Polarseal Holdings Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 14147117 (England and Wales)
Polarseal Holdings Limited
Company Information
Directors
J Rich
M D Rich
S F Rich
T Rich
Secretary
M Rich
Company number
14147117
Registered office
Polarseal Tapes and Conversions
Guildford Road Trading Estate
Farnham
Surrey
GU9 9PZ
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Polarseal Holdings Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 34
Polarseal Holdings Limited
Strategic Report
For the year ended 31 December 2024
Page 1
The directors have pleasure in presenting the strategic report for the year ended 31 December 2024, which can be read in conjunction with the Directors' Report.
The principal activity of the Group in the year under review was the converting of flexible materials into medical products and packaging of ancillary products. This includes partnering with specialist sterilisation service providers driving value and simplicity for our customers.
Business Review
The Group experienced yet another year of growth during FY 2024 increasing its business levels whilst investing in people and operations to scale the business and deliver excellent service to existing and potential customers as the sales pipeline continues to build-out.
Following the investment made during the FY 2023 period, the performance outturn for FY 2024 has significantly improved.
The performance highlights are summarised in the below section.
Financial Performance and Key Indicators
The business tracks a number of financial, operational, regulatory and quality metrics, albeit fey financial KPIs are revenues, underlying gross profit and underlying EBITDA.
During 2024, the overall turnover of the Group increased by 7% from £12,093,424 to £12,944,045 (increase of £850,621).
The Underlying Gross Margin for the FY 2024 year was c30.8% (2023 26.4%) This is within the range expected by the directors and ahead of the current market conditions.
Administration expenses remained stable during the year.
Net of interest and tax, the net result for the year was £1,263,532 (2023 £456,515).
Adjusted EBITDA generated during FY 2024 period rose considerably against FY 2023, £1,990,589 (15.4%) versus £1,198,176 (9.9%), indicating a large uptick in performance during the period.
At the end of the year the Group had shareholders’ funds of c£3.1m and, aside shareholder loans of c£756k - on which no repayment obligations are attached – the business remained in a net cash position.
Accordingly, the directors believe the Group to be in a strong financial position.
The directors will continue to look for opportunities which will further the development of the Group. Due to the investments made during 2023 and 2024 the Group is ready for the growth predicted for 2025 and beyond.
Polarseal Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 2
2024
2023
Change
Revenue
12,944,045
12,093,424
850,621
Gross profit
3,982,421
3,189,092
793,329
Add exceptional costs - o/w stock write-down
-
-
-
Adjusted gross profit
3,982,421
3,189,092
793,329
Adjusted gross profit %
30.77%
26.37%
4.40%
Admin expenses
2,718,889
2,732,577
Operating profit
1,263,532
456,515
Add: depreciation and amortisation
572,257
589,811
Add: charitable donations
154,800
151,850
Adjusted EBITDA
1,990,589
1,198,176
792,413
Adjusted EBTIDA %
15.38%
9.91%
5.47%
2023
2022
Change
Revenue
12,093,424
10,725,521
1,367,903
Gross profit
3,189,092
2,839,196
349,896
Add exceptional costs - o/w stock write-down
-
440,347
440,347
Adjusted gross profit
3,189,092
3,279,543
90,451
Adjusted gross profit %
26.37%
30.58%
4.21%
Admin expenses
2,732,577
2,658,064
Operating profit
456,515
621,479
Add: depreciation and amortisation
589,811
625,504
Add: charitable donations
151,850
-
Adjusted EBITDA
1,198,176
1,246,983
48,807
Adjusted EBTIDA %
9.91%
11.63%
1.72%
Future Developments and Post Balance Sheet Events
The business has traded well into the FY 2025 period with an extremely buoyant order book and sales pipeline. Operational activities in the US are expanding rapidly and expected to continue to pick up throughout the period.
The organisation continues to invest in attracting and retaining new key talent to support ongoing long term growth strategies.
Polarseal Holdings Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 3
Principle Risks and Uncertainties
The directors believe the Group is well placed to manage its business risks. As an expanding business the Group carefully manages its cashflows and compiles a 13 week cash flow forecast. Budgets are produced annually and a rolling Forecast monthly.
Competitive pressure in the UK is a continuing risk for any company, this is managed by providing a high-quality service to its customers and by maintaining strong working relationships and balance sheet.
Because of the increase in export activity the Group is indirectly exposed to exchange rate risk, consistent monitoring and negotiating supports the Group’s competitive position in export markets. The Group is working closely with export institutions and government bodies to create a more robust plan for international territories.
