Pak Engineering Group Ltd - Limited company accounts 25.1

REGISTERED NUMBER: 09120033 (England and Wales)

PAK ENGINEERING GROUP LTD

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Statement of Directors' Responsibilities

5

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

10

Consolidated Statement of 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 Financial Statements

17

DIRECTORS:

G Levy

G Calder

REGISTERED OFFICE:

Unit 2B

Snetterton Park

Harling Road

Norfolk

Norwich

NR16 2JU

REGISTERED NUMBER:

09120033 (England and Wales)

AUDITORS:

Blick Rothenberg Audit LLP

Chartered Accountants, Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The principal activities of the group can be categorised into two business units:

-

The sale of packaging machinery

-

The sale of parts for packaging machines

Group turnover increased marginally by 1.5% to £15,600k (2023: £15,368k), reflecting the impact of a challenging economic environment, characterised by high interest rates and ongoing uncertainty, which has affected the wider packaging industry. Growing turnover in these conditions demonstrates the strength of our brand, and our underlying order book remains robust. The business continues to grow its reputation as customers increasingly value a high-quality, reliable partner for their packaging operations.

Operating expenses increased by £610k to £8,321k, reflecting further investment in our team in line with our strategic plan. Average employee numbers rose from 60 in 2023 to 67 in 2024.

Working capital management remains a key area of focus and our net current assets remained positive at £473k. The group maintains a strong cash balance of £908k.

Overall, 2024 saw the group take another step forward, gaining market share as an established brand within the food packaging industry. Our customers value our commitment to working in partnership and our service orientated approach.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties of the group are as follows:

Interest rate risk

Our customer base often uses finance to fund purchases. The steep growth in interest rates since the start of 2022 to their recent peak in 2024 has created an uncertain operating environment. This issue is industry-wide, although the reduction of interest rates from late 2024 onwards has improved the macro-economic environment in 2025.

Foreign exchange risk

The group is exposed to transaction foreign exchange risk, primarily due to a difference in revenue and operating cost currencies. This risk is actively managed through foreign exchange hedging.

Macro-economic risk

The group has a global presence and trades across continents. Recent protectionist trade policies and import tariffs represent a risk to the group which it is actively monitoring and managing.

The board believes it is well placed to deal with these issues and is keeping matters under close review. The directors are of the opinion that the exposure of the group to price risk, credit risk, liquidity risk and cash flow risk is well monitored and maintained at a satisfactory level.

KEY PERFORMANCE INDICATORS

The following key performance indicators are used to manage the performance of the business. In addition, the board reviews the liquidity of the business through regular reporting of stock levels and cash reserves.

As disclosed within the financial statements, the key reported figures are as follows:

Year Ended

31.12.24

31.12.23

£

Turnover

15,600,307

15,367,640

Gross profit

8,304,391

7,715,306

Operating (loss)/profit

(16,563

)

4,011

FUTURE DEVELOPMENTS

In 2025, the group has continued to grow in both turnover and headcount as we work in partnership with our customers to support their operations. Parts Pak has invested in sales and marketing tools to allow customers greater visibility of our product range and to expand our sales reach. PurPak continues to invest in new product development to ensure our equipment remains industry-leading in its design and functionality

ON BEHALF OF THE BOARD:

G Calder - Director

31 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of sale of packaging machines and parts.

The principal activity of the company in the year under review was that of a management and holding company.

DIVIDENDS

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

The loss for the year, after taxation, is £656,183 (2023: £644,518).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

G Levy

G Calder

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information,

required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups

(Accounts and Reports) Regulations 2008', in the strategic report.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director 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, Blick Rothenberg LLP, have indicated their willingness to continue in office.

ON BEHALF OF THE BOARD:

G Calder - Director

31 December 2025

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-

select suitable accounting policies and then apply them consistently;

-

make judgements and accounting estimates that are reasonable and prudent;

-

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Qualified opinion

We have audited the financial statements of Pak Engineering Group Limited (the 'parent company') and its subsidiaries (the 'group) for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss account, the Consolidated Statement of Comprehensive Income, the Consolidated and Company Balance sheets, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

-

give a true and fair view of the state of the group and company's affairs as at 31 December 2024 and of its 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 qualified opinion

We were not appointed as auditor of the group until after 31 December 2023 and thus did not observe the counting of physical inventories as at the end of that year. We were unable to satisfy ourselves by alternative procedures concerning the inventory quantities held at 31 December 2023 with a value of £2,357,706. Consequently, we have been unable to determine whether any adjustment to this amount was necessary at 31 December 2023 or whether there was any consequential effect on the cost of sales and of the profit for the years ended 31 December 2023 and 31 December 2024.

