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Registered number: 03373762 CEPAC LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
CEPAC LIMITED COMPANY INFORMATION
Directors | R C Ainslie
| J A R Cook
| M D A Saeed (appointed 29 May 2025)
| N D Marsden
| D A S Anam
| M D A Saeed
| S J Moss
| C P Box
| C Ford
| C Mason
| S Gilder
| A McDonald (resigned 30 September 2024)
Company secretary | Grays Inn Secretaries Limited
Registered number | 03373762
Registered office | Prince Albert House
| 2 Kingsmill Terrace
| London
| NW8 6BN
Independent auditors | Shorts
| Chartered Accountants & Statutory Auditor
| Cedar House
| 63 Napier Street
| Sheffield
| South Yorkshire
| S11 8HA
Bankers | Lloyds Bank plc
Solicitors | Knights plc
CEPAC LIMITED CONTENTS
| Page
Strategic Report | 1 - 3
Directors' Report | 4 - 7
Independent Auditors' Report | 8 - 11
Statement of Income and Retained Earnings | 12
Balance Sheet | 13
Statement of Cash Flows | 14 - 15
Analysis of Net Debt | 16
Notes to the Financial Statements | 17 - 35
CEPAC LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
Business review
Cepac is committed to the use of the latest technology to produce sustainable corrugated packaging. The market is changing rapidly due to environmental factors and the trend away from single-use plastic packaging. Our mission is to innovate and to develop alternative forms of corrugated packaging which are ‘best in class.’ The shareholders’ vision is to employ state-of-the-art’ technology to set the benchmark for packaging innovation and environmental performance. Our shareholders are committed to a proactive approach to ensure growth in shareholder value over the long term. Our success has been achieved by partnering with customers, suppliers and all stakeholders and this will continue as the basis of our future strategy. 2024 was a year of transition as full preparation was made to produce a new range of sustainable packaging. Investment involved considerable disruption within our larger operations. 2024 proved a challenging year also due to a fluctuating paper market with timing of paper price increases bringing cost pressures into the business. Due to initial volume softness in the market for paper, prices remained stable in H1 but then increased throughout the remainder of the year. Further investment was committed to the original plant which was purpose-built in Rotherham to set new standards for corrugated paper packaging for fast-moving consumer goods. There has been major investment, new development and reconfiguration at Darlington to produce sustainable lightweight corrugated packaging for direct food contact. Significant investment has been commissioned in Rawcliffe in state-of-the-art printing and die cutting whilst Doncaster has pioneered the use of digital printing technology. Our strategy is constantly reviewed by the Board in the light of the company’s performance and changing market conditions to ensure that it remains appropriate to achieve the businesses objectives. Page 1
CEPAC LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties
Economic and market risk The market for corrugated packaging is expected to undergo significant change. Cepac are actively responding to environmental concerns investing in new technology, software and process control combined with product innovation in the form of performance packaging with new, highly innovative paper-based products. The cyclical and unpredictable nature of the paper industry continues to provide challenges and risks that have to be closely managed. 2024 was no exception, with prices fluctuating throughout the year, requiring continued sharp focus upon margin and corrugated product price management. We continue to enjoy full support from our paper suppliers with new investment in the very latest state-of-the-art paper making technology being utilised underpinning our own innovation. This has supported us in to some degree in an environment of escalating costs, combined with the support of our employees, customers, suppliers and all stakeholders throughout 2024. Economically, the major risk will be how market demand, changes in the supply chain, environmental considerations and inflation impact consumer spending, as well as economic policy introduced by the government across all sections of the economy and how this inevitably influences demand for corrugated packaging and our cost base. Operational continuity risk The company works actively to continuously reduce the risk of events happening that could disrupt operations. Insurance policies are in place to mitigate financial risk and business continuity plans are formulated to safeguard customer service. Operational contingency from site to site continues to be reviewed and developed further where appropriate. Future strategic