Company registration number: 00463083
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Introduction
The Directors present their Strategic report together with the audited financial statements for the year ended 31 December 2024.
The Directors present their Strategic report together with the audited financial statements for the year ended 31 December 2024.
The Company’s principal activity is that of wholesale paper & board merchants supplying the UK print and packaging industry.
The Directors are pleased to report that the Company achieved a satisfactory profit in the year, despite a continued slowdown in business activity in both the paper and board sectors.
Volume sales of paper and board increased by 1.6% in 2024 over the previous year although price pressures in the declining market affected Turnover which fell by 6.5% to £178.8 million. Gross profit in these challenging conditions held up reasonably well and was slightly ahead of 2023.
The Company continues to invest in operational efficiency and 2024 has seen two major projects come to fruition namely:
Volume sales of paper and board increased by 1.6% in 2024 over the previous year although price pressures in the declining market affected Turnover which fell by 6.5% to £178.8 million. Gross profit in these challenging conditions held up reasonably well and was slightly ahead of 2023.
The Company continues to invest in operational efficiency and 2024 has seen two major projects come to fruition namely:
∙In March 2024 the Company committed to a new warehouse in Coalville replacing the existing tired and inefficient warehouse in Leicester. The new warehouse was operational in September 2024.
∙Implementation of a state-of-the-art Warehouse Management System has commenced and will eventually be operational across all the Company’s warehouses.
Both projects are expected to lead to benefits and efficiencies in future years.
Overall overheads rose in the year due to inflationary pressures with some increases outside of the Company’s control, but strong cost control remains very important in the current climate.
The Directors report a Profit before Tax of £4.45 million, broadly in line with 2023.
Key Performance Indicators
The Company’s business is relatively straightforward, such that only a few KPIs are relevant. The Directors closely monitor the Company’s actual trading performance in comparison to budgets set at the start of each year, in terms of volumes of paper and board sold, selling price and margin achieved as well as the level of overheads.
Overall overheads rose in the year due to inflationary pressures with some increases outside of the Company’s control, but strong cost control remains very important in the current climate.
The Directors report a Profit before Tax of £4.45 million, broadly in line with 2023.
Key Performance Indicators
The Company’s business is relatively straightforward, such that only a few KPIs are relevant. The Directors closely monitor the Company’s actual trading performance in comparison to budgets set at the start of each year, in terms of volumes of paper and board sold, selling price and margin achieved as well as the level of overheads.
The key risk faced by the Company is structural market decline in demand for paper and board and its effect on customers and suppliers.
Customer Credit Risk
The major factors affecting the printing industry is a continual reduction in the demand for paper and therefore print. As a result, the financial failure of printers, who have high infrastructure costs, is unfortunately commonplace. The Company constantly assesses individual credit limits on its customer base through its credit control function, and conducts regular credit meetings with all major customers to keep up to date with current developments.
Supplier Risk
The closure of paper and board makers and reduction in capacity has become a feature of the downturn in the industry. The Company maintains a strong supplier base so that good lines of supply can be assured at all times.
Customer Credit Risk
The major factors affecting the printing industry is a continual reduction in the demand for paper and therefore print. As a result, the financial failure of printers, who have high infrastructure costs, is unfortunately commonplace. The Company constantly assesses individual credit limits on its customer base through its credit control function, and conducts regular credit meetings with all major customers to keep up to date with current developments.
Supplier Risk
The closure of paper and board makers and reduction in capacity has become a feature of the downturn in the industry. The Company maintains a strong supplier base so that good lines of supply can be assured at all times.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Board of Directors consider that the decisions they have made during the financial year and the way they have acted have promoted the success of the Company for the benefit of its members as a whole, having regard for the stakeholders and matters set out in s172 (1) (a-f) of the Act.
The Company engages with its employees, customers and suppliers through a variety of means, including -
°Employees – internal updates regarding Company trading performance, key decisions & developments, provision of training, & support during the cost of living crisis.
°Customers – account reviews, technical support, samples and website.
°Suppliers – joint business trading reviews and sales promotions introducing product improvements and expanded ranges.
Trading conditions in 2025 to date have deteriorated due to uncertainty in the UK economy and lower business confidence. The Directors believe this scenario may still have some time to run before there is a sustained improvement. They are therefore focussing on operating efficiencies to right-size the business for current and future market conditions.
While weaker demand for paper and board has stunted growth prospects, the Company has faced higher staff employment and property costs. This has inevitably dampened financial performance.
