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Registered number:
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM PACKAGING LIMITED
COMPANY INFORMATION
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ESTERFORM PACKAGING LIMITED
CONTENTS
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ESTERFORM PACKAGING LIMITED
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 Company involve the design, manufacture, and marketing of plastic packaging. The UK market for the Company'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 company 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 company 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 company’s strategy is to continue to reduce the adverse environmental impacts; including energy-saving, lightweighting, and recycling initiatives. All PET processed by the company 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.
The Company'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 Company's operations. The Company has various other financial instruments such as trade debtors and trade creditors, which arise directly from it's operations.
The main risks arising from the Company's financial instruments are interest rate risk, market risk, liquidity risk, credit risk and currency risk.
Interest risk
The Company 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 Company.
Market risk
The Company is exposed to adverse movements and volatility in commodity prices relating to PET. The Company 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 Company 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 Company has taken steps to mitigate these risks more effectively by building in inflation recovery mechanisms into key customer contracts.
Liquidity risk
The Company'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.
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ESTERFORM PACKAGING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Credit risk
The Company'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 Company 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 Company'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 Company's sales are invoiced in US Dollars. The Company 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 Company 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 Company's commercial proposition and enhances the Company's core skill of delivering near zero defect products to tight just-in-time schedules.
Turnover in the period ended 27 September 2024 was £82.4m compared to £102.3m 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 18% for the period to £7.8m (2023: £6.6m), largely due to volume growth.
With depreciation and amortisation charges of £5.1m (2023: £6.3m) and exceptional costs of £nil (2023: £1.13m), the Company made an operating profit of £2.7m compared to an operating loss of (£0.78m) 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 Company'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 Company will have sufficient resources to meet its liabilities as they fall due for the foreseeable future.
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ESTERFORM PACKAGING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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.
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 PACKAGING 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 Strategic report, the Directors' report and the 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 Company's financial statements and then apply them consistently;
∙make judgments 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 Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £651k (2023 - loss £3,360k).
Ordinary dividends were paid amounting to £nil (2023: £nil).
The directors who served during the period were:
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ESTERFORM PACKAGING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
The Company has a continuing commitment to research and development.
Compliance overview
The 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) have 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 Company. These were calculated on a kWh/day pro-rata basis at the meter level.
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ESTERFORM PACKAGING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Energy efficiency action taken
The Company 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.
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 Company has chosen in accordance with Companies Act 2006, S 414C(11) to set out in the Company's Strategic Report information required by Large and Medium-sized Companies (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Director's Report. It has done so in respect of future developments and financial risk management.
Information in the Strategic Report describes how the directors have had regard to the matters set out in section 172 (1) (a) to (f) of the Companies Act 2006 when performing their duty where relevant.
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.
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ESTERFORM PACKAGING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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ESTERFORM PACKAGING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM PACKAGING LIMITED
We have audited the financial statements of Esterform Packaging Limited (the 'Company') for the period ended 27 September 2024, which comprise the Statement of comprehensive income, the Balance sheet, the 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 Company 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 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 PACKAGING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM PACKAGING 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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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ESTERFORM PACKAGING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM PACKAGING 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 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 Company and industry, we identify the key laws and regulations affecting the Company, 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 PACKAGING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ESTERFORM PACKAGING 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 St
B3 2DX
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ESTERFORM PACKAGING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM PACKAGING LIMITED
REGISTERED NUMBER: 03627281
BALANCE SHEET
AS AT 27 SEPTEMBER 2024
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ESTERFORM PACKAGING LIMITED
REGISTERED NUMBER: 03627281
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
The notes on pages 16 to 39 form part of these financial statements.
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ESTERFORM PACKAGING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Esterform Packaging Limited is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Esterform Packaging Ltd, Boraston Lane, Tenbury Wells, Worcestershire, WR15 8LE.
The company'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 management to exercise judgment in applying the Company's accounting policies (see note 3).
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 whole £1,000 except where otherwise indicated.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Esterform Holdings Limited as at 27 September 2024 and these financial statements may be obtained from Boraston Lane, Tenbury Wells, Worcestershire, WR15 8LE.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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ESTERFORM PACKAGING 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 Company will have sufficient resources to meet its liabilities as they fall due for the foreseeable future.