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.

Other matters

The comparative figures are unaudited.

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 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.

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

Notwithstanding our qualified opinion on the group's financial statements, 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.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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 and the Directors' report.

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

-

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

-

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

-

certain disclosures of 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 directors

As explained more fully in the Director's responsibilities statement set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 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 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the 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 company, including FRS 102, the Companies Act 2006 and taxation legislation;

-

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.

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

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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 a sample of journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

reviewed a sample of revenue transactions and reviewed the income recognition policy.

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 HM Revenue and Customs.

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 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.

Simon Mayston (Senior Statutory Auditor)

for and on behalf of Blick Rothenberg Audit LLP

Chartered Accountants, Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH

31 December 2025

TURNOVER

5

15,600,307

15,367,640

Cost of sales

(7,295,916

)

(7,652,334

)

GROSS PROFIT

8,304,391

7,715,306

Administrative expenses

(8,320,954

)

(7,711,295

)

OPERATING (LOSS)/PROFIT

8

(16,563

)

4,011

Interest receivable and similar income

10

2,019

4,247

(14,544

)

8,258

Interest payable and similar expenses

11

(398,757

)

(407,077

)

LOSS BEFORE TAXATION

(413,301

)

(398,819

)

Tax on loss

12

(242,882

)

(245,699

)

LOSS FOR THE FINANCIAL YEAR

(656,183

)

(644,518

)

Loss attributable to:

Owners of the parent

(644,384

)

(578,178

)

Non-controlling interests

(11,799

)

(66,340

)

(656,183

)

(644,518

)

LOSS FOR THE YEAR

(656,183

)

(644,518

)

OTHER COMPREHENSIVE (LOSS)/INCOME

Foreign exchange on consolidation

(40,172

)

108,930

Income tax relating to other comprehensive

(loss)/income

-

OTHER COMPREHENSIVE (LOSS)/INCOME FOR

THE YEAR, NET OF INCOME TAX

(40,172

)

108,930

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(696,355

)

(535,588

)

Total comprehensive loss attributable to:

Owners of the parent

(678,933

)

(468,280

)

Non-controlling interests

(17,422

)

(67,308

)

(696,355

)

(535,588

)

FIXED ASSETS

Intangible assets

14

122,508

116,390

Tangible assets

15

246,441

285,579

Investments

16

-

368,949

401,969

CURRENT ASSETS

Stocks

17

2,050,674

2,357,706

Debtors: amounts falling due within one year

18

2,781,296

2,369,349

Cash at bank and in hand

908,200

1,480,965

5,740,170

6,208,020

CREDITORS

Amounts falling due within one year

19

(5,000,354

)

(4,805,526

)

NET CURRENT ASSETS

739,816

1,402,494

TOTAL ASSETS LESS CURRENT LIABILITIES

1,108,765

1,804,463

CREDITORS

Amounts falling due after more than one year

20

(10,839,650

)

(10,738,139

)

NET LIABILITIES

(9,730,885

)

(8,933,676

)

CAPITAL AND RESERVES

Called up share capital

24

1

Profit and Loss Account

25

(9,979,712

)

(9,074,541

)

SHAREHOLDERS' DEFICIT

(9,979,711

)

(9,074,540

)

NON-CONTROLLING INTERESTS

26

248,826

140,864

TOTAL EQUITY

(9,730,885

)

(8,933,676

)

The financial statements were approved by the Board of Directors and authorised for issue on 31 December 2025 and were signed on its behalf by:

G Calder - Director

FIXED ASSETS

Intangible assets

14

-

Tangible assets

15

-

Investments

16

9,457,733

8,710,055

9,457,733

8,710,055

CURRENT ASSETS

Debtors: amounts falling due within one year

18

1,074,576

387,436

Debtors: amounts falling due after more than

one year

18

-

1,213,246

Cash at bank

11,587

36,724

1,086,163

1,637,406

CREDITORS

Amounts falling due within one year

19

(151,089

)

(201,765

)

NET CURRENT ASSETS

935,074

1,435,641

TOTAL ASSETS LESS CURRENT LIABILITIES

10,392,807

10,145,696

CREDITORS

Amounts falling due after more than one year

20

(10,551,109

)

(10,328,144

)

NET LIABILITIES

(158,302

)

(182,448

)

CAPITAL AND RESERVES

Called up share capital

24

1

Profit and Loss Account

25

(158,303

)

(182,449

)

