| 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 |
| 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: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Simon Hook FCCA |
| AUDITORS: |
| 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: |
| 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. |
| Other changes in directors holding office are as follows: |
| 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: |
| 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditors |
| Kepier House |
| Belmont Business Park |
| Durham |
| DH1 1TW |
| 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 |
| 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 |
| CURRENT ASSETS |
| Debtors | 15 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 16 | ( |
) | ( |
) |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Retained earnings | 21 |
| SHAREHOLDERS' FUNDS |
| 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 |
| 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 |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| 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 |
| 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 |
| Plant and machinery | - |
| Motor vehicles | - |
| 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 |
| 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 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| 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 |
| Deferred tax asset | - | - | 16,155 | 10,954 |
| Prepayments and accrued income | 327,557 | 319,863 |
| 2,930,194 | 3,143,614 |
| 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 | - | - |
| Corporation tax | 4,928 | 4,928 |
| Taxation and social security | 178,372 | 374,031 |
| Other borrowings | 670,000 | 531,000 | 670,000 | 531,000 |
| Accruals and deferred income | 375,152 | 377,447 |
| Invoice financing | 1,591,322 | 729,100 |
| 6,678,384 | 5,497,534 |
| 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 |
| 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 | ( |
) |
| Credit to Income Statement during year | ( |
) |
| Balance at 30 September 2024 | ( |
) |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| 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 |
| Dividends | ( |
) |
| At 30 September 2024 |
| 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. |