REGISTERED NUMBER: 12132339 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

TRAFFORD NINE LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTOR:

J M Whitehead

REGISTERED OFFICE:

Kingsland House

39 Abbey Foregate

Shrewsbury

Shropshire

SY2 6BL

REGISTERED NUMBER:

12132339 (England and Wales)

AUDITORS:

D.R.E. & Co. (Audit) Limited

Kingsland House

39 Abbey Foregate

Shrewsbury

Shropshire

SY2 6BL

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The company has continued to focus on its ongoing restructuring programme following the MBO in 2020. The directors have continued to maintain customer relationships and response times to avoid disruptions in a challenging market still impacted by high oil prices and the on-going conflicts in Ukraine and the Middle East. Greater focus has been made on improving margins and the directors have maintained overall contribution and margin despite a reduction in overall activity levels.

The directors have continued to aggressively review inventory levels and are pleased that over the last 5 years they have essentially reduced stock levels and values to under 50% of their value freeing up working capital and reducing risks associated with holding inventories.

Key performance indicators

The company monitors its performance using key performance indicators. The company considers its main key performance indicators to be like for like sales growth and gross profit. Performance on these measures is shown below and is in line with the expectations of the board.

2024

2023

% change

Turnover

£17,308,715

£17,660,288

(1.99%

)

Gross profit

£2,759,079

£2,869,533

(3.85%

)

Gross margin

15.94%

16.25%

(0.31%

)

EBITDA

£619,446

£737,750

(16.04%

)

PRINCIPAL RISKS AND UNCERTAINTIES

The group operates in a very competitive market which is an ongoing risk and may result in sales being lost to competitors. The group manages this risk by providing excellent customer service and continued product development and innovation.

Cost price inflation has become a significant risk and may result in margin erosion where sales prices have been quoted at one price and suppliers impose immediate price rises or surcharges. The group manages this risk by optimising stock holding and carefully monitoring supplier prices to ensure accurate sales pricing.

Financial risk management objectives and policies

The group's activities expose it to a number of financial risks including credit risk and liquidity risk. The board approves treasury policies, which are controlled on a day-to-day basis by senior management.

Credit risk

The group's principal financial assets are trade debtors arising from the group's prime activity which is the development, design, print and conversion of flexible and corrugated packaging, including storage and distribution of the same. In order to manage credit risk, the director sets limits for customers based on a combination of payment history, third party credit references and market intelligence. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Liquidity risk

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.

Foreign currency risk

The group seeks to manage foreign currency risk by matching assets and liabilities in foreign currency where possible. Where the group needs to purchase foreign currency this is done on a spot rate for the full value of the liabilities due. The group does not engage in currency hedging or speculation.

ON BEHALF OF THE BOARD:

J M Whitehead - Director

29 September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the development, design, print and conversion of flexible and corrugated packaging.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

J M Whitehead held office during the whole of the period from 1 January 2024 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The group has chosen, in accordance with s414C(11) of the Companies Act, to set out in the group's strategic report information regarding the review of business and a description of the principal risks and uncertainties facing the group.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies 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 company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M Whitehead - Director

29 September 2025

Opinion

We have audited the financial statements of Trafford Nine Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2024 and of the group's loss 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 Auditors' 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 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 director's 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 and 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the group and parent company through discussions with directors and other management and from our commercial knowledge and experience of the client's operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and parent company, including the Companies Act 2006, taxation legislation, employment, environmental, health and safety legislation and the BRC Global Standards for Packaging and Packaging Materials;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit; and

- we communicated with component auditors to request identification of any instances of non-compliance with laws and regulations that could give rise to a material misstatement of the group financial statements.

