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Registered number: 02548538
West Coast Corrugated Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2024
Contents
Page
Strategic Report 1
Directors' Report 2
Independent Auditor's Report 3—4
Statement of Income and Retained Earnings 5
Balance Sheet 6
Statement of Cash Flows 7
Notes to the Statement of Cash Flows 8
Notes to the Financial Statements 9—16
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 December 2024.
Principal Activity
The principal activity of the company during the year was that of the manufacture of corrugated board and packaging products.
Review of the Business
This year has seen turnover fall by 11% compared to the unprecedented results of the recent years off the back of the COVID-19 pandemic and remains in keeping with the general downturn in the global economy. Management have mitigated this to some extent by taking advantage of favourable reductions in the prices of raw material and early payment discounts.
Gross profit has decreased by around 10%, with an 11% reduction in cost of sales due mainly to the global downturn in the economy. Prices of raw materials seem to have steadied after the year end, but similar results are expected in 2025. Irrespective of this, results for the period are strong with no notable issues.
Despite a general downturn in global trade impacting the turnover, productivity levels remain relatively consistent and the bank balance healthy. The large (47%) reduction in the bank balance is broadly linked to the c£1m reduction in trade creditors from last year. This is due to the company taking advantage of early payment discounts and favourable prices on raw materials. All creditors have been met when due and positive relationships continue with customers and suppliers.
The company is a stable organisation with a clear structure and business plan. Management work closely to the plan and follow key targets set by the directors in seeking to realise all corporate objectives.
Principal Risks and Uncertainties
The company is exposed to the usual credit related losses in event of non payment by customers but the risks have been mitigated through insurance and credit checks to ensure that such events will not endanger the company's financial stability.
We are confident that the company's financial position remains strong and that the company is well placed to continue to offer a full range of products to our well established customer base.
On behalf of the board
Mr D A Graham
Director
Mr P B Norman
Company Secretary
27 May 2025
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2024.
Dividends
Particulars of recommended dividends are detailed in note 25 to the financial statements.
Directors
The directors who held office during the year were as follows:
Mr C W Graham
Mr D A Graham
Mr P B Norman
Disclosure of information in the strategic report
In accordance with Section 414C of the Companies Act 2006 a review of the company's business and a description of the principal risks and uncertainties facing the company is included in the Strategic Report. The Strategic Report replaces the previous requirement under Section 417 of the Companies Act 2006 to disclose this information in the Directors Report.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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 the financial statements the directors are required to: 
  • select suitable accounting policies and then apply them consistently;
  • make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, ERC Accountants & Business Advisers Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr D A Graham
Director
Mr P B Norman
Company Secretary
27 May 2025
Page 2
Page 3
Independent Auditor's Report
Opinion
We have audited the financial statements of West Coast Corrugated Limited for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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/(loss) 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • 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 or 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.
Page 3
Page 4
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
- Enquiries with management relating to controls in place, segregation of duties and any potential litigation and claims - Professional scepticism maintained in areas of potential management override of controls including cash handling - Inspection and reconciliation of related party balances to ensure accuracy and existence.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
  • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
  • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 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 that 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.
Richard Brown (Senior Statutory Auditor)
for and on behalf of ERC Accountants & Business Advisers Limited , Statutory Auditor
27 May 2025
Page 4
Page 5
Statement of Income and Retained Earnings
2024 2023
Notes £ £
TURNOVER 11,575,132 12,943,564
Cost of sales (6,528,954 ) (7,361,398 )
GROSS PROFIT 5,046,178 5,582,166
Administrative expenses (4,957,772 ) (5,249,704 )
Other operating income 3,146 52,599
OPERATING PROFIT 4 91,552 385,061
(Loss)/profit on disposal of fixed assets (3,709 ) 5,372
Other interest receivable and similar income 9 53,097 30,758
Interest payable and similar charges 10 (15,202 ) (20,094 )
PROFIT BEFORE TAXATION 125,738 401,097
Tax on Profit 11 312,353 610,883
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 438,091 1,011,980
RETAINED EARNINGS
As at 1 January 2024 5,543,333 5,263,353
Dividends paid (717,000) (732,000)
As at 31 December 2024 5,264,424 5,543,333
The notes on pages 8 to 16 form part of these financial statements.
