Company registration number: 10197144
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors set out the strategic report for the year ended 31 December 2024.
The principal activity of the Group is the production of high precision moulded plastic.
The strategy of the business is to increase turnover through developing new income streams in a variety of sectors.
The directors were pleased with the performance of the business during the year. Turnover increased in FY24 by £564,212 (3.5%) to £16,728,948, driven by increased demand, the gross profit margin increased from 28.2% in FY23 to 30.4% in FY24.
Whilst trading conditions are expected to remain competitive throughout FY25, the board consider the group to be well positioned to manage and take on this challenge.
KPI’s 2024 2023
Turnover £16,729k £16,165k
Gross Profit £5,086k £4,554k
Operating loss (£1,216k) (£1,565k)
Cash at bank and in hand £1,090k £1,301k
Loss before tax (£1,695k) (£1,957k)
Principal risks and uncertainties
The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risks can be summarised as follows:
Competition
The business's major customers are split between the Data Centre, Consumer, Industrial, Automotive and Medical sectors. Despite selling on innovation and quality, there is a constant risk that a competitor may quote for the business, which could result in the loss or devaluation of a contract.
The Group is taking strategic steps to introduce additional customers to minimise the exposure in each sector.
People
The business could be impacted by the loss of key individuals.
The business looks to increase staff engagement through (1) regular opportunities to give feedback and to influence future business developments and (2) training and progression opportunities.
Environment
Reputational and regulatory implications.
The Group recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the Group's activities. The Group operates in accordance with the Group policies. Initiatives have been designed to minimise the Group's impact on the environment - these include the safe disposal of manufacturing waste, recycling, and reducing energy consumption.
The Group's activities also expose it to a number of financial risks including price risk, credit risk, cash flow risk, and liquidity risk.
The strategy of the business is to increase turnover through developing new income streams in a variety of sectors.
The directors were pleased with the performance of the business during the year. Turnover increased in FY24 by £564,212 (3.5%) to £16,728,948, driven by increased demand, the gross profit margin increased from 28.2% in FY23 to 30.4% in FY24.
Whilst trading conditions are expected to remain competitive throughout FY25, the board consider the group to be well positioned to manage and take on this challenge.
KPI’s 2024 2023
Turnover £16,729k £16,165k
Gross Profit £5,086k £4,554k
Operating loss (£1,216k) (£1,565k)
Cash at bank and in hand £1,090k £1,301k
Loss before tax (£1,695k) (£1,957k)
Principal risks and uncertainties
The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risks can be summarised as follows:
Competition
The business's major customers are split between the Data Centre, Consumer, Industrial, Automotive and Medical sectors. Despite selling on innovation and quality, there is a constant risk that a competitor may quote for the business, which could result in the loss or devaluation of a contract.
The Group is taking strategic steps to introduce additional customers to minimise the exposure in each sector.
People
The business could be impacted by the loss of key individuals.
The business looks to increase staff engagement through (1) regular opportunities to give feedback and to influence future business developments and (2) training and progression opportunities.
Environment
Reputational and regulatory implications.
The Group recognises the importance of its environmental responsibilities, monitors its impact on the environment, and designs and implements policies to reduce any damage that might be caused by the Group's activities. The Group operates in accordance with the Group policies. Initiatives have been designed to minimise the Group's impact on the environment - these include the safe disposal of manufacturing waste, recycling, and reducing energy consumption.
The Group's activities also expose it to a number of financial risks including price risk, credit risk, cash flow risk, and liquidity risk.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group’s activities expose it primarily to the financial risks including price risk, credit risk, cash flow risk and liquidity risk.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a mixture of long-term and short-term debt finance ensuring a balance between CAPEX and long-term funds.
Foreign exchange risk
The Group's activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Group maintains separate bank accounts which are denominated in British Pounds, Euros and US Dollars, which provide a natural hedge against currency inflations.
Credit risk
The Group's principal financial assets are bank balances and cash, trade and other receivables. The Group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which based on previous experience, is evidence of a reduction in the recoverability of cash flows. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit ratings agencies.
Price risk
The Group is exposed to commodity price risk as a result of its operations and this risk is managed where possible through the normal procurement and sales processes inherent in the Group. The directors continually monitor the appropriateness and effectiveness of these procedures on an ongoing basis. The Group has no exposure to equity securities prices risk as it holds no listed or other equity investments.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a mixture of long-term and short-term debt finance ensuring a balance between CAPEX and long-term funds.
Foreign exchange risk
The Group's activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Group maintains separate bank accounts which are denominated in British Pounds, Euros and US Dollars, which provide a natural hedge against currency inflations.
Credit risk
The Group's principal financial assets are bank balances and cash, trade and other receivables. The Group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which based on previous experience, is evidence of a reduction in the recoverability of cash flows. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit ratings agencies.
Price risk
The Group is exposed to commodity price risk as a result of its operations and this risk is managed where possible through the normal procurement and sales processes inherent in the Group. The directors continually monitor the appropriateness and effectiveness of these procedures on an ongoing basis. The Group has no exposure to equity securities prices risk as it holds no listed or other equity investments.
