Company registration number 02766111 (England and Wales)
FEDRIGONI U.K. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
FEDRIGONI U.K. LIMITED
COMPANY INFORMATION
Directors
Mr I E Schinazi
Mrs L Robinson
(Appointed 1 December 2024)
Company number
02766111
Registered office
1 Bartholomew Lane
London
EC2N 2AX
Accountants
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
FEDRIGONI U.K. LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 29
FEDRIGONI U.K. 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

Fedrigoni U.K. Limited is the United Kingdom subsidiary of the Fedrigoni Group and serves as the principal distribution entity for the Group’s business unit, Fedrigoni Special Papers, within the UK market. The primary customer base of Fedrigoni U.K. Limited includes commercial printers, paper converters, publishers, and paper merchants, with operations tailored to meet the diverse and specialised needs of these sectors.

 

The year 2024 marked a period of stabilisation for the UK subsidiary, following a particularly challenging 2023. During 2023, the market experienced significant volatility as major clients and UK-based merchants undertook efforts to realign inventory levels that had been elevated throughout 2022.

 

Despite the persistent uncertainty in the global economic landscape throughout 2024, Fedrigoni U.K. Limited demonstrated resilience. Revenue levels reflected a reassuring trend of steady recovery, signalling a return to more sustainable trading conditions and laying a firm foundation for future growth.

 

To align with the accounting recognition and measurement principles adopted in the wider group, the company has transitioned from FRS 102 to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 January 2023.

 

Results for the company show sales of £33,175,103 in 2024, and profit before taxation was £1,263,205, down from £1,740,554 in the previous year (as restated under FRS 101).

 

Fedrigoni U.K. Limited has a retail shop in central London under the Fabriano Boutique brand, selling high end stationery and leather goods. The store is a non-essential retail outlet and it has now virtually fully recovered to pre Covid levels. Sales were £396k.

Principal risks and uncertainties

From the perspective of the company, the principal risks and uncertainties are integrated with the principal risks of the group and are not managed separately. Accordingly, the principal risks and uncertainties of Fedrigoni U.K. Limited, which include those of the group, are discussed briefly below and in further detail within the group’s annual report which does not form part of this report.

 

The challenge the business faces for 2025 is managing continued cost increases from materials to energy and employment costs. Fedrigoni’s group structure and transfer pricing policy provides a guaranteed net margin on sales for distribution entities.

 

We continue our focus on credit management as detailed in this report. This remains an important area of our business to manage.

 

The directors have considered the financial position of the company at 31 December 2024 and forecasts for a period of 12 months from the date of signing these financial statements. In light of these forecasts, they consider that the company has adequate resources to continue in operational existence for the foreseeable future.

 

For Fedrigoni UK, the directors have assessed the risks noted and their impact in terms of turnover, profit and cashflow, and ultimately believe the company will be self-sufficient and able to maintain a positive cash reserve for the twelve months following the signing of the audit report. Combined with a close to fully insured debtor book and Fedrigoni UK being an important component of the Group’s strategic distribution network, the directors consider that the preparation of the accounts on a going concern basis remains appropriate.

FEDRIGONI U.K. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Financial risk management

The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. In any event, the parent company assures the financial management of Fedrigoni U.K. Limited against those risks outlined. The company has in place a risk management program that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

 

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The board of directors considers that the below policies and procedures established are adequate and appropriate to manage the company's financial risks. Those policies and procedures are implemented by the company's finance department. This sets out specific guidelines to manage price risk, credit risk, liquidity risk, interest rate risk and currency risk, including circumstances where it would be appropriate to use financial instruments to manage these.

 

Liquidity risk

The company actively maintains a mixture of long-term and short-term debt finance designed to ensure that sufficient funds are available to support ongoing operations and planned expansions. In addition to a debt factoring agreement with a third-party lender, the company benefits from participation in a group-wide cash pooling arrangement coordinated by the intra-group treasury function. This centralised treasury structure enables efficient management of group liquidity, optimises the allocation of surplus funds, and provides flexible access to intra-group financing where required.

