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

The principal activity of the company continued to be that of the manufacture of aluminium foil containers and other packaging products for sale and distribution to the food industry and wholesale market place.

The Directors focus remains on providing our customer base with competitively priced products of the highest level of quality with service levels to match. Continued investment in the expansion of our product range and new product development has resulted in the business gaining additional market share and new customers in recent years. The Directors see this expansion of product offering as key to the continuing success of the business.

Market conditions remained challenging in 2024 with strong competition. Raw material costs continued to fluctuate within the aluminium market leading to further cost pressures. However, the business has been broadly successful in recovering these costs through a combination of price movement in the marketplace and productivity improvements. The Directors consider the business to be well placed to deal with the continued challenges of the marketplace, and with planned further investment in manufacturing capabilities, expects to see further moderate sales growth and improvements in operating profit.

The company holds the BRC Global Standard for Packaging and Packaging Materials to the highest AA rating and maintains certification to the ISO14001:2015 environmental standard and ISO45001:2018 safety standard. The company remains an active member of the Aluminium Packaging Recycling Organisation (Alupro) promoting the recycling of aluminium packaging and is also a member of the European Aluminium Foil Association (EAFA).

On 29th July 2024, the company acquired the trade, inventory and fixed assets of Sirane Limited, allowing the company to further increase its service offering and market share. This will have contributed to the increased turnover reported for the year.

Turnover amounted to £49.7m (2023: £46.6m) representing a 6.8% increase. This increase has been due to the acquisition of Sirane Limited's trade and new business won in the USA at the end of the 2023 financial year. The Directors will continue to considering strategies and opportunities to maximise product offerings and sales.

Gross profit achieved during the year was 29.5% (2023: 22.5%) which reflects effective cost control in what is a challenging market. The main reason for the increase in margin is a decrease in the cost of metal and associated conversion costs during the year.

Distribution costs remain a fairly consistent % of sales at 3.9% (2023: 3.1%).

Administrative expenses continue to be closely and effectively managed. Administrative expenses have increased when compared to 2023 by £3.3m, equating to a 48.8% increase. This is predominately due to energy and fuel cost. Increasing insurance costs, premises expenses and preventative maintenance programs are also factors.

Despite challenging trading conditions including inflationary cost increases and supply chain pressures, the Directors are pleased to report a profit before tax of £1.6m (2023: £0.6m). This achievement illustrates the effective management of the business, both financially and operatively.

At the balance sheet date, the company has net assets of £7.2m (2023: £5.6m), which the Directors believes illustrates the significant financial strength of the company.

Principal risks and uncertainties

The company uses various financial instruments group loans, hire purchase, plus various other items, such as debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company’s operations.

The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. The directors review and agree policies for managing these risks. These policies have remained unchanged from previous years. The company does not use derivative financial instruments for speculative purposes.

Foreign currency risk

The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company reduces its exposure to these risks by fixing the price, where possible, of its raw material purchases in sterling at the time of purchase.

Credit risk

The principal credit risk arises from the company's trade debtors. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. The company has no significant concentration of credit risk, with exposure spread over a large number of customers. The company has obtained credit insurance which covers the majority of the receivables from customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term finance.

Price risk

The company is exposed to commodity price risk as a result of its operations. The company manages its exposure to commodity risk by fixing the price of contracted purchase commitments in sterling at the time of placing these contracts. The company has to date been broadly successful in reflecting raw material price movements in its selling prices.

Economic risk

As a result of global economic factors, and inflation levels in the UK, costs generally have increased. This has impacted raw materials and overhead costs (including energy costs), which in-turn has resulted in increased cost of living and the contributing increases in staff costs. These inflation related price increases are expected to remain for some time to come. Close monitoring of costs by the Directors to budget are in place to mitigate the financial impact on on-going profitability.

Interest rate risk

The company finances its operations through a combination of retained profits, group loans, finance leases and hire purchase contracts. The company exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.

The company reviews and monitors its performance against a number of key performance indicators both financial and non-financial. The principal measures include revenue growth, maintaining service levels, improvement of gross margins and EBITDA. These are reviewed by the management team and reported to the Board on a monthly basis.