investment will support business growth and enhance operational contingency. Financial risk management objectives and policies The company uses various financial instruments: these include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company’s operations. No transactions in derivatives take place and the main risks arising from these financial instruments are credit risk, interest rate risk, liquidity risk and currency risk. Credit risk: The company’s principal financial assets are its trade debtors, assessment and monitoring of existing and potential customers is undertaken in conjunction with underwriters with credit insurance in place to cover any potential losses. Interest rate risk: The company finances its operations through bank borrowings, which are all £STG denominated and therefore subject to UK interest rate movement. Funding is at fixed margin levels relative to base rate or LIBOR, dependent upon the type of facility. The Board keeps under review the potential for interest rate movement and any potential impact on debt servicing costs. Page 2
CEPAC LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Liquidity risk: The company has facilities in place that allow for drawdown of monies to operate the businesses and provide predictability of cash flow. Financing for major items of capital expenditure is being used to provide further balances and options in the company’s funding going forward. Our facilities leave ample funding headroom and there are significant approved plans for investment in carefully selected capital expenditure projects during 2025 & beyond, which will support and drive future development of the business. The directors are committed to our objective of maintaining a strong balance sheet. Currency risk: Most paper purchases are denominated in £STG with a small percentage that is Euro denominated. This is effectively purchased at foreign exchange spot rates and is closely monitored to ensure effectiveness and predictability. Other supplies bought, where necessary, in foreign currency are also paid at spot rate, the proportion and risk not being sufficiently material to require derivatives to manage the risk.
Financial key performance indicators
The company uses a number of financial measures to monitor progress against budgets, strategies and corporate objectives, with the main items summarised below: Revenue: £116,541,764 (2023: £126,144,727). Profit in the year: £759,716 (2023: £5,226,217). Paper price increases were offset slightly against modest material price reductions seen at the year end and were subsequently reflected in increasing selling prices. The net effect was an erosion of margins in 2024 that the company will aim to recover during 2025. Competitive activity was similar to previous years, continuing to influence selling and pricing decisions. In addition to financial measures, as a matter of the foremost priority the Board promotes, monitors and proactively reviews Health, Safety and Environmental issues at all operating units. This is and will remain the key management priority and the objective of all involved in the businesses is to continually improve the working environment and to avoid or minimise any threats to the safety and wellbeing of our employees, all stakeholders and the environment. This report was approved by the board on 1 September 2025 and signed on its behalf.
S J Moss Director
Page 3
CEPAC LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The directors present their report and the financial statements for the year ended 31 December 2024.
Directors
The directors who served during the year were:
R C Ainslie
J A R Cook
N D Marsden
D A S Anam
M D A Saeed
S J Moss
C P Box
C Ford
C Mason
S Gilder
A McDonald (resigned 30 September 2024)
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently; ∙make judgements and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the year, after taxation, amounted to £759,716 (2023 - £5,226,217). Page 4
CEPAC LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Engagement with employees
The Company keeps its employees informed on matters affecting them as employees and on the performance of the Company through periodic meetings. Other information is distributed through publications such as the Annual Accounts, the Staff Handbook and the company Intranet.
Disabled employees
It is the Company's policy that full consideration is given to applications for employment by disabled persons, having regard to the respective aptitudes and abilities of the applicant concerned. In the event of employees becoming disabled, continuity of employment and appropriate training is arranged where practicable. As far as possible, disabled employees are treated equally with other employees as regards training, career development and promotion.