SHAREHOLDERS' DEFICIT

(158,302

)

(182,448

)

Company's profit/(loss) for the financial year

24,146

(7,410

)

The financial statements were approved by the Board of Directors and authorised for issue on 31 December 2025 and were signed on its behalf by:

G Calder - Director

Called up

Profit and

share

Loss

Non-controlling

Total

capital

Account

Total

interests

equity

£

Balance at 1 January 2023

1

(8,384,245

)

(8,384,244

)

-

(8,384,244

)

Changes in equity

Dividends

-

(13,844

)

(13,844

)

Total comprehensive loss

-

(468,280

)

(468,280

)

(67,308

)

(535,588

)

Reallocation of excess losses

to parent

-

(222,016

)

(222,016

)

222,016

-

Balance at 31 December 2023

1

(9,074,541

)

(9,074,540

)

140,864

(8,933,676

)

Changes in equity

Dividends

-

(100,854

)

(100,854

)

Total comprehensive loss

-

(678,933

)

(678,933

)

(17,422

)

(696,355

)

Reallocation of excess losses

to parent

-

(226,238

)

(226,238

)

226,238

-

Balance at 31 December 2024

1

(9,979,712

)

(9,979,711

)

248,826

(9,730,885

)

Called up

Profit and

share

Loss

Total

capital

Account

equity

£

Balance at 1 January 2023

1

(175,039

)

(175,038

)

Changes in equity

Total comprehensive loss

-

(7,410

)

(7,410

)

Balance at 31 December 2023

1

(182,449

)

(182,448

)

Changes in equity

Total comprehensive income

-

24,146

Balance at 31 December 2024

1

(158,303

)

(158,302

)

Cash flows from operating activities

Cash generated from operations

30

(484,361

)

878,109

Interest paid

(66,608

)

(168,093

)

Interest element of hire purchase payments

paid

(1,699

)

-

Tax paid

(144,155

)

(163,191

)

Net cash from operating activities

(696,823

)

546,825

Cash flows from investing activities

Purchase of intangible fixed assets

(33,335

)

(73,242

)

Purchase of tangible fixed assets

(10,207

)

(60,751

)

Interest received

2,019

4,247

Net cash from investing activities

(41,523

)

(129,746

)

Cash flows from financing activities

New bank loans in year

409,659

428,866

Bank loan repayments in year

(198,553

)

(131,942

)

Other creditor loan advances

728,901

240,034

Other creditor loan repayments

(630,000

)

(747,374

)

Capital repayments in year

(3,272

)

-

Amount introduced by directors

(15

)

15

Dividends paid to minority interests

(100,854

)

(13,844

)

Net cash from financing activities

205,866

(224,245

)

(Decrease)/increase in cash and cash equivalents

(532,480

)

192,834

Cash and cash equivalents at beginning of

year

31

1,480,965

1,331,827

Effect of foreign exchange rate changes

(40,285

)

(43,696

)

Cash and cash equivalents at end of year

31

908,200

1,480,965

1.	STATUTORY INFORMATION

Pak Engineering Group Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The group’s core business activities are focused on two areas: the sale of packaging machinery and the supply of parts for packaging machines. Its principal place of business is Unit 2B, Snetterton Park, Harling Road, Norfolk, Norwich, NR16 2JU.

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

Accounting convention

A summary of the significant accounting policies adopted by the group and the company is given in the following paragraphs. The policies have been consistently applied to all years present, unless stated otherwise.

Unless indicated otherwise in the accounting policies below, the financial statements have been prepared under the historical cost convention. 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 4).

The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going Concern

The group and individual financial statements have been prepared on a going concern basis. The board have considered the financial statements of the company and group within the context of the overall group strategy. This review has considered the future funding requirements of the group based on forecast sales and costs and taking into account any anticipated changes in the economic environment and how this will impact upon financial performance.

The directors have a reasonable expectation that the company and the group has adequate resources to continue in operational existence and meet their liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. An undertaking is regarded as a subsidiary undertaking if the company has control over its operating and financial policies.

Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over anticipated useful economic life of the goodwill. Increases in the controlling interest of a subsidiary are accounted for as a transaction between equity holders and no gain nor loss is recognised in respect of any changes, with the difference between the purchase consideration and the change in the parent's interest in the net assets being recognised directly in equity.

Intergroup transactions and balances are eliminated on consolidation.

