Company No:
Contents
| DIRECTOR | Jean-Luc Guenard (Appointed 11 July 2024) |
| Gert Johan Scheringa (Resigned 11 July 2024) |
| REGISTERED OFFICE | Studley Point |
| Birmingham Road | |
| Studley | |
| B80 7AS | |
| United Kingdom |
| COMPANY NUMBER | 08333365 (England and Wales) |
| AUDITOR | Deloitte LLP |
| Statutory Auditor | |
| Birmingham | |
| United Kingdom |
The director presents their Strategic Report for the financial year ended 31 December 2024.
REVIEW OF THE BUSINESS
The principal activity of LPR - La Palette Rouge (GB) Limited ("the Company") is the operation of a national, and part of a European wide, pallet pool. The Company is part of Euro Pool System International B.V., Europe's largest logistics service provider for returnable and reusable packaging.
Turnover increased by 7.8% (2023: 19.1%) as a result of continued new business development and organic growth.
The Company's net profit for the year was £3,775,000 (2023: £3,042,000) which enabled a dividend of £4,000,000 to be paid. Gross profit margin fell by 3.8% to 8.8% (2023: 12.6%) reflecting inflationary and commodity pressure, however operating profit remained consistent at 4.8% (2023: 4.5%) reflecting tight control over the overhead base.
The Company's strategy is to maintain a strong focus on increasing growth and reducing costs by performing an ongoing review of business operations.
KEY PERFORMANCE INDICATORS ('KPIS')
The director considers turnover as the key performance indicator. Turnover increased by £6,471,000 from £83,193,000 in 2023 to £89,664,000 in 2024, with growth being driven by a combination of new customer wins and renewal of existing business.
Gross profit margin fell by 3.8% to 8.8% (2023: 12.6%) reflecting inflationary and commodity pressure, however operating profit remained consistent at 4.8% reflecting tight control over the overhead base.
PRINCIPAL RISKS AND UNCERTAINTIES
The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls which are managed centrally. Further explanation of risks and uncertainties can be found within the Parent company financial statements, see note 18 for details of where to obtain a copy. All policies are subject to ongoing review by management through risk management and internal audit.
The immediate principal risk for the business is rising inflation and the management of this impact upon both supplier and customer prices. Where possible increases have been passed on via contractual mechanisms or through contract re-negotiation.
Competitive Pressure
Competitive pressure is a continuing risk for the Company. To manage this risk the Company strives to provide added value products and services to its customers, prompt response times in the supply of products and services and in handling of customer queries through the maintenance of strong continuing relationships with customers.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Interest Rate Risk
The Company is part of a group treasury function which continually manages interest rate risk to reduce the Company's exposure in this area. Interest rate risk is deemed minimal as there is no external interest bearing debt within the Company.
Liquidity Risk
The Company, manages its cash and borrowing requirements in order to minimise interest expense whilst ensuring the Company has sufficient liquid resources to meet its day to day business and operating needs. The Company is also part of a European cash pool and revolving facility should funds be required on a short-term basis. A large proportion of operating costs are intercompany related; hence payment can be flexed according to cash demands.
Credit Risk
Customers who wish to trade on credit terms are subject to credit verification procedures using external rating agencies. Trade debtors are reviewed regularly, and provision is made for doubtful debts where necessary. The regular reviews undertaken assess customer risk, and where appropriate credit levels are amended to reflect current trading activity or revised rating agency guidance. The current customer base and the relative size and presence of those customers in their respective markets reduces overall credit risk.
Price Risk
The Company's business may be affected by fluctuations in the price and supply of fuel and timber, although purchasing policies and practices seek to mitigate, where practicable, these risks.
The business continues to work closely with all its key suppliers to ensure the seamless supply of pooled pallets to its network. This has been achieved by detailed forecasting of demand, calculation of stock requirements and appropriate business continuity plans being put in place. Regular dialogue continues with all suppliers so the business can react quickly to external factors and maintain supply.
FUTURE DEVELOPMENTS
The director is satisfied with the performance of the business and expects the present level of activity will be sustained for the foreseeable future. Against a backdrop of a competitive market in the UK, the director is confident that the Company is positioned to deliver profitable growth. The Company may also continue to be affected by exchange rate risks arising from the UK's decision to leave the European Union. Such risks are managed in the normal course of business.