Qualifying third party indemnity provisions
The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Auditors
The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. Page 5
CEPAC LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Greenhouse gas emissions, energy consumption and energy efficiency action
Cepac operates from 4 manufacturing sites across the UK, the primary use of energy is within our corrugating and conversion process which require high volumes of heat and power respectively. We are striving to minimise our impact on the planet, and this will play a key part of our sustainable strategy going forward. The Company’s greenhouse gas emissions and energy consumption are as follows: Quantification & reporting methodology Greenhouse gas emissions have been calculated using the GHG Protocol methodology and the UK Government’s 2024 conversion factors. Energy consumption data (electricity, gas, LPG) was sourced from invoices. Transport emissions were based on mileage claims for company and privately owned vehicles, with emissions calculated using vehicle- and fuel-specific factors. Scope 2 electricity emissions were calculated using the factor for ‘electricity generated’, in line with the Government’s Methodology Paper. The Company has adopted tCO2e/100 KSM as its primary metric to reduce volatility linked to pricing. The Company also report tCO2e/£ million of turnover. Energy efficient actions taken in 2024 Rotherham: Replaced older air compressors. Installed energy-efficient fan blowers on United and Gopfert machines. Darlington: Upgraded all machine lighting on the new corrugator to LED. Rawcliffe: Partially upgraded lighting controls in the conversion hall to PIR sensors. Removed the corrugator, significantly reducing electricity and LPG consumption, and waste. Doncaster: No energy efficiency actions undertaken. Group-wide: Improved transport data collection processes for more accurate reporting. Promoted eco-driver awareness sessions for staff. Encouraged virtual meetings to reduce business travel. Energy efficiency action planned for 2025 reporting year Rotherham: Change legacy light fittings identified in the ESOS Phase 3 report to LED equivalent. Page 6
CEPAC LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 Darlington: Implement additional motion / PIR sensors in areas of low occupancy. Review and recommission all heating timers and temperatures for the current operation’s needs. Switch off heating an hour earlier than end of day. Rawcliffe: Complete implementation of combined lux level and motion / PIR sensors. Complete compressed air leak detection using a specialist contractor. Review and recommission heating timers and temperatures to the Rawcliffe's current operation’s needs. Doncaster: Nothing planned.
Post balance sheet events
There have been no significant events affecting the Company since the year end. This report was approved by the board on 1 September 2025 and signed on its behalf.
S J Moss Director
Page 7
CEPAC LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED
Opinion
We have audited the financial statements of Cepac Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). 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.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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. Page 8
CEPAC LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the 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 set out on page 4, 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. Page 9
CEPAC LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED)
Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: ∙the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations; and ∙through discussions with the directors and other management and from our commercial knowledge, we identified the laws and regulations applicable to the Company. ∙focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence. We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: ∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and ∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: ∙performed analytical procedures to identify any unusual or unexpected relationships; ∙reviewed the general ledger entries during the year to identify unusual transactions; ∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and ∙investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: ∙agreeing financial statement disclosures to underlying supporting documentation; ∙reading the minutes of meetings of those charged with governance; ∙enquiring of management as to actual and potential litigation and claims; ∙considering relationships with HMRC and other relevant regulators; and ∙reviewing legal and professional costs to identify any indicators of litigation. Page 10
CEPAC LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED) There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Andrew Irvine (Senior Statutory Auditor) for and on behalf of Shorts Chartered Accountants Statutory Auditor Cedar House 63 Napier Street Sheffield South Yorkshire S11 8HA 1 September 2025 Page 11
CEPAC LIMITED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 116,541,764 | 126,144,727
Cost of sales |  | (76,698,554) | (82,014,497)
Gross profit |  | 39,843,210 | 44,130,230
Distribution costs |  | (7,471,816) | (7,139,995)
Administration expenses |  | (31,088,298) | (29,340,727)
Other operating income | 5 | 1,363,916 | 1,586,335
Exceptional items | 6 | (1,076,989) | (2,014,751)
Operating profit | 7 | 1,570,023 | 7,221,092
Amounts written off investments | 16 | (81,830) | -
Interest receivable and similar income | 11 | 416,941 | 263,054
Interest payable and similar expenses | 12 | (645,805) | (567,457)
Profit before tax |  | 1,259,329 | 6,916,689
Tax on profit | 13 | (499,613) | (1,690,472)
Profit after tax |  | 759,716 | 5,226,217
Retained earnings at the beginning of the year |  | 55,933,378 | 51,656,416
Profit for the year |  | 759,716 | 5,226,217
Dividends declared and paid |  | (1,837,109) | (949,255)
Retained earnings at the end of the year |  | 54,855,985 | 55,933,378
The notes on pages 17 to 35 form part of these financial statements.
