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Registered number: 00761199









Packaging Automation Limited









Annual report and financial statements

For the Year Ended 30 September 2025

 
Packaging Automation Limited
 
 
Company Information


Directors
N Ashton 
S Ashton 
F J Cooke 
W G Holden 
C A Penn 
D Schumacker 




Company secretary
C A Penn



Registered number
00761199



Registered office
Unit 1, Montgomery Close
Parkgate Industrial Park

Knutsford

WA16 8XW




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Bankers
Barclays Bank Plc
1st Floor

3 Hardman Street

Spinningfields

Manchester

M3 3HF





 
Packaging Automation Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 31


 
Packaging Automation Limited
 
 
Strategic Report
For the Year Ended 30 September 2025

Introduction
 
The company's principal activity is the design and manufacture of packaging machinery and weighing equipment for sale and hire within a wide range of sectors in the UK and overseas.

Packaging Automation Limited is primarily engaged in the design and manufacture of packaging machinery and weighing equipment, with its products being available both for sale and hire across a broad range of sectors in the United Kingdom and internationally. As a recognised leader in the tray sealing, pot filling, and weighing markets, the company consistently allocates substantial resources to research and development each year. This ongoing commitment to innovation and new product development enables Packaging Automation Limited to continually increase its market share within both domestic and export markets. The advanced products provided by the company are designed to deliver the latest technological advancements to customers, supporting efficiency improvements and helping to minimise environmental impact. 

Business review
 
The results for the year ending 30 September 2025 show a pre-tax profit of £147,493 (2024: £174,101) on a turnover of £11,846,588 (2024: £11,143,038).

Increased sales from the new Rev machinery range, combined with growing demand for aftersales parts and service, contributed to higher turnover.

However, ongoing inflation in raw material and labour markets continued to place pressure on gross profit.

Targeted investment in the aftermarket team further strengthened the company’s ability to deliver high quality customer service and aftersales support. This strategic focus continues to reinforce Packaging Automation Limited’s reputation as a market leader in customer support and preventative maintenance.

Principal risks and uncertainties
 
There are a variety of business risks which can affect the company of the size and complexity of Packaging Automation Limited, including cost pressures and severe competition.

The company's operations expose it to a number of financial risks, which include the effects of credit risk, this is managed through strict credit control procedures. The credit and hire terms employed, limit exposure to credit risk ensuring a significant percentage of cash is collected in advance of delivery of goods. Trade debtors are reviewed on a regular basis, with a very low level of bad debt experienced by the company. The company does not actively use financial instruments as part of its financial risk management.  The company will continue to focus on new global opportunities to spread economic risk and limit exposure to any one country and economic conditions. 

Financial performance is continually monitored through a wide range of KPIs including but not limited to turnover, gross profit and cash. KPIs are also used across the business to monitor and improve customer service including quality, delivery performance, speed of customer sign off post machinery installation and service satisfaction scores.


2024-25
2023-24
2022-23
Operating profit
2.0%
2.2%
(4.1)%
Increase/(decrease) in turnover
6.3%
(0.1)%
(18.0)%
Stock days
92
114
139


Page 1

 
Packaging Automation Limited
 

Strategic Report (continued)
For the Year Ended 30 September 2025

Research and development
 
As a market leader, Packaging Automation Limited places strong emphasis on ongoing research and development and continues to invest in creating and protecting intellectual property. In 2025, the company further expanded the Rev tray sealing product range while continuing to explore emerging technologies.

R&D efforts remain firmly focused on ensuring long term compatibility with evolving sustainable packaging formats, supporting customers as environmental requirements and material technologies advance.


This report was approved by the board and signed on its behalf.



C A Penn
Director

Date: 17 February 2026

Page 2

 
Packaging Automation Limited
 
 
 
Directors' Report
For the Year Ended 30 September 2025

The directors present their report and the financial statements for the year ended 30 September 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Results and dividends

The profit for the year, after taxation, amounted to £161,433 (2024 - £97,942).

The directors do not recommend payment of a final dividend. 

Directors

The directors who served during the year were:

N Ashton 
S Ashton 
F J Cooke 
W G Holden 
C A Penn 
D Schumacker 

Future developments

The directors remain confident in the company’s prospects for continued growth both in the UK and overseas, driven by the ongoing expansion of the tray sealing machinery range. Future development work will focus on enhancing machine design to improve product shelf life, reduce food waste, and increase energy efficiency—ensuring alignment with shifting customer and market priorities.