The Directors have and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business. The main KPI’s and corresponding results are as follows:

Key performance indicators

The increase in revenue in 2024 was expected due to the acquisition of Sirane Limited's trade. Despite the challenging cost increases, both gross profit margins and net profit margins have remained strong.

The improvement to gross profit margins has been achieved through effective cost control measures and negotiations with suppliers in respect of supply prices.

EBITDA increase is as a result of increased operating profit. A reduction in charitable donations has contributed to the increase reported profits for the year.

The increase in the net current assets and net assets illustrates the company's improved liquidity and strengthened financial position.

Directors’ duties

The Directors of the company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006, which is summarised as follows;

‘A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:

• The likely consequences of any decision in the long term;

• The interests of the company’s employees;

• The need to foster the company’s business relationships with suppliers, customers and others;

• The impact of the company’s operations on the community and environment;

• The desirability of the company maintaining a reputation for high standards of business conduct; and

• The need to act fairly as between shareholders of the Company.’

The following paragraphs summarise how the Directors’ fulfil their duties;

Risk management

As a privately owned business, the company has the flexibility to adopt a longer term view in respect of key business decisions. Our strategic plan is focused on creating long term value for all stakeholders including employees, customers and suppliers.

Our people

We recognise that our employees are the key to helping us achieve our strategic plan. We place considerable value on the development and wellbeing of our employees and continue to keep them informed on matters affecting them as employees and the performance of the company. During the year we have introduced an employee hardship fund and have regularly engaged with employees to obtain feedback in respect of areas which require further improvement.

Business relationships

Fostering positive relationship with all our stakeholders has underpinned our success to date. Our decision making and business conduct takes into account the views, requirements and impact on our stakeholders and this enables us to continue developing and maintaining business relationships.

Community and environment

The company recognises the impact of its principal activities on the community and environment.

As a result, the company manages its activities to ensure risks to the community and environment are minimised. We have introduced initiatives to minimise our footprint which include; use of solar power in our factory, introduction of a zero carbon emission company car fleet, segregation and recycling of all waste from manufacturing sites, and reuse of inbound packaging in outbound deliveries. Further initiatives are planned for the short to medium term.

Shareholders

The Directors consider, both individually and together, that they act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders.

Appropriate measures are in place to ensure the Directors are fully aligned with shareholders.

On behalf of the board

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

The principal activity of the company continued to be that of the manufacture of aluminium foil containers and other packaging products for sale and distribution to the food industry and wholesale market place.

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company continues to utilise its in-house technical expertise to remain at the forefront of packaging innovation. By constantly investing in talented individuals, advancing technology and our clients’ visions, the company continues to develop innovative and future proofed packaging solutions.

The company will continue to manufacture aluminium foil containers and other packaging products for sale and distribution to the food industry and wholesale market place.

The company has sufficient financial resources in place to execute its strategy and continue to develop to the future.

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The company presents its emissions and energy consumption below.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

Vehicle fuel - all vehicles have mileage recorded and mileage has been compared to emissions to calculate the total emissions for the year.

Electricity - we have analysed the electricity invoices received from the supplier and recorded the electricity usage.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £100,000, the recommended ratio for the sector.

We have installed smart meters across all sites and increased video conferencing technology for staff meetings, to reduce the need for travel by employees. Additionally all new car leases taken our in the year have been for fully electric vehicles.

The directors are responsible for preparing the annual 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 of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Coppice Alupack Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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.

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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to packaging intended to come into contact with food and the regulated nature of the packaging industry, especially in relation to waste and environmental. Other laws and regulations include health and safety, employment law and data protection.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;

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.

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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Coppice Alupack Limited is a private company limited by shares incorporated in England and Wales. The registered office is 20 Brickfield Road, Yardley, Birmingham, B25 8HE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Assets in the course of construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Freehold land is not depreciated.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

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

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The useful economic life of tangible fixed assets has to be estimated by the directors of the company to ensure an appropriate depreciation charge is recognised in the year. The value of the assets ultimately depends on the condition of the assets and whether economic income can be derived from the asset. The directors undertake a periodic review of the assets to ensure the value of the assets is fairly stated within the financial statements.

During the year, depreciation of £862,657 (2023: £704,530) has been charged.

Refer to note 12 for the carrying value of tangible fixed assets impacted by this key accounting estimate.