Movements in inflation and commodity prices will be mitigated via long term supply contracts and any changes will be in accordance with contractual terms.
S172 STATEMENT
*Our suppliers*
The business works with an extensive network of hauliers and pallet service contractors to maintain ongoing supply. Many of these relationships have been built over a long period of time; hence there is a strong understanding of the business requirements. The business constantly reviews its supplier network to ensure competition within the existing supply chain, and ensure services are maximised.
The business is particularly focused upon working with hauliers to reduce carbon emissions and to look for innovative ways to do this. A number of hauliers have introduced vehicles with alternative fuel sources and increased the size of vehicles in operation to reduce the number of journeys required.
*Our customers*
Customer development remains a key priority of the business, and where appropriate the Company actively works with customers to provide supply chain solutions. Investment is continually made in external IT systems to enhance the customer journey and enable real time information to be accessed. Annual Customer surveys are conducted to identify areas of strength and opportunities for development.
*Engagement with Shareholders*
The UK business is a wholly owned subsidiary (see note 18). Engagement with shareholders is maximised through inclusion in the overall LPR Europe BV Strategic Plan, with localised KPI's and metrics being established for the UK business. These are reported on a monthly basis, and formally reconsidered on an annual basis.
The UK business is part of European wide initiatives which focus on customer, supplier and employee related topics.
The UK business is managed by a Senior Management Team with responsibility for each key business stream. The UK SMT formally engages with Divisional stakeholders on a monthly basis. The UK SMT also has the responsibility for engaging with local staff on all domestic related topics.
*Investing in our people*
The Company is committed to providing a working environment in which employees can develop and participate in the long-term goals of the business. The business promotes flexible working practices to ensure the wellbeing of employees remains of paramount concern.
Employees are informed on quarterly basis of key business decisions via ‘town hall’ meetings which promote open and honest communication across the business.
Throughout the year the business has conducted regular meetings with selected staff representatives to identify opportunities for change and drive employee engagement.
*Community and environment*
The Company respects all the rules and regulations in the communities where it operates. The director is aware of the industry environmental impact and as such growing focus has been placed upon sustainability in particular the reduction of CO2 emissions. Detailed plans have been put in place to reduce the carbon footprint of the Company. This is a collaborative approach with both suppliers and customers. Please see Energy and Carbon Report within Director's Report for further information.
Active discussions have been undertaken with suppliers to review the distribution network, along with methods of transport and fuels used.
The Company periodically reviews and approves clear frameworks, such as Code of Conduct, Human Resource policy, Fraud Management, Information Security, Ethics and Compliance and its Modern Slavery Statements to ensure that its high standards are maintained both within the Company and the business relationships.
Approved by the Board of Directors and signed on its behalf by:
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Jean-Luc Guenard
Director |
The director presents the Annual Report on the affairs of the Company and the audited financial statements for the year ended 31 December 2024.
Details on financial risk management are stated in the Strategic Report on page 4 and form part of this report by cross-reference.
PRINCIPAL ACTIVITIES
GOING CONCERN
Cashflow forecast have been undertaken which covers at least 12 months from the date of approval of the financial statements. A limited number of companies will go through contract renewals every year. During 2024 the Company has successfully renewed a large number of existing contracts with varying lengths and in combination with global wins, there is a limited impact on future cash flows and profitability of the Company as a result of potential contract cancellations. The Company is also part of a European wide group and banking arrangement; hence has access to funds should they be required.
On the basis of the assessment of the Company's financial position the director has a reasonable expectation that the Company will be able to meet all its liabilities when they fall due. Therefore the director deems it appropriate to prepare the financial statements on a going concern basis.
REVIEW OF THE BUSINESS
The review of the business has been discussed in the Strategic Report on Page 3 and form part of this report by cross reference.
DIVIDENDS
The Company paid a dividend of £4,000,000 in the current financial year (2023: £3,500,000). No final dividend is proposed to be paid post year end.
FUTURE DEVELOPMENTS
Details of future developments can be found in the Strategic Report and form part of this report by cross-reference.
