The directors present the strategic report for the Period ended 31 December 2024.
On 24 October 2024, Blake Envelopes Holdings Limited ("the company") entered into a tripartite agreement whereby a related company Moroak Holdings Limited cancelled all existing shares and issued 99 new shares to the company in consideration for an issue of shares to the companies’ shareholders in proportion to their existing shareholdings in Moroak Holdings Limited. The company agreed to pay £3,200,000 in consideration of the cancellation of shares in Moroak Holdings Limited.
On the 27 December 2024, the company acquired Made by Blake Limited, Moroak Limited and Blake Envelopes International Limited via a distribution in specie from Moroak Management Limited, a related company. As a result of this acquisition, the company became the new ultimate parent company of the group.
As a result of the transaction above, Moroak Holdings Limited is now a wholly owned subsidiary of Blake Envelopes Holdings Limited. Following the transaction above, key performance indicators (KPIs) used by management to assess performance include revenue growth, gross margin, earnings before interest tax and depreciation (EBITDA), customer retention, and cash flow. The results presented related to the period from 24 October 2024 to 31 December 2024. During that period, the group generated revenue of £4,420,861 and gross profit margin of 39.3% and generated EBITDA of £837,794. The group closed the year with net assets of £14,251,237.
During the year the group has continued to invest in people, technology and systems, including the implementation of a new ERP system and expects to invest to enable it to strengthen its competitive position and support future growth.
The directors aim to reduce the impacts of any risks to the group at all times.
There are a number of risks which face the group and the directors have worked throughout the year to limit these risks by widening the customer base, increase the use of credit insurance cover, developing sound contracts with all customers and limiting the risk in fluctuating currency exchanges rates by adopting a progressive planned foreign exchange hedging policy.
The performance of the group is monitored on a regular basis against the number of customer contracts won, the value of these contracts and the results from managing purchasing and selling prices. The directors have continued to manage overheads tightly and the improvement in utilisation of labour has contributed to the process of strengthening and repositioning the business during the year.
The principal risks within the business are explained within the directors report.
Management adopt a proactive approach to minimising these risks through the use of credit checks for both customers and suppliers and ensuring there is no undue reliance on individual customers for trade. The group continues to implement measures considered appropriate by management to minimise the risk of stock loss and where necessary stock obsolescence.
The directors remain confident in the group’s long -term strategy and expect continued growth in the coming financial year. Plans are in place to:
Invest in further technology, infrastructure and staff training;
Strengthen operational efficiency and sustainability practice;
Continue to launch new product and enhance our service offering further; and
Expand into new markets where we believe we can provide the customer with exceptional sustainable products the inspire memorable experiences.
While the directors remain mindful of current economic pressures, including inflation, recent announcements regarding tax rises and believe the group is well-positioned to adapt and respond proactively.
On behalf of the board
The directors present their annual report and financial statements for the Period ended 31 December 2024.
The results for the Period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
Principal risks and uncertainties
The management of the business and the execution of the company strategy are subject to a number of risks, which are regularly reviewed and maintained by the directors. Where risks are identified these are mitigated by suitable processes. The main risks identified by the board are as follows:
Trading risk
Liquidity risk
Foreign currency risk
Credit risk
Trading risk
The market for the company's products continues to be highly competitive and therefore the company seeks to grow its business by concentrating on creating exceptional sustainable products that inspire memorable experiences with every doorstop delivery.
Short-term flexibility in respect of liquidity is achieved by the use of an instant access deposit account. The account is subject to annual review. However, the directors do not consider liquidity to be a key risk.
The company is exposed to exchange rate fluctuations on purchases of foreign currencies to settle suppliers' invoices. In periods of sterling weakness short term forwards are purchased in order to maximise the benefits of favourable exchange rates. At times of sterling strength the company purchases forwards to hedge against adverse fluctuations.
The company's principal financial assets are cash and trade debtors. The principal credit risk arises therefore from trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. During the year, increased use of trade indemnity insurance was used, and where uninsurable, credit limits have been reduced. The directors regard the scale and spread of customers as being a strong safeguard against the risk of default and carefully manage the levels of credit allowed.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Blake Envelopes Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 group's and 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial Period for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £350,000.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Blake Envelopes Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Watercombe Place, Watercombe Park, Lynx Trading Estate, Yeovil, Somerset, BA20 2HL.
