Company registration number 02327301 (England and Wales)
LOGOPAK INTERNATIONAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
LOGOPAK INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
Mr D Barsch
Mr H J Jagger
Secretary
Mr H J Jagger
Company number
02327301
Registered office
Enterprise House
George Cayley Drive
Clifton Moor Industrial Estate
York
North Yorkshire
England
YO30 4XE
Auditor
Finnies Accountants Limited
4-6 Swaby's Yard
Walkergate
Beverley
East Yorkshire
United Kingdom
HU17 9BZ
LOGOPAK INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
LOGOPAK INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the Business
The company continued to grow significantly in the year.
Principal risks and uncertainties
The company annually carries out an exercise to identify and assess the impact of risks on their business and the exercise has recently been reviewed. The more significant risks and uncertainties are in line with the rest of the labelling machine sector specifically customer retention, cost of materials, margin, profitability and competition.
Development and performance
The directors thoughts from last year remain.
Challenges remain with the political uncertainties in the world which are responsible for rising energy prices, inflation and potential recession. The directors believe that the Company is suitably prepared for this with its strong reserves and cash at bank.
Key performance indicators
The board has assessed that the Key Performance Indicators (KPI's) are the most effective measures of progress towards achieving further growth of turnover and profitability.
- Organic sales growth - year on year increase in sales revenue.
- Gross return on sales - gross profit as a percentage of sales revenue.
- Net return on sales - operating profit as a percentage of sales revenue.
- Free cashflow - cash generated from operations less tax and interest paid.
Performance against KPI's
Mr H J Jagger
Director
20 January 2025
LOGOPAK INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the sales and servicing of labelling machines.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,500,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D Barsch
Mr H J Jagger
Laws and regulations
So far as the directors are aware there have not been any actual or potential instances of non-compliance with the laws and regulations that provide a legal framework within which the company conducts its business and which are central to the company's ability to conduct its business. They are also not aware of any litigation, law suits, hearings or negotiations in which the company was engaged that may give rise to any contingent or actual liability as at 31 December 2024.
Financial instruments
Financial risk factors
The company's operations expose it to a variety of financial risks that include the effects of credit risk, liquidity risk and interest rate risk. The company's overall risk managements programme focuses on the unpredictability of, the markets in which it operates and seeks to minimise associated volatility of the company's financial performance. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.
Given the size of the company, the directors have not delegated the responsibility of monitoring the financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the executive directors.
Liquidity risk
The company manages liquidity risk by maintaining sufficient cash to enable it to meet its operational requirements. Operating cash flows are actively managed with annual cash flow forecasts updated as required and subject to board review.
LOGOPAK INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Credit risk
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. The company has implemented policies that require maintaining appropriate credit limits on all customers. The company's credit risk is primarily attributable to its trade receivables balance. The amounts presented in the statement of financial position are net of allowances for doubtful debts.
The company does not have significant concentrations of credit risk. The deposits with banks are only held with reputable financial institutions. This credit worthiness is reviewed periodically in order to ensure active management of counter-party risk. If customers are independently rated, these ratings are used. If there is no independent rating, the board of directors assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored.
No credit limits were exceeded during the reporting period and management does not expect any losses from non-performance by these counterparties.
Auditor
The auditors, Finnies Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr H J Jagger
Director
20 January 2025
LOGOPAK INTERNATIONAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LOGOPAK INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOGOPAK INTERNATIONAL LIMITED
- 5 -
Opinion
We have audited the financial statements of Logopak International Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
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.
LOGOPAK INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOGOPAK INTERNATIONAL LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
We tailored the scope of our audit to ensure that we performed sufficient work to allow us to give an opinion on the financial statements as a whole taking into account the business structure, the accounting processes, controls and the industry in which it operates. Discussions were held with the directors to highlight any irregularities including fraud and any non-compliance with laws and regulations, these factors were also considered at all stages of the audit.
There were no specific risks identified that required additional audit procedures.
Materiality was set based on turnover and we applied performance materiality to each section based on risk to material misstatement. This allows us to determine the scope of the audit and the nature, timing and extent of our audit procedures on the financial statements lines and disclosure in evaluating the effect of any misstatement.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud.
- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
LOGOPAK INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOGOPAK INTERNATIONAL LIMITED
- 7 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Nicholas Michael Auton
Senior Statutory Auditor
For and on behalf of Finnies Accountants Limited
Chartered Certified Accountants
Statutory Auditor
4-6 Swaby's Yard
Walkergate
Beverley
East Yorkshire
United Kingdom
HU17 9BZ
22 January 2025
LOGOPAK INTERNATIONAL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,751,500
12,468,765
Cost of sales
(7,824,910)
(7,624,839)
Gross profit
5,926,590
4,843,926
Administrative expenses
(1,361,240)
(1,468,022)
Operating profit
4
4,565,350
3,375,904
Interest receivable and similar income
7
2,679
4,459
Profit before taxation
4,568,029
3,380,363
Tax on profit
8
(1,144,491)
(789,919)
Profit for the financial year
3,423,538
2,590,444
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LOGOPAK INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit for the year
3,423,538
2,590,444
Other comprehensive income
-
-
Total comprehensive income for the year
3,423,538
2,590,444
LOGOPAK INTERNATIONAL LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
732,057
709,700
Current assets
Stocks
11
1,104,002
653,453
Debtors
12
2,289,298
2,061,106
Cash at bank and in hand
3,158,012
3,336,430
6,551,312
6,050,989
Creditors: amounts falling due within one year
13
(1,756,852)
(2,167,169)
Net current assets
4,794,460
3,883,820
Total assets less current liabilities
5,526,517
4,593,520
Provisions for liabilities
Deferred tax liability
15
(5,264)
(14,723)
5,264
14,723
Net assets
5,531,781
4,608,243
Capital and reserves
Called up share capital
17
100,000
100,000
Profit and loss reserves
5,431,781
4,508,243
Total equity
5,531,781
4,608,243
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 20 January 2025 and are signed on its behalf by:
Mr H J Jagger
Director
Company registration number 02327301 (England and Wales)
LOGOPAK INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
100,000
4,567,799
4,667,799
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,590,444
2,590,444
Dividends
9
-
(2,650,000)
(2,650,000)
Balance at 31 December 2023
100,000
4,508,243
4,608,243
Year ended 31 December 2024:
Profit and total comprehensive income
-
3,423,538
3,423,538
Dividends
9
-
(2,500,000)
(2,500,000)
Balance at 31 December 2024
100,000
5,431,781
5,531,781
LOGOPAK INTERNATIONAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
4,165,893
4,416,623
Income taxes paid
(1,656,439)
(807,748)
Net cash inflow from operating activities
2,509,454
3,608,875
Investing activities
Purchase of tangible fixed assets
(112,150)
(69,343)
Proceeds from disposal of tangible fixed assets
22,400
46,499
Interest received
2,679
4,459
Net cash used in investing activities
(87,071)
(18,385)
Financing activities
Repayment of borrowings
(100,801)
3,867
Dividends paid
(2,500,000)
(2,650,000)
Net cash used in financing activities
(2,600,801)
(2,646,133)
Net (decrease)/increase in cash and cash equivalents
(178,418)
944,357
Cash and cash equivalents at beginning of year
3,336,430
2,392,073
Cash and cash equivalents at end of year
3,158,012
3,336,430
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Logopak International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Enterprise House, George Cayley Drive, Clifton Moor Industrial Estate, York, North Yorkshire, England, YO30 4XE.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover in respect of machine sales is recognised on installation of the machine. This has been agreed with HM Revenue & Customs. All other revenue is recognised in the period in which goods and services are provided in accordance with the terms of the contractual relationships with third parties. Revenue represents the fair value of the consideration received or receivable for goods and services provided in the normal course of business, excluding trade discounts, rebate, value added tax and other sales taxes.
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
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.
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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:
Freehold land and buildings
2.5% pa on cost (buildings only)
Fixtures and fittings
15% pa on written down value
Computers
33.33% pa on written down value
Motor vehicles
33.33% pa on written down value
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 credited or charged to profit or loss.
As at 1 February 2012 depreciation commenced on the freehold property at a rate of 2.5% on cost. The directors calculate that 70% of the total cost relates to the property and the remaining 30% to the land.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.
1.7
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.
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Financial instruments
The company 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.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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 debtors 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 profit or loss.
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 profit or loss.
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 company 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 company after deducting all of its liabilities.
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the 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.
