Polycorr Limited 31/12/2024 iXBRL

Company registration number: 07923768

Polycorr Limited

Financial statements

31 December 2024

Polycorr Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Notes to the financial statements

Polycorr Limited

Directors and other information


	Directors	Mr J D Harrison
		Mr S A Cox


	Company number	07923768


	Registered office	45-49 Greek Street
		Stockport
		Cheshire
		SK3 8AX


	Business address	3 Europa Close
		Europa Link
		Sheffield
		S9 1XS


	Auditor	Downham Morris & Co
		45-49 Greek Street
		Stockport
		Cheshire
		SK3 8AX

Polycorr Limited

Strategic report

Year ended 31 December 2024

Review of the business

The directors present their strategic report for the year ended 31 December 2024.

Principal activities

The principal activity of the company during the year is the manufacture of protection materials for use in the construction industry.

Results and performance

During the year, the company performed well in a competitive and volatile environment and the company saw an increase in operational activities: turnover rose by 4.4% to £12,029,806 (2023: £11,523,161) and consequently achieved a gross profit for the year of £1,631,368 (2023: £1,113,251) and an operating profit of £1,835,595 (2023: £1,368,975).

Final dividends of £156,884 (2023: £111,000) were declared.

The directors are satisfied with performance levels achieved in the 2024 financial year and look forward to continued controlled growth for 2025.

Going concern

The company is supported financially by its trading parent, Protec International Limited. The directors consider that the company has sufficient reserves to remain solvent during future periods of turbulence and, as a consequence, believe the company is well placed to manage its business risks successfully despite the uncertain economic outlook.

The directors' assessment of going concern is based on the latest available financial and non-financial information and government guidance. Stress testing has been conducted and considered, taking into account any potential business disruptions and impact on revenue that may occur from future economic uncertainty.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the annual report and accounts.

Key performance indicators

The directors consider the key performance indicators of the company to be measured by both turnover and profit levels as described above.

The directors produce monthly management accounts for analysis of performance figures and ratios.

The directors do not believe that there are any non-financial key performance indicators that are relevant.

Principal risks and uncertainties

The risks facing the company are assessed on an ongoing basis by the directors. They evaluate the likelihood and potential impact of each risk and ensure appropriate action is taken to mitigate them.

Health and safety

The company is committed to achieving the highest practicable standards in both health and safety management for all operations and is committed to promoting the well-being of its employees. The directors implement regular health and safety reviews to comply with legislative requirements and maintain safe and healthy working conditions to achieve continued compliance and improvements.

Human resources

The company's most important resource is its staff and retention of key staff is critical though not a risk; their knowledge and experience is crucial to meeting customer requirements and the company continues to invest in staff training and development in this regard. The company has established practices to ensure that employees are consulted on a regular basis on matters relevant to them.

Financial risk

The risks facing the company are assessed on an ongoing basis by the directors who evaluate the likelihood and potential impact of each risk, whether it be interest rate risk, liquidity risk or foreign currency risk, and ensure appropriate action is taken to mitigate them.

Foreign currency and interest rate risk

The company is exposed to the risk that currency exchange rates relative to the English Pound Sterling may change in a manner which has a material effect on the reported values of its assets and liabilities. The company is mainly exposed to the United States Dollar and the Euro and manages this risk with the use of forward exchange contracts.

The company manages interest rate risk by negotiating its banking facility rates on a regular basis.

Liquidity risk

The company manages liquidity risk by ensuring that its day-to-day working capital requirements are met via the availability of sufficient liquid funds to accommodate the requirements of the company's functions.

This report was approved by the board of directors on .................. and signed on behalf of the board by:

.........................

Mr J D Harrison

Director

Polycorr Limited

Directors report

Year ended 31 December 2024

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

Incorporation

Polycorr Limited is a company incorporated and domiciled in England and holds its registered office at 45-49 Greek Street, Stockport, SK3 8AX and its principal place of business at 3 Europa Close, Sheffield South Yorkshire, S9 1XS.

Directors

The directors who served the company during the year were as follows:

Mr J D Harrison

Mr S A Cox

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Future developments

The company is committed to its environmental responsibilities by maximising operational efficiencies and the directors look forward to the forthcoming financial year with a continuing level of confidence.

Financial instruments

The risks facing the business are assessed on an ongoing basis by the directors. They evaluate the likelihood and potential impact of each risk, whether it be interest rate risk, liquidity risk or foreign currency risk and ensure appropriate action is taken to mitigate them.

