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REGISTERED NUMBER: 13209269 (England and Wales)













Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 September 2024

for

Earlsway Teesside Limited

Earlsway Teesside Limited (Registered number: 13209269)






Contents of the Consolidated Financial Statements
for the Year Ended 30 September 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Income and Retained Earnings 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 16


Earlsway Teesside Limited

Company Information
for the Year Ended 30 September 2024







DIRECTORS: C Turnbull
L Turnbull
M L Baum
M Caffry



REGISTERED OFFICE: Easter Park Earlsway
Teesside Industrial Estate
Stockton on Tees
TS17 9NT



REGISTERED NUMBER: 13209269 (England and Wales)



SENIOR STATUTORY AUDITOR: Simon Hook FCCA



AUDITORS: Clive Owen LLP
Chartered Accountants and Statutory Auditors
Kepier House
Belmont Business Park
Durham
DH1 1TW

Earlsway Teesside Limited (Registered number: 13209269)

Group Strategic Report
for the Year Ended 30 September 2024

The directors present their strategic report of the company and the group for the year ended 30 September 2024.

The group operates under the trading name 'Harrison Packaging'.

REVIEW OF BUSINESS
Markets
The size of the European folding carton market is estimated at €15bn. Harrison Packaging operated mainly within the UK market (circa £3.9bn). The strategy to actively target new business opportunities and to redevelop existing business to create a solid foundation for future business growth remains the focus.

Financial Review
Sales for the year fell to £16.1m (2023: £18.3m) amidst a challenging year, with a thin sales force driving growth. The sales force returned to more robust levels towards the end of the year, with the positive impact following shortly after.

Gross profit margin returned to previous levels of 19% (2023: 21.1%) with the majority of the work being baseline higher volume, lower margin work, without the benefit of being topped up by higher margin, new business work.

The group profit for the year after taxation amounted to £26k (2023: £400k), and the group's debt burden reduced by £500k.

Overall, the directors are satisfied with the performance of the group during a challenging period and anticipate an improvement in the coming period.

PRINCIPAL RISKS AND UNCERTAINTIES
Packaging waste, carbon footprint and the environment
The ongoing trend is to reduce all forms of packaging and carton board will remain a medium of choice in a low carbon economy, particularly in the present 'anti-Plastics' environment. Whilst the focus on sustainable and environmentally friendly packaging continues, the emphasis is now clearly directed at reducing the environmental impact throughout the supply chain and reducing waste overall by improving protection of the product, something Harrison Packaging are very well positioned to take full advantage of.

Competition / Markets
The UK carton market is dominated by a small number of major players. Harrison Packaging lie in the 'middle ground' of the carton market and with a large customer base over a diverse range of market sectors is strategically well positioned and able to respond to ever-changing market conditions.

Harrison Packaging remains very optimistic about the opportunities to further develop our customer base, consolidate our position in key market sectors and move forward dynamically in the coming years.

Margins
The Harrison Packaging commitment to remaining a value adding producer over many years, whilst maintaining high levels of customer service will continue to give the business opportunities to press on with the strategy of diversification, added value growth and brand strengthening. The business remains committed to increasing returns and to reduce its exposure to lower added value work where and when appropriate.

Employment
Harrison Packaging is committed to ensuring that it has a highly skilled, experienced and motivated workforce delivering high levels of customer service. To ensure this remains sustainable, it will continue to attract the best talent and develop the workforce with the aim of delighting customers with further added value.

The group takes the health, safety and wellbeing of all its employees very seriously and will remain compliant with all Employment, Health and Safety legislation.


Earlsway Teesside Limited (Registered number: 13209269)

Group Strategic Report
for the Year Ended 30 September 2024

FUTURE DEVELOPMENTS
The main aims of the group are to continue to implement plans and initiatives that develop the Harrison Packaging business, improve sales, improve operations, reduce the cost base and continue as a privately owned group. This ongoing process of strategic review and continuous improvement will ensure that Harrison Packaging continues to progress and develop in the future. The business is well placed to capitalise on continually challenging and ever-changing market conditions.

ON BEHALF OF THE BOARD:





C Turnbull - Director


2 June 2025

Earlsway Teesside Limited (Registered number: 13209269)

Report of the Directors
for the Year Ended 30 September 2024

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024.

PRINCIPAL ACTIVITY
The principal activity of Earlsway Teesside Limited and its subsidiaries ('the group') during the year was the design and manufacture of high-quality and sustainable printed cartons for the UK food, household, beauty, and healthcare industries. The group operates under the trading name 'Harrison Packaging'.