The Group keeps exposure to credit risk and cash flow risk to a minimum by making sales on normal credit terms and maintaining robust credit control procedures.
The Group analyses its development and performance on a monthly basis using key performance indicators to ensure risks and uncertainties are managed and effectively reversed. Group wide KPIs are in place which cover all departments and are monitored weekly to ensure all areas of the company are performing to optimum efficiency.
The Group provides products into the heavily regulated medical markets, and its objective is to minimise risks and uncertainties to the level of the market place in which it operates and it achieves this through its internal control and review procedures. The Group is also accredited to ISO 13485:2016.
The Group continues to be registered with EcoVadis who operate an evidence-based platform, providing the Group with sustainability ratings and allowing the Group to assess the ESG performance of its own environment from its activities, whilst continuing to address health, safety and economic issues. The Group has complied with all applicable legislation and regulations.
..............................
J Rich
Director
Date: ..........................
Polarseal Holdings Limited
Directors' Report
For the year ended 31 December 2024
Page 4
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company and group continued to be that of converting flexible materials into medical products and packaging of ancillary products. This includes partnering with specialist sterilisation service providers driving value and simplicity for our customers.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Rich
M D Rich
S F Rich
T Rich
Results and dividends
Ordinary dividends were paid amounting to £595,574. The directors do not recommend payment of a further dividend.
The results for the year are set out on page 9.
Auditor
Moore Kingston Smith were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Polarseal Holdings Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 5
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
J Rich
Director
Polarseal Holdings Limited
Independent Auditor's Report
To the Members of Polarseal Holdings Limited
Page 6
Opinion
We have audited the financial statements of Polarseal Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 the parent company's affairs as at 31 December 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.
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 group and parent 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 group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Polarseal Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Holdings Limited
Page 7
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the 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 group and the parent company and their 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 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 Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group's and 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 parent company or to cease operations, or have no realistic alternative but to do so.
Polarseal Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Holdings Limited
Page 8
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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 purposes of expressing an opinion on the effectiveness of the company’s 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 group's or the parent 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 group or the parent 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.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Polarseal Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Holdings Limited
Page 9
Explanation as to what extent the audit was considered capable of detecting irregularities, including
fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Polarseal Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Holdings Limited
Page 10
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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Steven Rushmer
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
1 July 2025
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Polarseal Holdings Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2024
Page 11
Year
Period
ended
ended
31 December
31 December
2024
2023
Notes
£
£
Turnover
3
12,944,045
12,093,424
Cost of sales
(8,961,624)
(8,904,332)
Gross profit
3,982,421
3,189,092
Administrative expenses
(2,718,889)
(2,732,577)
Other operating income
9,848
-
Product recall and associated costs
4
(169,932)
Operating profit
5
1,103,448
456,515
Interest receivable and similar income
9
11,518
33
Interest payable and similar expenses
10
(2,452)
(41,269)
Profit before taxation
1,112,514
415,279
Tax on profit
11
(386,421)
(193,481)
Profit for the financial year
726,093
221,798
Other comprehensive income
Currency translation gain taken to retained earnings
1,601
Total comprehensive income for the year
727,694
221,798
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Polarseal Holdings Limited
Group Balance Sheet
As at 31 December 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
495,822
845,822
Other intangible assets
13
68,274
49,047
Total intangible assets
564,096
894,869
Tangible assets
14
553,847
630,834
1,117,943
1,525,703
Current assets
Stocks
18
2,491,557
2,515,176
Debtors
19
1,913,969
3,815,331
Cash at bank and in hand
806,197
528,848
5,211,723
6,859,355
Creditors: amounts falling due within one year
20
(3,084,116)
(5,006,399)
Net current assets
2,127,607
1,852,956
Total assets less current liabilities
3,245,550
3,378,659
Creditors: amounts falling due after more than one year
