Registration number:
Palram Polycarb Limited
for the Year Ended 31 December 2024
Palram Polycarb Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Palram Polycarb Limited
Company Information
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Directors |
S Michael J A S Armitage T Horesh A Zamir |
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Company secretary |
C L Strydom |
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Registered office |
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Auditors |
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Palram Polycarb Limited
Strategic Report for the Year Ended 31 December 2024
The Directors present their strategic report for the year ended 31 December 2024.
Business review
The company's principal activity continued to be that of the manufacture of extruded ploycarbonate plastic sheets.
Turnover of £27.6m in 2024 increased from that of 2023 (£26.6m). Due to continuous cost management, gross margin increased to 12.8% from 8.8% in 2023, an increase of £1.2m. Management continued its focus on operational efficiencies and cost control.
The Operating Profit in 2024 was £623k in comparison to a loss of £937k in 2023.
The management of Palram Polycarb and the wider Palram Group continue to view the company as an integral and strategic part of the Palram Group.
Key performance indicators
The Directors consider a range of KPIs to measure the business. The range of KPIs may include but is not limited to, performance levels, quality, health and safety, and a range of financial measures. The directors believe that because of the nature of the business, disclosing further KPIs is not necessary for an understanding of the company's development, performance or position.
Environment
The company's environmental strategy continues to be reviewed and amended to take account of changing requirements in terms of legislation.
Principal objectives and subsequent events
The Directors continued focus remains on the strategies in place in relation to product range, sales market, improve process efficiencies, cost control initiatives and material purchases.
The Directors also continue to closely monitor the UK's relationship with the European Union following the UK's exit from the EU. In particular management is monitoring the foreign exchange markets, updates in the Single Market Trade agreement with Europe and other political developments.
Principal risks and uncertainties
The principal risks and uncertainties facing the business can be described broadly as competitive risks and the impact of the economic market.
The company operates in a competitive environment in both the UK and mainland Europe. The company manages the risk from competitive pressures by providing innovative products and a quality and reliable service.
Financial risk management
The company's operations expose it to a variety of financial risks that include credit, liquidity and foreign exchange risk. The company has a risk management programme in place that seeks to limit adverse effects on the financial performance of the business.
Given the size of the company, the Directors have not delegated responsibility for monitoring financial risk to a sub-committee of the board. Instead, the Directors follow the policies set out by the ultimate parent company.
Liquidity risk - The company actively maintains a mixture of debt finance that is designed to ensure the company has sufficient available funds for its operations and planned expansions.
Foreign exchange risk - The operations of the company are mainly in the United Kingdom and the Euro zone, and as a result it is primarily exposed to foreign exchange risk with respect to the Euro.
Palram Polycarb Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
The Directors present their strategic report for the year ended 31 December 2024.
Business review
The company's principal activity continued to be that of the manufacture of extruded ploycarbonate plastic sheets.
Turnover of £27.6m in 2024 increased from that of 2023 (£26.6m). Due to continuous cost management, gross margin increased to 12.8% from 8.8% in 2023, an increase of £1.2m. Management continued its focus on operational efficiencies and cost control.
The Operating Profit in 2024 was £623k in comparison to a loss of £937k in 2023.
The management of Palram Polycarb and the wider Palram Group continue to view the company as an integral and strategic part of the Palram Group.
Key performance indicators
The Directors consider a range of KPIs to measure the business. The range of KPIs may include but is not limited to, performance levels, quality, health and safety, and a range of financial measures. The directors believe that because of the nature of the business, disclosing further KPIs is not necessary for an understanding of the company's development, performance or position.
Environment
The company's environmental strategy continues to be reviewed and amended to take account of changing requirements in terms of legislation.
Principal objectives and subsequent events
The Directors continued focus remains on the strategies in place in relation to product range, sales market, improve process efficiencies, cost control initiatives and material purchases.
The Directors also continue to closely monitor the UK's relationship with the European Union following the UK's exit from the EU. In particular management is monitoring the foreign exchange markets, updates in the Single Market Trade agreement with Europe and other political developments.