DIVIDENDS
Ordinary dividends were paid amounting to £151,798. The directors do not recommend payment of a further dividend.

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

C Turnbull
M L Baum
M Caffry

Other changes in directors holding office are as follows:

L Turnbull - appointed 1 March 2024
B Crennell - resigned 2 November 2023

FINANCIAL INSTRUMENTS
Objectives and policies
The group has established a structured approach to risk management. The group's activities expose it to a variety of financial risks, including the effects of loss from granting credit terms align with liquidity, cash flow and interest rate risks. The group continues to adopt and develop risk management policies that seek to mitigate these risks in a cost effective manner.

Cashflow and liquidity risk
The group managed its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs to the business.

Interest rate risk
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfill credit rating criteria approved by the board. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts when necessary.

DISCLOSURE IN THE STRATEGIC REPORT
Future developments, which would otherwise be disclosed in the directors' report, are instead disclosed in the strategic report, as permitted by section 414C(11) of the Companies Act 2006.


Earlsway Teesside Limited (Registered number: 13209269)

Report of the Directors
for the Year Ended 30 September 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group'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 group's auditors are aware of that information.

AUDITORS
The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





C Turnbull - Director


2 June 2025

Report of the Independent Auditors to the Members of
Earlsway Teesside Limited

Opinion
We have audited the financial statements of Earlsway Teesside Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2024 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Earlsway Teesside Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Earlsway Teesside Limited


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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We undertake the following procedures to identify and respond to these risks of non-compliance:

- Understanding the key legal and regulatory frameworks that are applicable to the group. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be financial reporting legislation, taxation legislation, health & safety, employment law, company law and ISO9001 regulations.

- Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance.

- Review of board minutes and correspondence with regulators.

- Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed.

- Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. There are no key areas of uncertainty to note within these financial statements.

- Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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
Earlsway Teesside Limited


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.




Simon Hook FCCA (Senior Statutory Auditor)
for and on behalf of Clive Owen LLP
Chartered Accountants and Statutory Auditors
Kepier House
Belmont Business Park
Durham
DH1 1TW

2 June 2025

Earlsway Teesside Limited (Registered number: 13209269)

Consolidated
Statement of Income and
Retained Earnings
for the Year Ended 30 September 2024

2024 2023
Notes £    £   

TURNOVER 3 16,093,009 18,305,587

Cost of sales (13,029,611 ) (14,444,498 )
GROSS PROFIT 3,063,398 3,861,089

Distribution costs (317,536 ) (997,377 )
Administrative expenses (2,124,563 ) (1,768,033 )
OPERATING PROFIT 5 621,299 1,095,679

Interest receivable and similar income 1,549 -
622,848 1,095,679

Interest payable and similar expenses 7 (548,180 ) (415,100 )
PROFIT BEFORE TAXATION 74,668 680,579

Tax on profit 8 (49,028 ) (278,847 )
PROFIT FOR THE FINANCIAL YEAR 25,640 401,732

Retained earnings at beginning of year 489,226 307,199

Dividends 10 (151,798 ) (219,707 )

RETAINED EARNINGS FOR THE
GROUP AT END OF YEAR

363,068

489,224

Profit attributable to:
Owners of the parent 25,640 401,732

Earlsway Teesside Limited (Registered number: 13209269)

Consolidated Balance Sheet
30 September 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 11 1,646,097 1,881,254
Tangible assets 12 4,557,223 4,759,412
Investments 13 - -
6,203,320 6,640,666

CURRENT ASSETS
Stocks 14 2,259,987 1,982,186
Debtors 15 2,930,194 3,143,614
Cash at bank and in hand 52,200 41,109
5,242,381 5,166,909
CREDITORS
Amounts falling due within one year 16 (6,678,384 ) (5,497,534 )
NET CURRENT LIABILITIES (1,436,003 ) (330,625 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,767,317

6,310,041

CREDITORS
Amounts falling due after more than one
year

17

(3,754,246

)

(5,253,219

)

PROVISIONS FOR LIABILITIES 19 (450,269 ) (367,864 )
NET ASSETS 562,802 688,958

CAPITAL AND RESERVES
Called up share capital 20 199,734 199,734
Retained earnings 21 363,068 489,224
SHAREHOLDERS' FUNDS 562,802 688,958

The financial statements were approved by the Board of Directors and authorised for issue on 2 June 2025 and were signed on its behalf by:





C Turnbull - Director


Earlsway Teesside Limited (Registered number: 13209269)

Company Balance Sheet
30 September 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 - -
Investments 13 6,059,217 6,059,217
6,059,217 6,059,217

CURRENT ASSETS
Debtors 15 16,155 23,427
Cash at bank and in hand 13,766 12,326
29,921 35,753
CREDITORS
Amounts falling due within one year 16 (3,696,585 ) (2,739,759 )
NET CURRENT LIABILITIES (3,666,664 ) (2,704,006 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,392,553

3,355,211

CREDITORS
Amounts falling due after more than one
year

17

(2,060,000

)

(3,058,000

)
NET ASSETS 332,553 297,211

CAPITAL AND RESERVES
Called up share capital 20 199,734 199,734
Retained earnings 21 132,819 97,477
SHAREHOLDERS' FUNDS 332,553 297,211

Company's profit for the financial year 187,138 244,585

The financial statements were approved by the Board of Directors and authorised for issue on 2 June 2025 and were signed on its behalf by:





C Turnbull - Director


Earlsway Teesside Limited (Registered number: 13209269)

Consolidated Cash Flow Statement
for the Year Ended 30 September 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,424,456 2,104,040
Interest paid (349,006 ) (219,188 )
Interest element of hire purchase payments
paid

(199,174

)

(195,912

)
Taxation refunded/(paid) 33,377 (44,924 )
Net cash from operating activities 909,653 1,644,016

Cash flows from investing activities
Purchase of tangible fixed assets (63,381 ) (76,051 )
Sale of tangible fixed assets - 500
Interest received 1,549 -
Net cash from investing activities (61,832 ) (75,551 )

Cash flows from financing activities
Repayment of borrowings (859,000 ) 278,000
Net movement on invoice finance facility 862,222 (997,999 )
Payment of finance lease obligations (688,154 ) (650,759 )
Equity dividends paid (151,798 ) (219,707 )
Net cash from financing activities (836,730 ) (1,590,465 )

Increase/(decrease) in cash and cash equivalents 11,091 (22,000 )
Cash and cash equivalents at beginning of
year

2

41,109

63,109

Cash and cash equivalents at end of year 2 52,200 41,109

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 September 2024

1. RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit for the financial year 25,640 401,732
Depreciation charges 433,050 453,991
Profit on disposal of fixed assets - (500 )
Amortisation charges 235,157 235,157
Finance costs 548,180 415,100
Finance income (1,549 ) -
Taxation 49,028 278,847
1,289,506 1,784,327
(Increase)/decrease in stocks (277,801 ) 569,862
Decrease in trade and other debtors 213,420 565,525
Increase/(decrease) in trade and other creditors 199,331 (815,674 )
Cash generated from operations 1,424,456 2,104,040

2. 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 30 September 2024
30.9.24 1.10.23
£    £   
Cash and cash equivalents 52,200 41,109
Year ended 30 September 2023
30.9.23 1.10.22
£    £   
Cash and cash equivalents 41,109 63,109


Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 September 2024

3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.10.23 Cash flow changes At 30.9.24
£    £    £    £   
Net cash
Cash at bank
and in hand 41,109 11,091 52,200
41,109 11,091 52,200
Debt
Finance leases (2,859,406 ) 688,154 (167,480 ) (2,338,732 )
Debts falling due
within 1 year (1,260,100 ) (1,671,222 ) 670,000 (2,261,322 )
Debts falling due
after 1 year (3,058,000 ) 1,668,000 (670,000 ) (2,060,000 )
(7,177,506 ) 684,932 (167,480 ) (6,660,054 )
Total (7,136,397 ) 696,023 (167,480 ) (6,607,854 )

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements
for the Year Ended 30 September 2024

1. STATUTORY INFORMATION

Earlsway Teesside Limited 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 General Information page.

2. ACCOUNTING POLICIES

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

There were no material departures from that standard.

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

Going concern
The group meets its day to day working capital requirements through cash generated from operations and the use of an invoice discounting facility.

The group's forecasts and projections for the next twelve months show that the group should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.

Although the forecasts prepared taking account of the matters above support the ability of the group to remain a going concern and to be able to trade and meets its debts as they fall due the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.

However, based on the factors set out above the directors believe that the group has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements Therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Earlsway Teesside Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates.

All financial statements are made up to the year end date. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases.

