Company registration number 04755583 (England and Wales)
DRAGON PACKAGING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
DRAGON PACKAGING LIMITED
COMPANY INFORMATION
Director
Mr J Cunningham
Company number
04755583
Registered office
Gable House
239 Regents Park Road
London
N3 3LF
Auditor
SPW (UK) LLP
Gable House
239 Regents Park Road
London
N3 3LF
DRAGON PACKAGING LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
DRAGON PACKAGING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The director presents the strategic report for the year ended 31 March 2025.

Review of the business

The company has seen an increase in turnover again this year and is forecasting a further increase in 2026. Several new customers have been onboarded this year. Despite turbulence in the industry, the business has continued to meet customers’ needs with on time deliveries throughout the year and continues to grow year on year. The company has increased the size of its manufacturing facility to allow for future growth.

Principal risks and uncertainties

This year has seen some business moving back to plastics from card which is positive for the future.

Development and performance

The company has transformed it's packaging with thermoforming dedicated to providing cost effective thermoformed packaging solutions for both food and non-​food manufactures, offering a comprehensive stockholding facility to meet the requirements of today's fast moving retail sector. With a diverse range of manufacturing equipment, we are able to offer competitive prices for both large and smaller production runs.

Our aim is to offer our customers the best possible packaging solution for their products and backing this up with reliable on time deliveries. This high level of customer service has not only retained existing customers but enabled the company to expand and grow it's business.

Key performance indicators

The company's turnover has grown consistently from £7.5m (2019), £9.5m (2020), £9.6m (2021), £11.1m (2022), £13.3m (2023), £13.3m (2024) with a slight drop to £12.2m (2025).

The gross profit margin has increased from 30.15% in 2024 to 32.21% (2025) however net profit has decreased from £586,720 in 2024 to £249,376 in 2025 due to increase in overheads.

The company’s net assets have reduced from £1.4m in 2024 to £0.4m in 2024 due to the share buy back on 1 October 2024.

On behalf of the board

Mr J Cunningham
Director
5 February 2026
DRAGON PACKAGING LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

The director presents his annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company was that of trading in plastic packaging.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £50,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr J Cunningham
Mr G Leech
(Resigned 1 October 2024)
Future developments

The company has plans to increase the size of the warehouse by 9,000 square feet to allow for the additional new business. The company also has plans to install a new thermoforming machine in 2026, again to allow for the new business that has been onboarded.

Auditor

The auditor, SPW (UK) LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr J Cunningham
Director
5 February 2026
DRAGON PACKAGING LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; and

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

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

DRAGON PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DRAGON PACKAGING LIMITED
- 4 -
Opinion

We have audited the financial statements of Dragon Packaging Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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

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

- the information given in the strategic report and the director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

DRAGON PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DRAGON PACKAGING LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the director's r eport.

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 director

As explained more fully in the director's r esponsibilities s tatement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the 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 company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 financial statements.

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

The objectives of our audit, in respect to detecting irregularities including fraud, are;

to identify and assess the risks of material misstatement of the financial statements due to fraud;

to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses;

and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant UK tax compliance regulations and Data Protection Regulation (GDPR).

We understood how the company complies with laws and regulations by making enquiries of management, internal audit, those responsible for legal and compliance procedures. We made enquiries through our review of board minutes and internal controls process documentation and considered the results of our audit procedures. We obtained confirmation from the company that there been no breaches of laws and regulations, specifically The Plastic Packaging Tax (General) Regulations 2022.

DRAGON PACKAGING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DRAGON PACKAGING LIMITED
- 6 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by meeting with management to discuss areas where we considered there was susceptibility to fraud. We considered the internal controls that the company has implemented to address any risks identified, or to prevent, deter and detect fraud, and how senior management monitor them.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

• reviewed the company's information technology (IT) to process and maintain data that underlies financial reporting processes and financial statements

We planned and designed our work to provide reasonable assurance that the financial statements were free from fraud or error. However due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected an irregularity or fraud that could result in a material misstatement in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards

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.