Principal risks and uncertainties
The principal risks and uncertainties facing the business can be described broadly as competitive risks and the impact of the economic market.
The company operates in a competitive environment in both the UK and mainland Europe. The company manages the risk from competitive pressures by providing innovative products and a quality and reliable service.
Financial risk management
The company's operations expose it to a variety of financial risks that include credit, liquidity and foreign exchange risk. The company has a risk management programme in place that seeks to limit adverse effects on the financial performance of the business.
Given the size of the company, the Directors have not delegated responsibility for monitoring financial risk to a sub-committee of the board. Instead, the Directors follow the policies set out by the ultimate parent company.
Liquidity risk - The company actively maintains a mixture of debt finance that is designed to ensure the company has sufficient available funds for its operations and planned expansions.
Foreign exchange risk - The operations of the company are mainly in the United Kingdom and the Euro zone, and as a result it is primarily exposed to foreign exchange risk with respect to the Euro.
Approved and authorised by the
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Palram Polycarb Limited
Directors' Report for the Year Ended 31 December 2024
The Directors present their report and the audited financial statements of the company for the year ended 31 December 2024.
Directors
The directors who held office during the year under review were:
S Michael
O Jakobovitz (resigned 28 December 2024)
J A S Armitage
A Zamir
The following was appointed after the year end:
T Horesh (appointed 1 January 2025)
None of the above has a beneficial interest in the company's issued ordinary share capital.
Dividend
The Directors do not recommend a distribution of a dividend.
Political donations
No political donations were made during the year (2023:£nil).
Going concern
The company has the support of its ulitmate parent company, Palram Industries (1990) Limited, and after making suitable enquires, the Directors have a reasonable expectation that the company and the Palram Group, of which the company is a member, have adequate internal and external funding to continue in operational existence for the foreseeable future. Consequently, they continue to adopt the going concern basis in preparing these financial statements.
Directors' responsibilities
The directors acknowledge their responsibilities 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 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.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Palram Polycarb Limited
Directors' Report for the Year Ended 31 December 2024 (continued)
The Directors present their report and the audited financial statements of the company for the year ended 31 December 2024.
Directors
The directors who held office during the year under review were:
S Michael
O Jakobovitz (resigned 28 December 2024)
J A S Armitage
A Zamir
The following was appointed after the year end:
T Horesh (appointed 1 January 2025)
None of the above has a beneficial interest in the company's issued ordinary share capital.
Dividend
The Directors do not recommend a distribution of a dividend.
Political donations
No political donations were made during the year (2023:£nil).
Going concern
The company has the support of its ulitmate parent company, Palram Industries (1990) Limited, and after making suitable enquires, the Directors have a reasonable expectation that the company and the Palram Group, of which the company is a member, have adequate internal and external funding to continue in operational existence for the foreseeable future. Consequently, they continue to adopt the going concern basis in preparing these financial statements.
Directors' responsibilities
The directors acknowledge their responsibilities 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 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.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to the auditors
Each director of the company who held office at the date of the approval of this Annual Report, as set out above, confirms that:
• so far as they are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and
• they have taken all the steps they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Reappointment of auditors
The auditors Hawsons Chartered Accountants are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
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Palram Polycarb Limited
Independent Auditor's Report to the Members of Palram Polycarb Limited
Opinion
We have audited the financial statements of Palram Polycarb Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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.
Palram Polycarb Limited
Independent Auditor's Report to the Members of Palram Polycarb Limited (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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. |
Responsibilities of directors
As explained more fully in the set out on page , the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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:
Palram Polycarb Limited
Independent Auditor's Report to the Members of Palram Polycarb Limited (continued)
The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations . We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates.
Audit procedures performed by the engagement team included:
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Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
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Reviewing minutes of Board meetings; |
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Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations; |
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Challenging assumptions and judgements made by management in their significant accounting estimates. |
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Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management. |
There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Palram Polycarb Limited
Independent Auditor's Report to the Members of Palram Polycarb 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.