We assessed the susceptibility of the group's and parent company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

- reviewing the client's system notes and internal controls.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Francis Nock F.C.C.A. (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

Kingsland House

39 Abbey Foregate

Shrewsbury

Shropshire

SY2 6BL

29 September 2025

TURNOVER

4

17,308,715

17,660,288

Cost of sales

(14,549,636

)

(14,763,755

)

GROSS PROFIT

2,759,079

2,896,533

Distribution costs

(408,832

)

(545,856

)

Administrative expenses

(2,208,785

)

(2,189,394

)

OPERATING PROFIT

6

141,462

161,283

Interest receivable and similar income

1,395

291

142,857

161,574

Interest payable and similar expenses

7

(235,557

)

(230,256

)

LOSS BEFORE TAXATION

(92,700

)

(68,682

)

Tax on loss

8

(41,370

)

(60,704

)

LOSS FOR THE FINANCIAL YEAR

(134,070

)

(129,386

)

Loss attributable to:

Owners of the parent

(134,070

)

(129,386

)

LOSS FOR THE YEAR

(134,070

)

(129,386

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(134,070

)

(129,386

)

Total comprehensive income attributable to:

Owners of the parent

(134,070

)

(129,386

)

FIXED ASSETS

Intangible assets

10

2,943,649

3,140,377

Tangible assets

11

282,249

350,172

Investments

12

-

-

3,225,898

3,490,549

CURRENT ASSETS

Stocks

13

1,341,931

1,595,621

Debtors

14

4,294,979

3,927,170

Cash at bank and in hand

34,962

100,246

5,671,872

5,623,037

CREDITORS

Amounts falling due within one year

15

8,357,536

8,287,464

NET CURRENT LIABILITIES

(2,685,664

)

(2,664,427

)

TOTAL ASSETS LESS CURRENT LIABILITIES

540,234

826,122

CREDITORS

Amounts falling due after more than one year

16

(607,528

)

(744,001

)

PROVISIONS FOR LIABILITIES

20

(59,485

)

(74,830

)

NET (LIABILITIES)/ASSETS

(126,779

)

7,291

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

(126,879

)

7,191

SHAREHOLDERS' FUNDS

(126,779

)

7,291

The financial statements were approved by the director and authorised for issue on 29 September 2025 and were signed by:

J M Whitehead - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

4,420,075

4,420,075

4,420,075

4,420,075

CURRENT ASSETS

Debtors

14

8,680

8,680

Cash at bank

108

109

8,788

8,789

CREDITORS

Amounts falling due within one year

15

4,400,215

4,133,994

NET CURRENT LIABILITIES

(4,391,427

)

(4,125,205

)

TOTAL ASSETS LESS CURRENT LIABILITIES

28,648

294,870

CREDITORS

Amounts falling due after more than one year

16

29,113

295,334

NET LIABILITIES

(465

)

(464

)

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

(565

)

(564

)

SHAREHOLDERS' FUNDS

(465

)

(464

)

Company's loss for the financial year

(1

)

(43

)

The financial statements were approved by the director and authorised for issue on 29 September 2025 and were signed by:

J M Whitehead - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

136,577

136,677

Changes in equity

Total comprehensive income

-

(129,386

)

(129,386

)

Balance at 31 December 2023

100

7,191

7,291

Changes in equity

Total comprehensive income

-

(134,070

)

(134,070

)

Balance at 31 December 2024

100

(126,879

)

(126,779

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

(521

)

(421

)

Changes in equity

Total comprehensive income

-

(43

)

(43

)

Balance at 31 December 2023

100

(564

)

(464

)

Changes in equity

Total comprehensive income

-

(1

)

(1

)

Balance at 31 December 2024

100

(565

)

(465

)

Cash flows from operating activities

Cash generated from operations

1

1,446,661

1,042,530

Interest paid

(232,446

)

(228,443

)

Interest element of hire purchase payments paid

(3,111

)

(1,813

)

Tax paid

22,520

(1,592

)

Net cash from operating activities

1,233,624

810,682

Cash flows from investing activities

Purchase of tangible fixed assets

(174,832

)

(241,444

)

Interest received

1,395

291

Net cash from investing activities

(173,437

)

(241,153

)

Cash flows from financing activities

New loans in year

900,000

-

Loan repayments in year

(1,419,203

)

(625,273

)

Capital repayments in year

(19,793

)

(9,019

)

Amount introduced by directors

8,205

-

Amount withdrawn by directors

(587,166

)

(8,205

)

Net cash from financing activities

(1,117,957

)

(642,497

)

Decrease in cash and cash equivalents

(57,770

)

(72,968

)

Cash and cash equivalents at beginning of year

2

85,119

158,087

Cash and cash equivalents at end of year

2

27,349

85,119

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Loss before taxation

(92,700

)

