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13805528
THE APPHIA GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE APPHIA GROUP LIMITED
COMPANY INFORMATION
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Unit 1, Brockbourne House
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THE APPHIA GROUP LIMITED
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Balance Sheet
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Consolidated Analysis of Net Debt
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Notes to the Financial Statements
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THE APPHIA GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their Group strategic report for the year ended 31 December 2024.
The principal activity of the Group during the period was the design and supply of glass bottles and jars and associated products to food and drink manufacturers worldwide.
The Group is the UK's largest independent glass packaging supplier to the food and beverage industries and has a significant level of exports to over fifty countries, spanning six continents.
The turnover of The Apphia Group Limited for the year to 31 December 2024 was as follows:
Sales of glass containers and associated products: £41,944,946 (31 December 2023: £43,679,972)
In a year affected by political upheaval, challenging economic environments across different geographical reasons, as well as continued deflation, the overall performance, whilst not meeting ambition, has been good. The Board of Directors reports that turnover decreased by 3.9% on a like-for-like basis, reflecting the deflationary market.
The development and implementation of Extended Producer Responsibility legislation in our domestic UK market, saw some pre-emptive packaging material shifting away from glass. This has continued post-year end, but the Group remains positive for the future of glass from a demand and sustainability perspective.
The Group has continued to prioritise key operational relationships, ensuring the delivery of strategic value and excellence across the supply chain. Ongoing development within our logistics partnerships, combined with the easing of global freight costs, has contributed positively to margin performance.
Aligned with our strategic objectives, we have also invested in our most important asset, our people, by strengthening both our business development and operational support teams. These investments are already demonstrating measurable impact, reflected in increased revenue and the consistent delivery of our high service standards.
Gross profit margin has remained strong, increasing from 17.4% in the 2023 financial year to 17.8% for the 2024 financial year. This is particularly the result of foreign currency gains, coupled with continued improvement in our logistics and shipping cost centres, and streamlined stock performance, resulting in reduced warehousing costs.
The Group’s New Zealand operation continues to perform well despite persisting difficult economic conditions with continued inflation, interest rate rises and low consumer spending leading to ongoing low-to-negative economic growth through 2024. The subsidiary has maintained its focus on sourcing high-quality manufacturing partners, particularly across the Middle and Far-East, which have helped it to remain competitive. Nevertheless, the Directors are pleased with the results in the circumstances, and the outlook remains positive with a number of new customers and products both coming onstream and in the pipeline.
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THE APPHIA GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties
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The glass packaging industry continues to operate in a highly competitive environment, and the Board remains focused on safeguarding gross margin levels. Revenue performance is inherently influenced by consumer behaviour, which directly impacts customer demand for our products, and is further shaped by external and often unpredictable factors, such as weather conditions. Global political and economic instability has persisted, with several of our key markets experiencing slowdown, or in some cases recession, resulting in reduced consumer spending. Notwithstanding these headwinds, the Group has delivered a strong trading performance throughout the period under review.
The Group maintains long-established trading relationships with suppliers and customers across the European Union. The Directors are pleased to report that, despite a challenging international landscape, the Group has continued to perform robustly in overseas markets, supported by decades of experience in both importing and exporting.
The appreciation of Sterling against the Euro during the year lowered purchasing costs from our European supply partners. This contributed positively to the overall improvement in gross margin.
In contrast, Sterling weakened on average against the U.S. dollar in 2024. However, the impact of higher Dollar-denominated costs was mitigated by the Group’s forward-hedging programme. Furthermore, our practice of both buying and selling in foreign currencies provides an element of natural hedging, which continues to act as an effective buffer.
The Directors recognise that future development plans remain exposed to risks and uncertainties beyond the Group’s control. Nevertheless, with the dedication and commitment of our team, the Board is confident in the Group’s ability to sustain its current financial performance.