21
(17,297)
(262,005)
Provisions for liabilities
Deferred tax liability
24
(128,069)
(148,590)
(128,069)
(148,590)
Net assets
3,100,184
2,968,064
Capital and reserves
Called up share capital
26
101
101
Profit and loss reserves
3,100,083
2,967,963
Total equity
3,100,184
2,968,064
The financial statements were approved by the board of directors and authorised for issue on 1 July 2025 and are signed on its behalf by:
01 July 2025
J Rich
Director
Polarseal Holdings Limited
Company Balance Sheet
As at 31 December 2024
31 December 2024
Page 13
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
896
100
Current assets
Debtors
19
97,365
2,967
Creditors: amounts falling due within one year
20
(96,349)
(2,966)
Net current assets
1,016
1
Net assets
1,912
101
Capital and reserves
Called up share capital
26
101
101
Profit and loss reserves
1,811
Total equity
1,912
101
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £597,385 (2023 - £557,914 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 1 July 2025 and are signed on its behalf by:
01 July 2025
J Rich
Director
Company Registration No. 14147117 (England and Wales)
Polarseal Holdings Limited
Group Statement of Changes in Equity
For the year ended 31 December 2024
Page 14
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
2
3,304,079
3,304,081
Period ended 31 December 2023
Profit and total comprehensive income for the year
-
221,798
221,798
Issue of share capital
26
99
-
99
Dividends
12
-
(557,914)
(557,914)
Balance at 31 December 2023
101
2,967,963
2,968,064
Year ended 31 December 2024:
Profit for the year
-
726,093
726,093
Other comprehensive income:
Currency translation differences
-
1,601
1,601
Total comprehensive income for the year
-
727,694
727,694
Dividends
12
-
(595,574)
(595,574)
Balance at 31 December 2024
101
3,100,083
3,100,184
Polarseal Holdings Limited
Company Statement of Changes in Equity
For the year ended 31 December 2024
Page 15
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
2
2
Period ended 31 December 2023
Profit and total comprehensive income for the year
-
557,914
557,914
Issue of share capital
26
99
-
99
Dividends
12
-
(557,914)
(557,914)
Balance at 31 December 2023
101
101
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
597,385
597,385
Dividends
12
-
(595,574)
(595,574)
Balance at 31 December 2024
101
1,811
1,912
Polarseal Holdings Limited
Group Statement of Cash Flows
For the year ended 31 December 2024
Page 16
Year ended
Period ended
December
December
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,169,620
307,030
Interest paid
(2,452)
(41,269)
Income taxes paid
(295,096)
-
Net cash inflow from operating activities
1,872,072
265,761
Investing activities
Purchase of intangible assets
(47,490)
(17,440)
Purchase of tangible fixed assets
(116,742)
(99,526)
Proceeds from disposal of tangible fixed assets
141
-
Purchase of fixed asset investment
-
(100)
Interest received
11,518
33
Net cash used in investing activities
(152,573)
(117,033)
Financing activities
Proceeds from issue of shares
-
99
(Repayment)/ Issue of bank loans
(559,008)
510,489
Payment of finance leases obligations
(289,168)
(70,686)
Dividends paid to equity shareholders
(595,574)
(557,914)
Net cash used in financing activities
(1,443,750)
(118,012)
Net increase in cash and cash equivalents
275,749
30,716
Cash and cash equivalents at beginning of year
528,848
498,132
Effect of foreign exchange rates
1,600
Cash and cash equivalents at end of year
806,197
528,848
Polarseal Holdings Limited
Notes to the Group Financial Statements
For the year ended 31 December 2024
Page 17
1
Accounting policies
Company information
Polarseal Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Polarseal Tapes and Conversions, Guildford Road Trading Estate, Farnham, Surrey, GU9 9PZ.
The group consists of Polarseal Holdings Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination, liabilities and contingent liabilities acquired is recognised as goodwill.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following acquisition date.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Polarseal Holdings 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 31 December 2024. 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.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 18
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% straight line
1.9
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 19
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
Office Equipment
33% reducing balance
Other fixed assets
20% straight line
Property Improvements
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.10
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials only.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 20
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 21
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
The comparative period was for a length of 15 months, ending on the 31 December 2023. The reason for this was to ensure consistency throughout the group with regards to year end dates.
As a result, comparative amounts in these financial statements are not entirely comparable.
2
Judgements and key sources of estimation uncertainty
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 these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 22
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic lives of intangible assets
The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 13 for the carrying amount of the intangible assets and notes 1.7 and 1.8 for the useful economic lives for each class of asset.
Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property, plant and equipment and note 1.9 for the useful economic lives for each class of asset.