The group consists of Blake Envelopes Holdings Limited and all of its subsidiaries.
During the period Blake Envelopes Holdings Limited elected to shorten the accounting period from 31 October 2025 to 31 December 2024 to be in line with the rest of the group's year end. As a result these financial statements reflect the companies performance for a two month period.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Blake Envelopes Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
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 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The directors have reviewed all significant debts on a case by case basis and have made a provision against or written off bad debts based upon their knowledge of both the specific debtor and the current economic conditions within the industry.
The directors have reviewed the year-end stock listing and stock take results and, based on their knowledge of current market conditions and expected future orders, have made provision against obsolete and slow moving stocks to the extent that estimated selling price less costs to complete and sell are lower than cost. The carrying amount stock provisions as at 31 December 2024 was £342,109 (2023 - £472,650).
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
In determining the estimated useful life the Company considers the expected usage of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the Company reviews the above to establish if there is any change in the expected useful life of tangible assets.
Where relevant the group applies judgement in arriving at the fair value of forward contracts entered into for the purposes of managing their exposure to exchange rate fluctuation. Management seek third party information in support of their judgement regarding the value of these contracts at the balance sheet date. At 31 December 2024 the value of the forward contract liability was £107,749 (2023 - £17,424).
The average monthly number of persons (including directors) employed by the group and company during the Period was:
Their aggregate remuneration comprised:
The actual charge for the Period can be reconciled to the expected charge/(credit) for the Period based on the profit or loss and the standard rate of tax as follows:
The additions of the intangible assets via business combinations stated above, are a result of a group reconstruction in the year and have been included at carrying value. More information is contained within note 25 to the accounts.
The additions of the tangible assets via business combinations stated above, are a result of a group reconstruction in the year and have been included at carrying value. More information is contained within note 25 to the accounts.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
The fair value of the investment property has been arrived at on the basis of a valuation carried out on the 21st June 2024 by Chesters Harcourt, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
Details of the company's subsidiaries at 31 December 2024 are as follows:
For the financial periods ended 31 December 2024 All Colour Envelopes Limited and Moroak Management Limited were entitled to exemption from audit under section 479A of the Companies Act 2006. A section 479C guarantee has been provided for these companies.
For the financial periods ended 31 December 2024, Made By Blake Limited, Blake Envelopes International Limited, Inkling England Limited, Blake Managed Services Limited and Blake Europe GmbH were dormant companies.
Other financial liabilities relate to the fair value of forward foreign exchange contracts.
Hire purchase liabilities of £19,887 are secured by fixed charges over the assets to which they relate.
Included in other loans is £1,200,000 of loan from a company under common control which has a 10 year term commencing 22 October 2024, and with interest charged at a variable rate of 1% per annum over the Base Rate.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
All classes of shares have the right to vote, the right to dividends, as recommended by directors, which may be declared at different rates to the exclusion of the other classes of shares. Shares have a right to a return of capital in the proportions as set out in the Articles. The shares are non-redeemable.
On 27 December 2024 the group acquired the business of Moroak Holdings Limited and all subsidiaries.
On the 27 December 2024, there was a group reconstruction. The shareholdings in Made By Blake Limited, Moroak Limited and Blake Envelopes International Limited were transferred via distribution in specie from Moroak Management Limited to Moroak Holdings Limited, and subsequently transferred to Blake Envelopes Holdings Limited, the new ultimate parent company of the group.
In a separate transaction, dated 24 October 2024, the company entered into a tripartite agreement whereby Moroak Holdings Limited cancelled all existing shares and issued 99 new shares to Blake Envelopes Holdings Limited in consideration for an issue of shares to the companies' shareholders in proportion to their existing shareholdings in Moroak Holdings Limited. Blake Envelopes Holdings also agreed to pay £3,200,000 in consideration of the cancellation of shares in Moroak Holdings Limited.
Moroak Holdings Limited is now a wholly owned subsidiary of Blake Envelopes Holdings Limited.
The group reconstruction has been accounted for by the acquisition method of accounting, applying merger relief in accordance with the requirements of the Companies Act.
The assets and liabilities of the subsidiaries have been acquired at carrying value.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the Period the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
Amounts outstanding are interest free and repayable on demand.
The following amounts were outstanding at the reporting end date:
Amounts outstanding are interest free and repayable on demand.
Loans to directors are interest free, and will be settled within 9 months of the year end.