Financial key performance indicators
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As a sales-driven organisation, the Group regards turnover and gross margin as its principal financial performance indicators. These are addressed in detail within the Business Review above. In addition, we closely monitor debtor and stock positions, applying a Days Sales Outstanding (DSO) ratio to assess credit control performance.
Following a period of decline in this measure, the Board has implemented a strengthened approach to credit control. While maintaining our strong customer relationships, we continue to work collaboratively with clients to manage credit exposure responsibly, ensuring appropriate support for their growth alongside ours.
Stock levels are also monitored through a stock turnover ratio. During the year under review, the Group has carried significantly lower levels of absolute stock as a result of optimising elements of the supply chain; improvements in turnover rates also demonstrate greater efficiency in stock utilisation. The Directors are encouraged by the positive impact of strategic sales, sound decision-making, and strengthened processes, which have collectively contributed to improved performance in stock turnover. This positions the Group to respond effectively to increasing customer demand.
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THE APPHIA GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Other key performance indicators
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The Board is conscious that sound economic performance isn’t the sole way to measure a company’s success. The Board recognises that glass manufacturing is an energy intensive process, and that we can’t do everything when it comes to sustainability and environmental measures, but we must do something.
Throughout the period, we have continued our initiatives to reduce our carbon emissions, including offsetting the carbon footprint of all our team, through our continued sustainability partnerships. As a result of these partnerships, we are meeting the majority of the UN Sustainability Goals, such as the systemic challenges around poverty, economic growth and equality.
The Group has also continued its charitable endeavours throughout the period, resourcing more charities to a greater extent than ever before, with a focus on education across Africa and breaking the cycle of poverty both on that continent and in the UK & Europe. The directors remain committed to this action, demonstrated by undertaking a formal pledge to give at least 10% of net profit to effective charitable causes.
This report was approved by the board on 22 September 2025 and signed on its behalf.
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THE APPHIA GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £2,450,880 (2023: £2,831,279).
The directors declared dividends in the year of £677,428 (2023: £290,424).
The directors who served during the year were:
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
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THE APPHIA GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, S&W Audit (previously known as CLA Evelyn Partners), will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 22 September 2025 and signed on its behalf.
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THE APPHIA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED
Opinion
We have audited the financial statements of The Apphia Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated statement of comprehensive income, Consolidated and parent company balance sheets, Consolidated and parent company statement of changes in equity, Consolidated statement of cash flows and the notes to the financial statements, including 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 group's and of the parent company's affairs as at 31 December 2024 and of the Group's 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 group and parent 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 group and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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THE APPHIA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Annual report and financial statements. 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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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 have been prepared in accordance with applicable legal requirements.
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Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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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We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent company 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 directors’ responsibilities statement set out on page 4, 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.
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THE APPHIA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED (CONTINUED)
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:
We obtained a general understanding of the Group and Parent Company's legal and regulatory framework through enquiry of management concerning: their understanding of relevant laws and regulations; the entity's policies and procedures regarding compliance; and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the Group and Parent Company's industry and regulation. In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the Group and Parent Company's ability to conduct its business, and where failure to comply could result in material penalties. We identified the following laws and regulations as being of significance to the Group and Parent Company: FRS 102 (UK GAAP), the Companies Act 2006 and relevant UK taxation laws.
The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the Group and Parent Company's financial statements to material misstatements, including how fraud might occur. The areas identified in this discussion were:
∙Revenue recognition, in particular cut-off and completeness, which is an inherent risk common to owner managed businesses.
∙Manipulation of the financial statements, especially transactions with directors and management override, via fraudulent journal entries, particularly as the size of the Group and Parent Company means that there is little opportunity for segregation of duties.
The procedures we carried out to gain evidence in the above areas included:
∙Challenging management regarding the nature and appropriateness of unexpected or unusual accounting adjustments;
∙Substantive testing on material areas affecting timing of and completeness of revenue postings;
∙Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted at unusual times.