To ensure that adequate provision is made in the company's accounts for slow moving, damaged and obsolete stock the Directors recognise specific provisions based on the age and category of stock held at the year end. At the year end the provision for slow and obsolete stock amounts to £2,449,434 (2023: £1,584,008).

Refer to note 13 for the value of stock impacted by this key accounting estimate.

The company has previously recognised a dilapidations provision in accordance with FRS102, having assessed and estimated the expected costs cost of returning leased properties back to their original condition, based on the legal contractual requirements of the lease agreements.

The dilapidation provision of £57,666 in place at the 2023 balance sheet date, as detailed in note 19, has been fully utilised during 2024. No further provision is needed at the 2024 balance sheet date.

During the prior year, the company made donations of £1,000,000 to Euro Charity Trust and £128 to other charities. During the year, the company has made charitable donations, as included in administrative expenses, though these were not exceptional in 2024.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Included in the total employee costs summarised above, amounts totalling £923,828 (2023: £952,358) have been apportioned to the cost of manufactured goods, in order to reflect the true cost of finished goods subsequently sold.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 1).

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Deferred tax has been recognised at a rate of 25%. In October 2022, the government announced an increase in the corporation tax main rate from 19% to 25% for companies with profit over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023.

Included within freehold buildings is land with a historical cost of £126,070 (2023: £126,070) which is not depreciated.

Assets under the course of construction represent contractual deposits paid in respect of predominately plant and machinery ordered.

Trading balances due from group undertakings and related parties, included within other debtors, are repayable on demand, unsecured, subject to normal trading terms and do not attract interest.

Obligations under finance leases are secured against the assets to which they relate.

Trading balances due to group undertakings and related parties totalling £31,563 (2023: £32,246), included within other creditors, are repayable on demand, unsecured, subject to normal trading terms and do not attract interest.

Obligations under finance leases are secured against the assets to which they relate.

Loans due to group undertakings are secured.

Included in loans due to group undertakings is an amount of £15,000,000 (2023: £15,000,000) which is unsecured and attracts interest at 6.1% p.a. (2023: 3.9% p.a.) and is repayable in 2027.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

During the year, the property lease dilapidations provision recognised at the 2023 balance sheet date, in respect of removing leasehold improvements and returning the property to its original form, has been fully released. No year end dilapidations provision is required for the 2024 financial year.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability set out above predominately relates to accelerated capital allowances that are expected to mature over the associated fixed assets useful economic life. Pension contributions will attract tax relief in the year paid. Other timing differences relate to provisions for which tax relief will be claimed when made specific or paid.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

As at the year-end, contributions due to the schemes in respect of the current reporting year were £52,837 (2023: £42,044).

On 29 July 2024 the company acquired the business of Sirane Limited.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

The company has taken advantage of the exemption provided in Financial Reporting Standard 102 Section 33 from disclosing related party transactions with group companies where a subsidiary party to the transaction is wholly owned.

During the year property management fees totalling £360,000 (2023: £360,000) were paid to Euro Property Investments Limited, a company related due to common control. Amounts due to Euro Property Investments Limited as at the year end amounted to £Nil (2023: £Nil).

During the year, sales of £86,285 (2023: £123,393) were recognised with Walkers Chocolates Limited, a company related due to common control. At the year end, the balance due from Walkers Chocolates Limited was £2,692,950 (2023: £25,524), which is included in group debtors.

During the year, the company has recognised management charges of £1,500,000 (2023: £1,250,000) from Euro Capital General Trading LLC, a company related due to common control. At the year end, the balance due to Euro Capital General Trading LLC was £1,250,000 (2023: £1,250,000) which is included in accruals and other creditors.

During the year, the company has recognised purchases of £60,820 (2023: £34,163) from to Euro Nature Green SDN BHD, a company related due to common control. At the year end, the balance due to to Euro Nature Green SDN BHD was £Nil (2023: £32,246).

Related company balances unless otherwise stated are unsecured, non-interest bearing and repayable on demand.

The company's parent company is Euro Packaging Jersey Limited, a company registered in Jersey.

The individual controlling parties of Euro Packaging Jersey Limited are A M Alimahomed and S M Alimahomed, each owning 50% of the share capital of Euro Packaging Jersey Limited.