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Registration number: 00821766

Cotek Papers Limited

Financial Statements

for the Year Ended 31 December 2024

 

Cotek Papers Limited

Contents

Company Information

1

Directors' Report

2

Strategic Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 20

 

Cotek Papers Limited

Company Information

Directors

J S Soding

K J Gater

Registered office

Draycott
Moreton In Marsh
Gloucestershire
GL56 9JU

Auditors

Hazlewoods LLP
Staverton Court
Staverton
GL51 0UX

 

Cotek Papers Limited

Directors' Report for the Year Ended 31 December 2024

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

Principal activity

The principal activity of the Company is manufacturing high-quality silicone release liners, predominantly supplying the tape, medical, automotive, industrial, and food industry sectors.

Directors of the company

The Directors who held office during the year were as follows:

J S Soding

K J Gater

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 28 May 2025 and signed on its behalf by:


K J Gater
Director

 

Cotek Papers Limited

Strategic Report for the Year Ended 31 December 2024

The Directors present their strategic report for the year ended 31 December 2024.

Business review

The Company results for the year set out in the profit and loss account show a turnover of £12,476,768 (2023 - £11,171,030) and a profit of £740,107 (2023 - £234,960 loss). The Directors are pleased with the performance and financial position at the end of the year.

The workforce responded well to the first full year of a new Managing Director, delivering improvements and strengthening Cotek Papers standing in the Silicone Release Liner Industry with a stronger sales presence, focusing on face-to-face meetings.

The first quarter commenced positively providing a strong platform and confidence in the business strategy for the rest of the year. Sales maintained a steady growth pattern, not returning to the fluctuating supply and panic buying patterns seen in the past few years. This enabled the business to operate on a more stable footing, concentrating on building our strong relationships with our customer base, continuation of our business aims of right first time through process and control improvements, reducing cost and waste. This focus, on the internal workings of the business, delivered a pleasing increase in margin on a modest increase in volume and turnover.

Cotek Papers Ltd takes its environmental and sustainability responsibility very seriously and subscribed to the Ecovadis platform, offering a knowledge gateway for our customers and suppliers, providing the Company guidance in its sustainability improvement programmes, internally and along our value chains. The Company is focused on a programme to further improve its sustainability credentials as it enters into 2025 and beyond following its substantial investment in solar power in mid/late 2023. Development of Coteks Life Cycle Analysis calculator, in line with its parent company Laufenberg GmbH, has resulted in LCA data being available for the whole product range from cradle to gate. This has provided the company and its customers accurate carbon equivalent data measurement, highlighting areas of improvement.

Cash management and the balance sheet have remained very strong throughout the year requiring no capital expenditure borrowings. Cash levels combined with a strengthening sales book puts the business on a solid footing as it enters optimistically into 2025.

Future developments

Investment in a new narrow coil slitting machine, ordered in late 2023 was delayed in manufacturing and due to be installed in early 2025. This will offer high automation and efficiency improvements allowing Cotek to offer improved service in this area, allowing increased throughput and capacity. Other capital expenditure will focus on the IT infrastructure and process improvements. Additional major equipment investments will be researched in 2025, specifically in the wide coil winding market, with the aim of strengthening the incumbent offerings for 2026 and beyond.

Cotek Papers Ltd takes its environmental and sustainable responsibilities very seriously and has demonstrated gains in electricity reduction during 2024 from the first full year of solar energy use from its 196Kwh installation. Opportunities for further reductions in waste, electricity and gas usage are being investigated and considered for 2025.

Further gains are expected with a closer working partnership and sales strategy with the parent company Laufenberg GmbH from April 1st 2025, strengthening Cotek Papers Ltd position within the market.

Principal risks and uncertainties

The management of the business and execution of the Company strategy are subject to a number of risks. The continued risk of worldwide instability pose uncertainty. Energy costs, and base material pricing, whilst more stable in the latter part of 2024 continue to be an ongoing concern and a large cost to the business.

Increases in National Insurance contributions from April 1st 2025 have essentially doubled the impact of any proposed wage increases that may be paid out in 2025 and how this affects the wider UK market is unknown, with many businesses suggesting a mix of higher prices, lower wages or even a reduced workforce.

Cotek remains in a strong position to accommodate this increase and with the growing order book will look to strengthen its workforce when appropriate and where possible.

The Company continue to respond and adapt to legislative changes with regard to materials used in the manufacturing process and reporting requirements in line with EUDR.

 

Cotek Papers Limited

Strategic Report for the Year Ended 31 December 2024

Key performance indicators

The Company Directors believe that Key Performance Indicators (KPI's) are important measures and targets to drive the business forward. The Company uses a number of indicators to monitor and improve development, performance and quality standards of the business. KPI's are reviewed and agreed to meet changes both in the internal and external environments. The Directors do not consider the inclusion of an analysis using KPI's to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the company.

Going concern

The Company has sufficient financial resources available and remains robust and strong as it ends the year. Forecasts for the next 12 months show a considered and achievable growth pattern for forward ordering and with further improvements to internal processes and controls, we expect to return an improved profit in 2025.