Research and development

Research and development is concentrated on the improvement of warehousing and manufacturing workflows.

Disclosure of information in the strategic report.

The company's business activities together with factors likely to affect its future development, financial position, financial risk management objectives and exposures to risk are described in the strategic report on pages 2 - 3. The directors' assessment of going concern can be found in the strategic report.

Directors responsibilities statement

The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 judgments and accounting estimates that are reasonable and prudent; and

- 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 24 September 2025 and signed on behalf of the board by:

.........................

Mr J D Harrison

Director

Polycorr Limited

Independent auditor's report to the members of

Polycorr Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Polycorr Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, 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 FRS 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 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 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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 has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters 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 the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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: Based on our understanding and accumulated knowledge of the company and the sector in which it operates we considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material effect on the financial statements. These included but were not limited to those that relate to the form and content of the financial statements, such as the company accounting policies, the financial reporting framework and the UK Companies Act 2006. All team members were briefed to ensure they were aware of any relevant regulations in relation to their work.We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates as well as inappropriate revenue cut-off. Our audit procedures included, but were not limited to:- Agreement of the financial statement disclosures to underlying supporting documentation;- Identifying and testing journal entries, with a focus on manual journals to revenue, unusual combinations and journals indicating large or unusual transactions based on our understanding of the business;- Testing a sample of revenue recognised either side of the year end to ensure revenue has been recognised in the correct period;- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;- Challenging assumptions, accounting estimates and judgments made by the director, particularly in relation to bad and doubtful debts; - Obtaining an understanding of the control environment in monitoring compliance with laws and regulations.Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment by, for example, forgery, misrepresentations, intentional omissions, the override of internal control or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

.........................

Ian Gwynfor Morris FCCA (Senior Statutory Auditor)

For and on behalf of

Downham Morris & Co

Statutory Auditor

45-49 Greek Street

Stockport

Cheshire

SK3 8AX

24 September 2025

Polycorr Limited

Statement of comprehensive income

Year ended 31 December 2024

		2024	2023
	Note	£	£


Turnover	5	12,029,806	11,523,161
Cost of sales		( 10,398,438)	( 10,409,910)
		_______	_______
Gross profit		1,631,368	1,113,251

Administrative expenses		( 964,766)	( 901,319)
Other operating income	6	1,168,993	1,157,043
		_______	_______
Operating profit	7	1,835,595	1,368,975

Other interest receivable and similar income	10	21,954	6,410
Interest payable and similar expenses	11	( 45,861)	( 76,253)
		_______	_______
Profit before taxation		1,811,688	1,299,132

Tax on profit	12	( 452,941)	( 46,866)
		_______	_______
Profit for the financial year and total comprehensive income		1,358,747	1,252,266
		_______	_______

All the activities of the company are from continuing operations.

Polycorr Limited

Statement of financial position

31 December 2024

		2024		2023
	Note	£	£	£	£

Fixed assets
Tangible assets	14	1,223,576		1,615,044
		_______		_______
			1,223,576		1,615,044

Current assets
Stocks	15	1,214,607		1,054,119
Debtors	16	1,453,517		935,736
Cash at bank and in hand		1,553,663		1,097,912
		_______		_______
		4,221,787		3,087,767
Creditors: amounts falling due
within one year	17	( 1,715,251)		( 1,912,289)
		_______		_______
Net current assets			2,506,536		1,175,478
			_______		_______
Total assets less current liabilities			3,730,112		2,790,522

Creditors: amounts falling due
after more than one year	18		( 187,682)		( 375,955)

Provisions for liabilities	20		( 197,166)		( 271,166)

			_______		_______
Net assets			3,345,264		2,143,401
			_______		_______

Capital and reserves
Called up share capital	23		100		100
Profit and loss account	24		3,345,164		2,143,301
			_______		_______
Shareholders funds			3,345,264		2,143,401
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 24 September 2025 , and are signed on behalf of the board by:

.........................

