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Registered number:
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
COMPANY INFORMATION
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ESTERFORM HOLDINGS LIMITED
CONTENTS
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ESTERFORM HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
The directors present the strategic report for the period ending 27 September 2024. The principal activities of the Group involve the design, manufacture, and marketing of plastic packaging. The UK market for the Group's products remains highly competitive, and the board considers that investment in the latest technology to provide customers with high-quality and cost-effective products is crucial for the future growth and success of the business.
During the year and as a result of actions taken by the board over the past two years, the group experienced strong growth in profitability and has strengthened its balance sheet in line with the strategic plans for the year ending September 2024. Recent investments in state-of-the-art manufacturing equipment and a continued focus on new product development have enabled the business to enter new market areas, which the board believes will drive significant profitable growth in the future. The group is pleased to announce the acquisition of Primepac Limited which will broaden the group’s product offering and expand the customer base whilst continuing to focus on the customer requirements.
Esterform takes its environmental responsibilities very seriously and has sustainability at the forefront of the business objectives. The group’s strategy is to continue to reduce the adverse environmental impacts; including energy-saving, lightweighting, and recycling initiatives. All PET processed by the group is 100% recyclable back to food grade and in 2024, approximately 37% of the PET used was post-consumer recycled PET (rPET), compared to 32% in 2023 Turnover in the period ended 27 September 2024 was £86.6m compared to £106.6m in 2023, due to a reduction in raw material prices and the increased use of tolled resin. EBITDA (earnings before interest, tax, depreciation, amortisation and exceptional items) grew by 23% for the period to £8.1m (2023: £6.6m), largely due to volume growth. With depreciation and amortisation charges of £5.7m (2023: £6.9m) and exceptional costs of £nil (2023: £1.13m), the Group made an operating profit of £2.4m compared to an operating loss of £1.5m in 2023. Biffa Waste Services Limited took a significant minority stake in the group in April 2023 and the Directors re-financed the group in June 2024 by agreeing a new credit facility totalling £31.2m with Santander. The Group's key financial performance indicator is EBITDA and key non-financial performance indicator is sales volume. The Board believes that taken together with these statements no further indicators are required in this report to gain an overall understanding of the business.
In June 2024, the directors agreed on a new credit facility totalling £31.2m with Santander. This facility, along with improved financial performance and forecasts, supports the preparation of financial statements on a going concern basis. The directors have reviewed the companies forecasts and projects, which extend greater than twelve months from the date of the financial statements and the directors consider that the Group will meet its liabilities as they fall due for the foreseeable future.
The Group's principal financial instruments comprise cash at bank, hire purchase contracts and loans. The main purpose of these financial instruments is to raise finance for the Group's operations. The Group has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.
The main risks arising from the Group's financial instruments are interest rate risk, market risk, liquidity risk, credit risk, and currency risk.
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ESTERFORM HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Interest risk
The Group borrows in sterling at floating rates of interest, under the terms of the facilities provided. The directors monitor the overall level of borrowings and interest costs to limit any adverse effects on the financial performance of the Group.
Market risk
The Group is exposed to adverse movements and volatility in commodity prices relating to PET. The Group seeks to benchmark its ability to manufacture cost effectively, against both UK and international suppliers, by measuring PET resin buying against a number of published indices, and also by internal evaluations against non EU supplies. The Group is also exposed to the impacts of inflation relating to other factory or production costs, including energy costs, which can fluctuate due to local or global economic conditions. The Group has taken steps to mitigate these risks more effectively by building in inflation recovery mechanisms into key customer contracts.
Liquidity risk
The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of purchase contracts, cash at bank, invoice discounting and loans.
Credit risk
The Group's principal financial assets are cash at bank and in hand and trade debtors, which represent the most significant exposure to credit risk in relation to financial assets. Credit risk is managed by continually evaluating the creditworthiness of individual customers. In addition the Group takes out credit insurance. Trade debtors are stated net of provisions for specific doubtful debts, which are based on the circumstances of individual customers in the context of the prevailing economic climate. The credit risk on liquid funds is limited as the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Currency risk
The Group's main raw material is based on US Dollar or Euro pricing, thereby providing an exchange risk and a competition risk when compared to non-UK suppliers. In addition, a proportion of the Group's sales are invoiced in US Dollars. The Group seeks to match US Dollar revenues and costs to reduce the exchange risk where possible.
Competition risk
A key risk to the business is the competitive environment both from indigenous UK competitors and increasingly from Continental Europe. The Group works hard with its customers to ensure they receive good value for money and the highest levels of customer service, product development (such as light-weighting) and design. This adds value to the Group's commercial proposition and enhances the Group's core skill of delivering near zero defect products to tight just-in-time schedules.