RESEARCH AND DEVELOPMENT
All research and development activities take place at a Group level. No expenditure is incurred in the Company for research into new products and services.
DIRECTOR
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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(Appointed 11 July 2024) |
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(Resigned 11 July 2024) |
DIRECTOR'S INDEMNITIES
POLITICAL CONTRIBUTIONS
There were no political donations during the year (2023: £Nil).
ENERGY AND CARBON REPORT
Energy efficiency actions
The Company is committed to minimising its impact upon the environment and is engaging in an active program with suppliers to minimise its environmental impact.
We have reported on all sources of GHG emissions and energy usage as required under The Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 as amended. The below Emissions from combustion of gas relate to Scope 1 and Emissions from purchased electricity relate to Scope 2.
| 2024 | 2023 | ||
| kWh | kWh | ||
| Energy consumption used to calculate emissions | 648,468 | 560,531 | |
| TCO₂e | TCO₂e | ||
| Emissions from combustion of gas | 45 | 40 | |
| Emissions from purchased electricity | 88 | 75 | |
| 133 | 115 |
Intensity Ratio
The chosen intensity measure is tonnes of CO2e per £m revenue, this has been chosen as revenue is deemed to be the key measure within the business. Tonnes of CO2e per £m revenue for 2024 was 0.0014.
Methodology
We have used the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government’s GHG Conversion Factors for Company Reporting 2024 to calculate the above disclosures.
Energy efficiency actions taken
During 2024 we have taken steps to improve energy efficiency, such as maximising our ISPM15 processes to reduce the usage of our kilns and working with landlords to install solar panels, which went live in 2025.
QUALITY
The Company is ISO 9001:2008 accredited. LPR - La Palette Rouge (GB) Limited is dedicated to quality and professionalism in the pursuit of achieving customer satisfaction and commercial goals.
In order to ensure that these key objectives are achieved, the Company has, in compliance with ISO 9001: 2008, implemented a Quality Management System suitable to the needs, size and complexity of the operation. Commitment to, and compliance with, this Quality Management System is mandatory for all Company employees. This quality policy and the resultant management systems and objectives are under constant review to ensure continual improvements in systems and performances. All interested parties are encouraged to participate in this process.
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Details of engagement with suppliers, customers and others can be found in the Strategic Report under the 'section 172 of the Companies Act 2006' statement on page 5 and form part of this report by cross-reference.
AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that they ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Due to the change of auditor at Euro Pool System International B.V., it is expected that EY LLP will be appointed auditor of the Company following the signing of these financial statements. In accordance with s485 of the Companies Act 2006, a resolution is to be proposed at the next board meeting for the appointment of EY LLP as auditors of the Company.
Approved by and signed by the director:
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Jean-Luc Guenard
Director |
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the director must not approve the financial statements unless the director is 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 financial period.
In preparing these financial statements, the director is required to:
* Select suitable accounting policies 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; and
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The director is 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 director is responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in annual reports may differ from legislation in other jurisdictions.
Report on the audit of the financial statements
In our opinion the financial statements of LPR - La Palette Rouge (GB) Limited (the 'Company'):
* 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 financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
* The Profit and Loss Account;
* The Balance Sheet;
* The Statement of Changes in Equity; and
* The related notes 1 to 18.
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).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (the 'FRC's') Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is 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.
**Responsibilities of director**
As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
We considered the nature of the Company’s industry and its control environment, and reviewed the Company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the director about their own identification and assessment of the risks of irregularities, including those that are specific to the Company’s business sector.
We obtained an understanding of the legal and regulatory frameworks that the Company operates in, and identified the key laws and regulations that:
* had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act, pensions legislation and tax legislation; and
* do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included the UK General Data Protection Regulations (GDPR) and Health and Safety Regulations.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:
• Revenue recognition policy related to ‘additional’ billing and non-standard contract terms where there is a risk that revenue has been incorrectly recorded. In response to this, we performed the following procedures:
(a) Test of details of 'additional billing' revenue tested substantively by agreeing to sales invoices and bank receipts, as well as underlying calculations.