Page 12
CEPAC LIMITED REGISTERED NUMBER: 03373762 BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 14 |  | 313,594 |  | 505,275
Tangible assets | 15 |  | 47,460,938 |  | 44,920,744
Investments | 16 |  | 8,377 |  | 2,707
|  |  | 47,782,909 |  | 45,428,726
Current assets |  |  |  |  |
Stocks | 17 | 7,513,435 |  | 7,652,370 |
Debtors: amounts falling due within one year | 18 | 28,674,319 |  | 31,687,236 |
Cash at bank and in hand |  | 7,163,919 |  | 4,515,698 |
|  | 43,351,673 |  | 43,855,304 |
Creditors: amounts falling due within one year | 19 | (17,993,736) |  | (18,970,296) |
Net current assets |  |  | 25,357,937 |  | 24,885,008
Total assets less current liabilities |  |  | 73,140,846 |  | 70,313,734
Creditors: amounts falling due after more than one year | 20 |  | (3,765,467) |  | (407,273)
Provisions for liabilities |  |  |  |  |
Deferred tax | 22 |  | (4,519,394) |  | (3,973,083)
Net assets |  |  | 64,855,985 |  | 65,933,378
Capital and reserves |  |  |  |  |
Called up share capital | 23 |  | 10,000,000 |  | 10,000,000
Profit and loss account | 24 |  | 54,855,985 |  | 55,933,378
|  |  | 64,855,985 |  | 65,933,378
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 September 2025.
S J Moss
Director
The notes on pages 17 to 35 form part of these financial statements. Page 13
CEPAC LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 759,716 | 5,226,217
Adjustments for: |  |
Amortisation of intangible assets | 279,441 | 408,130
Depreciation of tangible assets | 3,873,486 | 2,749,907
Impairment of investments | 81,830 | -
Loss on disposal of tangible assets | 530 | -
Interest paid | 645,805 | 567,457
Interest received | (416,941) | (263,054)
Taxation charge | 499,613 | 1,690,472
Decrease in stocks | 138,935 | 791,534
Decrease in debtors | 1,129,286 | 2,435,716
Decrease in amounts owed by subsidiary | 1,076,989 | -
Increase/(decrease) in creditors | 54,688 | (641,128)
Corporation tax received/(paid) | 853,342 | (1,958,147)
Net cash generated from operating activities | 8,976,720 | 11,007,104
Cash flows from investing activities |  |
Purchase of intangible fixed assets | (40,480) | -
Purchase of tangible fixed assets | (6,907,429) | (19,403,600)
Sale of tangible fixed assets | 445,939 | 126,299
Purchase of fixed asset investments | (87,500) | (2,707)
Interest received | 416,941 | 263,054
HP interest paid | (77,633) | (93,454)
Overdraft acquired on hive up of subsidiary | (106,038) | -
Net cash from investing activities | (6,356,200) | (19,110,408)
Page 14
CEPAC LIMITED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
|  | 2024 | 2023
|  | £ | £
Cash flows from financing activities |  |
New secured loans | - | 2,155,082
Repayment of loans | (3,894,446) | -
New finance leases and hire purchase contracts | 4,759,405 | -
Repayment of finance leases, hire purchase contracts and other loans | (599,933) | (637,028)
Dividends paid | (1,837,109) | (949,255)
Interest paid | (568,172) | (474,003)
Net cash used in financing activities | (2,140,255) | 94,796
Net increase/(decrease) in cash and cash equivalents | 480,265 | (8,008,508)
Cash and cash equivalents at beginning of year | 517,603 | 8,526,111
Cash and cash equivalents at the end of year | 997,868 | 517,603
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 7,163,919 | 4,515,698
Bank overdrafts | (6,166,051) | (3,998,095)
| 997,868 | 517,603
The notes on pages 17 to 35 form part of these financial statements.