The Group attributes profit or loss and each component of other comprehensive income to the owners of the parent and to non-controlling interests in proportion to their respective ownership interests. Where non-controlling interests have no contractual obligation to fund losses and it is clear that such losses will not be recovered from them, the Group reattributes those losses to the parent. In such cases, the adjustment is recognised directly in equity within the profit and loss account.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue for the sale of parts is recognised when the purchaser has been transferred the significant risks and rewards of ownership, it is probable that the economic benefit will flow to the entity and the revenue and associated costs can be reliably measured.

Revenue for provision of services is recognised when it is probable that an economic benefit will flow to the entity and the revenue and costs can be reliably measured. For continuing services, revenue is recognised when the stage of completion can be reliably measured using a percentage of completion method.

Finance costs

Finance costs are recognised using the effective interest rate method.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation is recognised once the asset comes into use. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Patents and licences are being amortised evenly over their estimated useful life of 10 years.

Development costs are being amortised evenly over their estimated useful life of 5 years.

Other intangible assets are being amortised evenly over their estimated useful life of 3 to 5 years.

On disposal, the difference between net proceeds and the carrying amount of thee item sold is recognised in the profit and loss account.

Tangible fixed assets

Tangible fixed assets are stated at their historical cost price less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for use. The asset's residual values, useful lives and depreciation methods are reviewed if there is an indication of significant change since the last reporting date.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life or, if held under a finance lease, over the lease term, whichever is shorter.

Improvements to leasehold property

- 5 years straight line

Plant and machinery

- 5 to 8 years straight line

Fixtures and fittings

- 5 years straight line

Computer equipment

- 3 to 5 years straight line

Motor vehicles

- 25% reducing balance

On disposal the difference between the net proceeds and carrying amount of the item sold is recognised in the statement of comprehensive income and is included in administrative expenses.

Stocks

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

Group stock is adjusted to remove unrealised profit arising on intercompany trading.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the instrument.

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 Company after deducting all of its liabilities.

The Company's policies for its major classes of financial assets and financial liabilities are set out below.

Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities

Financial liabilities

Basic financial liabilities, including trade and other 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

Impairment of financial assets

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the Company would receive for the asset if it were to be sold at the reporting date.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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.

Derecognition of financial assets and financial liabilities

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

Investments

Investments held as fixed assets are stated at cost less any provision for impairment.

Loans advanced to subsidiary undertakings that are intended to provide long-term financial support and are not expected to be repaid in the foreseeable future are classified as fixed asset investments. These are treated as an increase in the cost of the investment, reflecting their substance as capital contributions.

Assets are reviewed at each year end for any indications of impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount in accordance with FRS 102. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses are included within administrative expenses in the profit and loss account. Where such exchange differences result in a net gain, a credit is recognised within administrative expenses; where they result in a net loss, a charge is recognised.

Upon consolidation the trading results of group undertakings are translated into sterling at the average exchange rates for the year. The assets and liabilities of overseas undertakings are translated at the exchange rates ruling at the year-end. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in ‘Other comprehensive income’.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of comprehensive income so as to produce a constant periodic rate of charge on the net obligation outstanding each period.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight line basis over the lease term unless there is another systematic basis representative of the time pattern of the lessee's benefit from the leased asset.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Warranties

Under the terms of contract for sale the group provides to make good, by repair or replacement, defects in the machines that it installs.

No provision has been made as the amount of the obligation cannot be estimated reliably and costs of warranty claims are charged to the profit and loss account as incurred.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders

Dividends and other distributions to the group’s shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

4.	SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of the financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect reported amounts of assets, liabilities and profit and loss. In preparing these financial statements, management have made the following key judgements and estimates which are significant to the financial statements:

Impairment of non-current assets

Non-current assets are considered for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Turnover

The directors have considered the criteria for the recognition of revenue from the supply of goods and services set out in FRS 102. In particular, whether the company can estimate the amount of revenue, that it is probable that the economic benefits associated with the transaction will flow to the company and the stage of completion can be measured reliably.

5.

TURNOVER

The turnover and loss before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

2024

2023

£

Products

14,666,614

13,817,458

Services

928,834

1,402,157

Other

4,859

148,025

15,600,307

15,367,640

An analysis of turnover by geographical market is given below:

2024

2023

£

United Kingdom & Europe

6,624,278

6,648,311

North America

7,458,106

7,108,837

Rest of World

1,517,923

1,610,492

15,600,307

15,367,640

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

Wages and salaries

4,792,029

4,360,883

Social security costs

817,757

674,996

Other pension costs

139,834

97,101

5,749,620

5,132,980

The average number of employees during the year was as follows:

2024

2023

Sales and engineers / operations

54

47

Office and management

13

67

60

Staff costs and the average number of employees disclosed above include directors.