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For and on behalf of
5 Sidings Court
White Rose Way
South Yorkshire
DN4 5NU
Palram Polycarb Limited
Statement of Comprehensive Income for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
27,593,695 |
26,605,947 |
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Cost of sales |
( |
(24,261,662) |
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Gross profit |
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2,344,285 |
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|
Distribution costs |
( |
(1,176,731) |
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Administrative expenses |
( |
(1,844,100) |
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|
Other operating income |
( |
(288,513) |
|
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Other net gains |
27,619 |
27,619 |
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|
Operating profit/(loss) |
|
(937,440) |
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Other (losses)/gains |
( |
(420,374) |
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Interest receivable and similar income |
|
13,029 |
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Interest payable and similar charges |
( |
(2,071) |
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Profit/(loss) before tax |
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(1,346,856) |
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Taxation |
( |
309,550 |
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Profit/(loss) for the financial year |
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(1,037,306) |
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Total comprehensive income/(loss) for the year |
277,113 |
(1,037,306) |
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Palram Polycarb Limited
(Registration number: 03013725)
Statement of Financial Position as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Right of use assets |
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- |
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Tangible assets |
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||
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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|
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|
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||
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Creditors: Amounts falling due within one year |
( |
( |
|
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Net current assets |
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|
|
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Total assets less current liabilities |
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|
|
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Creditors: Amounts falling due after more than one year |
( |
( |
|
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Provisions for liabilities |
( |
( |
|
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Net assets |
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|
|
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Capital and reserves |
|||
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Called up share capital |
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|
|
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Share premium reserve |
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|
|
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Profit and loss account |
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Total equity |
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These financial statements were approved and authorised for issue by the
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Palram Polycarb Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Share premium |
Profit and loss account |
Total |
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|
At 1 January 2024 |
|
|
|
|
|
Adjustment on initial application of IFRS 16 |
- |
- |
( |
( |
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Profit for the year |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
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|
|
At 31 December 2024 |
|
|
|
|
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Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 January 2023 |
|
|
|
|
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Loss for the year |
- |
- |
(1,037,306) |
(1,037,306) |
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Total comprehensive income |
- |
- |
(1,037,306) |
(1,037,306) |
|
At 31 December 2023 |
500,002 |
1,235,712 |
17,046,841 |
18,782,555 |
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Accounting policies |
Statutory information
Palram Polycarb Limited is a private company, limited by shares, domiciled in England and Wales, company number 03013725. The registered office is at 5.2 Central House, 1 Ballards Lane, , London, N3 1LQ.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
The financial statements have been prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, as issued by the Financial Reporting Council (FRC). The company has elected to early adopt certain amendments introduced in the FRS 102 Triennial Review 2024, which are effective for accounting periods beginning on or after 1 January 2026.
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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Accounting policies (continued) |
Early Adoption of Amendments
The company has early adopted the following sections of the FRS 102 amendments:
• Section 23: Revenue - applying the five-step model for revenue recognition based on IFRS 15 principles.
• Section 20: Leases - recognising right-of-use assets and lease liabilities in accordance with IFRS 16 principles.
Transition Approach
• For revenue recognition, the company has applied the amendments retrospectively with the cumulative effect of initial application recognised at the date of transition (1 January 2024). Comparative figures have not been restated.
• For leases, the company has elected to measure lease liabilities at the present value of remaining lease payments and right-of-use assets at an amount equal to the lease liability, adjusted for any prepaid or accrued lease payments.
Impact of Adoption
The early adoption has resulted in changes to the timing and presentation of lease expenses. The impact on retained earnings as at 1 January 2024 is disclosed within the Statement of Changes in Equity for leases. There has been no impact as a result of the changes to the recognition of revenue. The company believes early adoption provides more relevant and reliable information to users of the financial statements and aligns with group reporting requirements.
Summary of disclosure exemptions
Statement of cash flows:
The exemption of Section 7 Statement of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17(d) to produce Statement of Cash Flows.