Mr J D Harrison

Director

Company registration number: 07923768

Polycorr Limited

Statement of changes in equity

Year ended 31 December 2024

	Called up share capital	Profit and loss account	Total
	£	£	£


At 1 January 2023	100	1,002,035	1,002,135

Profit for the year		1,252,266	1,252,266
	_______	_______	_______
Total comprehensive income for the year	-	1,252,266	1,252,266

Dividends paid and payable		( 111,000)	( 111,000)
	_______	_______	_______
Total investments by and distributions to owners	-	( 111,000)	( 111,000)

	_______	_______	_______
At 31 December 2023 and 1 January 2024	100	2,143,301	2,143,401

Profit for the year		1,358,747	1,358,747
	_______	_______	_______
Total comprehensive income for the year	-	1,358,747	1,358,747

Dividends paid and payable		( 156,884)	( 156,884)
	_______	_______	_______
Total investments by and distributions to owners	-	( 156,884)	( 156,884)

	_______	_______	_______
At 31 December 2024	100	3,345,164	3,345,264
	_______	_______	_______

Polycorr Limited

Notes to the financial statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 45-49 Greek Street, Stockport, Cheshire, SK3 8AX.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Consolidation

The company has taken advantage of the exemption from preparing consolidated financial statements contained in Section 400 of the Companies Act 2006 on the basis that it is a subsidiary undertaking and its immediate parent undertaking is established under the law of any part of the United Kingdom.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Research and development

Research and development expenditure is written off in the year in which it is incurred.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Plant and machinery	-	4-10 year Straight line
Fittings fixtures and equipment	-	4 year Straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Hire purchase and finance leases

Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Critical accounting policies

In the application of the company's accounting policies, which are described in note 3, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the company's accounting policies

The directors do not consider that the amounts recognised in the current or prior year's financial statements have been significantly affected by any critical judgements made in the process of applying the company's accounting policies.

Key sources of estimation uncertainty

Provision against bad and doubtful accounts receivable

Customer and other debtors are reviewed on a line-by-line basis at each financial period end. Provision against bad debts, which is netted against the debtors to which it relates, is made when notification is received from the administrators. Prior to this point, the risk of doubtful debts is mitigated through regular credit reviews. As at the year end the directors have no material concerns over the recoverability of the company's debtors.

Provision against slow-moving, obsolete or irrecoverable stock

Stock is reviewed on an ongoing basis and a provision made where directors are of the opinion that specific raw materials may be irrecoverable. As at the year end the directors have no material concerns over the recoverability of the company's stock.

5. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	12,029,806	11,523,161
	_______	_______

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

6. Other operating income

	2024	2023
	£	£
Other operating income	1,168,993	1,157,043
	_______	_______

7. Operating profit

Operating profit is stated after charging/(crediting):

	2024	2023
	£	£
Depreciation of tangible assets	391,943	395,122
(Gain)/loss on disposal of tangible assets	8,585	-
Research and development expenditure written off	6,260	2,232
Operating lease rentals	45,509	38,254
Foreign exchange differences	-	( 443)
Fees payable for the audit of the financial statements	14,500	10,000
	_______	_______

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
Management	2	2
Production and warehouse	55	55
	_______	_______
	57	57
	_______	_______

The aggregate payroll costs incurred during the year were:

	2024	2023
	£	£
Wages and salaries	1,996,481	1,832,311
Social security costs	94,472	81,821
Other pension costs	71,346	67,658
	_______	_______
	2,162,299	1,981,790
	_______	_______

9. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	120,526	117,480
Company contributions to pension schemes in respect of qualifying services	39,996	39,996
	_______	_______
	160,522	157,476
	_______	_______

10. Other interest receivable and similar income

	2024	2023
	£	£
Bank deposits	17,058	6,410
Other interest receivable and similar income	4,896	-
	_______	_______
	21,954	6,410
	_______	_______

11. Interest payable and similar expenses

		2024	2023
		£	£
Other loans made to the company:
	Finance leases and hire purchase contracts	41,018	42,243
Other interest payable and similar expenses		4,843	34,010
		_______	_______
		45,861	76,253
		_______	_______

12. Tax on profit

Major components of tax expense

	2024	2023
	£	£
Current tax:
UK current tax expense	526,941	369,833
	_______	_______
Total current tax	526,941	369,833

Deferred tax:
Origination and reversal of timing differences	( 74,000)	( 322,967)
	_______	_______
Tax on profit	452,941	46,866
	_______	_______

Reconciliation of tax expense

The tax assessed on the profit for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25.00 % (2023: 23.50%).