Page 5
Page 6
Balance Sheet
Registered number: 02548538
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 12 3,664,643 4,068,243
3,664,643 4,068,243
CURRENT ASSETS
Stocks 13 541,315 497,178
Debtors 14 2,760,871 2,707,484
Cash at bank and in hand 945,430 1,775,991
4,247,616 4,980,653
Creditors: Amounts Falling Due Within One Year 15 (1,903,350 ) (2,593,703 )
NET CURRENT ASSETS (LIABILITIES) 2,344,266 2,386,950
TOTAL ASSETS LESS CURRENT LIABILITIES 6,008,909 6,455,193
Creditors: Amounts Falling Due After More Than One Year 16 (75,476 ) (130,491 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 19 (184,278 ) (296,713 )
NET ASSETS 5,749,155 6,027,989
CAPITAL AND RESERVES
Called up share capital 21 225 150
Revaluation reserve 26 484,481 484,481
Capital redemption reserve 25 25
Profit and Loss Account 5,264,424 5,543,333
SHAREHOLDERS' FUNDS 5,749,155 6,027,989
On behalf of the board
Mr D A Graham
Director
27 May 2025
The notes on pages 8 to 16 form part of these financial statements.
Page 6
Page 7
Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash (used in)/generated from operations 1 (146,138 ) 1,569,120
Interest paid (15,202 ) (20,093 )
Tax refunded 160,502 435,302
Net cash (used in)/generated from operating activities (838 ) 1,984,329
Cash flows from investing activities
Purchase of tangible assets (3,628 ) (259,310 )
Proceeds from disposal of tangible assets - 43,834
Interest received 53,171 30,758
Net cash generated from/(used in) investing activities 49,543 (184,718 )
Cash flows from financing activities
Equity dividends paid (717,000 ) (732,000 )
Repayment of bank borrowings (59,653 ) (57,908 )
Repayment of finance leases (120,738 ) (115,896 )
Amount introduced by directors 18,125 -
Amount withdrawn by directors - (72,849)
Net cash used in financing activities (879,266 ) (978,653 )
(Decrease)/increase in cash and cash equivalents (830,561 ) 820,958
Cash and cash equivalents at beginning of year 2 1,775,991 955,033
Cash and cash equivalents at end of year 2 945,430 1,775,991
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash (used in)/generated from operations
2024 2023
£ £
Profit for the financial year 438,091 1,011,980
Adjustments for:
Tax on profit (312,353 ) (610,883 )
Interest expense 15,202 20,094
Interest income (53,097 ) (30,758 )
Depreciation of tangible assets 403,519 453,214
Loss/(profit) on disposal of tangible assets 3,709 (5,372)
Movements in working capital:
(Increase)/decrease in stocks (44,137 ) 520,388
(Increase)/decrease in trade and other debtors (71,512 ) 642,342
Decrease in trade and other creditors (525,560 ) (431,885 )
Net cash (used in)/generated from operations (146,138 ) 1,569,120
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 945,430 1,775,991
3. Analysis of changes in net funds
As at 1 January 2024 Cash flows As at 31 December 2024
£ £ £
Cash at bank and in hand 1,775,991 (830,561) 945,430
Finance leases (120,738) 120,738 -
Debts falling due within one year (64,638 ) 4,638 (60,000 )
Debts falling due after more than one year (130,491) 55,015 (75,476)
1,460,124 (650,170) 809,954
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Notes to the Financial Statements
1. General Information
West Coast Corrugated Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02548538 . The registered office is Hanover Buildngs, 11-13 Hanover Street, Liverpool, Merseyside, L1 3DN.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, net off discounts allowed and exclusive of Value Added Tax.
The revenue is recognised at the completion of the transaction on the date of delivery, as all risks and rewards have been transferred to the purchaser.
United Kingdom
11,391,181
12,644,247
Overseas
159,700
image
299,317
image
11,550,881
image
12,943,564
image
2.3. Tangible Fixed Assets and Depreciation
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold 2% straight line
Plant and machinery 10% reducing balance
Motor vehicles 25% reducing balance
Fixtures and fittings 10% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for
possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
2.4. Leasing and Hire Purchase Contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
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2.5. Stocks and Work in Progress
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 stocks.
Cost is determined using the average cost method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.6. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.7. Financial Instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
2.8. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.9. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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2.10. Provisions and Contingencies
Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.
Contingencies
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.