Group accounts:
The company is exempt from the requirement to prepare group accounts in accordance with CA 2006 S401 (non EEA parent) as the company itself is a subsidiary undertaking and the company and its subsidiary undertaking are included in the consolidated financial statements of its ultimate parent company, Palram Industries (1990) Limited. Their consolidated accounts are publicly available and are drawn up in accordance with the EEC 7th directive.
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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1 |
Accounting policies (continued) |
Going concern
After due consideration of all relevant factors, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Revenue recognition
The company has early adopted the revised Section 23 of FRS 102, Revenue from Contracts with Customers, issued as part of the Financial Reporting Council’s 2024 periodic review. This section introduces a comprehensive five-step model for revenue recognition, aligned with IFRS 15 principles, and is effective for accounting periods beginning on or after 1 January 2026. Early adoption is permitted and has been applied in full.
Revenue is recognised to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The company applies the following five-step model:
Identify the Contract with a Customer
A contract is an agreement that creates enforceable rights and obligations. Contracts may be written, oral, or implied by customary business practices.
Identify the Performance Obligations
Performance obligations are distinct goods or services promised in the contract. A good or service is distinct if it is separately identifiable and the customer can benefit from it on its own or with other readily available resources.
Determine the Transaction Price
The transaction price is the amount of consideration the company expects to receive, including variable consideration, which is included only if it is highly probable that a significant reversal will not occur.
Allocate the Transaction Price to the Performance Obligations
The transaction price is allocated to each performance obligation based on relative standalone selling prices.
Recognise Revenue When (or As) Performance Obligations Are Satisfied
Revenue is recognised when control of the good or service transfers to the customer, either over time or at a point in time, depending on the nature of the performance obligation.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in statement of comprehensive income, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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Accounting policies (continued) |
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Plant and machinery |
5% - 10% straight line |
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Furniture, fittings and equipment |
20% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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1 |
Accounting policies (continued) |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption, being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
The company has early adopted the revised Section 20 of FRS 102, Leases, issued as part of the Financial Reporting Council’s 2024 periodic review. These amendments are effective for accounting periods beginning on or after 1 January 2026, with early adoption permitted. The revised section introduces an on-balance sheet lease accounting model for lessees, aligned with IFRS 16 principles.
Under the new model, the company recognises a right-of-use asset and a corresponding lease liability at the commencement date of the lease. The lease liability is measured at the present value of lease payments over the lease term, discounted using the company’s obtainable borrowing rate. A right-of-use asset is initially measured at the amount of the lease liability, adjusted for any lease prepayments, initial direct costs, and restoration obligations.
Subsequent to initial recognition, the right-of-use asset is depreciated over the lease term or the useful life of the asset, whichever is shorter. The lease liability is increased by interest and reduced by lease payments.
In terms of presentation, lease-related expenses are split between depreciation (on the right-of-use asset) and interest expense (on the lease liability). This replaces the previous straight-line lease expense model and may impact EBITDA and other financial metrics.
Exemptions
The company applies the following exemptions:
• Short-term leases (lease term of 12 months or less).
• Low-value assets (e.g., office equipment, IT peripherals).
Payments under exempt leases are recognised as an expense on a straight-line basis over the lease term.
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
1 |
Accounting policies (continued) |
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.
(i) Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is required.
(ii) Defined contribution pension plans
The company operated under a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in the accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
(iii) Bonus plan
The company operates an annual bonus plan for employees and expenses are recognised in the profit and loss account when the company has a legal or constructive obligation to make payment under the plan as result of past events and reliable estimation of the obligation can be made.
