Lorax Compliance Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Lorax Compliance Limited is a private company, limited by shares, incorporated in England & Wales, registered number 08848640 . The registered office is Suite 6 Eleven Arches House, Yates Avenue, Rugby, CV21 1FD. The accounting year end was shortened by one month for administrative purposes and therefore the comparable figures are not exactly comparable in terms of period.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

1.3.1 Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

1.3.2 Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures & Fittings	15% reducing balance
Computer Equipment	15% reducing balance

1.4.1 Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

2.5. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.6. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

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Lorax Compliance Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

1.7.1 Provisions

Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

2.8. Pensions

Contributions to defined contribution plans are expensed in the period to which they relate.

2.9. Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

2.10. Creditors

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

3. Average Number of Employees

Average number of employees, including directors, during the year was : 54 (2023: 48)

4. Tangible Assets

	Fixtures & Fittings	Computer Equipment	Total
	£	£	£
Cost
As at 1 January 2024	42,562	59,384	101,946
Additions	330,171	30,038	360,209
Transfers	(8,258 )	8,258	-

As at 31 December 2024	364,475	97,680	462,155

...CONTINUED

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Lorax Compliance Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

Depreciation
As at 1 January 2024	16,404	20,084	36,488
Provided during the period	24,993	8,204	33,197
Transfers	(3,476 )	3,476	-

As at 31 December 2024	37,921	31,764	69,685

Net Book Value
As at 31 December 2024	326,554	65,916	392,470

As at 1 January 2024	26,158	39,300	65,458

5. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	1,690,528	525,443
Prepayments and accrued income	31,216	37,925
Other debtors	21,941	9,889
Corporation tax recoverable assets	-	24,939
VAT	-	8,005

	1,743,685	606,201

6. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	35,377	64,708
Bank loans and overdrafts	42,000	42,000
Other taxes and social security	106,696	74,612
VAT	11,838	-
Net wages	91,421	93,725
Other creditors	26,030	31,533
Accruals and deferred income	1,168,929	745,649
Directors' loan accounts	150,869	5,545
Amounts owed to group undertakings	723,264	289,741

	2,356,424	1,347,513

7. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Bank loans	52,500	94,500

8. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	100	100

9. Pension Commitments

The company operates a defined contribution pension scheme for directors and staff. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date there are unpaid contributions of £25,032 (2023: £27,280) which are included in other creditors.

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Lorax Compliance Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

10. Related Party Transactions

Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services amounted to £340,000 (2023: £208,289), and pension contributions amounted to £154,485 (2023: £172,508) during the year.

Related party transactions

The company provided consultancy, software and admin support services to Environmental Packaging International during the year, a group company incorporated in RI, USA. These services were purchased on an arms length basis on normal commercial terms. The amount outstanding at 31 December 2024 amounted to £404,818 (2023: £18,624) on an interest free basis.

Amounts due to Lorax Compliance (Holdings) Limited, the parent company, totalled £318,446 (2023: £308,365). The balance is unsecured, interest-free, and repayable on demand.

Amounts due to Directors David Markham totalled £75,738 (2023: £590) and Michelle Carvell £75,131 (2023: £4,954) at the balance sheet date. These balances are unsecured, interest-free, and repayable on demand.

11. Ultimate Parent Undertaking and Controlling Party

The company's immediate and ultimate parent undertaking is Lorax Compliance (Holdings) Limited, a company incorporated and registered in England and Wales with its registered address at Suite 6, Eleven Arches House, Yates Avenue, Rugby, England CV21 1FD.

There was no ultimate controlling party at the balance sheet date, as no individual held a majority of the issued share capital of the parent company.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		392,470		65,458

			392,470		65,458
CURRENT ASSETS
Debtors	5	1,743,685		606,201
Cash at bank and in hand		258,507		725,185

		2,002,192		1,331,386
Creditors: Amounts Falling Due Within One Year	6	(2,356,424 )		(1,347,513 )

NET CURRENT ASSETS (LIABILITIES)			(354,232 )		(16,127 )

TOTAL ASSETS LESS CURRENT LIABILITIES			38,238		49,331

Creditors: Amounts Falling Due After More Than One Year	7		(52,500 )		(94,500 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(77,581 )		(12,437 )

NET LIABILITIES			(91,843 )		(57,606 )

CAPITAL AND RESERVES
Called up share capital	8		100		100
Profit and Loss Account			(91,943 )		(57,706 )

SHAREHOLDERS' FUNDS			(91,843)		(57,606)