7.	DIRECTORS' EMOLUMENTS

2024

2023

£

Directors' remuneration

619,742

458,932

Directors' pension contributions to money purchase schemes

12,638

12,363

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

Information regarding the highest paid director is as follows:

2024

2023

£

Emoluments etc

492,699

342,353

8.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

2024

2023

£

Depreciation - owned assets

57,969

57,480

Depreciation - assets on hire purchase contracts

4,243

-

Loss on disposal of fixed assets

1,651

-

Patents and licences amortisation

12,082

13,137

Development costs amortisation

11,092

11,296

Computer software amortisation

1,091

818

Foreign exchange differences

(250,129

)

(89,937

)

Operating lease payments - land & buildings

356,102

308,116

9.	AUDITORS' REMUNERATION

2024

2023

£

Fees payable to the group's auditors for the audit of the group's financial statements

55,000

-

10.

INTEREST RECEIVABLE AND SIMILAR INCOME

2024

2023

£

Deposit account interest

2,019

4,247

All interest receivable relates to financial assets measured at cost.

11.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

Bank interest

33,233

15,465

Bank loan interest

3,067

1,037

Other loan interest

360,758

390,575

Hire purchase

1,699

-

398,757

407,077

All interest payable relates to financial liabilities measured at amortised cost.

12.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

2024

2023

£

Current tax:

Overseas tax on profits

146,735

138,699

Deferred tax - origination and

reversal of timing differences

96,147

107,000

Tax on loss

242,882

245,699

UK corporation tax has been charged at 25 % (2023 - 25 %).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

Loss before tax

(413,301

)

(398,819

)

Loss multiplied by the standard rate of corporation tax in the UK of 25 %

(2023 - 25 %)

(103,325

)

(99,705

)

Effects of:

Expenses not deductible for tax purposes

3,600

9,335

Different tax rates in overseas jurisdictions

18,357

128,478

Deferred tax not recognised

324,250

207,591

Total tax charge

242,882

245,699

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

Foreign exchange on consolidation

(40,172

)

-

(40,172

)

2023

Gross

Tax

Net

£

Foreign exchange on consolidation

108,930

-

108,930

The group has trading losses available to carry forward against future trading profits. The directors have estimated that part of the losses will be utilised in the near future, therefore a deferred tax asset of £73,391 (2023: £169,538) has been recognised. If fully recognised the deferred tax asset would be circa £2,234k (2023: £2,128k) at the prevailing tax rate applicable to each overseas entity, ranging from 24% to 29%.

13.	INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.

The company profit or loss for the year is disclosed at the foot of the company balance sheet.

14.	INTANGIBLE FIXED ASSETS

Group

Patents and

Development

Computer

licences

costs

software

Totals

£

COST

At 1 January 2024

89,495

116,838

5,455

211,788

Additions

-

33,335

-

33,335

Disposals

(3,986

)

(17,390

)

-

(21,376

)

Exchange differences

(625

)

(2,250

)

-

(2,875

)

At 31 December 2024

84,884

130,533

5,455

220,872

AMORTISATION

At 1 January 2024

44,847

49,733

818

95,398

Amortisation for year

12,082

11,092

1,091

24,265

Eliminated on disposal

(3,987

)

(15,739

)

-

(19,726

)

Exchange differences

-

(1,573

)

-

(1,573

)

At 31 December 2024

52,942

43,513

1,909

98,364

NET BOOK VALUE

At 31 December 2024

31,942

87,020

3,546

122,508

At 31 December 2023

44,648

67,105

4,637

116,390

15.	TANGIBLE FIXED ASSETS

Group

Improvements

to

Fixtures

leasehold

Plant and

and

property

machinery

fittings

£

COST

At 1 January 2024

23,239

387,432

1,706

Additions

-

4,412

-

Disposals

-

(1,188

)

Exchange differences

-

(14,886

)

-

At 31 December 2024

23,239

376,958

518

DEPRECIATION

At 1 January 2024

20,297

138,030

1,706

Charge for year

2,942

41,894

-

Eliminated on disposal

-

(1,188

)

Exchange differences

-

(4,577

)

-

At 31 December 2024

23,239

175,347

518

NET BOOK VALUE

At 31 December 2024

-

201,611

-

At 31 December 2023

2,942

249,402

-

Motor

Computer

vehicles

equipment

Totals

£

COST

At 1 January 2024

67,028

22,967

502,372

Additions

25,460

5,795

35,667

Disposals

-

(15,282

)

(16,470

)

Exchange differences

(5,703

)