Stock
The level of stocks and the stock provision are set out in note 18. For each line of stock, a provision is made against the cost of the stock, where the Net Realisable Value is less than cost. Net Realisable Value is the estimated selling price for stocks less all estimated costs of completion and costs necessary to make the sale. The estimated selling price for each stock line is a judgement based mainly on recent selling patterns for that product.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 23
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales
12,944,045
12,093,424
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
8,695,695
8,075,075
Rest of the World
4,248,350
4,018,349
12,944,045
12,093,424
2024
2023
£
£
Other revenue
Interest income
11,518
33
Grants received
2,933
-
4
Exceptional item
2024
2023
£
£
Expenditure
Product recall and restructuring costs
169,932
-
Exceptional costs relate to an overseas product recall in New Zealand as well as costs associated with this issue.
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange (gains)/losses
(14,352)
11,634
Research and development costs
96
11,466
Government grants
(2,933)
(7,372)
Depreciation of owned tangible fixed assets
193,439
219,982
Definded contribution pension cost
58,574
57,241
Loss on disposal of tangible fixed assets
149
-
Amortisation of intangible assets
378,263
369,829
Operating lease charges
235,131
284,766
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 24
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,585
-
Audit of the financial statements of the company's subsidiaries
38,020
25,532
40,605
25,532
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office staff
31
39
-
-
Production staff
58
55
-
-
Total
89
94
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,098,158
3,035,963
Social security costs
302,322
296,921
-
-
Pension costs
58,574
57,241
3,459,054
3,390,125
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
150,825
85,770
Company pension contributions to defined contribution schemes
2,151
1,407
152,976
87,177
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
8
Directors' remuneration
(Continued)
Page 25
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023: 4)
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
11,518
33
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
11,518
33
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,452
27,734
Other finance costs:
Interest on finance leases and hire purchase contracts
-
13,535
Total finance costs
2,452
41,269
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
406,942
149,295
Deferred tax
Origination and reversal of timing differences
(20,521)
44,186
Total tax charge
386,421
193,481
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
11
Taxation
(Continued)
Page 26
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,112,514
415,279
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
278,129
97,591
Tax effect of expenses that are not deductible in determining taxable profit
21,396
2,142
Effect of change in corporation tax rate
-
2,118
Deferred tax adjustments in respect of prior years
86,896
Capital allowances for period in deficit of depreciation
91,630
Taxation charge
386,421
193,481
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
595,574
557,914
13
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2024
3,500,000
232,823
3,732,823
Additions
47,490
47,490
At 31 December 2024
3,500,000
280,313
3,780,313
Amortisation and impairment
At 1 January 2024
2,654,178
183,776
2,837,954
Amortisation charged for the year
350,000
28,263
378,263
At 31 December 2024
3,004,178
212,039
3,216,217
Carrying amount
At 31 December 2024
495,822
68,274
564,096
At 31 December 2023
845,822
49,047
894,869
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
13
Intangible fixed assets
(Continued)
Page 27
The carrying amount of the goodwill above is £495,822 (2023: £845,822). The remaining amortisation period is just over one year.
14
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Office Equipment
Other fixed assets
Total
£
£
£
£
£
£
Cost
At 1 January 2024
1,298,694
209,948
15,000
114,755
161,542
1,799,939
Additions
88,082
26,847
1,813
116,742
Disposals
(5,132)
(5,132)
At 31 December 2024
1,386,776
236,795
15,000
111,436
161,542
1,911,549
Depreciation and impairment
At 1 January 2024
780,430
143,808
8,023
82,053
154,791
1,169,105
Depreciation charged in the year
151,588
23,249
1,745
11,372
5,485
193,439
Eliminated in respect of disposals
(4,842)
(4,842)
At 31 December 2024
932,018
167,057
9,768
88,583
160,276
1,357,702
Carrying amount
At 31 December 2024
454,758
69,738
5,232
22,853
1,266
553,847
At 31 December 2023
518,264
66,140
6,977
32,702
6,751
630,834
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
29,834
39,779
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 28
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
896
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
100
Additions
796
At 31 December 2024
896
Carrying amount
At 31 December 2024
896
At 31 December 2023
100
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Polarseal Tapes and Conversions Limited
Guildford Road Trading Estate, Farnham, Surrey, GU9 9PZ
Ordinary
100.00
Polarseal Tapes and Conversions US Inc
100 Challenger Road, Ridgefield Park, New Jersey, 076600
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Polarseal Tapes and Conversions Limited
768,387
Polarseal Tapes and Conversions US Inc
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 29
17
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,794,656
3,726,636
97,365
2,967
Carrying amount of financial liabilities
Measured at amortised cost
2,582,075
5,285,250
95,745
2,966
18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,924,221
1,888,351
-
-
Work in progress
355,199
415,970
-
-
Finished goods and goods for resale
212,137
210,855
2,491,557
2,515,176
-
-
The carrying value of stocks are stated net of impairment losses recognised in the profit or loss totalling £105,871 (2023: £101,252). In addition, a stock impairment provision has been applied totalling £285,426 (2023: £179,555).