1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 when the company has 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Turnover and other revenue
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,701,203
12,447,447
EU
50,297
21,318
13,751,500
12,468,765
2024
2023
£
£
Other revenue
Interest income
2,679
4,459
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(12,732)
7,688
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
8,800
Depreciation of owned tangible fixed assets
76,672
61,701
Profit on disposal of tangible fixed assets
(9,279)
(12,654)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
24
24
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,247,277
1,323,173
Social security costs
125,125
109,913
Pension costs
59,441
140,712
1,431,843
1,573,798
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
225,145
282,278
Company pension contributions to defined contribution schemes
5,250
65,250
230,395
347,528
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
225,145
236,464
Company pension contributions to defined contribution schemes
5,250
5,250
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,679
4,459
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,679
4,459
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,135,032
800,562
Deferred tax
Origination and reversal of timing differences
9,459
(10,643)
Total tax charge
1,144,491
789,919
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 20 -
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
4,568,029
3,380,363
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
1,142,007
795,061
Tax effect of expenses that are not deductible in determining taxable profit
(6,975)
5,501
Change in unrecognised deferred tax assets
9,459
(10,643)
Taxation charge for the year
1,144,491
789,919
The OCED Pillar Two regime regulations have been considered and no adjustments are required.
9
Dividends
2024
2023
£
£
Interim paid
2,500,000
2,650,000
10
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
759,509
106,066
138,276
188,464
1,192,315
Additions
2,281
109,869
112,150
Disposals
(43,677)
(87,443)
(56,906)
(188,026)
At 31 December 2024
759,509
62,389
53,114
241,427
1,116,439
Depreciation and impairment
At 1 January 2024
158,386
101,423
122,803
100,003
482,615
Depreciation charged in the year
13,291
619
6,820
55,942
76,672
Eliminated in respect of disposals
(42,557)
(87,032)
(45,316)
(174,905)
At 31 December 2024
171,677
59,485
42,591
110,629
384,382
Carrying amount
At 31 December 2024
587,832
2,904
10,523
130,798
732,057
At 31 December 2023
601,123
4,643
15,473
88,461
709,700
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Stocks
2024
2023
£
£
Work in progress
309,380
-
Finished goods and goods for resale
794,622
653,453
1,104,002
653,453
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,203,764
2,060,996
Corporation tax recoverable
85,424
Prepayments and accrued income
110
110
2,289,298
2,061,106
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
14
820,862
921,663
Trade creditors
186,808
158,950
Corporation tax
435,983
Other taxation and social security
534,197
398,444
Accruals and deferred income
214,985
252,129
1,756,852
2,167,169
14
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings
820,862
921,663
Payable within one year
820,862
921,663
Lloyds Bank hold a first legal charge over the commercial freehold property known as Enterprise Building, George Caley Drive, York and a debenture dated 11 September 1990.
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Loans and overdrafts
(Continued)
- 22 -
The above loan balance of £820,862 (2023 £921,663) is due to other members of the Possehl Group.
The Water Mill Press Limited £819,039 (2023 £788,539)
Logopak Systeme GmbH £1,823 (2023 £128,018)
Possehl Mittelstandsbeteiligungen £0 (2023 £5,106)
These amounts all relate to normal trading transactions carried out on an arms length basis.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
(5,264)
(14,723)
2024
Movements in the year:
£
Asset at 1 January 2024
(14,723)
Charge to profit or loss
9,459
Asset at 31 December 2024
(5,264)
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,441
140,712
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary £1 shares of £1 each
100,000
100,000
100,000
100,000
LOGOPAK INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
18
Related party transactions
Dividends paid to directors and shareholders during the year totalled £2,500,000 (2023: £2,650,000)
19
Ultimate controlling party
The controlling party is Logopak Systeme GmbH.
The ultimate controlling party is L Possehl & Co mbH.
Logopak Systeme GmbH a company registered in Germany own 60% of the issued share capital of Logopak International Limited.
The ultimate controlling party L Possehl & Co mbH, a company registerred in Germany, the smallest group in which the company's results are consolidated. Copies of the accounts are available from L.Possehl & Co mbH, Beckergrube 38-52, 23552 Lubeck, PO Box 1684, 23505 Luebeck, Germany.
20
Cash generated from operations
2024
2023
£
£
Profit after taxation
3,423,538
2,590,444
Adjustments for:
Taxation charged
1,144,491
789,919
Investment income
(2,679)
(4,459)
Gain on disposal of tangible fixed assets
(9,279)
(12,654)
Depreciation and impairment of tangible fixed assets
76,672
61,701
Movements in working capital:
Increase in stocks
(450,549)
(1,106)
(Increase)/decrease in debtors
(142,768)
1,133,116
Increase/(decrease) in creditors
126,467
(140,338)
Cash generated from operations
4,165,893
4,416,623
21
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
3,336,430
(178,418)
3,158,012
Borrowings excluding overdrafts
(921,663)
100,801
(820,862)
2,414,767
(77,617)
2,337,150
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