	2024	2023
	£	£
Profit before taxation	1,811,688	1,299,132
	_______	_______

Profit multiplied by rate of tax	452,922	305,296
Effect of expenses not deductible for tax purposes	2,165	9,612
Effect of capital allowances and depreciation	71,854	54,659
Rounding on tax charge	-	266
Deferred taxation	( 74,000)	( 58,894)
Group relief	-	( 264,073)
	_______	_______
Tax on profit	452,941	46,866
	_______	_______

13. Dividends

Equity dividends

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year)	156,884	111,000
	_______	_______

14. Tangible assets

	Plant and machinery	Total
	£	£
Cost
At 1 January 2024	5,424,486	5,424,486
Additions	9,060	9,060
Disposals	( 286,784)	( 286,784)
	_______	_______
At 31 December 2024	5,146,762	5,146,762
	_______	_______
Depreciation
At 1 January 2024	3,809,442	3,809,442
Charge for the year	391,943	391,943
Disposals	( 278,199)	( 278,199)
	_______	_______
At 31 December 2024	3,923,186	3,923,186
	_______	_______
Carrying amount
At 31 December 2024	1,223,576	1,223,576
	_______	_______
At 31 December 2023	1,615,044	1,615,044
	_______	_______

A fixed and floating charge exists over the company and all assets are pledged as security.

Obligations under finance leases

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:


		Plant and machinery
		£
	At 31 December 2024	629,846
		_______
	At 31 December 2023	799,656
		_______

15. Stocks

	2024	2023
	£	£
Raw materials and consumables	1,214,607	1,054,119
	_______	_______

Cost of stocks recognised as an expense in the year was £7,138,833 (2023: £7,254,809).

16. Debtors

	2024	2023
	£	£
Amounts owed by group undertakings	1,389,071	882,945
Prepayments and accrued income	64,446	52,791
	_______	_______
	1,453,517	935,736
	_______	_______

Provision for impairment of trade debtors as at the year end was £nil (2023: £nil).Amounts owed by group undertakings have no set repayment terms and attract no interest.

17. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	530,698	753,691
Amounts owed to group undertakings	225,091	256,181
Accruals and deferred income	116,497	113,978
Corporation tax	302,046	276,083
Social security and other taxes	351,796	260,725
Obligations under finance leases	188,272	250,014
Other creditors	851	1,617
	_______	_______
	1,715,251	1,912,289
	_______	_______

National Westminster Bank Plc holds an unlimited debenture incorporating a fixed and floating charge over all assets of the company. Included in other creditors, hire purchase liabilities totalling £188,272 (2023: £250,014) are secured on the relevant assets to which they relate.

18. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Obligations under finance leases	187,682	375,955
	_______	_______

Included in other creditors, hire purchase liabilities totalling £187,682 (2023: £375,955) are secured on the relevant assets to which they relate.

19. Obligations under finance leases

Company lessee

The total future minimum lease payments under finance lease agreements are as follows:

	2024	2023
	£	£
Not later than 1 year	198,412	250,013
Later than 1 year and not later than 5 years	227,702	375,955
	_______	_______
Present value of minimum lease payments	426,114	625,968
	_______	_______

20. Provisions

	Deferred tax (note 21)	Total
	£	£
At 1 January 2024	271,166	271,166
Charges against provisions	( 74,000)	( 74,000)
	_______	_______
At 31 December 2024	197,166	197,166
	_______	_______

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 20)	197,166	271,166
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	197,166	271,166
	_______	_______

22. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 71,346 (2023: £ 67,658 ).

Unpaid pension contributions at the year end date amounted to £nil (2023: £5,288).

23. Called up share capital

Issued, called up and fully paid

	2024		2023
	No	£	No	£
Ordinary shares shares of £ 1.00 each	100	100	100	100
	_______	_______	_______	_______

24. Reserves

The Profit and loss account reserve records retained earnings and accumulated losses.

25. Operating leases

The company as lessee

The total future minimum lease payments under non-cancellable operating leases are as follows:


	£	£

Not later than 1 year	36,146	47,043
Later than 1 year and not later than 5 years	20,433	19,161
	_______	_______
	56,579	66,204
	_______	_______

The company uses operating leases to hire plant & machinery. These leases have terms of renewal which are at the option of the lessee.

26. Related party transactions

Exemption from the disclosure of transactions undertaken with the company's immediate parent has been taken under paragraph 33.1A of FRS 102.During the year, the company carried out transactions with PP Polymers Limited, a connected company. The company made charges of other operating income totalling £442,686 (2023: £505,286) and incurred cost of sales expenditure totalling £1,529,276 (2023: £1,437,064) and are included in the statement of comprehensive income.No interest is charged by the company on loans to associated undertakings and the loans are repayable on demand.

27. Key management personnel

The board considers that key management is effectively comprised of the directors only.

28. Controlling party

The company is under the control of its ultimate parent undertaking, Protec International Limited, by virtue of its shareholding.