REGISTERED NUMBER: 02312465 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

PROTECTIVE PACKAGING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

12

Other Comprehensive Income

13

Balance Sheet

14

Statement of Changes in Equity

15

Notes to the Financial Statements

16

DIRECTORS:

J H Law

A P Harding

S Jolly

B C Lewis

C G Lewis

S Davies

S P Lingwood

REGISTERED OFFICE:

Unit 3, Gateway

1 Opus Close

Carrington

Manchester

M31 4RQ

REGISTERED NUMBER:

02312465 (England and Wales)

AUDITORS:

Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

The directors present the Strategic Report together with the audited financial statements for the year ended 31 December 2024.

REVIEW OF BUSINESS

Financial Performance

Fiscal 2024 saw the Company's sales revenue and gross margin exceed budget by 4.1% and 2.8% respectively. Year-on-year, sales revenue increased by 8.82% to £14.25m. The associated gross profit, achieved at an improved rate of 61.9% versus Fiscal 2023's 61.1%, increased by 10.3% to £8.82m. This financial performance ensured that cash flow remained very strong throughout the year.

Geographical Performance

The Company's geographic performance saw domestic sales account for a reduced 66.0% of revenue with export activity contributing an increased 34.0%. Export sales were recorded with 43 overseas territories, up from 2023's 41, which serves to provide continued evidence that the Company's global reach is as strong as ever, supported by a programme of direct sales, sales through strategic distribution channels and an ever-growing on-line presence. In all markets, the Company achieved improved gross margin levels as the Company continued to exploit its considerable business differentiators in all areas, manufacturing the highest quality packaging, supplied in a timely fashion whilst ensuring adherence to its business ethics. The Company continues to win new business in all markets and to consolidate its position as the UK's leading supplier of climatic packaging solutions and a major force in Europe and further afield.

Operational Highlights

The Company continued to enhance its manufacturing techniques and material and product format mix to support the objective of sales growth in industry sectors, specific applications and geographical regions that met the sales strategies of the business. The Company continued to maximise the sales opportunities and associated margin levels for the unique elements of its product range. In every area of the business, the Company was stronger and more capable than ever due to the continuing success and further development of, the Buddy System linked to a more strategic recruitment policy with particular focus here on the commercial department and the deployment of the relevant personnel. The Company added strength and capability to its Board by increasing the number of members and represented functions. The Company continued to benefit from its continued investment in automated manufacturing capability. The Company dramatically boosted its development programme of new laminate structures to meet the technical and environmental demands of its global markets.

Market Conditions

The Company continued to adapt in-line with economic factors, legislation, competitor activity and evolving customer preferences by working in close partnership with its strategic supply base and taking a strong approach to key material cost control and understanding and deploying global market intelligence.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties that the Company faces continue to relate mainly to working within the credit worthiness of our customers, both domestic and overseas. In mitigation, our relationship with our credit limit underwriters is crucial, as we will only extend credit payment terms to companies that we can obtain an insured credit limit with. Immediate payment against pro-forma invoices is the only option when we are doing business with uninsured customers which reduces our risk of bad debts. The Company is exposed to fluctuating cost prices for its key raw materials and to currency exchange rates but these are constantly monitored using industry specific tools to ensure the information we have is up to date. To ensure the Company is best placed to deal with the marketplace we are currently investing in a new ERP and CRM system which will ensure we are perfectly placed to best deal with our customers' needs now and in the future. Regulations on the packaging industry are constantly changing but by aligning ourselves with the correct partners and subscribing to industry specific updates we can ensure that any changes are implemented well in advance of them becoming a legal requirement.

Other potential risks include:

Price risk: Economical, political and market conditions in supplier countries can affect the price we pay for raw materials. This can adversely affect our business but can also benefit the business.

Credit risk: All our domestic and overseas debt is insured or based on advance payment, to minimise any bad debt exposure within the business.

Liquidity risk: Due to our financial results during these financial years and our strict credit, we are diligent in managing our cash flows.

Exchange risk: The uncertainty associated to currency exchange rates is largely obviated by the Company's natural hedge mechanism related to an almost equitable split in overseas currency sales and purchases.

Financial/Cash flow risk: The Company finances its operations through a mixture of cash flows and invoice financing. Daily cash positions are sent to the board for review. The management's objective is to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.

FUTURE OUTLOOK

Market Conditions and External Factors

Fiscal 2025 will see a continuation of the Company's commercial, technical and developmental responses to technology trends, regulatory changes and environmental pressures. The Company will continue to benefit from its natural hedge against Forex losses on its Euro-based sales and purchases and do all in its powers to mitigate against the negative impact of global import and export tariffs, energy costs and government-levied increases in taxation

Strategic Focus

The Company will adopt a more focussed approach to the cross-fertilisation of existing industry activity, customer locations, applications and product-formats. Given the current geopolitical climate, the Company will respond to the inevitable increase in global defence expenditure. The commercial function of the business and the associated material and product formats will align to exploit the arising business opportunities. The Company will continue to use its market intelligence to keep the suppliers of key materials in check with regard to pricing, respond to customer preferences and displace competition.