(68,682

)

Depreciation charges

477,985

576,466

Loss on disposal of fixed assets

-

711

Finance costs

235,557

230,256

Finance income

(1,395

)

(291

)

619,447

738,460

Decrease in stocks

253,690

982,070

Decrease in trade and other debtors

211,152

226,209

Increase/(decrease) in trade and other creditors

362,372

(904,209

)

Cash generated from operations

1,446,661

1,042,530

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

34,962

100,246

Bank overdrafts

(7,613

)

(15,127

)

27,349

85,119

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

100,246

170,507

Bank overdrafts

(15,127

)

(12,420

)

85,119

158,087

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

100,246

(65,284

)

34,962

Bank overdrafts

(15,127

)

7,514

(7,613

)

85,119

(57,770

)

27,349

Debt

Finance leases

(28,180

)

(19,613

)

(47,793

)

Debts falling due within 1 year

(1,042,949

)

366,581

(676,368

)

Debts falling due after 1 year

(729,109

)

152,622

(576,487

)

(1,800,238

)

499,590

(1,300,648

)

Total

(1,715,119

)

441,820

(1,273,299

)

1.	STATUTORY INFORMATION

Trafford Nine Limited is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered number and registered office can be found on the Company Information page.

The principal place of business is Unit 19, John Bradshaw Court, Alexandria Way, Congleton, Cheshire, CW12 1LB.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

These financial statements are for the group as well as for the individual entity.

The financial statements are presented in Sterling (£), rounded to the nearest £1.

As at 31 December 2024 the group had net current liabilities of £2,685,664 (2023: £2,664,426). As shown in note 15, £2,455,640 (2023: £2,502,909) relates to funding raised against the stock and debtors book to assist with the management buy out.

As at 31 December 2024 the group had net liabilities of £126,779 (2023: net assets of £7,292), which relates to interest costs incurred in connection with the management buy out. The director has reviewed trading forecasts and future payments due as a result of the management buy out and is satisfied that the group continues to be a going concern.

As at 31 December 2024 the company had net current liabilities of £4,391,427 (2023: £4,125,205) and net liabilities of £465 (2023: £464). The director has reviewed trading forecasts and future payments due as a result of the management buy out and is satisfied that the group continues to be a going concern.

Basis of consolidation

The financial statements include:

Trafford Nine Limited

- parent company

Plasto-Sac UK Limited

- 100% subsidiary undertaking

Delicata Limited

- 100% subsidiary undertaking of Plasto-Sac UK Limited

Mustang Packaging Limited

- 100% dormant subsidiary of Plasto-Sac UK Limited

Mustang Paper Tray Limited

- 100% dormant subsidiary of Plasto-Sac UK Limited

The consolidated financial statements present the results of the parent company and those of its subsidiaries. Both the parent and the consolidated subsidiaries have coterminous financial year ends. Inter group transactions have been eliminated from the financial statements.

Significant judgements and estimates

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The group includes an element of overheads in the carrying value of stock. When calculating the overheads included within stock, management considers costs related to handling and processing stock. See note 13 for the net carrying amount of stock.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is recognised when the goods are physically delivered to the customer.

Goodwill

Goodwill represents the amount paid in connection with the acquisition of a business in 2014 by the subsidiary as well as the amount paid in connection with the acquisition of the subsidiary in 2020. It is being amortised evenly over its estimated useful life (assessed as 10 years for the business acquired in 2014 and 20 years for the subsidiary).

Tangible fixed assets

Tangible fixed assets are stated at historic cost less accumulated depreciation. Costs include original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use (including employee wages relating to design costs where appropriate).

Depreciation is provided at the following annual rates in order to write off each asset over its estimates useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

- 20% on cost, 25% on cost and 33% on cost

Plant and machinery

- 15% reducing balance, 15% on cost, 20% on cost, 33% on cost and 50% on cost

Fixtures and fittings

- 15% on cost, 20% on cost, 25% on cost and 33% on cost

Motor vehicles

- 12% on cost, 20% on cost and 25% on cost

Computer equipment

- 25% on cost, 33% on cost and 50% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items and provision for attributable overheads.