On a positive note the automated Warehouse Management System has been installed and was fully operational across all branches from July 2025.
Despite the above the Company remains profitable and financially strong and is well placed to benefit from opportunities that will arise.
While weaker demand for paper and board has stunted growth prospects, the Company has faced higher staff employment and property costs. This has inevitably dampened financial performance.
On a positive note the automated Warehouse Management System has been installed and was fully operational across all branches from July 2025.
Despite the above the Company remains profitable and financially strong and is well placed to benefit from opportunities that will arise.
This report was approved by the Board of Directors and signed on behalf of the board by:.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The Directors who served during the year were:
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
There were no dividends paid in the year (2023: £nil).
The Company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company does not discriminate against disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Arrangements are made, wherever possible, for retaining employees who become disabled to enable them to perform work identified as appropriate to their aptitudes and abilities.
The Company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the Company. This is achieved through regular contact by management with employees both over electronic communications and formal and informal communications.
Greenhouse gas emissions, energy consumption and energy efficiency action
The company has disclosed its greenhouse gas emissions, energy consumption and energy efficiency action in the parent company consolidated accounts, Elliott Baxter Holdings Limited.
The company has disclosed its greenhouse gas emissions, energy consumption and energy efficiency action in the parent company consolidated accounts, Elliott Baxter Holdings Limited.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELLIOTT BAXTER & COMPANY LIMITED
We have audited the financial statements of Elliott Baxter & Company Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Balance Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELLIOTT BAXTER & COMPANY LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELLIOTT BAXTER & COMPANY LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙UK employment legislation;
∙UK health and safety legislation; and
∙General Data Protection Regulations.
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
We assessed the susceptibility of the parent company's financial statements to material misstatement, including how
fraud might occur. Audit procedures performed by the engagement team included:
fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect
fraud;
fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls
or other inappropriate influence over the financial reporting process;
or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgments made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the following areas:
organisation for fraud and identified the greatest potential for fraud in the following areas:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount;
∙Timing of revenue recognition; and
∙The use of management override of controls to manipulate results.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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 Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ELLIOTT BAXTER & COMPANY LIMITED (CONTINUED)
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
Chartered Accountants
Statutory Auditor
2nd Floor
Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
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PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 9
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 21 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Elliott Baxter & Company Limited is a private Company, limited by shares; incorporated and domiciled in the United Kingdom and is registered in England and Wales. The address of its registered office is disclosed on the company information page. The principal place of business is the same as the registered office.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified
within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
The presentation currency is GBP.
within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
The presentation currency is GBP.
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Elliott Baxter Holdings Limited as at 31
December 2024 and these financial statements may be obtained from Companies House.
December 2024 and these financial statements may be obtained from Companies House.
Turnover consists of sales of goods at invoiced value excluding VAT. Turnover is recognised on despatch of goods.
Deferred tax is provided in full on material timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements.
Deferred tax assets are recognised to the extent that they are material and it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.
Deferred tax assets are recognised to the extent that they are material and it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks, which consist entirely of paper for resale, are valued at the lower of cost and net realisable value. Cost is computed as the delivered price of paper held at the year end, on a FIFO basis less an allowance for settlement discounts received. Tonnage rebates are accounted for on a receivable basis. Provision is made for damaged, obsolete and slow-moving lines.
The Company's pension plans for Directors and employees are based on a money purchase method whereby the rate of funding is reviewed annually.
Contributions are charged to the profit and loss account for the year in which they are payable.
Contributions are charged to the profit and loss account for the year in which they are payable.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, financing from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Significant judgements
The Company did not make any judgements that have a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other 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 are as follows:
A stock provision is calculated based on the length of time stock items have remained unsold. Provisions vary from 5% to 30% depending on the nature of the stock item. The total provision at the balance sheet date is £494,000 (2023: £601,000).
A bad debt provision is calculated based on amounts that have not been recovered within four months of the year end. There is therefore no uncertainty over the amount of bad debt incurred at the time of approving the accounts.
A dilapidations provision is calculated based on the Directors estimate on the expected dilapidations which at the end of the respective leases could be a cost incurred to put property back to its original condition when first entering the agreement. In developing their estimate, the Directors employed a chartered surveyor to provide their expert opinion of the likely expenditure required. The total provision at the balance sheet date is £867,000 (2023: £863,000).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Capital redemption reserve
Profit and loss account
Page 21