-

(20,589

)

At 31 December 2024

86,785

13,480

500,980

DEPRECIATION

At 1 January 2024

37,386

19,374

216,793

Charge for year

15,302

2,074

62,212

Eliminated on disposal

-

(15,282

)

(16,470

)

Exchange differences

(3,419

)

-

(7,996

)

At 31 December 2024

49,269

6,166

254,539

NET BOOK VALUE

At 31 December 2024

37,516

7,314

246,441

At 31 December 2023

29,642

3,593

285,579

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

Additions

25,460

At 31 December 2024

25,460

DEPRECIATION

Charge for year

4,243

At 31 December 2024

4,243

NET BOOK VALUE

At 31 December 2024

21,217

Hire purchase contracts and finance leases are secured on the asset for which finance is provided.

Company

Fixtures

and

fittings

£

COST

At 1 January 2024

1,188

Disposals

(1,188

)

At 31 December 2024

-

DEPRECIATION

At 1 January 2024

1,188

Eliminated on disposal

(1,188

)

At 31 December 2024

-

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-

16.	FIXED ASSET INVESTMENTS

Company

2024

2023

£

Shares in group undertakings

94

Loans to group undertakings

9,457,639

8,709,961

9,457,733

8,710,055

Additional information is as follows:

Company

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

94

NET BOOK VALUE

At 31 December 2024

94

At 31 December 2023

94

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Parts Pak Limited

Registered office: Unit 2b, Snetterton Park Harling Road, Snetterton, Norwich, England, NR16 2JU

Nature of business: Sale of parts for packaging machinery

%

Class of shares:

holding

Ordinary

85.00

PurPak Group Ltd

Registered office: Unit 2b, Snetterton Park Harling Road, Snetterton, Norwich, England, NR16 2JU

Nature of business: Sale of packaging machinery

%

Class of shares:

holding

Ordinary

85.00

Parts Pak SRL*

Registered office: Via Benedetto Vergottini 8 Appiano Gentile CO 22070 Italy

Nature of business: Sale of parts for packaging machinery

%

Class of shares:

holding

Ordinary

85.00

Parts Pak Inc*

Registered office: 72 Ash Circle Warminster PA 18974 United States

Nature of business: Sale of parts for packaging machinery

%

Class of shares:

holding

Common stock

72.25

PurPak SRL*

Registered office: Via Benedetto Vergottini 8 Appiano Gentile CO 22070 Italy

Nature of business: Sale of packaging machinery

%

Class of shares:

holding

Ordinary

85.00

CG Systems Limited*

Registered office: 28 Koppens Road RD3 Hamilton 3283 New Zealand

Nature of business: Packaging equipment to the food industry

%

Class of shares:

holding

Ordinary

72.25

PurPak Protein Limited*

Registered office: Unit 2B, Snetterton Park, Snetterton, Norwich, NR16 2JU

Nature of business: Sale of packaging equipment to the food

%

Class of shares:

holding

Ordinary shares

72.25

PurPak Inc*

Registered office: 72 Ash Circle Warminster PA 18974 United States

Nature of business: Sale of packaging machinery

%

Class of shares:

holding

Common stock

85.00

*these subsidiaries are held indirectly

Company

Loans to

group

undertakings

£

At 1 January 2024

8,709,961

New in year

747,678

At 31 December 2024

9,457,639

Included within the total balance is an interest bearing loan of £9,457,639 (2023: £8,790,961) owed by PurPak Group Limited. In the prior year, this was included within debtors falling due after more than one year, but the directors have reclassified this loan to fixed asset investments during the year as this better reflects the nature of the loan. The prior year comparatives have been restated accordingly.

In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.

17.

STOCKS

Group

2024

2023

£

Stocks

2,050,674

2,357,706

The replacement cost of stocks is not considered to be materially different from the carrying amount stated in the financial statements.

18.

DEBTORS

Group

Company

2024

2023

2024

2023

£

Amounts falling due within one year:

Trade debtors

1,907,964

1,559,230

-

Amounts owed by group undertakings

-

965,732

283,411

Other debtors

407,507

257,407

90,151

VAT

27,716

-

Deferred tax asset

73,391

169,538

-

Prepayments and accrued income

364,718

383,174

18,693

13,874

2,781,296

2,369,349

1,074,576

387,436

Amounts falling due after more than one year:

Amounts owed by group undertakings

-

1,213,246

Aggregate amounts

2,781,296

2,369,349

1,074,576

1,600,682

Deferred tax asset

Group

Company

2024

2023

2024

2023

£

Deferred tax

73,391

169,538

-

An impairment loss of £9,794 (2023: £32,501) was recognised in administrative expenses against trade debtors during the year due to bad and doubtful debts.