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Revenue |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
UK |
18,380,413 |
19,024,878 |
|
Europe |
1,372,748 |
2,141,479 |
|
Rest of world |
7,840,534 |
5,439,590 |
|
|
|
All sales relate to the company's principal trading activity.
|
Operating profit/(loss) |
Operating profit is stated after charging:
|
2024 |
2023 |
||
|
£ |
£ |
||
|
Changes in inventories of finished goods |
(530,015) |
(602,681) |
|
|
Purchase of finished goods for resale |
- |
187,324 |
|
|
Raw materials and consumables used |
20,315,188 |
20,217,657 |
|
|
Employee benefits expense |
3,647,522 |
3,562,397 |
|
|
Depreciation on tangible assets |
578,265 |
479,117 |
|
|
Depreciation on right of use assets |
259,233 |
- |
|
Other gains and losses |
The analysis of the company's non trading other gains for the year is as follows:
|
2024 |
2023 |
|
|
Exchange rate gains / (losses) |
(126,637) |
(420,374) |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other finance income |
|
|
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest expense on other finance liabilities |
|
|
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Salaries and related costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged in the income statement
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
115,629 |
(405,801) |
|
UK corporation tax adjustment to prior periods |
122,506 |
- |
|
238,135 |
(405,801) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
(14,915) |
96,251 |
|
223,220 |
(309,550) |
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
9 |
Taxation (continued) |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023: lower than the standard rate of corporation tax in the UK) of 25% (2023: 23.5%).
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit/(loss) before tax |
500,333 |
(1,346,856) |
|
Corporation tax at standard rate |
127,463 |
(316,512) |
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
( |
|
Double taxation relief |
|
- |
|
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period |
(14,915) |
96,251 |
|
(95,757) |
(6,962) |
|
|
Total tax charge/(credit) |
223,220 |
(309,550) |
Deferred tax
The movement in deferred tax during the year was as follows:
|
£ |
|
|
At 1 January 2024 |
480,994 |
|
Origination and reversal of timing differences |
(14,915) |
|
At 31 December 2024 |
466,079 |
The deferred tax liability consists of the tax effect of timing differences in respect of:
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
9 |
Taxation (continued) |
|
2024 |
2023 |
|
|
£ |
£ |
|
|
Accelerated capital allowances |
466,079 |
480,994 |
|
466,079 |
480,994 |
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Tangible assets |
|
Leasehold improvements |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
|
Cost |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
Disposals |
- |
- |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
- |
|
|
|
|
|
At 31 December 2023 |
- |
|
|
|
|
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Right of use assets |
|
Motor vehicles |
Other assets |
Total |
|
|
Cost |
|||
|
At 1 January 2024 |
- |
- |
- |
|
Recognition on initial application of FRS 102 2024 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2024 |
- |
- |
- |
|
Recognition on initial application of FRS 102 2024 |
|
|
|
|
Depreciation Charge |
|
|
|
|
Depreciation eliminated on disposal |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2024 |
|
|
|
|
At 31 December 2023 |
- |
- |
- |
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Stocks |
|
2024 |
2023 |
|
|
Raw materials and consumables |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
Debtors |
|
2024 |
2023 |
||
|
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Corporation tax asset |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
|
Creditors |
|
2024 |
2023 |
|
|
Due within one year |
||
|
Lease liabilities |
250,077 |
- |
|
Trade payables |
736,620 |
1,876,875 |
|
Amounts owed to group companies |
1,034,573 |
652,512 |
|
Other payables |
199,219 |
144,307 |
|
Accruals |
112,289 |
86,600 |
|
2,332,778 |
2,760,294 |
|
|
Due after one year |
||
|
Lease liabilities |
191,000 |
- |
|
Deferred income |
56,668 |
84,287 |
|
247,668 |
84,287 |
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Deferred tax and other provisions |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Decrease in existing provisions |
( |
( |
|
At 31 December 2024 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £21,982 (2023: £23,760) were payable to the scheme at the end of the year and are included in creditors.
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
10,002 |
|
10,002 |
|
|
|
490,000 |
|
490,000 |
|
|
|
|
|
|
|
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2023: £
|
Financial guarantee contracts |
The company is part of a cross guarantee provided to Barclays Bank plc. between Palram Europe Limited, Palram Polycarb Limited, Palram DPL Limited and Palram Applications UK Limited in respect of the finance facilities provided. The company's contingency in respect of these facilities at the year end amounted to £nil (2023: £nil).