We recognise the importance of our wider stakeholders in delivering our strategy and business sustainability and are conscientious about our responsibilities and duties to our stakeholders under section 172 of the Companies Act 2006. In considering our responsibilities in this regard, we have specifically considered the likely consequences of decisions in the long term, and the need to act fairly between members.
Our customers
Our customers are at the centre of everything that we do. We continue to focus on providing customers with quality products and services at competitive prices.
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ESTERFORM HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Our employees
We want Esterform to be a great place to work, where employees are empowered to make decisions and can develop their skills and capabilities to serve our customers' needs. Our colleagues rely on us to provide stable employment and opportunities to realise their potential in a working environment where they can be at their best.
Our communities
Our products, services and people are beneficial to the communities in which we operate. High standards of ethics and business conduct is an important part of being a responsible member of the communities in which we operate.
The environment
Our products, supply chain and operations all have an impact on the environment. We believe that, as a general matter, our policies, working practices and procedures are properly designed to prevent unreasonable risk of environmental damage, and of resulting financial liability, in connection with our business. We continually seek out opportunities to improve our environmental performance and to contribute to the well-being and sustainability of the areas in which we operate.
Our shareholders
We continue to create long-term, sustainable value for our shareholders, by investing in our competitiveness in our chosen markets.
Our suppliers
We continue to develop and strengthen the partnerships we have with our suppliers to deliver great quality products and services to our customers, at great value.
This report was approved by the board on 24 July 2025 and signed on its behalf.
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ESTERFORM HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
The directors present their report and the financial statements for the period ended 27 September 2024.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation and minority interests, amounted to £1.2m (2023: loss £4.5m).
Ordinary dividends were paid amounting to £nil (2023: £nil). The directors do not recommend payment of a further dividend.
The directors who served during the period were:
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ESTERFORM HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
The Group has a continuing commitment to research and development.
There have been no significant events affecting the Group since the year end.
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Compliance Overview
This SECR disclosure represents our United Kingdom carbon footprint across Scope 1, 2 and to some extent Scope 3 emissions. It also includes an appropriate intensity metric, our total electricity, gas and transport fuel energy use, and a summary of the energy efficiency actions taken in the relevant financial period.
Methodology and Estimates
This report (including the Scope 1, 2 and 3 consumption and CO2e emissions data) has been developed and calculated using the GHG Protocol - A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development, 2004); Greenhouse Gas Protocol - Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019). Government Emissions Factor Database 2022 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the reporting period 30/09/2023 - 27/09/2024.
Estimations were undertaken to cover missing billing periods for properties directly invoiced to the Group. These were calculated on a kWh/day pro-rata basis at the meter level.
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ESTERFORM HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Energy Efficiency Action Taken
The Group is committed to year-on-year improvements in their operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years.
Measures ongoing and undertaken through 2023/24:
During 2024 Esterform Packaging’s Leeds site underwent multiple upgrades to enhance energy efficiency including new, energy efficient Chiller’s to improve Esterform Packaging’s emissions reductions.
Esterform Packaging engaged in upgrading the lighting across all sites to implement LED’s, a more energy efficient form of lighting. In addition to this, lighting sensors have been implemented to reduce energy wastage, so lights are only used when they are needed.
Measures prioritised for implementation in 2024/25
Continue commitment to becoming more energy efficient by reporting on current energy consumption data and understanding some potential initiatives to further reduce consumption so Esterform Packaging stays aligned with government standards on Environmental Reporting regulations.
Further LED Lighting Installations Plans are in place to continue replacing the current light fittings with LEDs until every site only uses LED Lighting, improving energy efficiency across every site.
The Group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Group's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of future developments and financial risk management.
Information on how the directors have had regard to the need to foster business relationships with suppliers, customers and others and the effect of that regard has been disclosed in the section 172 statement in the Strategic Report.
This report was approved by the board on
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ESTERFORM HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM HOLDINGS LIMITED
We have audited the financial statements of Esterform Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 27 September 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity 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, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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ESTERFORM HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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ESTERFORM HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM HOLDINGS LIMITED (CONTINUED)
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 Auditors' 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 Group financial statements.
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.
Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group, including:
∙Companies Act;
∙Tax legislation; and
∙Employment legislation.
We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
∙Management bias in respect of accounting estimates and judgements made;
∙Management override of controls;
∙Posting of unusual journals or transactions.
We focused on those areas that could give rise to a material misstatement in the Company's financial statements.