The Directors therefore have a strong expectation that the Company has adequate resources to continue to trade profitably for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Financial instruments

The Company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The risk of fluctuation in foreign exchange rates deflating or inflating the Company's foreign currency assets and liabilities is mitigated through the use of bank accounts held in foreign currencies.

Approved by the Board on 28 May 2025 and signed on its behalf by:


K J Gater
Director

 

Cotek Papers Limited

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Cotek Papers Limited

Independent Auditor's Report to the Members of Cotek Papers Limited

Opinion

We have audited the financial statements of Cotek Papers Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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:

 

Cotek Papers Limited

Independent Auditor's Report to the Members of Cotek Papers Limited

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Cotek Papers Limited

Independent Auditor's Report to the Members of Cotek Papers Limited

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

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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





Scott Lawrence (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
GL51 0UX

28 May 2025

 

Cotek Papers Limited

Profit and Loss Account for the Year Ended 31 December 2024

Note

2024
£

2023
£

Turnover

3

12,476,768

11,171,030

Cost of sales

 

(9,964,273)

(9,856,327)

Gross profit

 

2,512,495

1,314,703

Administrative expenses

 

(1,621,562)

(1,648,516)

Operating profit/(loss)

4

890,933

(333,813)

Interest receivable and similar income

7

104,170

33,898

Profit/(loss) before tax

 

995,103

(299,915)

Taxation

9

(254,996)

64,955

Profit/(loss) for the financial year

 

740,107

(234,960)

The above results were derived from continuing operations.

The Company had no other comprehensive income in the current or preceding year.

 

Cotek Papers Limited

(Registration number: 00821766)
Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

10

2,245,250

2,312,774

Current assets

 

Stocks

11

2,431,801

1,819,609

Debtors

12

1,155,844

1,186,644

Cash at bank and in hand

 

3,180,765

2,273,429

 

6,768,410

5,279,682

Creditors: Amounts falling due within one year

14

(1,472,813)

(983,316)

Net current assets

 

5,295,597

4,296,366

Total assets less current liabilities

 

7,540,847

6,609,140

Provisions for liabilities

9

(189,484)

2,116

Net assets

 

7,351,363

6,611,256

Capital and reserves

 

Called up share capital

80,820

80,820

Other reserves

19,180

19,180

Retained earnings

7,251,363

6,511,256

Shareholders' funds

 

7,351,363

6,611,256

Approved and authorised by the Board on 28 May 2025 and signed on its behalf by:
 


K J Gater
Director

 

Cotek Papers Limited

Statement of Changes in Equity for the Year Ended 31 December 2024

Share capital
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2023

80,820

19,180

6,746,216

6,846,216

Loss for the year

-

-

(234,960)

(234,960)

At 31 December 2023

80,820

19,180

6,511,256

6,611,256

Share capital
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2024

80,820

19,180

6,511,256

6,611,256

Profit for the year

-

-

740,107

740,107

At 31 December 2024

80,820

19,180

7,251,363

7,351,363

 

Cotek Papers Limited

Statement of Cash Flows for the Year Ended 31 December 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit/(loss) for the year

 

740,107

(234,960)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

168,622

186,830

Profit on disposal of tangible assets

(1,292)

(4,247)

Finance income

7

(104,170)

(33,898)

Income tax expense

9

254,996

(64,955)

 

1,058,263

(151,230)

Working capital adjustments

 

(Increase)/decrease in stocks

11

(612,192)

1,265,560

Decrease in trade debtors

12

30,800

1,064,674

Increase/(decrease) in trade creditors

14

426,101

(984,073)

Net cash flow from operating activities

 

902,972

1,194,931

Cash flows from investing activities

 

Interest received

7

104,170

33,898

Acquisitions of tangible assets

(104,806)

(459,793)

Proceeds from sale of tangible assets

 

5,000

7,409

Net cash flows from investing activities

 

4,364

(418,486)

Net increase in cash and cash equivalents

 

907,336

776,445

Cash and cash equivalents at 1 January

 

2,273,429

1,496,984

Cash and cash equivalents at 31 December

 

3,180,765

2,273,429

 

Analysis of changes in net debt

At 1 January 2024
£

Cash flows
£

At 31 December 2024
£

Cash and cash equivalents

Cash

2,273,429

907,336

3,180,765

 

2,273,429

907,336

3,180,765

 

Cotek Papers Limited

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

 

1

General information

The Company is a incorporated and domiciled in England and Wales.