Shirish Shah
Senior Statutory Auditor
For and on behalf of SPW (UK) LLP
Chartered Accountants
Statutory Auditor
Gable House
239 Regents Park Road
London
N3 3LF
5 February 2026
DRAGON PACKAGING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
2025
2024
Notes
£
£
Turnover
2
12,214,050
13,285,434
Cost of sales
(8,279,828)
(9,279,241)
Gross profit
3,934,222
4,006,193
Administrative expenses
(3,580,222)
(3,302,263)
Operating profit
6
354,000
703,930
Interest payable and similar expenses
7
(104,624)
(117,210)
Profit before taxation
249,376
586,720
Tax on profit
9
(62,088)
(576,413)
Profit for the financial year
187,288
10,307

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DRAGON PACKAGING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
£
£
Profit for the year
187,288
10,307
Other comprehensive income
-
-
Total comprehensive income for the year
187,288
10,307
DRAGON PACKAGING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,209,914
2,276,413
Current assets
Stocks
11
669,714
468,574
Debtors
12
3,052,841
2,784,274
Cash at bank and in hand
80,576
96,201
3,803,131
3,349,049
Creditors: amounts falling due within one year
13
(4,966,554)
(3,296,983)
Net current (liabilities)/assets
(1,163,423)
52,066
Total assets less current liabilities
1,046,491
2,328,479
Creditors: amounts falling due after more than one year
14
(177,029)
(358,503)
Provisions for liabilities
Deferred tax liability
16
535,063
547,865
(535,063)
(547,865)
Net assets
334,399
1,422,111
Capital and reserves
Called up share capital
17
59
100
Profit and loss reserves
334,340
1,422,011
Total equity
334,399
1,422,111

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 5 February 2026 and are signed on its behalf by:
Mr J Cunningham
Director
Company registration number 04755583 (England and Wales)
DRAGON PACKAGING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2023
100
1,461,704
1,461,804
Year ended 31 March 2024:
Profit and total comprehensive income
-
10,307
10,307
Dividends
8
-
(50,000)
(50,000)
Balance at 31 March 2024
100
1,422,011
1,422,111
Year ended 31 March 2025:
Profit and total comprehensive income
-
187,288
187,288
Dividends
8
-
(50,000)
(50,000)
Share buyback
(41)
(1,174,959)
(1,175,000)
Balance at 31 March 2025
59
384,340
384,399
DRAGON PACKAGING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
1,830,587
798,840
Interest paid
(104,624)
(117,210)
Income taxes paid
(28,548)
-
0
Net cash inflow from operating activities
1,697,415
681,630
Investing activities
Purchase of tangible fixed assets
(192,116)
(615,178)
Net cash used in investing activities
(192,116)
(615,178)
Financing activities
Redemption of shares
(41)
-
0
Payment of finance leases obligations
(245,924)
80,829
Dividends paid
(1,274,959)
(50,000)
Net cash (used in)/generated from financing activities
(1,520,924)
30,829
Net (decrease)/increase in cash and cash equivalents
(15,625)
97,281
Cash and cash equivalents at beginning of year
96,201
(1,080)
Cash and cash equivalents at end of year
80,576
96,201
DRAGON PACKAGING LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
1
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

2
Turnover

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Packaging sales
11,790,349
12,910,581
Other sales
423,701
374,853
12,214,050
13,285,434
3
Accounting policies
Company information

Dragon Packaging Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gable House, 239 Regents Park Road, London, N3 3LF.

3.1
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £.

3.2
Going concern

A true t the time of approving the financial statements, t he director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he director continues to adopt the going concern basis of accounting in preparing the financial statements.

3.3
Turnover

Turnover represents 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.

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.

DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
3
Accounting policies
(Continued)
- 13 -
3.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
10% on reducing balance
Fixtures, fittings & equipment
15% on reducing balance
Motor vehicles
25% on reducing balance

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 credited or charged to profit or loss.

3.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

3.6
Cash at bank and in hand

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

3.7
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include 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.

DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
3
Accounting policies
(Continued)
- 14 -
Other financial assets

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.