(b) We also performed extended testing in relation to late declaration, audit loss revenue and other additional revenue streams, due to the involvement of commercial negotiation between LPR and customers which can result in lower revenue received from customer in comparison to original calculation which raises the risk of overstatement of revenue. Deloitte tested the accuracy of a sample from each of the different revenue streams and have noted no issues.
(c) We performed a contract review on a sample of new customer contracts to test for any unusual clauses or revenue recognition items which could lead to a material misstatement of revenue recognition.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
* reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
* performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
* enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
* reading minutes of meetings of those charged with governance.
Report on other legal and regulatory requirements
Opinions 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* The Strategic Report and the Director's 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 any material misstatements in the Strategic Report or the Director's Report.
Under the Companies Act 2006 we are required to report in respect of the following matters 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 director's remuneration specified by law are not made; or
* We have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Statutory Auditor
United Kingdom
| Note | 2024 | 2023 | ||
| £'000 | £'000 | |||
| Turnover | 3 |
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| Cost of sales | (
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| Gross profit |
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| Administrative expenses | (
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| Operating profit |
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| Interest receivable and similar income | 4 |
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| Interest payable and similar expenses | 4 | (
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| Profit before taxation | 5 |
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| Tax on profit | 8 | (
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There were no items of other comprehensive income or losses for the current or prior year other than those included in the Profit and Loss Account, accordingly no Statement of Comprehensive Income is presented.
| Note | 2024 | 2023 | ||
| £'000 | £'000 | |||
| Fixed assets | ||||
| Tangible assets | 10 |
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| 3,819 | 3,923 | |||
| Current assets | ||||
| Debtors | 11 |
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| Cash at bank and in hand |
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| 34,537 | 41,897 | |||
| Creditors: amounts falling due within one year | 12 | (
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| Net current assets | 979 | 1,390 | ||
| Total assets less current liabilities | 4,798 | 5,313 | ||
| Provision for liabilities | 13 | (
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| Net assets | 4,350 | 4,575 | ||
| Capital and reserves | 14 | |||
| Called-up share capital |
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| Profit and loss account |
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| Total shareholder's funds | 4,350 | 4,575 |
The financial statements of LPR - La Palette Rouge (GB) Limited (registered number:
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Jean-Luc Guenard
Director |
| Called-up share capital | Profit and loss account | Total | |||
| £'000 | £'000 | £'000 | |||
| At 01 January 2023 |
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| Dividends paid on equity shares (note 9) |
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| At 01 January 2024 |
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| Dividends paid on equity shares (note 9) |
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| At 31 December 2024 |
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The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
LPR - La Palette Rouge (GB) Limited (the Company) is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Studley Point, Birmingham Road, Studley, Warwickshire, B80 7AS, United Kingdom.
The Company is a 100% owned subsidiary of LPR Europe B.V., a Company incorporated and domiciled in the Netherlands.
The principal activities are set out in the Director's Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The functional currency of LPR - La Palette Rouge (GB) Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates. Monetary amounts in these financial statements are rounded to the nearest whole £1,000, except where otherwise indicated.
The Company's ultimate parent undertaking includes the Company in its financial statements (see note 18). In these financial statements, the Company is considered to be a qualifying entity and has applied the exemptions available under FRS 102 in respect of the presentation of a statement of cash flows and related notes and disclosures, transactions with other wholly-owned group entities, financial instruments disclosures, a reconciliation of the number of shares outstanding at the beginning and at the end of the year and remuneration of key management personnel.
The director has no reason to believe any material uncertainty exists that may cast significant doubt about the ability of the Company to continue as a going concern.
Cashflow forecast have been undertaken which covers at least 12 months from the date of approval of the financial statements. A limited number of companies will go through contract renewals every year. During 2024 the Company successfully renewed a large number of existing contracts with varying lengths and in combination with global wins, there is a limited impact on future cash flows and profitability of the Company as a result of potential contract cancellations. The Company is also part of a European wide group and banking arrangement; hence has access to funds should they be required.
On the basis of the assessment of the Company's financial position the director has a reasonable expectation that the Company will be able to meet all its liabilities when they fall due. Therefore the director deems it appropriate to prepare the financial statements on a going concern basis.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.
