the profit or loss totalling £105,871 (2023: £101,252). In addition, a stock impairment provision has been applied totalling £285,426 (2023: £179,555).

16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,757,302
3,479,695
Amounts owed by group undertakings
54,364
18,955
Other debtors
35,085
13,336
Prepayments and accrued income
107,651
332,799
1,954,402
3,844,785
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 25
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
-
0
559,008
Obligations under finance leases
20
14,070
58,530
Trade creditors
601,843
1,233,923
Amounts owed to group undertakings
-
0
2,966
Corporation tax
281,969
171,388
Other taxation and social security
236,765
406,282
Other creditors
755,952
718,811
Accruals and deferred income
1,145,597
1,859,538
3,036,196
5,010,446
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
20
17,297
31,367
Other creditors
-
0
230,638
17,297
262,005
19
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
559,008
Payable within one year
-
0
559,008

The long-term loans are secured by fixed charges over its assets

20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
14,090
58,530
In two to five years
17,277
31,367
31,367
89,897
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
20
Finance lease obligations
(Continued)
Page 26

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
139,345
151,588
Short term timing differences
(11,276)
(2,998)
128,069
148,590
2024
Movements in the year:
£
Liability at 1 January 2024
148,590
Credit to profit or loss
(20,521)
Liability at 31 December 2024
128,069

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,574
57,241

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Oridinary shares of £1 each
100
100
100
100
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 27
24
Financial commitments, guarantees and contingent liabilities

A debenture in favour of HSBC bank plc has been given by the Company in respect of a trade finance agreement incorporating full title guarantee over a pledge over the goods and absolute assignment over present and future rights as unpaid seller of the goods.

25
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
1,846
7,645
Between two and five years
5,539
-
0
7,385
7,645
26
Related party transactions

During the year the directors incurred expenses on behalf of the Company and the total balance owed by the Company at the year end was £696,299 (2023: £949,449).

 

The group operates from two premises, both of which are owned by the directors of the Company. During the period, rent of £229,182 (2023: £224,414) was paid by the Company to directors and additional expenses of £25,885 (2023: £24,152).

 

During the year, the Company made sales of £167,739 (2023: £451,346) to IST Scientific LLP holding a close relationship with the directors.

 

In addition, during the period the Company made charges of £87,998 (2023: £125,960) to IST Scientific LLP. As at the year end, IST Scientific LLP had a trade debtor balance of £55,859 (2023: £10,001) in respect of both of these charges.

 

The Company has taken exemption under FRS 102 section 33.1A from disclosing transactions with group companies, on the grounds that each company party to the transactions is wholly owned within the group.

27
Ultimate controlling party

The ultimate and immediate parent company is Polarseal Holdings Limited, a company registered in England and Wales, which is both the smallest and largest group that prepares consolidated accounts. Copies of the group accounts can be obtained from Polarseal Tapes And Conversions, Guildford Road Industrial Estate, Farnham, Surrey, United Kingdom, GU9 9PZ.

 

The directors consider there to be no ultimate controlling party.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 28
28
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
780,052
241,716
Adjustments for:
Taxation charged
385,156
193,481
Finance costs
2,452
41,269
Investment income
(11,518)
(33)
Loss on disposal of tangible fixed assets
149
-
Amortisation of intangible assets
378,263
369,829
Depreciation of tangible fixed assets
192,874
219,982
Movements in working capital:
Decrease in stock
23,619
91,782
Decrease/(increase) in debtors
1,890,383
(1,987,446)
(Decrease)/increase in creditors
(1,481,363)
1,157,448
Decrease/(increase) in amounts owned by groups
-
(18,955)
Increase in amounts owed to groups
-
2,966
Corporation tax paid
-
(10,500)
Cash generated from operations
2,160,067
301,539
29
Analysis of changes in net funds/(debt)
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
523,358
268,455
791,813
Borrowings excluding overdrafts
(559,008)
559,008
-
Obligations under finance leases
(89,897)
58,530
(31,367)
(125,547)
885,993
760,446
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