The address of its registered office is:
Draycott
Moreton In Marsh
Gloucestershire
GL56 9JU

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

The Directors are required to make key judgements about: the recoverability of trade debtors; and the fair value of stock and work in progress.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The Company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Cotek Papers Limited

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

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold buildings

2% of cost

Plant and machinery

5 - 33% of cost

Motor vehicles

20% of cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing suck stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

Cotek Papers Limited

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

 

Cotek Papers Limited

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

 

3

Revenue

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

12,476,768

11,171,030

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

6,006,348

6,220,439

Europe

6,215,557

4,827,422

Rest of world

254,863

123,169

12,476,768

11,171,030

 

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

168,622

186,830

Foreign exchange losses

6,908

2,670

Operating lease expense - plant and machinery

12,952

25,205

Auditors' remuneration - audit

15,850

15,600

Auditors' remuneration - non audit work

4,000

3,800

 

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,892,142

1,815,716

Social security costs

193,449

186,566

Pension costs, defined contribution scheme

243,140

296,192

Other employee expense

54,733

56,525

2,383,464

2,354,999

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

39

42

Administration and support

5

6

Sales, marketing and distribution

5

5

49

53

 

Cotek Papers Limited

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

 

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration (including benefits in kind)

145,399

137,410

Contributions paid to money purchase schemes

32,894

73,710

178,293

211,120

During the year the number of Directors who were receiving benefits was as follows:

2024
 No.

2023
 No.

Accruing benefits under money purchase pension scheme

1

2

 

7

Interest receivable and similar income

2024
£

2023
£

Bank interest receivable

104,170

33,898

 

8

Interest payable and similar expenses

2024
£

2023
£

 

9

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

63,396

-

Deferred taxation

Arising from origination and reversal of timing differences

191,600

(64,955)

Tax expense/(receipt) in the income statement

254,996

(64,955)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).

The differences are reconciled below:

2024
£

2023
£

Profit/(loss) before tax

995,103

(299,915)

Corporation tax at standard rate

248,776

(70,540)

Tax increase from effect of capital allowances and depreciation

6,720

7,506

Effect of expense not deductible in determining taxable profit (tax loss)

466

1,923

Deferred tax credit from unrecognised temporary difference from a prior period

(966)

-

Deferred tax credit relating to changes in tax rates or laws

-

(3,844)

Total tax charge/(credit)

254,996

(64,955)

 

Cotek Papers Limited

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

 

9

Taxation (continued)

Deferred tax

2024

Liability
£

Fixed asset timing differences

198,937

Short term timing differences

(9,453)

189,484

2023

Asset
£

Fixed asset timing differences

154,816

Losses and other deductions

(150,410)

Short term timing differences

(6,522)

(2,116)

 

10

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2024

1,842,148

7,207,415

14,970

9,064,533

Additions

-

104,806

-

104,806

Disposals

-

(268,532)

-

(268,532)

At 31 December 2024

1,842,148

7,043,689

14,970

8,900,807

Depreciation

At 1 January 2024

619,033

6,117,756

14,970

6,751,759

Charge for the year

32,709

135,913

-

168,622

Eliminated on disposal

-

(264,824)

-

(264,824)

At 31 December 2024

651,742

5,988,845

14,970

6,655,557

Carrying amount

At 31 December 2024

1,190,406

1,054,844

-

2,245,250

At 31 December 2023

1,223,115

1,089,659

-

2,312,774

Included in freehold land and buildings is freehold land of £209,684 (2023 - £209,684) which is not depreciated.

 

Cotek Papers Limited

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

 

11

Stocks

2024
£

2023
£

Raw materials and consumables

1,139,904

901,841

Work in progress

455,257

188,848

Finished goods and goods for resale

836,640

728,920

2,431,801

1,819,609

 

12

Debtors

2024
£

2023
£

Trade debtors

927,060

909,923

Prepayments and accrued income

228,784

276,721

1,155,844

1,186,644

 

13

Cash at bank and in hand

2024
£

2023
£

Cash in hand

235

1,046

Cash at bank

3,180,530

2,272,383

3,180,765

2,273,429

 

14

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

988,508

724,362

Social security and other taxes

 

209,084

148,880

Outstanding defined contribution pension costs

 

38,461

26,769

Other creditors

 

19,247

15,286

Accruals and deferred income

 

154,117

68,019

Corporation tax liability

9

63,396

-

 

1,472,813

983,316

 

15

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £302,500 (2023 - £297,000).

 

Cotek Papers Limited

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

 

16

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
 £

2023
 £

Not later than one year

5,777

5,777

Later than one year and not later than five years

6,258

12,035

12,035

17,812

The amount of non-cancellable operating lease payments recognised as an expense during the year was £5,777 (2023 - £9,628).

 

17

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

A Ordinary shares of £1 each

24,678

24,678

24,678

24,678

B Ordinary shares of £1 each

18,711

18,711

18,711

18,711

C Ordinary shares of £1 each

37,431

37,431

37,431

37,431

 

80,820

80,820

80,820

80,820

All shares rank pari passu in all respects.

 

18

Pension schemes

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £243,140 (2023 - £296,192). Contributions totalling £38,461 (2023 - £26,769) were payable to the scheme at the end of the year and are included in creditors.

 

19

Related party transactions

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 6 to the financial statements.

The company has taken advantage of the exemption from disclosing transactions with other members of the group where there is 100% ownership.

 

20

Parent and ultimate parent undertaking

The Company's immediate parent became Laufenberg GmbH, incorporated in Germany.

 The ultimate parent is Soding Beteiligung GmbH, incorporated in Germany.

The group and company are controlled by J Soding.