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

2. ACCOUNTING POLICIES - continued

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

Significant judgements in applying the group's accounting policies
In preparing these financial statements the directors do not consider there were any significant area of judgement that were required in applying the group's accounting policies as set out in this note.

Key sources of estimation uncertainty
Estimates included within these financial statements include depreciation and amortisation charges, asset impairments such as provisions against debtors, and the valuation of accrued income and work in progress. None of these estimates are considered to carry significant estimation uncertainty, or to bear significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next financial year.

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

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 delivery 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.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 10% - 33% on cost
Motor vehicles - Straight line over 3 years

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

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.

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Financial instruments
Basic financial instruments are recognised at amortised cost with changes recognised in profit and loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Dividends
Dividend income is recognised when the right to receive payment is established.

Dividends and other distributions to the group’s shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 16,031,367 18,259,532
Europe 61,642 46,055
16,093,009 18,305,587

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,081,307 3,257,420
Social security costs 233,845 277,761
Other pension costs 176,828 245,255
3,491,980 3,780,436

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

Sales & Admin 25 27
Factory 73 78
Directors 4 4
102 109

2024 2023
£    £   
Directors' remuneration 112,889 108,064
Directors' pension contributions to money purchase schemes 48,204 108,826

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

Money purchase schemes 4 4

5. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 33,166 32,991
Depreciation - owned assets 433,050 453,991
Profit on disposal of fixed assets - (500 )
Goodwill amortisation 235,157 235,157
Rent operating lease charges 364,345 353,841

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

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

5,000

5,000
Other services including audit
of the company's subsidiaries 17,000 22,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Invoice financing interest 121,541 -
Interest payable 227,465 219,188
Hire purchase 199,174 195,912
548,180 415,100

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
Under/(over) provision in
prior years (33,377 ) 33,376

Deferred tax 82,405 245,471
Tax on profit 49,028 278,847

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 74,668 680,579
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 22.010 %)

18,667

149,795

Effects of:
Expenses not deductible for tax purposes 62,720 17,458
Income not taxable for tax purposes (609 ) (1,412 )
Depreciation in excess of capital allowances 136,870 51,758
Utilisation of tax losses (136,483 ) -
Adjustments to tax charge in respect of previous periods (32,137 ) 33,383
Effect of change in corporation tax rate - 27,865
Total tax charge 49,028 278,847

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


10. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 151,798 219,707

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 October 2023
and 30 September 2024 2,351,568
AMORTISATION
At 1 October 2023 470,314
Amortisation for year 235,157
At 30 September 2024 705,471
NET BOOK VALUE
At 30 September 2024 1,646,097
At 30 September 2023 1,881,254

12. TANGIBLE FIXED ASSETS

Group
Long Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 October 2023 3,059 5,448,121 14,250 5,465,430
Additions - 230,861 - 230,861
At 30 September 2024 3,059 5,678,982 14,250 5,696,291
DEPRECIATION
At 1 October 2023 766 705,252 - 706,018
Charge for year 213 429,987 2,850 433,050
At 30 September 2024 979 1,135,239 2,850 1,139,068
NET BOOK VALUE
At 30 September 2024 2,080 4,543,743 11,400 4,557,223
At 30 September 2023 2,293 4,742,869 14,250 4,759,412

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

12. TANGIBLE FIXED ASSETS - continued

Group

The net carrying amount of assets held under finance leases included in plant and machinery is £3,786,998 (2023: £3,990,930).

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 October 2023
and 30 September 2024 6,059,217
NET BOOK VALUE
At 30 September 2024 6,059,217
At 30 September 2023 6,059,217

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Earlsway Group Limited
Registered office: Easter Park, Earlsway, Teesside Industrial Estate, Thornaby, Stockton-on-Tees, United Kingdwom, TS17 9NT
Nature of business: Non trading
%
Class of shares: holding
Ordinary 100.00

Earlsway Solutions Limited
Registered office: Easter Park, Earlsway, Teesside Industrial Estate, Thornaby, Stockton-on-Tees, United Kingdwom, TS17 9NT
Nature of business: Non trading
%
Class of shares: holding
Ordinary 100.00

Earlsway Holdings Limited
Registered office: Easter Park, Earlsway, Teesside Industrial Estate, Thornaby, Stockton-on-Tees, United Kingdwom, TS17 9NT
Nature of business: Non trading
%
Class of shares: holding
Ordinary 100.00