A further description of our responsibilities is available 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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THE APPHIA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE APPHIA GROUP LIMITED (CONTINUED)
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Matthew Neill BA (Hons) MA FCA (Senior Statutory Auditor)
for and on behalf of
S&W Audit
Statutory Auditor
Brockbourne House
77 Mount Ephraim
Tunbridge Wells
Kent
TN4 8BS
26 September 2025
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THE APPHIA GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Currency translation differences
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Other comprehensive income for the year
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Total comprehensive income for the year
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Profit for the year attributable to:
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Owners of the parent Company
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Total comprehensive income for the year attributable to:
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Owners of the parent Company
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The notes on pages 20 to 36 form part of these financial statements.
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The comparative figures have been restated to include a £21,203 loss on disposal of fixed asset investments in Administrative expenses which was previously shown separately on the face of the Consolidated Statement of Comprehensive Income.
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THE APPHIA GROUP LIMITED
REGISTERED NUMBER: 13805528
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Equity attributable to owners of the parent Company
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THE APPHIA GROUP LIMITED
REGISTERED NUMBER: 13805528
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 September 2025.
The notes on pages 20 to 36 form part of these financial statements.
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THE APPHIA GROUP LIMITED
REGISTERED NUMBER: 13805528
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Net assets excluding pension asset
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Profit and loss account brought forward
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Profit and loss account carried forward
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THE APPHIA GROUP LIMITED
REGISTERED NUMBER: 13805528
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 September 2025.
The notes on pages 20 to 36 form part of these financial statements.
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THE APPHIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Equity attributable to owners of parent Company
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Currency translation differences
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Currency translation differences
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Total comprehensive income for the year
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Contributions by and distributions to owners
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The notes on pages 20 to 36 form part of these financial statements.
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THE APPHIA GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Contributions by and distributions to owners
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The notes on pages 20 to 36 form part of these financial statements.
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THE APPHIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Loss on disposal of investments
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Decrease/(increase) in stocks
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Corporation tax (paid)/received
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Foreign exchange gains and losses
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Purchase of investment properties
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Purchase of unlisted and other investments
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Sales of unlisted and other investments
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Net cash from investing activities
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Cash flows from financing activities
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Repayment of finance leases
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Foreign exchange gains and losses
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THE APPHIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 20 to 36 form part of these financial statements.
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THE APPHIA GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
The notes on pages 20 to 36 form part of these financial statements.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Apphia Group Limited is a private company limited by shares and incorporated in England and Wales. The company is domiciled in the United Kingdom and its registered address is Unit 1, Brockbourne House, Mount Ephraim, Tunbridge Wells, Kent, TN4 8BS. The principal place of business is The Old Post Office, 19 Grove Road, Sutton, Surrey, SM1 1BB.
The Group's principal activities are the wholesale supply of glass bottles and jars and associated products to food and drinks manufacturers worldwide.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Revenue from the wholesale supply of glass bottles and jars and associated products is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured.
Revenue is recognised on despatch of goods as this is when the risks and rewards of ownership are considered to have transferred to the customer.
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, VAT and other sales taxes.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is 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.
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 for all assets other than office equipment, which is depreciated on a reducing balance basis.
Depreciation is provided on the following basis:
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Long-term leasehold property
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Straight line over 20 and 50 years
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Straight line over 4 years
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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.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Provision is made for obsolete, slow moving or defective items where appropriate.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Group 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 in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are no estimates that are considered to be subject to significant estimation uncertainty.
Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Other operating lease rentals
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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During the year, the Group obtained the following services from the Company's auditor:
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Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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The Company has no employees other than the directors, who are remunerated through a subsidiary company and group remuneration is disclosed in note 8 below (2023: £NIL)
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Group contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 2 directors (2023: 2) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £130,254 (2023: £145,450).
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The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023: £1,601).