 

Interest rate risk

The company's exposure to risk for the changes in interest rates relates primarily to the company's loan. The company's policy is to manage its interest cost using a variable market rate based on Euribor, which will fluctuate according to levels of working capital required.

 

Foreign currency risk

The company is exposed to translation and transaction foreign exchange risk. To minimise the risk, the company purchases from Group companies in Pounds Sterling for goods to be sold in the U.K.

 

Credit risk

The company's principal financial assets are cash and trade debtors. Risks associated with cash are low as the company's banks have high credit ratings assigned by international credit rating agencies.

The principal credit risk lies with trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history. The company insures all the major debts and all limits that are not insured are agreed with senior management.

 

Price risk

The company is exposed to price risk as a result of the industry in which it operates. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

FEDRIGONI U.K. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Key performance indicators

The directors of Fedrigoni U. K. Limited consider the key performance indicators to be measured by the financial results of the business. Volumes are measured daily, and this is a clear indicator of our success and the performance of the wider market. Our main financial KPI is fixed costs as a % of turnover. This is a group wide KPI that helps us manage our costs in proportion to our revenue.

 

Uninsured bad debts due to business failures have remained insignificant because of strong credit management.

 

The key financial reporting figures for the company are:

 

 

2024

2023

Turnover

33,175,103

33,023,452

Profit before tax

1,256,309

1,740,554

Net assets

10,130,731

9,204,502

Fixed costs as a percentage of turnover

4.5%

4.3%

 

2023 is presented as restated under FRS 101.

Strategy and future developments

Fedrigoni U.K. Limited has a vision to be the leading supplier of creative paper products and inspirational services.

 

Our strategy of working with distributors to manage certain channels has worked well and will continue. The groups strategy is to focus on key market pillars, luxury packaging, luxury publishing, identifying plastic to paper opportunities and reducing the reliance on filler products.

On behalf of the board

Mrs L Robinson
Director
8 August 2025
FEDRIGONI U.K. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of importers and distributors of quality paper

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. 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 I E Schinazi
Mr S Pilkington
(Resigned 1 December 2024)
Mrs L Robinson
(Appointed 1 December 2024)
Future developments

The results show a positive net result achieved. With a focus on improved sales management, customer relationship development and cost control, the directors confirm the next expectations of the company are to continue producing a satisfactory profit in the forthcoming years.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

 

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Strategic report

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 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, principal risks and uncertainties.

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.

On behalf of the board
Mrs L Robinson
Director
8 August 2025
FEDRIGONI U.K. LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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:

 

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.

FEDRIGONI U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FEDRIGONI U.K. LIMITED
- 6 -
Opinion

We have audited the financial statements of Fedrigoni U.K. Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

FEDRIGONI U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FEDRIGONI U.K. LIMITED (CONTINUED)
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

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.

Matters on which we are required to report by exception

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:

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 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

FEDRIGONI U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FEDRIGONI U.K. LIMITED (CONTINUED)
- 8 -

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 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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters 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.

Paul Spencer BSc(Hons) FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
8 August 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
FEDRIGONI U.K. LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Revenue
3
33,175,103
33,023,452
Cost of sales
(28,698,878)
(27,766,665)
Gross profit
4,476,225
5,256,787
Distribution costs
(335,009)
(329,233)
Administrative expenses
(4,225,269)
(4,450,608)
Other operating income
498,018
288,377
Operating profit
4
413,965
765,323
Investment income
7
940,277
1,070,904
Finance costs
8
(97,933)
(95,673)
Profit before taxation
1,256,309
1,740,554
Tax on profit
9
(330,080)
(303,280)
Profit and total comprehensive income for the financial year
926,229
1,437,274

The income statement has been prepared on the basis that all operations are continuing operations.