Page 3

 
Packaging Automation Limited
 
 
 
Directors' Report (continued)
For the Year Ended 30 September 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

Subsequent to the year end, the company’s ownership structure changed following the transfer of a majority of the issued share capital to a trust. As a result of this transfer, control of the company has passed to the trustees of that trust, being S Ashton, N Ashton, D Schumacker and C A Penn.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 



C A Penn
Director

Date: 17 February 2026

Page 4

 
Packaging Automation Limited
 
 
 
Independent auditors' report to the members of Packaging Automation Limited
 

Opinion


We have audited the financial statements of Packaging Automation Limited (the 'Company') for the year ended 30 September 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 30 September 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 Auditors' 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 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.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
Packaging Automation Limited
 
 
 
Independent auditors' report to the members of Packaging Automation Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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 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
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or 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 directors' 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 Directors' Responsibilities Statement set out on page 3, 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 directors determine 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 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
Packaging Automation Limited
 
 
 
Independent auditors' report to the members of Packaging Automation Limited (continued)


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 Auditors' 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.


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:

Identifying and assessing potential risks related to irregularities

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector, control environment and business performance including key drivers for directors' remuneration and bonus levels;
Enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to:
°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
°The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
Discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
Obtaining and understanding of the legal frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or that had a fundamental effect on the operations of the Company, including General Data Protection Regulation and Anti-Bribery and Corruption Policy.
Revenue recognition gives rise to a risk of material misstatement due to fraud. Revenue may be recognised in the wrong period.

Audit response to risks identified

Our procedures to respond to risks identified included the following:
 
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Evaluation of management's controls designed to prevent and deter irregularities;
Enquiring of management about any actual or potential litigation and claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material missstatement due to fraud;
Reading minutes of meetings of those charged with governance;
Testing a sample of customer orders throughout the year and at the year end, ensuring the revenue had been recognised in line with the United Kingdom's Generally Accepted Accounting Practice.

Page 7

 
Packaging Automation Limited
 
 
 
Independent auditors' report to the members of Packaging Automation Limited (continued)


We have also considered the risks noted above in addressing the risk of fraud through management override of controls:
 
Testing the appropriateness of journal entries and other adjustments; we have used data analytics software to run tests designed to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error;
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluation of the business rationale of any significant transactions that are unusual or outside the normal course of business.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.



Anthony Woodings (Senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

17 February 2026
Page 8

 
Packaging Automation Limited
 
 
Statement of Comprehensive Income
For the Year Ended 30 September 2025

2025
2024
Note
£
£

  

Turnover
 4 
11,846,588
11,143,038

Cost of sales
  
(8,182,975)
(7,245,706)

Gross profit
  
3,663,613
3,897,332

Administrative expenses
  
(3,427,508)
(3,649,746)

Operating profit
 5 
236,105
247,586

Interest receivable and similar income
 9 
9,955
12,692

Interest payable and similar expenses
 10 
(98,567)
(86,177)

Profit before tax
  
147,493
174,101

Tax on profit
 11 
13,940
(76,159)

Profit for the financial year
  
161,433
97,942

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 14 to 31 form part of these financial statements.



Page 9

 
Packaging Automation Limited
Registered number: 00761199

Balance Sheet
As at 30 September 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,651,565
2,885,289

Current assets
  

Stocks
 14 
1,232,943
1,438,437

Debtors: amounts falling due within one year
 15 
1,550,407
1,663,382

Cash at bank and in hand
 16 
861,203
797,441

  
3,644,553
3,899,260

Creditors: amounts falling due within one year
 17 
(2,425,300)
(3,777,312)

Net current assets
  
 
 
1,219,253
 
 
121,948

Total assets less current liabilities
  
3,870,818
3,007,237

Creditors: amounts falling due after more than one year
 18 
(1,421,308)
(531,892)

Provisions for liabilities
  

Deferred tax
 22 
(260,215)
(274,155)

  
 
 
(260,215)
 
 
(274,155)

Net assets
  
2,189,295
2,201,190


Capital and reserves
  

Called up share capital 
 23 
57,000
57,000

Capital redemption reserve
 24 
43,000
43,000

Profit and loss account
 24 
2,089,295
2,101,190

  
2,189,295
2,201,190


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


C A Penn
Director
Date: 17 February 2026

The notes on pages 14 to 31 form part of these financial statements.