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Other interest receivable
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Interest payable and similar expenses
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Other loan interest payable
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25% (2023: 23.52%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -23.52%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Super deductions and other fixed asset differences
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Effect of change in deferred tax rate
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Adjustments to prior year
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Long-term leasehold property
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Charge for the year on owned assets
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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William Croxson & Son, Limited
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Unit 1, Brockbourne House, 77 Mount Ephraim, Tunbridge Wells, England, TN4 8BS
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Croxsons Packaging Limited
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Business Latitude Ltd, 14a Barnaby Road, Tuakau, Tuakau, 2121 , New Zealand
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Freehold investment property
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All of the Group's investment property is held in the Parent company.
The 2024 valuations were made by the Directors, on an open market value for existing use basis.
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Finished goods and goods for resale
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The difference between purchase price or production cost of stocks and their replacement cost is not material.
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The carrying value of stocks are stated net of impairment losses totalling £363,796 (2023: £390,750). Impairment losses totalling £(57,658) (2023: £341,659) were recognised in profit and loss.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Due after more than one year
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Amounts owed by group undertakings
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Called up share capital not paid
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Prepayments and accrued income
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Cash and cash equivalents
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: Amounts falling due within one year
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Amounts owed to other participating interests
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Allotted, called up and fully paid
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50 (2023 -50) Ordinary shares of £1.00 each shares of £1.00 each
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Share premium account
This account represents the excess of share capital acquired above the nominal value which arose on the issue of 48 Ordinary Shares of £1 each
Profit and loss account
This is the cumulative profits and losses of the Group, excluding pre-acquisition profits, and net of distributions paid to the owners.
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Commitments under operating leases
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At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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23.Other financial commitments
The Company enters into foreign currency contracts to mitigate the exchange risk for certain foreign currency liabilities. At 31 December 2024 the outstanding contracts mature within one year on average (2023: one year) of the year end. At the Balance Sheet date, the Company was committed to buying €1,220,000 for £1,069,682 and US$400,000 for £317,460 (2023: €1,100,000 for £977,461). The forward currency contracts are measured at fair value using quoted forward exchange rates.
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Transactions with directors
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At the year end, a director owed a balance of £nil (2023: £346,693) upon which interest at 4%, totalling £4,723 (2023: £9,902), was charged in the year. £351,416 (2023: £16,753) was repaid by this director in the year.
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THE APPHIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Related party transactions
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Included within Other creditors, amounts falling due within one year, is a loan of £nil (2023: £300,438) owed to The Milk and Honey Trust, of which two directors are trustees. Interest is being charged at 4.85% per annum (2023: 4.85% per annum) and £9,321 (2023: £5,890) was paid in the year. Donations of £339,000 (2023: £370,000) were made to the Trust in the year.
Included in Amounts owed to connected companies, amounts falling due within one year, is a balance of £nil (2023: £72,432). There is a balance of £nil within Amounts owed from connected companies (2023: £nil), which is stated after a bad debt provision of £nil (2023: £1,500,000).
During the year, £2,117,004 of unsecured loan notes accruing interest at 1% above the Bank of England base rate were held by a family member of a director of the Company. These were repaid in full, along with interest of £9,695, in January 2024.
During the year, close family members of directors received remuneration of £167,337 (2023: £162,000).
T Croxson, a director, along with J Croxson and D Shaw (directors of subsidiary companies) collectively gave a standard guarantee of NZ$336,405, which is £150,449 (2023: £167,083), plus interest and costs to the Bank of New Zealand in respect of the subsidiary company Croxsons Packaging Limited. J Croxson and D Shaw (directors of subsidiary companies) collectively gave a standard guarantee of NZ$500,000, which is £223,614 (2023: £248,336), plus interest and costs, to the Bank of New Zealand in respect of subsidiary company Croxsons Packaging Limited.
Key management personnel comprise the directors of the parent company and the directors of William Croxson & Son, Limited. Total key management personnel remuneration was £805,178 (2023: £912,062).
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The ultimate controlling party is T J Croxson.
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