Impairment of financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

Other financial liabilities

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 s ubsequently 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 th r ough 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

3.8
Equity instruments

Equity instruments issued by the company 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 company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
3
Accounting policies
(Continued)
- 15 -
3.9
Taxation

The tax expense represents the sum of the tax currently payable.

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

3.10
Employee benefits

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.

3.11
Leases

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 lease s asset are consumed.

4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
46
52
DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
4
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
2,014,985
1,849,687
5
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
34,839
58,229
6
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
31,750
23,000
Depreciation of tangible fixed assets
258,615
267,570
Operating lease charges
228,534
192,983
7
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost
Interest on invoice finance arrangements
77,231
90,203
Other finance costs
Interest on finance leases and hire purchase contracts
27,393
27,007
104,624
117,210
8
Dividends
2025
2024
£
£
Final paid
-
50,000
Interim paid
100,000
-
0
100,000
50,000
DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
74,890
28,548
Deferred tax
Origination and reversal of timing differences
(12,802)
547,865
Total tax charge
62,088
576,413

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
249,376
586,720
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
62,344
146,680
Tax effect of expenses that are not deductible in determining taxable profit
65,071
68,181
Tax effect of utilisation of tax losses
-
0
(33,949)
Permanent capital allowances in excess of depreciation
(52,525)
(152,364)
Deferred tax on timing differences
(12,802)
547,865
Taxation charge for the year
62,088
576,413
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2024
3,883,492
356,244
27,233
4,266,969
Additions
172,628
19,488
-
0
192,116
At 31 March 2025
4,056,120
375,732
27,233
4,459,085
Depreciation and impairment
At 1 April 2024
1,781,989
201,759
6,808
1,990,556
Depreciation charged in the year
227,413
26,096
5,106
258,615
At 31 March 2025
2,009,402
227,855
11,914
2,249,171
DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
(Continued)
- 18 -
Carrying amount
At 31 March 2025
2,046,718
147,877
15,319
2,209,914
At 31 March 2024
2,101,503
154,485
20,425
2,276,413
11
Stocks
2025
2024
£
£
Finished goods and goods for resale
669,714
468,574
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,980,137
2,692,394
Other debtors
29,432
48,223
Prepayments and accrued income
43,272
43,657
3,052,841
2,784,274
13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
15
184,215
248,665
Trade creditors
2,766,858
2,773,635
Corporation tax
74,890
28,548
Other taxation and social security
543,951
161,511
Other creditors
1,369,765
44,689
Accruals and deferred income
26,875
39,935
4,966,554
3,296,983

Other creditors includes £1,178,995 (2024: £22,350) which is secured by a fixed and floating charge over the assets of the Company.

DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
15
177,029
358,503
15
Finance lease obligations
2025
2024
Amounts due:
£
£
Within one year
184,215
248,665
After more than one year
177,029
358,503
361,244
607,168
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
221,353
277,927
In two to five years
212,185
430,415
433,538
708,342
Less: future finance charges
(72,294)
(101,174)
361,244
607,168

Finance lease payments represent rentals payable by the company 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.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
535,063
547,865
2025
Movements in the year:
£
Liability at 1 April 2024
547,865
Credit to profit or loss
(12,802)
Liability at 31 March 2025
535,063
DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
16
Deferred taxation
(Continued)
- 20 -

The deferred tax liability set out above is not expected to reverse in the short term and relates to accelerated capital allowances on plant and machinery that the company has no intention of selling in the foreseeable future.

17
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
59
100
59
100

The company purchased 41 shares in accordance with a share buyback agreement on 1 October 2024 for £1,175,000. The shares were cancelled immediately upon the buy back. The share buyback was made out of the company's distributable profits.