Page 10

 
Packaging Automation Limited
 

Statement of Changes in Equity
For the Year Ended 30 September 2025


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 October 2024
57,000
43,000
2,101,190
2,201,190


Comprehensive income for the year

Profit for the year
-
-
161,433
161,433
Total comprehensive income for the year
-
-
161,433
161,433

Dividends: Equity capital
-
-
(173,328)
(173,328)


Total transactions with owners
-
-
(173,328)
(173,328)


At 30 September 2025
57,000
43,000
2,089,295
2,189,295


The notes on pages 14 to 31 form part of these financial statements.


Statement of Changes in Equity
For the Year Ended 30 September 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 October 2023
57,000
43,000
2,227,135
2,327,135


Comprehensive income for the year

Profit for the year
-
-
97,942
97,942
Total comprehensive income for the year
-
-
97,942
97,942

Dividends: Equity capital
-
-
(223,887)
(223,887)


Total transactions with owners
-
-
(223,887)
(223,887)


At 30 September 2024
57,000
43,000
2,101,190
2,201,190


The notes on pages 14 to 31 form part of these financial statements.

Page 11

 
Packaging Automation Limited
 

Statement of Cash Flows
For the Year Ended 30 September 2025

2025
2024
£
£

Cash flows from operating activities

Profit for the financial year
161,433
97,942

Adjustments for:

Depreciation of tangible assets
414,166
481,647

Profit on disposal of tangible assets
(215,359)
(587,903)

Interest paid
98,567
86,177

Interest received
(9,955)
(12,692)

Taxation charge
(13,940)
76,159

Decrease in stocks
205,494
358,416

Decrease/(increase) in debtors
112,975
(487,851)

(Decrease)/increase in creditors
(212,213)
81,617

Net cash generated from operating activities

541,168
93,512


Cash flows from investing activities

Purchase of tangible fixed assets
(140,974)
(261,852)

Sale of tangible fixed assets
247,427
885,022

Interest received
9,955
12,692

HP interest paid
(18,116)
(12,208)

Net cash from investing activities

98,292
623,654

Cash flows from financing activities

Repayment of loans
(212,869)
(279,450)

Repayment of finance leases
(109,050)
(113,899)

Dividends paid
(173,328)
(223,887)

Interest paid
(80,451)
(73,969)

Net cash used in financing activities
(575,698)
(691,205)

Net increase in cash and cash equivalents
63,762
25,961

Cash and cash equivalents at beginning of year
797,441
771,480

Cash and cash equivalents at the end of year
861,203
797,441


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
861,203
797,441

861,203
797,441


The notes on pages 14 to 31 form part of these financial statements.

Page 12

 
Packaging Automation Limited
 

Analysis of Net Debt
For the Year Ended 30 September 2025





At 1 October 2024
Cash flows
New finance leases
At 30 September 2025
£

£

£

£

Cash at bank and in hand

797,441

63,762

-

861,203

Debt due after 1 year

(315,366)

(926,474)

-

(1,241,840)

Debt due within 1 year

(1,284,528)

1,139,343

-

(145,185)

Finance leases

(320,987)

163,287

(125,773)

(283,473)


(1,123,440)
439,918
(125,773)
(809,295)

The notes on pages 14 to 31 form part of these financial statements.

Page 13

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

1.


General information

Packaging Automation Limited is a private company limited by members capital incorporated in England, registered number 00761199.  The address of the registered office and principal place of business is Unit 1, Montgomery Close, Parkgate Industrial Park, Knutsford, Cheshire, WA16 8XW.

The nature of the company's operation and its principal activity is the design and manufacture of packaging machinery for sale and hire within a wide range of sectors in the UK and overseas.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from sale of machines is recognised on delivery of the machines. Revenue includes sales made under finance leases, which are included at normal selling value. 

Finance lease interest charged on the sales made under finance leases is recognised over the period of the lease so as to produce a constant rate of return. Debtors under finance leases represent outstanding amounts due under these arrangements less finance charges allocated to future periods. 