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

13. FIXED ASSET INVESTMENTS - continued

FiveDean Limited
Registered office: Easter Park, Earlsway, Teesside Industrial Estate, Thornaby, Stockton-on-Tees, United Kingdwom, TS17 9NT
Nature of business: Non trading
%
Class of shares: holding
Ordinary 100.00

John Harrison (Stockton) Limited
Registered office: Easter Park, Earlsway, Teesside Industrial Estate, Thornaby, Stockton-on-Tees, United Kingdwom, TS17 9NT
Nature of business: Packaging manufacturer
%
Class of shares: holding
Ordinary 100.00


14. STOCKS

Group
2024 2023
£    £   
Raw materials 873,844 648,095
Work-in-progress 319,144 229,508
Finished goods 1,066,999 1,104,583
2,259,987 1,982,186

There is no significant difference between the replacement cost of the stocks and its carrying amount.

Stocks are stated after provisions for impairment of £nil (2023: £nil).

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade debtors 2,601,787 2,808,821 - -
Other debtors 850 14,930 - 12,473
Deferred tax asset - - 16,155 10,954
Prepayments and accrued income 327,557 319,863 - -
2,930,194 3,143,614 16,155 23,427

Trade debtors are stated after provisions for impairment of £nil (2023: £5,411).

The group deferred tax asset in relation to 2023 has been restated compared to the prior year financial statements, to ensure comparability with the current year financial statements.

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Hire purchase contracts (see note 18) 644,486 664,187 - -
Trade creditors 3,214,124 2,816,841 - -
Amounts owed to group undertakings - - 2,979,509 2,134,430
Corporation tax 4,928 4,928 - -
Taxation and social security 178,372 374,031 7,611 21,548
Other borrowings 670,000 531,000 670,000 531,000
Accruals and deferred income 375,152 377,447 39,465 52,781
Invoice financing 1,591,322 729,100 - -
6,678,384 5,497,534 3,696,585 2,739,759

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Hire purchase contracts (see note 18) 1,694,246 2,195,219 - -
Other borrowings 2,060,000 3,058,000 2,060,000 3,058,000
3,754,246 5,253,219 2,060,000 3,058,000

Other borrowings
Other borrowings are unsecured and subject to interest at 2% over the Bank of England Base Rate. The borrowings are repayable in quarterly installments, commencing in October 2021.

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 644,486 664,187
Between one and five years 1,694,246 2,195,219
2,338,732 2,859,406

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

18. LEASING AGREEMENTS - continued

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 35,059 34,717
Between one and five years 41,071 46,460
76,130 81,177

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. The average lease term is 8 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments Hire purchase and finance lease liabilities are secured over the assets to which they relate.

The operating lease commitments in relation to 2023 have been restated compared to the prior year financial statements, to ensure comparability with the current year financial statements.

19. PROVISIONS FOR LIABILITIES

Group
2024 2023
£    £   
Deferred tax 450,269 367,864

Group
Deferred
tax
£   
Balance at 1 October 2023 367,864
Charge to Income Statement during year 82,405
Balance at 30 September 2024 450,269

Company
Deferred
tax
£   
Balance at 1 October 2023 (10,954 )
Credit to Income Statement during year (5,201 )
Balance at 30 September 2024 (16,155 )

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
199,734 Ordinary £1 199,734 199,734

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

20. CALLED UP SHARE CAPITAL - continued

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

21. RESERVES

Group
Retained
earnings
£   

At 1 October 2023 489,226
Profit for the year 25,640
Dividends (151,798 )
At 30 September 2024 363,068

Company
Retained
earnings
£   

At 1 October 2023 97,479
Profit for the year 187,138
Dividends (151,798 )
At 30 September 2024 132,819


22. PENSION COMMITMENTS

The group operates a defined contributions pension scheme, The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £176,828 (2023: £245,255). Contributions totalling £23,272 (2023: £23,587) were payable to the fund at the balance sheet date and are included in creditors.

23. RELATED PARTY DISCLOSURES

Group
Total remuneration paid to key management personnel of the group was £405,197 which includes directors' remuneration disclosed in note 4.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Company
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Unsecured borrowings with a value of £2,730,000 (2023; £3,589,000), including accrued but unpaid interest, were outstanding to the company's directors at the balance sheet date. Interest of £227,000 (2023: £219,000) was paid in respect of the loans during the year.

Earlsway Teesside Limited (Registered number: 13209269)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2024

24. ULTIMATE CONTROLLING PARTY

The controlling party is C Turnbull.