Operational Plans

The Company will continue to work on the recyclability of its production-generated waste and seek to commercially-exploit an enhancement of its ISO 14001:2015 Environmental Management System. The Company will finalise the development of and implantation of, its new ERP system and associated add-ons

POST BALANCE SHEET EVENTS

Continuing to monitor changes in packaging regulations and ensure we are complying with updates to Plastic Packaging Tax and EPR.

Staying up to date with global changes such as the implementation of the 'Trump Tariffs' and the conflicts in Russia/Ukraine and the Middle East.

As part of the review of our business impact on the environment we have once again partnered with a company to off-set our carbon emissions to become carbon neutral for another year. We have continued to work on items contained in our Environmental Management System (EMS) to identify and implement changes to reduce our impact.

We have continued to work on the replacement of our current operating system with a new modern ERP/CRM system.

GOING CONCERN

In preparing these financial statements, the Directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. In satisfaction of this responsibility, the Directors have considered the Company's ability to meet its liabilities as they fall due for a period of at least twelve months from the signing date of the financial statements.

The Company continues to manufacture at its production facility with no plans to stop production. To date, the Company has not experienced any significant disruption from employee absence, its supply chain or its distribution networks and none is anticipated in the foreseeable future due to the fact that the Company has significant current orders as at the date of signing these accounts as well as holding appropriate levels of stock.

The Directors have prepared what they consider to be a realistic forecast for the period to the end of December 2026. This indicates that for a period of 16 months from the date of signing these accounts, the Company continues to generate cash. There are various cost saving measures that the Directors could implement if the fall in revenue was worse than this.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Directors therefore believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

FINANCIAL KEY PERFORMANCE INDICATORS

Financially we have exercised excellent controls with regard to stock and cash flow with stock turn, debtor days and creditor days all at appropriate levels which are reported to the board for review on a weekly basis. All expense lines remain under control. Our sales visits and issued samples and quotes were all in line with our targets and our customer survey clearly indicates that we are considered an excellent supplier. Quality complaints are in line with our objectives but continue to be reviewed and improvements implemented to ensure these are kept to an absolute minimum.

RESEARCH AND DEVELOPMENT

The Company will continue to develop new materials, manufacturing techniques and packaging product formats to allow entry into new geographical markets, areas of application and industry sectors and continue to provide specialist product and equipment manufacturers with the climatic packaging solutions that they require. We will endeavour wherever possible to utilise smart features on our packaging to exploit the opportunities for intelligent packaging. The Company will build upon its growing reputation as a developer of the most appropriate packaging solutions to meet the specific demands of the customer's needs and that of their products and routes to market. The Company will continue to link its excellent technical acumen with that of its key material supply base to achieve this objective.

ON BEHALF OF THE BOARD:

A P Harding - Director

15 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activities of the company during the year remained that of the manufacture of protective packaging solutions for corrosion prevention and dried-product protection.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2024 is £1,075,000 (2023: £1,000,000). The directors do not recommend a final dividend.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J H Law

A P Harding

S Jolly

B C Lewis

C G Lewis

Other changes in directors holding office are as follows:

S Davies - appointed 1 January 2024

S P Lingwood - appointed 13 May 2024

CHARITABLE DONATIONS

During the year the company made donations of £6,500 (2023: £50) to registered UK charities, comprised as follows:

i) £5,000 to Cyril Flint, a charity providing assistance to the elderly

ii) £1,500 to Hidden Treasure, to provide toys and food to struggling families at Christmas

The company did not make any political donations during the year or the prior year.

DIRECTORS INDEMNITIES

The company has currently made qualifying third party indemnity provisions for the benefit of its directors, which remain in force at the date of this report.

MATTERS INCLUDED IN THE STRATEGIC REPORT

The business review, financial risk assessment, assessment of principal risk and uncertainties, research and development, post balance sheet events and future developments are included within the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A P Harding - Director

15 September 2025

Opinion

We have audited the financial statements of Protective Packaging Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Karen Dent (Senior Statutory Auditor)

for and on behalf of Harold Sharp Limited

Statutory Auditors and Chartered Accountants

5 Brooklands Place

Brooklands Road

Sale

Cheshire

M33 3SD

18 September 2025

TURNOVER

3

14,245,927

13,091,425

Cost of sales

5,422,173

5,093,647

GROSS PROFIT

8,823,754

7,997,778

Administrative expenses

7,233,481

6,241,062

OPERATING PROFIT

5

1,590,273

1,756,716

Interest payable and similar expenses

7

21,895

16,146

PROFIT BEFORE TAXATION

1,568,378

1,740,570

Tax on profit

8

422,280

393,417

PROFIT FOR THE FINANCIAL YEAR

1,146,098

1,347,153

PROFIT FOR THE YEAR

1,146,098

1,347,153

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,146,098

1,347,153

FIXED ASSETS

Intangible assets

10

102,820

72,528

Tangible assets

11

1,700,937

1,632,275

1,803,757

1,704,803

CURRENT ASSETS

Stocks

12

802,879

902,393

Debtors

13

5,768,337

5,003,612

Cash at bank and in hand

1,058,006

908,180

7,629,222

6,814,185

CREDITORS

Amounts falling due within one year

14

3,874,966

3,003,136

NET CURRENT ASSETS

3,754,256

3,811,049

TOTAL ASSETS LESS CURRENT LIABILITIES

5,558,013

5,515,852

PROVISIONS FOR LIABILITIES

17

557,599

586,536

NET ASSETS

5,000,414

4,929,316

CAPITAL AND RESERVES

Called up share capital

18

5,000

5,000

Retained earnings

19

4,995,414

4,924,316

SHAREHOLDERS' FUNDS

5,000,414

4,929,316

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2025 and were signed on its behalf by:

A P Harding - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

5,000

4,577,163

4,582,163

Changes in equity

Dividends

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

1,347,153

1,347,153

Balance at 31 December 2023

5,000

4,924,316

4,929,316

Changes in equity

Dividends

-

(1,075,000

)

(1,075,000

)

Total comprehensive income

-

1,146,098

1,146,098

Balance at 31 December 2024

5,000

4,995,414

5,000,414

1.	STATUTORY INFORMATION

Protective Packaging Limited is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office is Unit 3, Gateway, 1 Opus Close, Carrington, Manchester, M31 4RQ and its registered number is 02312465. The nature of the company's operations and its principal activities are set out in the strategic report.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared for the company as a single entity. The presentation and functional currency is GBP £.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Betronics Limited and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors have made no material judgements but have made estimates in preparing these financial statements. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accrued costs

Accrued expenditure is estimated by the directors at each year end, to ensure that all known liabilities are accounted for in the financial statements.

Provisions

A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Management estimate and make provision for costs that will be incurred in returning a leased property to the condition that it was in at the inception of the lease. The actual costs of work that needs to be completed could vary from the estimates. The amount recognised is the estimated cost of dilapidations and is reassessed each year in accordance with local conditions and requirements. Changes in the estimated timing of dilapidations or dilapidations cost estimates are dealt with prospectively by recording an adjustment to the provision.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

- the group has transferred the significant risks and rewards of ownership to the buyer;

- the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of turnover can be measured reliably;

- it is probable that the group will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of four years.

Development costs are in respect of the company's new ERP system which was not brought into use at the year end. Once in use the asset will be amortised over its estimated useful life of four years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following bases:

Leasehold property improvements

straight line over term of the lease

Motor vehicles

25% reducing balance

Plant & machinery

10% reducing balance

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 the statement of comprehensive income.

Assets under construction represent machinery not yet complete. They are subject to depreciation once complete and brought into use.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Stocks are comprised of packaging materials and completed packaging items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade debtors, other debtors, amounts owed by group undertakings, amounts owed by related parties and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

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 liabilities, including trade creditors, other creditors, amounts owed to group undertakings, and amounts owed to related parties, that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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

Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in profit or loss. Outstanding derivatives at reporting date are included under the appropriate format heading depending on the nature of the derivative.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

In preparing these financial statements, the directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. In satisfaction of this responsibility, the directors have considered the company's ability to meet its liabilities as they fall due for a period of at least twelve months from the signing date of the financial statements.

The company continues to manufacture at its new factory production facility with no plans to stop production. To date, the company has not experienced any significant disruption from employee absence, its supply chain or its distribution networks and none is anticipated in the foreseeable future due to the fact that the company has significant current orders as at the date of signing these accounts as well as holding appropriate levels of stock.

The directors have prepared what they consider to be a realistic forecast for the period to the end of December 2026. This indicates that for a period of 16 months from the date of signing these accounts, the company continues to generate cash. There are various cost saving measures that the directors could implement if the fall in revenue was worse than this.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

Provision for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position 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 statement of financial position.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

9,399,843

8,773,488

Europe

4,209,349

3,901,064

Rest of the world

636,735

416,873

14,245,927

13,091,425

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

6,148,669

5,463,941

Social security costs

311,962

252,972

Other pension costs

81,023

68,656

6,541,654

5,785,569

The average number of employees during the year was as follows:

2024

2023

Production staff

29

28

Administrative staff

32

32

Management staff

7

5

68

65

Directors are deemed to be key management personnel.

2024

2023

£

£

Directors' remuneration

4,106,746

3,856,173

Directors' pension contributions to money purchase schemes

16,908

9,690

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

3,242,423

3,137,976

Amounts paid to third parties in respect of directors services £42,000 (2023: £42,000).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director was £nil (2023: £nil).

5.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

10,317

10,317

Other operating leases

278,353

247,369

Depreciation - owned assets

168,390

145,154

Auditors' remuneration

17,000

16,000

Services provided by the auditors for non audit services were £1,300 (2023: £1,000).

6.	EXCEPTIONAL ITEMS

2024

2023

£

£

Exceptional items

(49,258

)

175,958

Exceptional items relate to the company's dilapidation provision movement in the year.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Other interest received

(3,158

)

(3,178

)

Invoice factoring fees

25,053

19,324

21,895

16,146

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

382,013

320,085

Deferred tax

40,267

73,332

Tax on profit

422,280

393,417