Further information on amounts owed by group undertakings is included in the related parties disclosure note.

19.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans and overdrafts (see note 21)

515,807

206,254

-

Other loans (see note 21)

-

89,330

-

89,330

Hire purchase contracts (see note 22)

4,427

-

Trade creditors

1,776,681

2,103,948

8,654

3,119

Tax

30,307

27,727

-

Social security and other taxes

50,015

95,823

22,699

63,832

VAT

-

27,778

37,379

36,667

Other creditors

1,654,837

1,971,029

2,491

2,242

Accrued expenses

968,280

283,637

79,866

6,575

5,000,354

4,805,526

151,089

201,765

20.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans (see note 21)

270,780

409,995

-

Other loans (see note 21)

10,551,109

10,328,144

10,551,109

10,328,144

Hire purchase contracts (see note 22)

17,761

-

10,839,650

10,738,139

10,551,109

10,328,144

21.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2024

2023

2024

2023

£

Amounts falling due within one year or on

demand:

Bank loans

515,807

206,254

-

Other loans

-

89,330

-

89,330

515,807

295,584

-

89,330

Amounts falling due between one and two

years:

Bank loans - 1-2 years

136,677

162,705

-

Amounts falling due between two and five

years:

Bank loans - 2-5 years

134,103

211,281

-

Other loans - 2-5 years

-

357,320

-

357,320

134,103

568,601

-

357,320

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Other loans

10,551,109

9,369,720

10,551,109

9,369,720

Repayable by instalments

Bank loans more 5 yr by instal

-

36,009

-

Other loans

-

601,104

-

601,104

-

637,113

-

601,104

Bank loans include an unsecured Coronavirus Bounce Back Loan, which which attracts interest at a fixed rate of 2.5%. Repayments of capital and interest are made monthly for a period of 5 years until May 2026. Also included in bank loans are unsecured loans held within two of the overseas entities.

Further details on the Other Loans is provided in the related parties disclosure note.

22.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase

contracts

2024

2023

£

Gross obligations repayable:

Within one year

6,595

-

Between one and five years

20,829

-

27,424

-

Finance charges repayable:

Within one year

2,168

-

Between one and five years

3,068

-

5,236

-

Net obligations repayable:

Within one year

4,427

-

Between one and five years

17,761

-

22,188

-

Group

Non-cancellable

operating leases

2024

2023

£

Within one year

341,620

257,528

Between one and five years

766,994

463,493

In more than five years

532,032

26,546

1,640,646

747,567

Operating lease payments of £356,102 (2023: £308,116) have been recognised as an expense during the year.

Company

Non-cancellable

operating leases

2024

2023

£

Within one year

3,229

9,426

Between one and five years

-

3,229

12,655

The group has entered into a hire purchase agreement, classified as a finance lease, for a vehicle that includes an option to purchase the vehicle at the end of the lease term for a nominal amount. The hire purchase liability is secured against the related asset.

23.	DEFERRED TAX

Group

£

Balance at 1 January 2024

(169,538

)

Utilised during year

96,147

Balance at 31 December 2024

(73,391

)

The deferred tax asset in the current and preceding year relates to overseas deferred tax and has been recognised at the prevailing tax rate applicable to each overseas entity, ranging from 24% to 28%.

The net deferred tax asset is expected to reverse in full in the next financial year as profits are generated in overseas entities.

24.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

100

Ordinary

1p

1

The company has one class of share which carry full voting rights together with rights to income and capital distributions.

25.

RESERVES

Group

Profit and

Loss

Account

£

At 1 January 2024

(9,074,541

)

Deficit for the year

(644,384

)

Conversion exchange

(34,549

)

Reallocation of excess losses

to parent

(226,238

)

At 31 December 2024

(9,979,712

)

Company

Profit and

Loss

Account

£

At 1 January 2024

(182,449

)

Profit for the year

24,146

At 31 December 2024

(158,303

)

Retained earning includes all current period and prior period profits and losses which are distributable.

26.	NON-CONTROLLING INTERESTS

Group

The movement in non-controlling interests was as follows:

2024

£

At 1 January 2024

140,864

Total net comprehensive loss attributable to non-controlling interests

(17,422

)

Dividends paid to non-controlling interest

(100,854

)

Reallocation of excess losses to parent

226,238

At 31 December 2024

248,826

During the year, the Group’s share of losses attributable to non-controlling interests in one of the subsidiary groups exceeded their equity interest by £226,238. The non-controlling shareholders have no contractual obligation to fund these losses and it is not expected that the deficit will be recovered from them. In accordance with the Group’s accounting policy, these losses have been reattributed to the parent company and recognised directly in equity within the profit and loss account.