Revenue from rental of hire machines under operating leases is recognised on a straight line basis over the period of the lease. Assets held by the company for leasing under operating leases are capitalised as tangible fixed assets. 

Page 14

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

2.Accounting policies (continued)

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Straight line
Short-term leasehold property
-
7%
Straight line
Plant and machinery
-
10%
Straight line
Motor vehicles
-
25%
Straight line
Fixtures and fittings
-
10%
Straight line
Computer equipment
-
20%
Straight line
Hire machines
-
20%
Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.4

Research and development costs

Research and development expenditure is written off in the year in which it is incurred. 

 
2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

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.

 
2.6

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. Long term debtors are measured at transaction price, less any impairment. 

Page 15

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

2.Accounting policies (continued)

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.8

Financial instruments

The company only enters into basic financial instrument transactions that result in the recongition of financial assets and liabilities like trade and other detbros and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are
measured, initially and subsequently, at the undisclosed amount of the cash or other consideration expected to
be paid or received.

Financial assets that are 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 Statement of Income and Retained Earnings.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an
assets's carying amount and the present value of estimated cash flows.

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

 
2.9

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 16

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

2.Accounting policies (continued)

 
2.10

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

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 except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.

 
2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.13

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.14

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 17

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

2.Accounting policies (continued)

 
2.15

Leased assets: the Company as lessor

Where assets leased to a third party give rights approximating to ownership (finance lease), the lessor recognises as a receivable an amount equal to the net investment in the lease i.e. the minimum lease payments receivable under the lease discounted at the interest rate implicit in the lease. This receivable is reduced as the lessee makes capital payments over the term of the lease.

A finance lease gives rise to two types of income: profit or loss equivalent to the profit or loss resulting from outright sale of the asset being leased, at normal selling prices, reflecting any applicable discounts, and finance income over the lease term.

 
2.16

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. 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 profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.17

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. 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 accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.19

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.20

Borrowing costs

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

Page 18

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 19

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Leased assets

Judgement is required in the classification of a lease at inception and after any material amendment to assess whether  substantially all the significant risks and rewards of ownership accrue to the lessor or the lessee. 

Provision for impairment loss on trade debtors

The management of the company exercises significant judgement in providing for impairment loss on trade debtors. The value of trade debtors at the year end totalled £1,228,793 (2024: £1,299,879). 

Provision for obsolete and slow moving stocks

The company reviews its stocks to assess loss on account of obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in the profit or loss, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. The value of stock at the year end totalled £1,232,943 (2024: £1,438,437). 

Other estimates and judgements

Management of the company also exercises significant judgement in estimating the useful life of tangible fixed assets. The net book value of tangible fixed assets at the year end totalled £2,651,565 (
2024: £2,885,289). 

Should these estimates vary, the profit or loss and balance sheet of the following years could be impacted.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

Analysis of turnover by country of destination:


2025
2024
£
£


United Kingdom
7,319,717
7,012,962

Rest of Europe
3,623,947
3,288,109

Rest of World
902,923
841,967

11,846,587
11,143,038

Page 20

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Research & development charged as an expense
26,757
26,010

Exchange differences
3,774
(4,672)

Other operating lease rentals
31,220
31,200

Depreciation of tangible fixed assets
414,166
481,647

Profit on sale of assets
(215,359)
(587,903)

Rentals receivable during the year under finance leases amounted to £nil (2024: £15,784).

Profits and losses on the disposal of fixed assets are considered to be part of the normal activities of the company, and as such profits and losses are included in the operating results of the company.


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2025
2024
£
£

Statutory audit
14,245
13,640

Preparation of statutory accounts
6,475
6,200

Preparation of corporation tax computation

5,180
4,960

25,900
24,800

7.


Employees

The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Direct labour
80
85



Administration
16
16

96
101

Page 21

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025


Staff costs, including directors' remuneration, were as follows:

2025
2024
£
£



Wages and salaries
4,041,452
4,049,832

Social security costs
427,141
324,247

Cost of defined contribution scheme
152,249
145,200

4,620,842
4,519,279


8.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
434,826
451,415

Company contributions to defined contribution pension schemes
4,595
3,940

439,421
455,355


During the year retirement benefits were accruing to 1 directors (2024 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £167,551 (2024 - £180,240).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2024 - £NIL).