FEDRIGONI U.K. LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
482,548
773,894
Current assets
Inventories
11
2,543,073
2,049,985
Trade and other receivables
12
23,508,017
24,722,081
Cash and cash equivalents
1,020,656
300,435
27,071,746
27,072,501
Current liabilities
13
(17,176,550)
(18,235,916)
Net current assets
9,895,196
8,836,585
Total assets less current liabilities
10,377,744
9,610,479
Non-current liabilities
13
(227,008)
(376,249)
Provisions for liabilities
Deferred tax liabilities
16
(20,005)
(29,728)
Net assets
10,130,731
9,204,502
Equity
Called up share capital
18
7,500,000
7,500,000
Retained earnings
2,630,731
1,704,502
Total equity
10,130,731
9,204,502
The financial statements were approved by the board of directors and authorised for issue on 8 August 2025 and are signed on its behalf by:
Mrs L  Robinson
Director
Company registration number 02766111 (England and Wales)
FEDRIGONI U.K. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Retained earnings
Total
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
7,500,000
354,516
7,854,516
Adjustments on transition to FRS 101 (Note 23)
23
-
(87,288)
(87,288)
As restated
7,500,000
267,228
7,767,228
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,437,274
1,437,274
Balance at 31 December 2023
7,500,000
1,704,502
9,204,502
Year ended 31 December 2024:
Profit and total comprehensive income
-
926,229
926,229
Balance at 31 December 2024
7,500,000
2,630,731
10,130,731
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Fedrigoni U.K. Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Bartholomew Lane, London, EC2N 2AX.

 

The principal place of business of the company is Unit 11, Queens Park Industrial Estate, Studland Road, Northampton, NN2 6NE.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company meets the definition of a qualifying entity under FRS 101 Reduced Disclosure Framework. These financial statements for the year ended 31 December 2024 are the first financial statements of Fedrigoni U.K. Limited prepared in accordance with FRS 101. The company transitioned from FRS 102 to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 January 2023.

 

An explanation of how transition to FRS 101 has affected the reported financial position and financial performance is given in note 23.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts of Fedrigoni S.p.A. The group accounts of Fedrigoni S.p.A are available to the public and can be obtained as set out in note 22.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

The company is part of a group as detailed in the ultimate controlling party note which has a strong liquidity, considerable headroom in its covenants and is very strongly capitalised by its shareholders. Working capital is closely monitored, especially to protect timely collection of debtors. Fedrigoni UK is a strategic part of the group's distribution and relies entirely on supplies from within the group, which the directors believe will continue for the foreseeable future. true

 

The company is expected to continue to generate positive cash flows on its own account for the foreseeable future, even after taking into account reasonably possible worst-case scenarios. Cash balances at 31 December 2024 amounted to £1.02m (2023: £0.30m). The company benefits from participation in a group-wide cash pooling arrangement coordinated by the intra-group treasury function. This centralised treasury structure enables efficient management of group liquidity, optimises the allocation of surplus funds, and provides flexible access to intra-group financing where required.

 

After considering the impact of the above, at 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
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

 

When a third party good is dispatched directly from Italy, revenue is not recognised upon dispatch as in UK sales. It will be recognised upon delivery to the customer.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

Leasehold improvements
10% - 20% straight line
Fixtures and fittings
20% straight line
Plant and equipment
20% straight line
Computers
20% straight line
Right of use assets
Straight line over the remaining lease term

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.5
Impairment of tangible and intangible assets

Where an indication of impairment exists, the carrying amount of the asset is assessed and written down immediately to its recoverable amount.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

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.

 

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
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Costs are determined on a weighted average cost basis.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

 

The company has no financial assets recognised at fair value through profit and loss.

Financial assets held at amortised cost

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -

Financial assets held at amortised cost (continued)

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, 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 of the investment have been affected.

 

The company recognises a loss allowance for expected credit losses ("ECL") on investments in debt instruments that are measured at amortised cost and trade debtors. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

 

The company always recognises lifetime ECL for trade debtors. The expected credit losses on these financial assets are estimated using a provision matrix based on the company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction at the reporting date, including time value of money where appropriate.

 

For all other financial instruments, the company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition.