The well-being of the Group’s employees is safeguarded through strict adherence to health and safety standards. The Safety, Health and Welfare at Work Act 1989 imposes certain requirements on employers and the Group has taken the necessary action to ensure compliance with the Act, including the adoption of a Safety statement.
Future developments
The Group is taking strategic steps to seek additional customers to minimise the concentration on any one sector or customer.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £1,897,205 (2023 - loss £1,809,374).
The directors recommend a dividend of £Nil (2023 - £Nil)
The directors who served during the year were:
The Group has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic report and Director's report) Regulations 2013, to set out within the Group's strategic report information required by schedule 7 of the Large and Medium sized companies and groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review, future developments and details of the principal risks and uncertainties.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Azets Audit Services Limited resigned as auditors, with Menzies LLP filling a casual vacancy. Menzies LLP were appointed in accordance with section 485 of the Companies Act 2006.
In accordance with the Company's articles, a resolution proposing that Menzies LLP be reappointed as auditor of the Company will be put at a General Meeting.
In accordance with the Company's articles, a resolution proposing that Menzies LLP be reappointed as auditor of the Company will be put at a General Meeting.
This report was approved by the board and signed on its behalf by:
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INSPIRE UPG UK LIMITED
We have audited the financial statements of Inspire UPG UK Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INSPIRE UPG UK LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INSPIRE UPG UK LIMITED (CONTINUED)
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 Group 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:
∙The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
−The Companies Act 2006;
−Financial Reporting Standard 102;
−UK employment legislation;
−General Data Protection Regulations; and
−UK tax legislation.
∙We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
−Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
−Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
−Challenging assumptions and judgements made by management in its significant accounting estimates; and
−Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
−Posting of unusual journals and complex transactions;
−The application of inappropriate judgements or estimation to manipulate the Group and Company financial position: and
−The use of management override of controls to manipulate results, or to cause the Group to enter into transactions not in its best interest.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INSPIRE UPG UK LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Surrey
KT22 8DY
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 42 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss for the year of Inspire UPG UK Limited was £618,251 (2023: profit of £107,706).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 42 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Inspire UPG UK Limited is a private limited company limited by shares and incorporated in England and Wales. The Company's registered number and registered office address can be found on the general information page. The registered office is also the trading address of the Company.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
In the consolidated financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus cost directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.
The consolidated financial statements incorporate those of Inspire UPG UK Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into the line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
SPM Plastics Limited, United Plastics Group (Suzhou) Co. Limited and United Plastics Group (Barbados) SRL have been included in the Group financial statements using the purchase method of accounting. Accordingly, the Group profit and loss account and statement of cash flows include the results and cash flows of SPM Plastics Limited, United Plastics Group (Suzhou) Co. Limited and United Plastics Group (Barbados) SRL.
The consolidated financial statements incorporate those of Inspire UPG UK Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into the line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
SPM Plastics Limited, United Plastics Group (Suzhou) Co. Limited and United Plastics Group (Barbados) SRL have been included in the Group financial statements using the purchase method of accounting. Accordingly, the Group profit and loss account and statement of cash flows include the results and cash flows of SPM Plastics Limited, United Plastics Group (Suzhou) Co. Limited and United Plastics Group (Barbados) SRL.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
As at 31 December 2024, the Group had net current liabilities of £2,584,270 (2023: £1,328,152 net current assets), net assets of £1,237,531 (2023: £3,286,152) and made a loss for the year of £1,897,205 (2023: £1,809,374).
The Group does not currently have any external borrowings as any finance required is provided by the parent company The Partner Companies LLC via an intercompany account. The Partner Companies LLC has confirmed it will continue to provide any financial support required for a period of at least twelve months from the signing of these financial statements. The financial statements have been prepared on a going concern basis which assumes the Group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the statement of financial position, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.
At the time of approving the financial statements therefore, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis.
The Group does not currently have any external borrowings as any finance required is provided by the parent company The Partner Companies LLC via an intercompany account. The Partner Companies LLC has confirmed it will continue to provide any financial support required for a period of at least twelve months from the signing of these financial statements. The financial statements have been prepared on a going concern basis which assumes the Group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the statement of financial position, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.
At the time of approving the financial statements therefore, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis.
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Revenue from the sales of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on dispatch of goods.
Revenue from the sales of tooling is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Defined benefit pension plan
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The Group operates both a defined benefit scheme and pays contributions to a stakeholder scheme.
The Group's current and past service cost for the defined benefit scheme is charged to operating profit. Interest on the defined benefit scheme’s obligations and the expected return on the scheme's assets are recognised in net finance costs. Actuarial gains and losses are recognised directly in equity through statement
of total recognised gains and losses so that the Group's balance sheet reflects the fair value of the scheme's surpluses or deficits as at the balance sheet date.
In respect of the stakeholder scheme, contributions are charged in the profit or loss account as they become payable.
The Group's current and past service cost for the defined benefit scheme is charged to operating profit. Interest on the defined benefit scheme’s obligations and the expected return on the scheme's assets are recognised in net finance costs. Actuarial gains and losses are recognised directly in equity through statement
of total recognised gains and losses so that the Group's balance sheet reflects the fair value of the scheme's surpluses or deficits as at the balance sheet date.