Page 15
CEPAC LIMITED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 31 DECEMBER 2024
|  | At 1 January 2024 | Cash flows | Acquisition of assets of subsidiary | New loans & finance leases | At 31 December 2024
|  | £ | £ | £ | £ | £
Cash at bank and in hand | 4,515,698 | 2,648,219 | 2 | - | 7,163,919
Bank overdrafts | (3,998,095) | (2,061,916) | (106,040) | - | (6,166,051)
Debt due after 1 year | (407,273) | 553,288 | - | (3,911,482) | (3,765,467)
Debt due within 1 year | (4,356,350) | 3,941,091 | - | (847,923) | (1,263,182)
| (4,246,020) | 5,080,682 | (106,038) | (4,759,405) | (4,030,781)
The notes on pages 17 to 35 form part of these financial statements.
Page 16
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
Cepac Limited is a private company limited by shares, incorporated in England and Wales (registered number: 03373762). Its registered office is Prince Albert House, 2 Kingsmill Terrace, London, NW8 6BN. The principal activity of the Company throughout the year continued to be that of the provision of design and production of corrugated packaging. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 17
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.3 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
| 2.4 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Income and Retained Earnings over its useful economic life. Software costs Software costs are initially recognised at cost and are transferred from assets under construction on completion of the capital project. After initial recognition, under the cost model, software costs are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | Goodwill | - | 10 | years
|  |  |  | Software | - | 4 | years
Intangibles - Assets under development The amounts recorded as assets under construction reflect the cost value of ongoing software projects that are not yet complete. Each software project is assigned a project code in the accounting system, where all relevant costs are allocated as incurred. When a software project is complete, it is transferred from assets under construction to software costs within intangible assets and begins amortisation from the date the software becomes available for use, according to the amortisation rates specified above. Page 18
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.5 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Freehold property (excluding land) | - | 40 years
|  |  |  | Plant and machinery | - | 4 to 20 years
|  |  |  | Fixtures and fittings | - | 4 to 10 years
|  |  |  | Assets under construction | - | not depreciated
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Tangibles - Assets under construction The amounts recorded as assets under construction reflect the cost value of ongoing capital projects that are not yet complete. Each capital project is assigned a project code in the accounting system, where all relevant costs are allocated as incurred. When a capital project is complete, it is transferred from assets under construction to the appropriate asset category and begins depreciation from the date the completed asset becomes available for use, according to the depreciation rates specified above.
| 2.6 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.7 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Page 19
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.8 | Finance costs
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.9 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
| 2.10 | Interest income
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
| 2.11 | Borrowing costs
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.
| 2.12 | Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
| 2.13 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
| 2.14 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Page 20
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.15 | Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
| 2.16 | Current and deferred taxation
Tax is recognised in the Statement of Income and Retained Earnings. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company opeates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Page 21
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include the carrying value of stocks and recoverability of debts. Although these estimates and associated assumptions are based on historical experience and management's best knowledge of current events and actions, the actual results may ultimately differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. ∙The stock policy is to provide 50% against finished goods over 6 months old and 100% over 12 months. This approach is based on historical experience, ensuring stock valuation is accurate alongside active management of stock levels to ensure stock is rotated to minimise the provision. ∙Impairment of debtors is assessed with a variety of factors such as credit reports, ageing profile and historical recoverability levels. See the debtors note to the financial statements for the net carrying amounts of trade debtors, stated after the asssociated impairment provision.