All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.
Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Defined contribution schemes
The costs of short-term employee benefits are recognised as a liability and an expense. Employees are entitled to carry forward up to 5 days of any unused holiday entitlement at the reporting date. The cost of any unused entitlement is recognised in the year in which the employee's services are received.
The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Retirement benefits:
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
Current and deferred tax is charged or credited to the Profit and Loss Account, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.
Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.
Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting period.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is not discounted.
Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives as follows:
| Fixtures and fittings |
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| Tools and equipment |
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| Office equipment |
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| Assets in the course of construction |
not depreciated |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The Company as lessee
At each reporting end date, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
Recognised impairment losses are reversed if the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Profit and Loss Account.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Basic financial assets
The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised when the Company becomes party to the contractual provisions of the instrument.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Profit and Loss Account.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the Profit and Loss Account.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price and are subsequently measured at amortised cost, being the transaction price less any impairment losses.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the Company's contractual obligations are discharged, cancelled, or they expire.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
Reimbursements up to the amounts required to settle the obligation are recognised as separate assets only when receipt on settlement of the obligation is virtually certain.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.
Critical judgements in applying the Company’s accounting policies
The director believes there are no critical judgements that are significant enough to require disclosure.
Key source of estimation uncertainty
There were no key sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
In the year ended 31 December 2024, 100% (2023: 100%) of the Company's turnover was derived from one business stream.
Breakdown by business class
An analysis of the Company's turnover by class of business is set out below.
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Third party customers | 78,222 | 73,463 | |
| Intercompany turnover | 11,442 | 9,730 | |
| 89,664 | 83,193 |
Breakdown by geographical market:
An analysis of the Company's turnover by geographical market is set out below.
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| United Kingdom | 77,779 | 65,136 | |
| Rest of Europe | 11,885 | 18,057 | |
| 89,664 | 83,193 |
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Interest receivable and similar income |
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| Interest payable and similar expenses | (
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(
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| 751 | 279 |
The interest receivable and similar income above relate to interest from parent undertakings. The interest payable and similar expenses above relate to interest to parent undertakings.
Profit before taxation is stated after charging/(crediting):
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Depreciation of tangible fixed assets (note 10) |
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| Operating lease rentals |
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| Fees payable to Company's auditor for the audit of the Company's statutory financial statements |
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| Foreign exchange gains | (
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(
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| 2024 | 2023 | ||
| Number | Number | ||
| The average monthly number of employees (including directors) was: | |||
| Office and management |
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Their aggregate remuneration comprised:
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Wages and salaries |
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| Social security costs |
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| Other retirement benefit costs (note 16) |
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| 2,486 | 2,935 |
Included in the aggregate remuneration above is an amount of £nil (2023: £482,000) recharged to another group company.
The services attributable to this entity are not significant.
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Current tax on profit | |||
| UK corporation tax |
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| Adjustments in respect of prior years | |||
| UK corporation tax | (
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| Total current tax |
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| Deferred tax | |||
| Origination and reversal of timing differences | (
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| Adjustments in respect of prior years | 0 | 1 | |
| Total deferred tax | (
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| Total tax on profit |
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The tax assessed for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK:
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Profit before taxation | 5,036 | 4,042 | |
| Tax on profit at standard UK corporation tax rate of 25% (2023: 23.52%) |
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| Effects of: | |||
| Expenses not deductible for tax purposes |
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| Income not taxable in determining taxable profit | (
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| Adjustments in respect of prior years | (
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| Fixed asset timing differences | 16 | 0 | |
| Remeasurement of deferred tax for changes in tax rates | 8 | 5 | |
| Total tax charge for year | 1,261 | 1,000 |
The Finance Act 2021 (enacted on 10 June 2021) increased the main rate of UK corporation tax from 19% to 25%, effective from 1 April 2023. Deferred taxes on the balance sheet have been measured at 25% (2023: 25%) which represents the future corporation tax rate that was enacted at the balance sheet date
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Amounts recognised as distributions to equity holders in the financial year: | |||
| Final dividend for the financial year ended 31 December 2024 of £80 (2023: £70) per 1 ordinary share | 4,000 | 3,500 | |
| Fixtures and fittings | Tools and equipment | Office equipment | Assets in the course of construction |
Total | |||||
| £'000 | £'000 | £'000 | £'000 | £'000 | |||||
| Cost | |||||||||
| At 01 January 2024 |
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| Additions |
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| Disposals |
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(
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(
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| Transfers |
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| At 31 December 2024 |
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| Accumulated depreciation | |||||||||
| At 01 January 2024 |
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| Charge for the financial year |
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| Disposals |
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(
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| At 31 December 2024 |
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| Net book value | |||||||||
| At 31 December 2024 | 608 | 3,195 | 16 | 0 | 3,819 | ||||
| At 31 December 2023 | 725 | 939 | 30 | 2,229 | 3,923 |
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Trade debtors |
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| Amounts owed by Group undertakings (note 17) |
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| Amounts owed by Parent undertakings (note 17) |
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| Corporation tax |
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| Other debtors |
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| Prepayments |
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The amounts owed by Parent undertakings, relating to a current account, of £5,258,000 (2023: £15,445,000) are interest bearing and are repayable on demand. Interest is payable at the 1 month EURIBOR interest Rate +1% (2023: 1%).
