Registered number: 03373762
FOR THE YEAR ENDED 31 DECEMBER 2024
CEPAC LIMITED
COMPANY INFORMATION
CEPAC LIMITED
CONTENTS
CEPAC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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.
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.
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CEPAC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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.
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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.
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.
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.
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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.
The directors who served during the year were:
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make 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.
The profit for the year, after taxation, amounted to £759,716 (2023 - £5,226,217).
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CEPAC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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CEPAC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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.
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.
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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.
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.
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.
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CEPAC LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED
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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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CEPAC LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial 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.
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.
Page 9
CEPAC LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CEPAC LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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.
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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.
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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Cedar House
63 Napier Street
South Yorkshire
S11 8HA
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CEPAC LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
REGISTERED NUMBER: 03373762
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 September 2025 .
The notes on pages 17 to 35 form part of these financial statements.
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CEPAC LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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
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:
Functional and presentation currency
Transactions and balances
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Software costs
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:
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.
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.
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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:
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.
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.
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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.
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.
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Taxation (continued)
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.
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.
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 28
CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 29
CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 33
CEPAC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
22.Deferred taxation (continued)
Profit and loss account
Includes all current and prior retained profits and losses.
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
27.Guarantees
The Company has an arrangement with HMRC in respect of duty deferment. The amount guaranteed is £100,000 (2023: £100,000).
Page 35