There are no other key management personnel. 


9.


Interest receivable

2025
2024
£
£


Other interest receivable
9,955
12,692


10.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
80,451
73,969

Finance leases and hire purchase contracts
18,116
12,208

98,567
86,177

Page 22

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

11.


Taxation


2025
2024
£
£

Deferred tax


Origination and reversal of timing differences
(13,940)
76,159


Taxation on (loss)/profit on ordinary activities
(13,940)
76,159

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
147,493
174,101


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
36,873
43,525

Effects of:


Expenses not deductible for tax purposes
4,160
3,722

Ineligible depreciation
28,912
28,912

Short term timing difference leading to an increase (decrease) in taxation
(83,885)
-

Total tax charge for the year
(13,940)
76,159


Factors that may affect future tax charges

There are tax losses carried forward of £619,525 available to offset future trading taxable profits.


12.


Dividends

2025
2024
£
£


Ordinary shares
173,328
223,887

Page 23

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

13.


Tangible fixed assets





Freehold property
Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings

£
£
£
£
£



Cost or valuation


At 1 October 2024
2,242,881
155,528
2,413,782
184,620
605,370


Additions
-
-
42,710
125,773
-


Disposals
-
-
-
(126,549)
-


Transfers between classes
-
-
(13,820)
-
-



At 30 September 2025

2,242,881
155,528
2,442,672
183,844
605,370



Depreciation


At 1 October 2024
809,315
155,528
1,694,315
97,962
552,046


Charge for the year
38,855
-
110,137
28,761
13,284


Disposals
-
-
-
(76,547)
-



At 30 September 2025

848,170
155,528
1,804,452
50,176
565,330



Net book value



At 30 September 2025
1,394,711
-
638,220
133,668
40,040



At 30 September 2024
1,433,566
-
719,467
86,658
53,324
Page 24

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

           13.Tangible fixed assets (continued)


Computer equipment
Hire machines
Total

£
£
£



Cost or valuation


At 1 October 2024
857,096
1,712,240
8,171,517


Additions
27,876
70,388
266,747


Disposals
-
(248,970)
(375,519)


Transfers between classes
13,820
-
-



At 30 September 2025

898,792
1,533,658
8,062,745



Depreciation


At 1 October 2024
742,934
1,234,128
5,286,228


Charge for the year
44,800
178,329
414,166


Disposals
-
(212,667)
(289,214)



At 30 September 2025

787,734
1,199,790
5,411,180



Net book value



At 30 September 2025
111,058
333,868
2,651,565



At 30 September 2024
114,162
478,112
2,885,289

Included in land and buildings is freehold land at cost £171,573 (2024: £171,573) which is not depreciated.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2025
2024
£
£


Plant and machinery
105,400
184,450

Motor vehicles
125,773
84,366

231,173
268,816

Page 25

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

14.


Stocks

2025
2024
£
£

Raw materials and consumables
964,961
985,255

Work in progress (goods to be sold)
267,982
453,182

1,232,943
1,438,437


An impairment loss of £22,031 (2024 - £25,543)was recognised in profit and loss due to slow-moving and obsolete stock.


15.


Debtors

2025
2024
£
£


Trade debtors
1,228,793
1,299,879

Other debtors
77,690
149,993

Prepayments and accrued income
243,924
213,510

1,550,407
1,663,382


An impairment loss of £10,024 (2024: £253) was recognised in profit and loss against trade debtors.

Trade debtors includes £nil (
2024: £3,946) receivable under sales under finance leases within one year.


16.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
861,203
797,441


Page 26

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

17.


Creditors: Amounts falling due within one year

2025
2024
£
£

Bank loans
145,185
1,284,528

Trade creditors
861,043
1,168,345

Other taxation and social security
212,759
228,012

Obligations under finance lease and hire purchase contracts
104,005
104,461

Other creditors
878,760
551,301

Accruals and deferred income
223,548
440,665

2,425,300
3,777,312


On 7 February 2020 a bank loan totalling £1,500,000 was taken out and is secured by a debenture and charge over the commercial freehold property. During the year, the company renegotiated the terms of this existing loan facility. The original loan was not repaid; instead, the facility was refinanced through a modification of the existing agreement. The revised terms include a new interest rate of 2% over base rate. The loan continues to be repaid on a monthly basis.