4. | Turnover
| All turnover relates to the Company's principle activity. An analysis of turnover by country of destination:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 115,641,314 | 122,754,456
| Europe | 900,450 | 3,390,271
|  | 116,541,764 | 126,144,727
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Waste income | 1,363,916 | 1,586,335
Page 22
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
6. | Exceptional items
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Redundancy and restructuring costs | - | 2,014,751
| Intercompany loans waived | 1,076,989 | -
|  | 1,076,989 | 2,014,751
| In the prior year, the Company carried out a restructuring exercise at a number of its operating sites. On 31 December 2024, the trade and assets of Flutepac Limited were hived up into Cepac Limited. As part of the reorganisation, the intercompany indebtedness between the two companies was waived.
7. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Depreciation of owned tangible fixed assets | 3,019,276 | 2,670,816
| Depreciation of tangible fixed assets held under finance lease and hire purchase agreements | 854,210 | 79,091
| Amortisation of intangible assets, including goodwill | 279,441 | 408,130
| Other operating lease rentals | 1,481,646 | 1,431,572
| (Profit)/loss on sale of tangible fixed assets | 530 | -
8. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditor:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditor for the audit of the Company's financial statements | 46,750 | 46,250
| Fees payable to the Company's auditor in respect of: |  |
| Tax compliance services | 8,750 | 8,250
| All other non-audit services not included above | - | 2,000
Page 23
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
9. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Wages and salaries | 21,578,165 | 22,381,334
| Social security costs | 2,335,962 | 2,387,383
| Cost of defined contribution scheme | 1,473,553 | 1,289,492
|  | 25,387,680 | 26,058,209
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Sales | 39 | 40
|  | Production | 302 | 374
|  | Administration | 114 | 111
|  |  | 455 | 525
10. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 1,535,733 | 1,345,960
| Company contributions to defined contribution pension schemes | 223,906 | 100,564
|  | 1,759,639 | 1,446,524
| During the year retirement benefits were accruing to 9 directors (2023 - 7) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £255,223 (2023 - £375,063).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,086 (2023 - £18,086).
Page 24
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 416,941 | 263,054
12. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank interest payable | 568,172 | 474,003
| Finance leases and hire purchase contracts | 77,633 | 93,454
|  | 645,805 | 567,457
13. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | - | 174,547
| Adjustments in respect of previous periods | (46,698) | (92,887)
| Total current tax | (46,698) | 81,660
| Deferred tax |  |
| Origination and reversal of timing differences | 546,311 | 1,516,358
| Adjustments in respect of previous periods | - | 92,454
| Total deferred tax | 546,311 | 1,608,812
| Tax charge | 499,613 | 1,690,472
Page 25
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 13.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,259,329 | 6,916,689
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%) | 314,832 | 1,626,843
| Effects of: |  |
| Expenses not deductible for tax purposes | 327,506 | 9,556
| Additional deduction for land remediation expenditure | - | (4,107)
| Adjustments to tax charge in respect of prior periods - corporation tax | (46,698) | (92,887)
| Adjustments to tax charge in respect of prior periods - deferred tax | - | 92,454
| Remeasurement of deferred tax for changes in tax rates | - | 89,735
| Fixed asset differences | (14,441) | (31,122)
| Other tax adjustments, reliefs and transfers | (81,586) | -
| Total tax charge for the year | 499,613 | 1,690,472
| Factors that may affect future tax charges