27.	PENSION COMMITMENTS

The group makes payments into a pension fund on behalf of employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge of £139,834 (2023: £97,101) represents contributions payable by the company to the fund. There were outstanding contributions at the year end of £37,201 (2023: £29,672) included in the balance sheet.

28.	RELATED PARTY DISCLOSURES

Group and company

The company has taken advantage of the exemption conferred by The Financial Reporting Standard 102 Section 33 'Related party disclosures.' This allows for transactions with members of the group headed by Pak Engineering Group Limited not to be disclosed on the grounds that 100% of the voting rights in the company are controlled within the group.

The group and company have received unsecured loans from non-group entities over which a director and key management personnel of the group and company have significant influence. The total amount of loans outstanding from these related parties at the year end was £8,576,653 (2023: £10,417,474). On the last day of the financial year, loans of £1,974,456 were jointly reassigned to a director and other related party, resulting in the closing balance above. All interest charged during the year, amounting to £359,923 (2023: £389,543), relates to the original loan balances prior to reassignment. These loans attract interest at rates between 3% and 3.5%.

Company

Included in the financial statements are loans due in more than one year from direct subsidiaries of £9,457,639 (2023: £9,923,207). These amounts are subject to a loan agreement and are interest bearing. These loans are split between investments and debtors falling due after more than one year depending on the substance of the loan.

Included in debtors amounts falling due within one year are amounts due from direct subsidiaries of £890,228 (2023: £207,907) and amounts due from other group undertakings amounting to £75,504 (2022: £75,504). Of these amounts £583,246 (2023: £nil) are subject to a loan agreement, are interest bearing and repayable on demand. The remainder of the balance is due on demand and no interest is charged.

All day to day trading between group companies is being conducted under normal market conditions.

29.	ULTIMATE CONTROLLING PARTY

In both the current and prior period, the ultimate controlling party is deemed to by G Levy by virtue of his 100% shareholding in Pak Engineering Group Ltd.

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

2024

2023

£

Loss before taxation

(413,301

)

(398,819

)

Depreciation charges

86,476

82,731

Loss on disposal of fixed assets

1,651

-

Unrealised foreign exchange (gain)/loss

(322,478

)

(119,774

)

Finance costs

398,757

407,077

Finance income

(2,019

)

(4,247

)

(250,914

)

(33,032

)

Decrease/(increase) in stocks

307,032

(180,773

)

(Increase)/decrease in trade and other debtors

(508,077

)

188,576

(Decrease)/increase in trade and other creditors

(32,402

)

903,338

Cash generated from operations

(484,361

)

878,109

31.	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

908,200

1,480,965

Year ended 31 December 2023

31.12.23

1.1.23

£

Cash and cash equivalents

1,480,965

1,331,827

32.	ANALYSIS OF CHANGES IN NET DEBT

Other

Net debt

non-cash

At 1.1.24

Cash flow

adjustments

changes

At 31.12.24

£

Net cash

Cash at bank

and in hand

1,480,965

(532,480

)

(40,285

)

908,200

1,480,965

(532,480

)

(40,285

)

908,200

Debt

Finance leases

-

4,971

(1,699

)

(25,460

)

(22,188

)

Debts falling due

within 1 year

(295,584

)

(295,363

)

51,964

-

(538,983

)

Debts falling due

after 1 year

(10,738,139

)

51,964

(112,538

)

-

(10,798,713

)

(11,033,723

)

(238,428

)

(62,273

)

(25,460

)

(11,359,884

)

Total

(9,552,758

)

(770,908

)

(102,558

)

(25,460

)

(10,451,684

)

33.	NON-CASH TRANSACTIONS

The Group’s net debt increased by £326,161 during the year, from £11,033,723 to £11,359,884. This movement comprises:

-

Cash flow changes of £238,428, due to loan advances, less loan repayments and interest paid.

-

Net debt adjustments of £62,273, which include:

-

Effective interest charges of £400,457 (amortisation of loans and finance leases under the amortised cost method).

-

Foreign exchange differences of £338,184.

-

Other non-cash changes of £25,460 relating to the motor vehicle acquired under a finance lease agreement.

Of the interest charges, £330,950 remained unpaid at the year end. These unpaid interest charges did not affect the cash flow statement.