 

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12 month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

 

(i) Significant increase in credit risk

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the company compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. In making this assessment, the company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the company's debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the company's core operations.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

Impairment of financial assets (continued)

(i) Significant increase in credit risk (continued)

In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition:

 

 

Irrespective of the outcome of the above assessment, the company presumes that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the company has reasonable and supportable information that demonstrates otherwise.

Despite the foregoing, the company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if:

 

1. the financial instrument has a low risk of default;

2. the debtor has a strong capacity to meet its contractual cash flow obligations in the near term; and

3. adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow obligations.

The company considers a financial asset to have low credit risk when the asset has external credit rating of 'investment grade' in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating of 'performing'. Performing means that the counterparty has a strong financial position and there is no past due amounts. The company regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.

 

(ii) Definition of default

The company considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

 

 

Irrespective of the above analysis, the company considers that default has occurred when a financial asset is more than 90 days past due unless the company has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

Impairment of financial assets (continued)

 

(iii) Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

 

1. significant financial difficulty of the issuer or the borrower;

2. a breach of contract, such as a default or past due event (see (ii) above);

3. the lender(s) of the borrower, (or economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;

4. it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or

5. the disappearance of an active market for that financial asset because of financial difficulties.

 

(iv) Write-off policy

The company writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade debtors, when the amounts are over two years past due, whichever occurs sooner. Financial assets written off may still subject to enforcement activities under the company's recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in the profit and loss Account.

 

(v) Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets' gross carrying amount at the reporting date.

Derecognition of financial assets

The company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the company retains substantially all the risks and rewards of ownership· of a transferred financial asset, the company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in the profit and loss account.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

 

The company has no financial liabilities at fair value through profit or loss.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
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 income statement 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.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.12
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 inventories or non-current 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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of property and other assets that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.15
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
Critical accounting estimates and judgements

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.

 

The directors consider there to be no key judgements or estimates in the preparation of the financial statements.

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Sale of paper goods
33,175,103
33,023,452
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
32,968,837
32,758,422
Rest of Europe
181,665
234,203
Rest of the World
24,601
30,827
33,175,103
33,023,452
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
2,842
(89,605)
Fees payable to the company's auditor for the audit of the company's financial statements
41,000
34,000
Depreciation of property, plant and equipment
388,375
466,889
Cost of inventories recognised as an expense
28,698,878
27,766,665
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration
12
13
Selling and Distribution
25
28
Total
37
41

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,637,744
1,343,856
Social security costs
210,345
287,041
Pension costs
90,266
258,887
1,938,355
1,889,784
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
11,260
241,995
Company pension contributions to defined contribution schemes
758
9,064
12,018
251,059
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
241,995
Company pension contributions to defined contribution schemes
n/a
9,064

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
7
Investment income
2024
2023
£
£
Interest income
Interest receivable from group companies
940,277
1,068,228
Other interest income
-
0
2,676
Total income
940,277
1,070,904
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on lease liabilities
32,422
43,846
Interest on other loans
65,511
51,827
97,933
95,673
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
336,651
434,398
Adjustments in respect of prior periods
3,152
(119,798)
Total UK current tax
339,803
314,600
Deferred tax
Origination and reversal of temporary differences
(11,471)
(11,320)
Adjustment in respect of prior periods
1,748
-
0
(9,723)
(11,320)
Total tax charge
330,080
303,280
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,256,309
1,740,554
Expected tax charge based on a corporation tax rate of 25.00% (2023: 23.52%)
314,077
409,378
Effect of expenses not deductible in determining taxable profit
4,801
17,768
Effect of change in UK corporation tax rate
-
0
(554)
Depreciation on assets not qualifying for tax allowances
6,302
-
Under/(over) provided in prior years
3,152
(119,798)
Deferred tax adjustments in respect of prior years
1,748
-
Deferred tax not provided
-
(301)
Transition adjustments
-
(3,213)
Taxation charge for the year
330,080
303,280
10
Property, plant and equipment
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Right of use assets
Total
£
£
£
£
£
£
Cost
At 1 January 2024
426,727
194,544
56,562
179,197
2,181,222
3,038,252
Additions
6,050
-
0
-
0
20,825
73,264
100,139
Disposals
-
-
0
-
0
-
0
(905,602)
(905,602)
At 31 December 2024
432,777
194,544
56,562
200,022
1,348,884
2,232,789
Accumulated depreciation and impairment
At 1 January 2024
393,895
172,709
51,874
103,585
1,542,295
2,264,358
Charge for the year
38,882
6,586
3,345
27,701
311,861
388,375
Eliminated on disposal
-
0
-
0
-
0
-
0
(902,492)
(902,492)
At 31 December 2024
432,777
179,295
55,219
131,286
951,664
1,750,241
Carrying amount
At 31 December 2024
-
0
15,249
1,343
68,736
397,220
482,548
At 31 December 2023
32,832
21,835
4,688
75,612
638,927
773,894
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Property, plant and equipment
(Continued)
- 24 -