Our procedures included, but were not limited to:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims including instances of non-compliance with laws and regulations and fraud;
∙Reviewing minutes of meetings of those charged with governance, where available;
∙Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular depreciation of tangible fixed assets and overhead absorption rate used for stock valuation.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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ESTERFORM HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM HOLDINGS LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.
for and on behalf of
Statutory Auditors
Cornerblock
2 Cornwall Street
B3 2DX
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ESTERFORM HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
REGISTERED NUMBER: 10758203
CONSOLIDATED BALANCE SHEET
AS AT 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
REGISTERED NUMBER: 10758203
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 27 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 July 2025.
The notes on pages 20 to 49 form part of these financial statements.
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ESTERFORM HOLDINGS LIMITED
REGISTERED NUMBER: 10758203
COMPANY BALANCE SHEET
AS AT 27 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 20 to 49 form part of these financial statements.
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ESTERFORM HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Esterform Holdings Limited ("the company") is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Esterform Holdings Limited, Boraston Lane, Tenbury Wells, Worcestershire, United Kingdom, WR15 8LE.
The Group consists of Esterform Holdings Limited and all of its subsidiaries.
The company's and the Group's principal activities and nature of its operations are disclosed in the Directors' Report.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements are made up to the Friday nearest to the period end for each financial period.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The presentation currency of these financial statements is Sterling. All amounts in the financial statements have been rounded to the nearest £000's
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.
All financial statements are made up to 27 September 2024 except Pet Plas Packaging Limited and Pet Plas Europe Limited, whose financial statements are made up to 31 March 2024. No significant transactions or events occured in the period between 31 March and 27 September 2024 for these entities.
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
In June 2024, the directors agreed on a new credit facility totalling £31.2m with Santander. This facility, along with improved financial performance and forecasts, supports the preparation of financial statements on a going concern basis. The directors have reviewed the companies forecasts and projects, which extend greater than twelve months from the date of the financial statements and the directors consider that the Group will have sufficient resources to meet its liabilities as they fall due for the foreseeable future.
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.
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 amortised on a straight line 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.
Page 21
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
Freehold land is not depreciated.
Assets under construction are carried at cost, less any identified impairment loss. Cost includes professional fees and other directly attributable costs that are necessary to bring the asset to its operating condition. No depreciation is charged until asset is available for use, then transferred to freehold buildings or plant and machinery as appropriate.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.
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.
At each reporting period end date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the Consolidated Statement of Comprehensive Income, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Page 22
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.
Financial instruments are recognised when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade debtors, other debtors (including accrued income), amounts owed by Group undertakings and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
Page 23
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the Consolidated Statement of Comprehensive Income.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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 Group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow Group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the Group's contractual obligations are discharged, cancelled, or they expire.
Equity instruments issued by the Group are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Group.
Page 24
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Provisions are recognised when the Group has a legal or constructive present obligation as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in the Statement of comprehensive income in the period in which it arises.
Page 25
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Page 26
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Page 27
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
3.Judgments in applying accounting policies (continued)
Page 28
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Analysis of turnover by country of destination:
Page 29
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 30
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 31
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 32
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 33
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
12.Taxation (continued)
The group has estimated losses of £9.1m (2023 - £12.2m) available for carry forward against future trading profits.
Page 34
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 35
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 36
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
15.Tangible fixed assets (continued)
Page 37
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 38
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 39
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 40
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 41
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 42
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
22.Loans (continued)
Page 43
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 44
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Merger Reserve
Profit and loss account
Page 45
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 46
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
28.Business combinations (continued)
During the year, it was discovered that the brought forward amortisation was materially misstated. This resulted in a retrospective adjustment to amortisation charged in previous financial years and the accumulated amortisation brought forward was restated by £722k.
The effect of this prior year adjustment is to restate the amortisation expense for the period ended 29 September 2023 by £119k from £508k to £627k and loss for the period by £119k from £4,289k to £4,408k. The earliest financial period which is presented that is affected by this prior year adjustment is the year ended 30 September 2018 and this has impacted on profit and loss reserves brought forward as at 1 October 2018 and accumulated amortisation brought forward as at the same date. The effect of this prior year adjustment is to restate accumulated amortisation brought forward by £722k from £3,196k to £3,918k and profit and loss reserves brought forward by £722k from £5,533k to £6,255k.
The contributions payable by the Company charged to the Statement of Comprehensive Income amounted to £215k (2023: £172K). Contributions totalling £49k (2023: £37K) were payable to the fund at year end.
Page 47
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 48
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ESTERFORM HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
33.Related party transactions (continued)
At the balance sheet date, the group has entered into agreements to purchase US dollars and euros at the higher of the spot exchange rates and the forward contract exchange rates at set expiration dates. The maximum amount of US dollars and euros to be purchased under these agreements is $1,350k and 8.8m euros respectively.
The ultimate controlling parties are Mr and Mrs M J Tyne, by virtue of their majority shareholding in Esterform Holdings Limited.
Page 49
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