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Trade creditors |
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| Amounts owed to Group undertakings (note 17) |
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| Amounts owed to Parent undertakings (note 17) |
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| Corporation tax |
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| Other taxation and social security |
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| Accruals |
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| Other creditors |
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The amounts owed to the Parent undertakings, relate to a current account and are interest bearing and repayable on demand. Interest is payable at the 1 month EURIBOR interest Rate +1% (2023: 1%).
Included within accruals are amounts relating to pallet collection of £3,072,000 (2023: £3,007,000).
| Deferred taxation | Other | Total | |||
| £'000 | £'000 | £'000 | |||
| At 01 January 2024 |
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|
738 | ||
| Credited to the Profit and Loss Account | (
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(
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( 290) | ||
| At 31 December 2024 |
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448 | ||
Deferred tax
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| Accelerated capital allowances |
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| Provision for deferred tax |
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Other provisions relate to pallet losses.
| 2024 | 2023 | ||
| £ | £ | ||
| Authorised | |||
| Allotted, called-up and fully-paid | |||
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| Presented as follows: | |||
| Called-up share capital presented as equity | 50,000 | 50,000 |
The profit and loss reserve represents cumulative profits or losses, net of distributions to owners.
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2024 | 2023 | ||
| £'000 | £'000 | ||
| within one year |
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| between one and five years |
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| after five years |
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Included in the operating lease commitments are amounts owing relating to office space; amounts owing within one year of £64,305 (2023: £82,000). Amounts owing between two and five years is £nil (2023: £68,000 ) and beyond five years is £nil (2023: nil). The office lease expires on 15 October 2025.
Included in the operating lease commitments are amounts owing relating to the Company's depots and cars; amounts owing within one year of £1,674,000 (2023: £1,063,000). Amounts owing between two and five years is £5,294,000 (2023: £2,258,000) and beyond five years is £nil (2023: £525,000) with the longest depot lease expiring on 30 November 2029.
Car leases for employees are over four years.
The significant lease which the Company has are for its head office in Studley and strategic depots located across the country.
Pensions
The Company operates a defined contribution pension scheme for the director and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
Defined contribution schemes
The charge to Profit and Loss Account in respect of defined contribution schemes is £88,000 (2023: £110,000)
The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
No contributions were payable to the fund at the year-end (2023: none).
The Company has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the Group of companies of which the Company is a wholly owned member.
LPR Europe B.V., the immediate parent company, and the smallest group is a company incorporated in the Netherlands, whose registered address is Laan Van Vredenoord 8-12, 229 DJ, Rijswijk, Netherlands. The audited consolidated financial statements are publicly available at the registered office, Laan Van Vredenoord 8-12, 229 DJ, Rijswijk, Netherlands.
The ultimate controlling party and parent of the largest group is Euro Pool System International B.V., a company incorporated in the Netherlands. The audited consolidated financial statements are publicly available at the registered office, Laan Van Vredenoord 8-12, 229 DJ, Rijswijk, Netherlands.