18
Related party transactions

During the year the company entered into the following transactions with companies under common control, related parties:

Sales
Sales
Purchases
Purchases
2025
2024
2025
2024
£
£
£
£
Vivid Solutions Limited
82,063
115,456
291,160
174,007

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due to related parties
£
£
Vivid Solutions Limited
435,870
-

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due from related parties
£
£
Vivid Solutions Limited
-
18,791
Russino International Limited
29,432
29,432
DRAGON PACKAGING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
19
Cash generated from operations
2025
2024
£
£
Profit after taxation
187,288
10,307
Adjustments for:
Taxation charged
62,088
576,413
Finance costs
104,624
117,210
Depreciation and impairment of tangible fixed assets
258,615
267,569
Movements in working capital:
(Increase)/decrease in stocks
(201,140)
279,512
(Increase)/decrease in debtors
(268,567)
206,557
Increase/(decrease) in creditors
1,687,679
(658,728)
Cash generated from operations
1,830,587
798,840
20
Analysis of changes in net debt
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
96,201
(15,625)
80,576
Lease liabilities
(607,168)
245,924
(361,244)
(510,967)
230,299
(280,668)
2025-03-31 2024-04-01 false false false CCH Software CCH Accounts Production 2025.300 Mr J Cunningham Mr G Leech 04755583 2024-04-01 2025-03-31 04755583 bus:Director1 2024-04-01 2025-03-31 04755583 bus:Director2 2024-04-01 2025-03-31 04755583 bus:RegisteredOffice 2024-04-01 2025-03-31 04755583 2025-03-31 04755583 2023-04-01 2024-03-31 04755583 core:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 04755583 core:RetainedEarningsAccumulatedLosses 2024-04-01 2025-03-31 04755583 2024-03-31 04755583 core:PlantMachinery 2025-03-31 04755583 core:FurnitureFittings 2025-03-31 04755583 core:MotorVehicles 2025-03-31 04755583 core:PlantMachinery 2024-03-31 04755583 core:FurnitureFittings 2024-03-31 04755583 core:MotorVehicles 2024-03-31 04755583 core:CurrentFinancialInstruments 2025-03-31 04755583 core:CurrentFinancialInstruments 2024-03-31 04755583 core:Non-currentFinancialInstruments 2025-03-31 04755583 core:Non-currentFinancialInstruments 2024-03-31 04755583 core:ShareCapital 2025-03-31 04755583 core:ShareCapital 2024-03-31 04755583 core:RetainedEarningsAccumulatedLosses 2025-03-31 04755583 core:RetainedEarningsAccumulatedLosses 2024-03-31 04755583 core:ShareCapital 2023-03-31 04755583 core:RetainedEarningsAccumulatedLosses 2023-03-31 04755583 core:ShareCapitalOrdinaryShareClass1 2025-03-31 04755583 core:ShareCapitalOrdinaryShareClass1 2024-03-31 04755583 2024-03-31 04755583 2023-03-31 04755583 core:PlantMachinery 2024-04-01 2025-03-31 04755583 core:FurnitureFittings 2024-04-01 2025-03-31 04755583 core:MotorVehicles 2024-04-01 2025-03-31 04755583 core:UKTax 2024-04-01 2025-03-31 04755583 core:UKTax 2023-04-01 2024-03-31 04755583 1 2024-04-01 2025-03-31 04755583 1 2023-04-01 2024-03-31 04755583 core:PlantMachinery 2024-03-31 04755583 core:FurnitureFittings 2024-03-31 04755583 core:MotorVehicles 2024-03-31 04755583 core:WithinOneYear 2025-03-31 04755583 core:WithinOneYear 2024-03-31 04755583 core:BetweenTwoFiveYears 2025-03-31 04755583 core:BetweenTwoFiveYears 2024-03-31 04755583 bus:OrdinaryShareClass1 2024-04-01 2025-03-31 04755583 bus:OrdinaryShareClass1 2025-03-31 04755583 bus:OrdinaryShareClass1 2024-03-31 04755583 bus:PrivateLimitedCompanyLtd 2024-04-01 2025-03-31 04755583 bus:FRS102 2024-04-01 2025-03-31 04755583 bus:Audited 2024-04-01 2025-03-31 04755583 bus:FullAccounts 2024-04-01 2025-03-31 xbrli:pure xbrli:shares iso4217:GBP