In respect of the stakeholder scheme, contributions are charged in the profit or loss account as they become payable.
Goodwill
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets under construction residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
product to its present location and condition on the following basis:
Work in progress and finished goods - at cost of direct materials and labour, plus attributable overheads based on the normal level of activity.
Net realisable value is based on estimated selling price, less further costs expected to be incurred to
completion and disposal.
At each reporting date, the Group assess whether stocks are impaired or if an impairment loss recognised
in prior periods has reversed. Any excess of the carrying amount of stock 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.
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 Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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 Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Statement of financial position when the Group 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
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
There are no other factors that may affect future tax changes.
Page 30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The Company has no tangible fixed assets.
Page 32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
18.Deferred taxation (continued)
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Page 36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
Company
During the year ended 31 December 2024, it was identified that the investment held in Inspire UPG UK Limited had been incorrectly accounted for during the year-ended 31 December 2023. An adjustment has been made to correct the error of £1,845,670 and to correctly state the investment value. This impacts notes 14 and 20 of these financial statements. There is no impact to retained earnings, current tax or deferred tax as a result of this adjustment. Additionally, it was identified that investments had been incorrectly translated historically resulting in investments being overstated by £980,169. An adjustment has been made to reduce investments by £980,169 with a corresponding impact to retained earnings of £980,169. There is no impact to current tax or deferred tax as a result of this adjustment.
Group
During the year it was identified that a reclassification of wages and salaries between administrative expenditure and cost of sales was required in the year ended 31 December 2023 to more fairly reflect the nature of these expenses. This reclassification totalled £644,147. There is no profit or tax effect to these adjustments.
During the year ended 31 December 2024, it was identified that UK GAAP bridging adjustments for United Plastic Group (Barbados) SRL had been incorrectly accounted for during the year-ended 31 December 2023.
The impact of the adjustments detailed above on the consolidated financial position of Inspire UPG UK Limited has been detailed below:
During the year ended 31 December 2024, it was identified that the investment held in Inspire UPG UK Limited had been incorrectly accounted for during the year-ended 31 December 2023. An adjustment has been made to correct the error of £1,845,670 and to correctly state the investment value. This impacts notes 14 and 20 of these financial statements. There is no impact to retained earnings, current tax or deferred tax as a result of this adjustment. Additionally, it was identified that investments had been incorrectly translated historically resulting in investments being overstated by £980,169. An adjustment has been made to reduce investments by £980,169 with a corresponding impact to retained earnings of £980,169. There is no impact to current tax or deferred tax as a result of this adjustment.
Group
During the year it was identified that a reclassification of wages and salaries between administrative expenditure and cost of sales was required in the year ended 31 December 2023 to more fairly reflect the nature of these expenses. This reclassification totalled £644,147. There is no profit or tax effect to these adjustments.
During the year ended 31 December 2024, it was identified that UK GAAP bridging adjustments for United Plastic Group (Barbados) SRL had been incorrectly accounted for during the year-ended 31 December 2023.
The impact of the adjustments detailed above on the consolidated financial position of Inspire UPG UK Limited has been detailed below:
Page 37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company had no capital commitments.
Page 38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions totalling £13,671 (2023 - £Nil) were payable to the fund at the reporting date and are included in creditors.
The Group also operates a defined benefit pension scheme.
The Group operates a funded pension scheme in the UK (the SPM Plastics Pension Scheme) providing benefits in both a Final Salary section and Money Purchase section. The Money Purchase section was wound up in November 2011 and individual member assets transferred to a stakeholder (private defined contribution) scheme. The Group makes a contribution by employee to the stakeholder scheme. The assets of the SPM Plastics Pension Scheme are held separately to those of the Group in an independent, trustee-administered fund.
Final Salary Section
Group contributions of £Nil (2023: £795,000) were paid during the year.
The final salary pension scheme is closed for future accruals. The valuations used for the final salary section disclosure has been based on the most recent full actuarial valuation at 31 March 2020, updated in 31 December 2024.
Final Salary Section
Group contributions of £Nil (2023: £795,000) were paid during the year.
The final salary pension scheme is closed for future accruals. The valuations used for the final salary section disclosure has been based on the most recent full actuarial valuation at 31 March 2020, updated in 31 December 2024.
Page 39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
23.Pension commitments (continued)
Page 40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
23.Pension commitments (continued)
Page 41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
During the year, the Company's immediate parent undertaking was UPG Company, LLC, registered in the United States. The ultimate parent and controlling undertaking is considered to be The Partner Companies LLC, a company incorporated in the United States of America. The consolidated accounts for UPG Company LLC, and The Partner Companies LLC are not publicly available.
The largest group of companies which includes the Company for which consolidated accounts are prepared is The Partner Companies LLC.
The smallest group of companies which includes the Company for which consolidated accounts are prepared is UPG Company, LLC.
The largest group of companies which includes the Company for which consolidated accounts are prepared is The Partner Companies LLC.
The smallest group of companies which includes the Company for which consolidated accounts are prepared is UPG Company, LLC.
The directors do not consider there to be an ultimate controlling party.
Page 42