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,758,050
3,479,695
Unpaid share capital
1
1
1
1
Amounts owed by group undertakings
-
-
97,364
-
Other debtors
36,605
2,836
2,966
Prepayments and accrued income
119,313
332,799
1,913,969
3,815,331
97,365
2,967
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 30
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
22
559,008
Obligations under finance leases
23
14,070
58,530
Trade creditors
601,359
1,234,462
Amounts owed to group undertakings
54,364
Corporation tax payable
282,573
162,090
604
Other taxation and social security
236,765
406,282
-
-
Other creditors
797,333
721,777
41,381
2,966
Accruals and deferred income
1,152,016
1,864,250
3,084,116
5,006,399
96,349
2,966
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
23
17,297
31,367
Other creditors
230,638
17,297
262,005
-
-
22
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
559,008
Payable within one year
559,008
The long-term loans are secured by fixed charges over its assets.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 31
23
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
14,090
58,530
In two to five years
17,277
31,367
31,367
89,897
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
139,345
151,588
Short term timing differences
(11,276)
(2,998)
128,069
148,590
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
148,590
-
Credit to profit or loss
(20,521)
-
Liability at 31 December 2024
128,069
-
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 32
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,574
57,241
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
20 Ordinary A shares of £1 each
20
20
20
20
20 Ordinary B shares of £1 each
20
20
20
20
5 Ordinary C shares of £1 each
5
5
5
5
5 Ordinary D shares of £1 each
5
5
5
5
10 Ordinary E shares of £1 each
10
10
10
10
10 Ordinary F sares of £1 each
10
10
10
10
5 Ordinary G shares of £1 each
5
5
5
5
5 Ordinary H shares of £1 each
5
5
5
5
5 Ordinary I shares of £1 each
5
5
5
5
5 Ordinary J shares of £1 each
5
5
5
5
5 Ordinary K shares of £1 each
5
5
5
5
5 Ordinary L shares of £1 each
5
5
5
5
100
100
100
100
Issued and unpaid
1 Redeemable share of £1 each
1
1
1
1
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 33
27
Financial commitments, guarantees and contingent liabilities
A debenture in favour of HSBC bank plc has been given by the Company in respect of a trade finance agreement incorporating full title guarantee over a pledge over the goods and absolute assignment over present and future rights as unpaid seller of the goods.
28
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,846
7,645
-
-
Between two and five years
5,539
-
-
-
7,385
7,645
-
-
29
Related party transactions
Transactions with related parties
During the year the directors incurred expenses on behalf of the Group and the total balance owed by the Group at the year end was £696,299 (2023: £949,449).
The group operates from two premises, both of which are owned by the directors of the Group. During the period, rent of £235,131 (2023: £224,414) was paid by the Group to directors and additional expenses of £nil (2023: £24,152).
During the year, the group made sales of £154,852 (2023: £445,363) to IST Scientific LLP holding a close relationship with the directors.
In addition, during the period the Group made charges of £90,164 (2023: £125,960) to IST Scientific LLP. As at the year end, IST Scientific LLP had a trade debtor balance of £55,859 (2023: £10,001) in respect of both of these charges.
The Company has taken exemption under FRS 102 section 33.1A from disclosing transactions with group companies, on the grounds that each company party to the transactions is wholly owned within the group.
Polarseal Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 34
30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
726,093
221,798
Adjustments for:
Taxation charged
395,058
193,481
Finance costs
2,452
41,269
Investment income
(11,518)
(33)
Loss on disposal of tangible fixed assets
149
-
Amortisation and impairment of intangible assets
378,263
369,829
Depreciation and impairment of tangible fixed assets
193,439
219,982
Movements in working capital:
Decrease in stocks
23,619
91,782
Decrease/(increase) in debtors
1,939,363
(1,987,445)
(Decrease)/increase in creditors
(1,477,298)
1,165,665
Corporation tax (paid)
-
(9,298)
Cash generated from operations
2,169,620
307,030
31
Analysis of changes in net funds/(debt) - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
528,848
277,349
806,197
Borrowings excluding overdrafts
(559,008)
559,008
-
Obligations under finance leases
(89,897)
58,530
(31,367)
(120,057)
894,887
774,830
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