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
308,334
560,632
Motor vehicles
88,886
78,295
397,220
638,927
Total additions in the year
73,264
46,570
Depreciation charge for the year
Property
252,298
308,684
Motor vehicles
59,563
49,540
311,861
358,224
11
Inventories
2024
2023
£
£
Finished goods
2,543,073
2,049,985
12
Trade and other receivables
2024
2023
as restated
£
£
Trade receivables
4,940,565
6,466,416
Amount owed by parent undertaking
18,419,079
17,565,326
Amounts owed by fellow group undertakings
-
0
361,066
Prepayments and accrued income
148,373
329,273
23,508,017
24,722,081
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Trade and other receivables
(Continued)
- 25 -

Fedrigoni U.K. Limited factors most sales invoices effectively without recourse, up to the insured credit limit, as per the group facility agreement with Credit Agricole. However as the credit insurance is provided by a third party, the company retains the risk associated with default (under the terms with Credit Agricole), and therefore these balances remain within trade debtors. At the balance sheet, the company had factored trade debtors within insured credit limits totalling £4,838,279 (2023: £6,251,543). These are included within trade debtors above, along with a corresponding balance in other creditors.

As part of the company's review process on transition to FRS 101, management have revisited the assessment of whether the risks and rewards of ownership of the asset (debtors) had been transferred from the company under the factoring arrangements. Previously the company has reported debtors on a net basis, but now they are reported on a gross basis. The comparative trade receivables has been restated from £725,342 to £6,466,416. This is a balance sheet reclassification only and has no impact on net working capital or net assets.

 

13
Liabilities
Current
Non-current
2024
2023
2024
2023
Notes
£
£
£
£
Trade and other payables
14
15,721,713
16,109,361
-
0
-
0
Corporation tax
216,651
295,831
-
-
Other taxation and social security
1,033,723
1,501,840
-
-
Lease liabilities
15
204,463
328,884
227,008
376,249
17,176,550
18,235,916
227,008
376,249
14
Trade and other payables
2024
2023
as restated
£
£
Trade payables
167,982
301,004
Amount owed to parent undertaking
8,352,853
8,405,824
Amounts owed to fellow group undertakings
28,897
49,809
Accruals and deferred income
1,342,150
1,092,785
Other payables
5,829,831
6,259,939
15,721,713
16,109,361
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Trade and other payables
(Continued)
- 26 -

Amounts owed to parent and fellow group undertakings are unsecured, interest free and repayable on demand.

 

Other payables includes £5,823,857 (2023: £6,251,543) of liabilities under the debt factoring arrangement as detailed in note 12. These amounts are secured on the debtors to which they relate.

 

As detailed in note 12, the comparative other payables has also been restated from £518,863 to £6,259,939. This is a balance sheet reclassification only and has no impact on net working capital or net assets.