At the reporting date, the Company had trading losses of £985,105 available for offset against future taxable profits (2023: £NIL). A portion of these losses, £326,344 (2023: £NIL) has been transferred under section 940A CTA 2010 and are available for use against the continuing trade of the transferred company. A corresponding deferred tax asset has been recognised in respect of these losses, as it is anticipated at the reporting date that the Company will utilise these in the next financial year. Page 26
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | Intangible assets
|  | Software costs | Assets under development | Goodwill | Total
|  | £ | £ | £ | £
| Cost |  |  |  |
| At 1 January 2024 | 2,405,203 | - | 11,964,282 | 14,369,485
| Additions | 5,717 | 23,500 | 11,263 | 40,480
| Transfer between classes | 47,280 | - | - | 47,280
| At 31 December 2024 | 2,458,200 | 23,500 | 11,975,545 | 14,457,245
| Amortisation |  |  |  |
| At 1 January 2024 | 1,976,720 | - | 11,887,490 | 13,864,210
| Charge for the year on owned assets | 219,948 | - | 59,493 | 279,441
| At 31 December 2024 | 2,196,668 | - | 11,946,983 | 14,143,651
| Net book value |  |  |  |
| At 31 December 2024 | 261,532 | 23,500 | 28,562 | 313,594
| At 31 December 2023 | 428,483 | - | 76,792 | 505,275
Page 27
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | Tangible fixed assets
|  | Freehold property | Plant and machinery | Fixtures and fittings | Assets under construction | Total
|  | £ | £ | £ | £ | £
| Cost |  |  |  |  |
| At 1 January 2024 | 11,963,401 | 54,120,201 | 3,469,989 | 20,144,769 | 89,698,360
| Additions | - | - | - | 6,907,429 | 6,907,429
| Disposals | - | (2,150,125) | (9,043) | (88,363) | (2,247,531)
| Transfers between classes | 53,512 | 12,582,855 | 251,862 | (12,935,509) | (47,280)
| At 31 December 2024 | 12,016,913 | 64,552,931 | 3,712,808 | 14,028,326 | 94,310,978
| Depreciation |  |  |  |  |
| At 1 January 2024 | 1,028,242 | 41,472,290 | 2,277,084 | - | 44,777,616
| Charge for the year on owned assets | 281,162 | 2,513,495 | 224,619 | - | 3,019,276
| Charge for the year on financed assets | - | 854,210 | - | - | 854,210
| Disposals | - | (1,795,501) | (5,561) | - | (1,801,062)
| At 31 December 2024 | 1,309,404 | 43,044,494 | 2,496,142 | - | 46,850,040
| Net book value |  |  |  |  |
| At 31 December 2024 | 10,707,509 | 21,508,437 | 1,216,666 | 14,028,326 | 47,460,938
| At 31 December 2023 | 10,935,159 | 12,647,911 | 1,192,905 | 20,144,769 | 44,920,744
| Included in freehold property is freehold land totalling £2,580,000 (2023: £2,580,000) that is not depreciated.
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Plant and machinery | 7,876,411 | 1,488,548
Page 28
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 January 2024 | 2,707
| Additions | 87,500
| At 31 December 2024 | 90,207
| Impairment |
| Charge for the period | 81,830
| At 31 December 2024 | 81,830
| Net book value |
| At 31 December 2024 | 8,377
| At 31 December 2023 | 2,707
Page 29
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
. | Subsidiary undertaking
| The following was a subsidiary undertaking of the Company:
| Name | Registered office | Class of shares | Holding
| Flutepack Bidco Limited | Prince Albert House, 2 Kingsmill Terrace, London, United Kingdom, NW8 6BN | A Ordinary | 100%
| On 7th July 2024, the Company acquired the remaining minority shareholding in Flutepack Bidco Limited. Following the acquisition, an impairment charge was recognised to align the carrying value of the investment with the net asset value of Flutepack Bidco Limited. On 31st December 2024, the trade and assets of Flutepac Limited, a subsidiary of Flutepack Bidco Limited, were transferred into the Company. Neither Flutepack Bidco Limited nor its subsidiary, Flutepac Limited, are considered material to the Group. As such, the Company has not prepared consolidated financial statements. The immediate Group, headed by Cepac Limited, is consolidated within the financial statements of both controlling entities, Capital House Investment Limited and Europa Holdings Limited, each incorporated in the Cayman Islands.