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Related party transactions |
The company is exempt from disclosing transactions with related parties that are wholly owned within the same group in accordance with FRS 102 Section 33(1)A.
|
2024 |
2023 |
|
|
Amounts owed to: |
£ |
£ |
|
DRE Limited |
362,845 |
117,558 |
|
Palram Industries (1990) Limited |
569,341 |
441,459 |
|
Palram France DIY |
79,332 |
93,459 |
|
Molan (UK) Limited |
3,899 |
- |
|
Paltough Industries (1998) Limited |
20,581 |
- |
|
Palram 2000 Inc. |
25 |
36 |
|
1,036,023 |
652,512 |
|
2024 |
2023 |
|
|
Amounts owed by: |
£ |
£ |
|
Paltough Industries (1998) Limited |
- |
4,156 |
|
Palram DPL Limited |
4,298,783 |
4,064,513 |
|
Century Plastics Limited |
94,728 |
115,263 |
|
Palram Europe Limited |
2,944,444 |
3,163,377 |
|
Palram Australia PTY Limited |
699,305 |
264,235 |
|
Palram South Africa PTY Limited |
1,254,836 |
1,532,165 |
|
Palram DE GmbH |
241,919 |
746,520 |
|
Palram Applications (UK) Limited |
7,617 |
8,481 |
|
Palram Germany GmbH |
1,087,163 |
2,226,345 |
|
Molan (UK) Limited |
275,580 |
358,772 |
|
Hygienik Systems Limited |
5,793 |
1,922 |
|
Palram India Limited |
19,773 |
- |
|
13,874,385 |
15,649,126 |
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
21 |
Related party transactions (continued) |
Outstanding trading balances with entities are unsecured, interest free and cash settlement is expected within normal trading terms. During the year ended 31 December 2024, the company has not made any provision for doubtful debts relating to amounts owed by related parties (2023: £nil).
Transactions
Transactions between related parties are mainly made up of the sales and purchases of polycarbonate and PVC sheeting. The prices for these sales and purchases are dictated by transfer pricing agreements made at group level.
Palram Polycarb Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
21 |
Related party transactions (continued) |
|
Sales |
Purchases |
|
|
2024 |
£ |
£ |
|
Palram DE GmbH |
1,427,597 |
41,012 |
|
Palram DPL Limited |
212,156 |
- |
|
Palram Europe Limited |
20,342,068 |
- |
|
Palram Australia PTY Limited |
1,956,780 |
- |
|
DRE Limited |
5,707 |
356,655 |
|
Palram DIY France Sarl |
10,148 |
- |
|
Molan (UK) Limited |
12,471 |
79,601 |
|
Century Plastics Limited |
346,731 |
- |
|
Palram Applications UK Limited |
55,447 |
1,172 |
|
Palram India Private Limited |
43,356 |
- |
|
Palram South Africa PTY Limited |
5,030,739 |
- |
|
Hygienik Systems Limited |
27,920 |
- |
|
29,471,120 |
478,440 |
|
Sales |
Purchases |
|
|
2023 |
£ |
£ |
|
Palram DE GmbH |
2,296,413 |
3,086 |
|
Palram DPL Limited |
341,806 |
|
|
Palram Europe Limited |
20,581,024 |
152,153 |
|
Palram Australia PTY Limited |
1,339,902 |
- |
|
Palram South Africa PTY Limited |
4,074,082 |
- |
|
Palram Applications (UK) Limited |
47,593 |
1,559 |
|
DRE Limited |
- |
300,000 |
|
Molan (UK) Limited |
2,265 |
67,994 |
|
Palram DIY France Sarl |
10,941 |
- |
|
Century Plastics Limited |
208,850 |
9,161 |
|
Hygienik Systems Limited |
1,922 |
- |
|
28,904,798 |
533,953 |
22 Parent and ultimate parent undertaking
The company is a wholly owned subsidiary of Palram Industries (1990) Limited, a public company incorporated and registered in Israel, and listed on the Tel Aviv Stock Exchange.
The most senior parent entity producing publicly available financial statements is Palram Industries (1990) Limited. These financial statements are available upon request from Palram Industries (1990) Limited, Ramat-Yohanan 30035, Israel.