On 24 April 2020 a bank loan totalling £500,000 was taken out under the Coronavirus Business Interruption Loan Scheme. During the year, the company repaid the outstanding loan facility in full. No amounts remain payable at the year end.

On 23 July 2023 a bank loan totalling £500,000 was taken out under the Recovery Loan Scheme and is secured by a debenture and charge over the commercial freehold property. The related interest rate is 7%. The loan is repaid on a monthly basis.

Finance leases and hire purchase liabilities are secured on the assets to which they relate.

Page 27

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

18.


Creditors: Amounts falling due after more than one year

2025
2024
£
£

Bank loans
1,241,840
315,366

Net obligations under finance leases and hire purchase contracts
179,468
216,526

1,421,308
531,892


On 7 February 2020 a bank loan totalling £1,500,000 was taken out and is secured by a debenture and charge over the commercial freehold property. During the year, the company renegotiated the terms of this existing loan facility. The original loan was not repaid; instead, the facility was refinanced through a modification of the existing agreement. The revised terms include a new interest rate of 2% over base rate. The loan continues to be repaid on a monthly basis.

On 24 April 2020 a bank loan totalling £500,000 was taken out under the Coronavirus Business Interruption Loan Scheme. During the year, the company repaid the outstanding loan facility in full. No amounts remain payable at the year end.

On 23 July 2023 a bank loan totalling £500,000 was taken out under the Recovery Loan Scheme and is secured by a debenture and charge over the commercial freehold property. The related interest rate is 7%. The loan is repaid on a monthly basis.

Finance leases and hire purchase liabilities are secured on the assets to which they relate.


19.


Loans


Analysis of the maturity of loans is given below:


2025
2024
£
£

Amounts falling due within one year

Bank loans
145,185
1,284,528

Amounts falling due 1-2 years

Bank loans
1,193,861
315,366

Amounts falling due 2-5 years

Bank loans
47,979
-

1,387,025
1,599,894


On 31 January 2025, a bank loan facility totalling £1,096,473 was renewed for another 5 years.

Page 28

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2025
2024
£
£


Within one year
104,005
104,461

Between 1-5 years
179,468
216,526

283,473
320,987


21.


Finance lease receivables

At the balance sheet date, the Company had contracted with customers for the following future minimum lease rentals receivable under finance leases:


2025
2024
£
£



Within one year
-
3,946





The Company did not enter into any new finance lease agreements in the year (2024: £nil).


22.


Deferred taxation




2025
2024


£

£






At beginning of year
(274,155)
(197,996)


Charged to profit or loss
13,940
(76,159)



At end of year
(260,215)
(274,155)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
(421,918)
(451,308)

Other timing differences
161,703
177,153

(260,215)
(274,155)

Page 29

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

23.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



57,000 (2024 - 57,000) Ordinary shares of £1.00 each
57,000
57,000



24.


Reserves

Capital redemption reserve

The capital redemption reserve records the nominal value of shares repurchased by the company. 

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses. 


25.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £152,249 (2024: £145,200). Contributions totalling £27,286 (2024: £24,399) were payable to the fund at the balance sheet date.


26.


Commitments under operating leases

At 30 September 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£



Not later than 1 year
45,322
113,103

Later than 1 year and not later than 5 years
17,908
62,313

63,230
175,416

Page 30

 
Packaging Automation Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 30 September 2025

27.


Commitments under operating leases - lessor

At the balance sheet date, the Company had contracted with customers for the following future minimum lease rentals receivable under non-cancellable operating leases:


2025
2024
£
£



Not later than 1 year
41,084
33,811

The nature of all of the operating leases were in relation to machinery.


28.


Related party transactions

During the year, the company made purchases of £64,227 (2024: £69,867) from a company in which the sole director is a close family member of a director. At the year end £5,234 (2024: £19,463) was due to that company and is included in trade creditors. 

Dividends were paid to directors totalling £173,328 (
2024: £223,887). 


29.


Controlling party

During the year and at the year end, the company was controlled by C A Penn.  

Subsequent to the year end, the company’s ownership structure changed following the transfer of a majority of the issued share capital to a trust. As a result of this transfer, control of the company has passed to the trustees of that trust, being S Ashton, N Ashton, D Schumacker and C A Penn.

 
Page 31