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CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. | Stocks
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Raw materials and consumables | 5,315,999 | 5,755,642
| Work in progress | 249,737 | 375,582
| Finished goods and goods for resale | 1,947,699 | 1,521,146
|  | 7,513,435 | 7,652,370
18. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Trade debtors | 23,261,312 | 25,009,329
| Amounts owed by subsidiary undertakings | - | 1,076,989
| Amounts owed by parent company | 1,644,196 | 1,644,196
| Other debtors | 362,694 | 285,134
| Prepayments and accrued income | 2,087,709 | 1,546,537
| Tax recoverable | 1,318,408 | 2,125,051
|  | 28,674,319 | 31,687,236
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CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. | Creditors: Amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank overdrafts | 6,166,053 | 3,998,095
| Bank loans | - | 3,894,446
| Net obligations under finance leases and hire purchase contracts | 1,263,182 | 461,904
| Trade creditors | 6,135,717 | 4,905,845
| Amounts owed to group undertakings | 74,642 | 2,708
| Other taxation and social security | 1,958,823 | 2,221,052
| Other creditors | 1,677 | -
| Accruals and deferred income | 2,393,642 | 3,486,246
|  | 17,993,736 | 18,970,296
| Bank overdrafts are secured by a fixed and floating charge over the relevant properties and the Company's assets. Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.
20. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Net obligations under finance leases and hire purchase contracts | 3,765,467 | 407,273
|  | 3,765,467 | 407,273
| Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.
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CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
21. | Borrowings
| Analysis of the maturity of loans and finance leases is given below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Amounts falling due within one year |  |
| Bank loans | - | 3,894,446
| Finance leases | 1,263,182 | 461,904
|  | 1,263,182 | 4,356,350
| Amounts falling due 1-2 years |  |
| Finance leases | 905,428 | 407,273
|  | 905,428 | 407,273
| Amounts falling due 2-5 years |  |
| Finance leases | 2,860,039 | -
|  | 2,860,039 | -
| Total borrowings | 5,028,649 | 4,763,623
22. | Deferred taxation
|  | 2024
|  | £
| At beginning of year | 3,973,083
| Charged to profit or loss | 546,311
| At end of year | 4,519,394
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CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 22.Deferred taxation (continued)
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fixed asset timing differences | 4,815,659 | 4,039,009
| Losses and other deductions | (246,413) | -
| Short term timing differences | (49,852) | (65,926)
|  | 4,519,394 | 3,973,083
23. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 10,000,000 (2023 - 10,000,000) Ordinary shares shares of £1.00 each | 10,000,000 | 10,000,000
24. | Reserves
Profit and loss account Includes all current and prior retained profits and losses.
25. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted £1,473,553 (2023: £1,289,492). Contributions totaling £212,171 (2023: £204,883) were payable to the fund at the balance sheet date and are included in creditors. Page 34
CEPAC LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
26. | Commitments under operating leases
| At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Land and buildings |  |
| Not later than 1 year | 870,000 | 870,000
| Later than 1 year and not later than 5 years | 870,000 | 1,742,384
|  | 1,740,000 | 2,612,384
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other |  |
| Not later than 1 year | 561,847 | 356,403
| Later than 1 year and not later than 5 years | 1,154,520 | 553,228
|  | 1,716,367 | 909,631
27.Guarantees The Company has an arrangement with HMRC in respect of duty deferment. The amount guaranteed is £100,000 (2023: £100,000).
28. | Related party transactions
| The Company has chosen to take the exemption from the requirement to disclose transactions with other group companies on the basis that it is a wholly owned subsidiary and its results are consolidated in that of the parent company. The directors represent key management personnel for the purposes of the FRS 102 related party requirements and their compensation is disclosed in note 10. Services of £58,295 (2023: £50,732) were provided to the company from a consultant who is a close family member of a director. The amount owed by the company at the year end is £NIL (2023: £NIL).
29. | Controlling party
Capital House Investment Limited owns 100% of the share capital of Europa Holdings Limited, which in turn owns 100% of the share capital of Cepac Limited. Both Capital House Investment Limited and Europa Holdings Limited are incorporated in the Cayman Islands.
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