2.11. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
3. Other Operating Income
2024 2023
£ £
Other operating income 3,146 52,599
3,146 52,599
4. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Bad debts 12 24,246
Depreciation of tangible fixed assets 403,519 453,214
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 12,850 12,100
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6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 2,741,515 2,544,529
Social security costs 262,993 247,136
Other pension costs 67,771 68,286
3,072,279 2,859,951
7. Average Number of Employees
Average number of employees, including directors, during the year was:
2024 2023
Office and administration 6 5
Sales, marketing and distribution 5 5
Manufacturing 78 75
89 85
8. Directors' remuneration
2024 2023
£ £
Emoluments 157,818 138,794
The number of directors to whom retirement benefits were accruing was as follows:
2024 2023
Money purchase pension schemes 2 2
9. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 53,097 30,758
10. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 7,493 15,851
Finance charges payable under finance leases and hire purchase contracts 7,337 5,450
Foreign exchange charges 372 (1,207 )
15,202 20,094
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11. Tax on Profit
The tax credit on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 25.0% (199,918 ) (444,769 )
Deferred Tax
Deferred taxation (112,435 ) (166,114 )
Total tax charge for the period (312,353 ) (610,883 )
The actual credit for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 125,738 401,097
Tax on profit at 25% (UK standard rate) 31,435 100,274
Goodwill/depreciation not allowed for tax 100,880 113,304
Expenses not deductible for tax purposes 964 (1,288 )
Tax losses utilised (50,743 ) (147,436 )
Capital allowances (19,828 ) (65,884 )
Short term timing differences (175,143 ) (165,084 )
Research and Development tax credit (199,918 ) (444,769 )
Total tax charge for the period (312,353) (610,883)
12. Tangible Assets
Land & Property
Leasehold Plant and machinery Motor vehicles Fixtures and fittings Total
£ £ £ £ £
Cost
As at 1 January 2024 1,230,419 5,860,713 883,827 157,926 8,132,885
Additions - - - 3,628 3,628
Disposals - - (5,332 ) (545 ) (5,877 )
As at 31 December 2024 1,230,419 5,860,713 878,495 161,009 8,130,636
Depreciation
As at 1 January 2024 338,758 3,223,044 404,139 98,701 4,064,642
Provided during the period 14,918 264,066 118,426 6,109 403,519
Disposals - - (1,805 ) (363 ) (2,168 )
As at 31 December 2024 353,676 3,487,110 520,760 104,447 4,465,993
Net Book Value
As at 31 December 2024 876,743 2,373,603 357,735 56,562 3,664,643
As at 1 January 2024 891,661 2,637,669 479,688 59,225 4,068,243
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Leasehold has adopted a revaluation model under FRS 102. A revaluation has been provided by external party Matthews and Goodman who have valued long leasehold property on 11 July 2017 at £1,230,419 on an open market basis to reflect fair value.
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
2024 2023
£ £
Plant and machinery 20,813 172,200
If the following tangible fixed assets had been accounted for under historical cost accounting rules, the amounts would be:
Land & Property
Leasehold
£
Cost 745,938
Accumulated depreciation and impairment 353,676
Carrying amount 392,262
13. Stocks
2024 2023
£ £
Materials 457,098 405,610
Finished goods 77,120 80,245
Work in progress 7,097 11,323
541,315 497,178
14. Debtors
2024 2023
£ £
Due within one year
Trade debtors 2,461,939 2,363,147
Other debtors 298,932 344,337
2,760,871 2,707,484
15. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts - 120,738
Trade creditors 937,122 1,934,624
Bank loans and overdrafts 60,000 64,638
Corporation tax - 39,416
Other taxes and social security 62,516 66,236
VAT 237,866 197,169
Net wages 36,694 -
Other creditors 1,994 7
Accruals and deferred income 567,158 170,875
1,903,350 2,593,703
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16. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Bank loans 75,476 130,491
17. Loans
An analysis of the maturity of loans is given below:
2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 60,000 64,638
2024 2023
£ £
Amounts falling due between one and five years:
Bank loans 75,476 130,491
18. Obligations Under Finance Leases and Hire Purchase
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year - 120,738
19. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences 184,278 296,713
20. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2024 296,713 296,713
Utilised (112,435 ) (112,435)
Balance at 31 December 2024 184,278 184,278
21. Share Capital
2024 2023
Allotted, called up and fully paid £ £
75 Ordinary Shares of £ 1 each 75 75
75 Ordinary A shares of £ 1 each 75 75
75 Ordinary B shares of £ 1 each 75 -
225 150
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22. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2024 2023
£ £
Not later than one year 127,006 149,499
Later than one year and not later than five years 207,643 99,460
334,649 248,959
23. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £49,816 (2023: £46,822).
At the balance sheet date contributions of £1,994 (2023: £7) were due to the fund and are included in creditors.
24. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 January 2024 Amounts advanced Amounts repaid Amounts written off As at 31 December 2024
£ £ £ £ £
Mr Clifford Graham 100,900 237,050 246,100 - 91,850
Mr Paul Norman 45,900 150,025 159,100 - 36,825
The above loans are unsecured, interest free and repayable on demand.
25. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid 717,000 732,000
26. Reserves
Revaluation reserve - This reserve records the revaluation of the long leasehold property performed in 2016.
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company.
Profit and loss account - This reserve records retained earnings and accumulated losses.
27. Related Party Disclosures
During the period directors introduced capital of £18,200 (2023: £18,200) and withdrew amounts of £75 (2023: £91,049). At the balance sheet date the amounts owed to the company to the directors totalled £128,675 (2023: The amount owed to the company was £146,800).
No further transactions with related parties were undertaken such as are required to be disclosed in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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