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 6 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.
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ESTERFORM PACKAGING 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:
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 Statement of Comprehensive Income.
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the Statement of Comprehensive Income.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Page 18
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
At each reporting period end date, the company 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 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.
The company 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 Company 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.
Page 19
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade debtors, other debtors (including accrued income), amounts owed by Company 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 the Statement of Comprehensive Income, 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 Statement of Comprehensive Income. 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 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.
Page 20
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the Company's contractual obligations are discharged, cancelled, or they expire.
Equity instruments issued by the company 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 company.
Page 21
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined. All translation differences are taken to the Statement of Comprehensive Income, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.
Provisions are recognised when the company has an obligation at the reporting dates as a result of a past event which it is probably will result in the transfer of economic benefits and that obligation can be estimated reliably.
Provisions are measured at the best estimate of the amounts required to settle the obligation where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre tax discount rate that reflects the risks specifics to the liability. The unwinding of the discount is recognised within interest payable and similar expenses.
Page 22
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
2.Accounting policies (continued)
Research and development expenditure is written off against profits in the period in which it is incurred.
Page 23
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Analysis of turnover by country of destination:
Page 24
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 25
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 26
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 27
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
10.Taxation (continued)
The company has estimated losses of £9.1m (2023: £12.2m) available for carry forward against future trading profits.
Page 28
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 29
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 30
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 31
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 32
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 33
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
In June 2024, two loans from Shawbrook relating to plant and machinery and property were settled and replaced with 2 new loans from Santander. The balance on the Plant and Machinery loan on settlement was £1,083k (2023: £2,058k) and the balance on the Property Loan on settlement was £1,194k (2023: £1,244k).
The new loan relating to Plant and Machinery amounted to £3,888k and is repayable on a monthly basis attracts interest at a margin of 3.5% with final repayment due in June 2029. The balance on 27 September 2024 was £3,694k (2023: £nil).
The new loan relating to Property amounted to £2,349k and is repayable on a quarterly basis attracts interest at a margin of 2.95% with final repayment due in June 2027 however there is an option to refinance at this date. The balance on 27 September 2024 was £2,309k (2023: £nil).
These bank loans were part of a credit backed offer with Santander secured by the Directors in 2024 with an overall facility limit of £28,888k and are secured by a fixed and floating charge over all property of the company. The above loans are net of debt issue costs of £5k (2023: £14k). On 25 April 2023, the company converted a trading balance with Biffa Waste Services Limited into a loan arrangement. The loan value was for £2.0m which accrues interest at 5% per annum, the loan and interest are repayable in full on 31 December 2025. There is an option to extend this repayment date.
Page 34
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
20.Loans (continued)
On 25 April 2023, the company entered into a further loan arrangement with Biffa Waste Services Limited with an advance of £875k received. Interest accrues on this loan at 5% per annum commencing on 30 April 2026. The loan and interest are repayable in full at the later of the date of completion of any exit or 30 April 2027. This repayment date can be extended.
The loans from Biffa Waste Services Limited are secured by fixed and floating charges over the company's assets.
Page 35
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 36
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Share premium account
Revaluation reserve
Profit and loss account
The contributions payable by the Company charged to the Statement of Comprehensive Income amounted to £199k (2023: £172k). Contributions totalling £44k (2023: £37k) were payable to the fund at year end.
Page 37
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
Page 38
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ESTERFORM PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 27 SEPTEMBER 2024
28.Related party transactions (continued)
At the balance sheet date, the company 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.
Esterform Holdings Limited is regarded as being the company's ultimate parent company.
The immediate parent company is Esterform Group Limited who owns the majority of the issued ordinary share capital. The principal place of business of Esterform Holdings Limited is Boraston Lane, Tenbury Wells, Worcestershire, WR15 8LE. The consolidated financial statements for Esterform Holdings Limited are available at the above address. The ultimate controlling parties are Mr and Mrs M J Tyne, by virtue of their majority shareholding in the ultimate parent company, Esterform Holdings Limited.
Page 39
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