15
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
226,490
371,968
In two to five years
259,790
486,954
Total undiscounted liabilities
486,280
858,922
Future finance charges and other adjustments
(54,809)
(153,789)
Lease liabilities in the financial statements
431,471
705,133

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
204,463
328,884
Non-current liabilities
227,008
376,249
431,471
705,133
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
32,422
43,846
Other leasing information is included in note 20.
16
Deferred taxation
Liabilities
2024
2023
£
£
Deferred tax balances
20,005
29,728
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Deferred taxation
(Continued)
- 27 -

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
Short term timing differences
Total
£
£
£
Liability at 1 January 2023
26,231
14,817
41,048
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(6,009)
(5,311)
(11,320)
Liability at 1 January 2024
20,222
9,506
29,728
Deferred tax movements in current year
Charge/(credit) to profit or loss
(7,529)
(3,942)
(11,471)
Other
-
1,748
1,748
Liability at 31 December 2024
12,693
7,312
20,005

The deferred tax liability set out above is not expected to reverse over the next 12 months.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
90,266
258,887

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
7,500,000
7,500,000
7,500,000
7,500,000
19
Contingent liabilities

The debt factor facility owed to Credit Agricole is secured by way of a cross pledge agreement dated 20 December 2020 in respect of amounts owed by the company and fellow subsidiary, Ritrama (U.K.) Limited. Amounts guaranteed on behalf of Ritrama (U.K.) Limited amount to £11,148,373 (2023: £12,336,846).

FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
20
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2024
2023
£
£
Expense relating to short-term leases
202,886
127,359
Information relating to lease liabilities is included in note 15.
21
Related party transactions
Other information

The company has taken advantage of the exemption permitted under FRS 101 from disclosing transactions with other wholly-owned group companies.

22
Controlling party

The ultimate controlling party of Fedrigoni U.K . Limited is Fiber JVCo S.p.A, a company incorporated in Italy. The registered office of Fiber JVCo S.p.A, is Via Alessandro, Manzoni 38, 20121, Milan, Italy.

 

The smallest group of which Fedrigoni U.K. Limited is a member and for which consolidated financial statements are produced is Fedrigoni S.p.A. The consolidated financial statements of Fedrigoni S.p.A may be obtained by writing to Fedrigoni S.p.A., Via Enrico Fermi, 131F, 37135, Verona, Italy. The registered office of Fedrigoni S.p.A. is Via Enrico Fermi, 131F, 37135, Verona, Italy.

 

The largest group of which Fedrigoni U.K. Limited is a member and for which consolidated financial statements are produced is Fiber JVCo S.p.A. The consolidated financial statements of Fiber JVCo S.p.A may be obtained by writing to Fiber JVCo S.p.A, at their registered office address; Via Alessandro Manzoni 38, 20121, Milan, Italy.

23
Transition adjustments
Reconciliation of equity
1 January
31 December
2023
2023
Notes
£
£
Equity as previously reported
7,854,516
9,283,777
Adjustments arising from transition:
Right of use assets recognition
(i)
950,581
638,927
Lease liability recognition due in less than one year
(i)
(353,564)
(328,884)
Lease liability recognition due in more than one year
(i)
(669,488)
(376,249)
Deferred tax
(i)
(14,817)
(13,069)
Equity as restated
7,767,228
9,204,502
FEDRIGONI U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
23
Transition adjustments
(Continued)
- 29 -
Reconciliation of profit for the financial period
2023
Notes
£
Profit as previously reported
1,429,261
Adjustments arising from transition:
Right of use assets recognition
(i)
6,265
Deferred tax
(i)
1,748
Profit as restated
1,437,274
Notes to reconciliations
(i) Adoption of IFRS16

On 1 January 2023, the company transitioned from FRS 102 to FRS 101 for consistency of group reporting. Management have reviewed the company's lease arrangements and accounted for them in accordance with IFRS 16. With the exception of short term or low value leases, the company's leases have been recognised as a right of use asset, with corresponding lease liability on the balance sheet. In the profit and loss account, operating lease charges have been replaced with depreciation on the right of use assets and interest charges on the lease liabilities.

 

The adjustments arising from transition are disclosed above, including a reconciliation of comparative equity and profit previously reported, to equity and profit as restated.

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