The directors present the strategic report for the year ended 31 December 2025.

Background

Preston Board & Packaging Limited is a long-established supplier of paperboard, laminated chipboard and associated packaging products, with more than 40 years of experience serving customers throughout the United Kingdom. The business was founded in 1981 by the current owners, David Hardman and Charles Ingham, and has developed a strong reputation for product quality, technical knowledge, reliability of supply and customer service.

The company remains the last privately owned chipboard mill in the United Kingdom, an important distinction within a sector that has seen significant consolidation over recent decades. This independence allows the business to maintain close relationships with customers and suppliers and to respond flexibly to changing market requirements.

In 1994 the group acquired the Romiley Board Mill in Romiley, Cheshire, which at the time was a key supplier of unlined chipboard to the laminating facility in Preston. The integration of the Preston and Romiley operations created a more capable and efficient manufacturing and distribution business, enabling greater control over the supply chain and improving service levels to customers.

During the current financial year the group implemented a restructuring of its operations, separating the Preston and Romiley sites into distinct trading companies. The principal objective of this change was to provide greater operational focus and accountability for each site and to support future strategic development. As a consequence of this restructuring, turnover and gross profit reported in Preston Board & Packaging Limited have reduced compared with the prior year, and the year-on-year comparison should be considered in that context.

During the year the company continued its principal activity of supplying board and packaging products to a broad range of industrial and commercial customers.

The directors monitor several key performance indicators, with particular emphasis on turnover and gross profit margin, as these measures provide a clear indication of market activity, pricing conditions and operational performance.

The 2025 financial year was particularly challenging for the UK paper and board industry. Significant oversupply across European markets resulted in increased volumes of board being imported into the UK, creating substantial downward pressure on selling prices. At the same time, the industry continued to experience elevated operating costs, including higher labour, energy and raw material costs. These factors combined to compress margins across many product categories.

Management responded to these conditions by maintaining a disciplined approach to pricing, closely monitoring inventory levels, reviewing production volumes and continuing to pursue new business opportunities. Encouragingly, a number of new market opportunities were secured after the year end, and the company has continued to support the requirements of its established customer base throughout the period.

Turnover decreased by 23% to £29,184,000 (2024: £38,121,000), principally reflecting the separation of the Preston and Romiley operations during the year. Gross margin reduced to 22% (2024: 25%), reflecting the weaker pricing environment and higher input costs.

The company has continued to focus on cost control and operational efficiency. Expenditure has been reviewed across all areas of the business, and management has sought to fix prices where commercially practical in order to reduce exposure to market volatility. The price and availability of raw materials and energy remained significant factors throughout the year, and uncertainty within the paper import market contributed further to price reductions.

As a result of the factors described above, profit after taxation for the year was £1,045,000 (2024: £2,420,000). While profitability was lower than the previous year, the directors consider the result to be resilient in the context of the exceptionally difficult trading conditions experienced across the sector.

European trade risk

Management considers the availability and pricing of board materials to be one of the company’s principal commercial risks. Increased sales activity by European board mills in the UK market has intensified competition and placed downward pressure on domestic selling prices. The company mitigates this risk through careful production planning, active management of inventory levels, diversification of supply sources and, where appropriate, reductions in board mill output to align production with market demand.

Energy price risk

Energy costs remain a material component of the company’s manufacturing cost base. Wholesale gas prices declined during the year from approximately 120 pence per therm at the start of the year to below 80 pence per therm by the year end. To reduce exposure to future price volatility, the company has entered into forward purchasing arrangements for a proportion of its energy requirements. Although energy markets remain subject to external influences, the extreme price spikes experienced in earlier years have moderated.

Legislative and regulatory risk

The directors continue to monitor developments in legislation and regulation that may affect the company’s operations. Particular attention is given to environmental regulation, greenhouse gas emissions reporting requirements, waste management obligations and the UK’s transition towards Net Zero. Compliance with environmental standards may require additional investment in plant, processes and reporting systems, and the board regularly reviews these requirements as part of its strategic planning process.

Foreign currency risk

Although the company operates solely within the United Kingdom, it purchases and sells certain goods and services denominated in currencies other than sterling. Consequently, movements in exchange rates can affect the sterling value of purchases, revenues, financial assets, liabilities and cash flows. The company’s policy is not to enter into forward foreign exchange contracts, and exposure is managed through operational controls, supplier negotiations and ongoing monitoring of currency movements.

Liquidity risk

Liquidity risk is managed through careful control of cash generation, working capital and debtor collections. The business maintains regular cash flow forecasting and applies credit control procedures designed to minimise the risk of non-payment. The company is funded through group resources and is not dependent on external bank borrowing for its ongoing operations.

Price risk

The company is exposed to changes in market prices for board, paper and related raw materials. It does not enter into swap, option or other derivative financial instruments, and no trading in derivative financial instruments took place during the year. Management seeks to mitigate price risk through commercial negotiations, customer pricing reviews and operational efficiency measures.

The company continued to invest during the year in its board recycling division in order to improve processing capability, increase operational efficiency and support entry into new markets. Recycling remains an important strategic area for the business, both commercially and environmentally, and the directors believe that continued investment in this division will enhance the company’s long-term competitive position.

Despite the challenging trading environment, the directors believe that the company remains well positioned to benefit from future opportunities across its manufacturing, recycling and packaging activities.

Future developments

The directors continue to analyse market trends and customer requirements with the objective of identifying additional growth opportunities and developing new revenue streams. As part of this strategy, the company is progressing plans to open a third operational unit, which is expected to increase capacity, broaden the product offering and support expansion into new markets.

The board remains focused on strengthening the company’s market position, improving operational efficiency and investing selectively in areas capable of generating sustainable long-term growth.

This statement describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 in carrying out their duties during the financial year ended 31 December 2025.

The directors consider that they have acted in good faith and in a manner most likely to promote the success of the company for the benefit of its members as a whole, while having regard to the interests of employees, customers, suppliers, the community and the environment.

The principal stakeholders of the company are its employees, customers, suppliers and the local communities in which it operates. The board recognises that maintaining strong relationships with these groups is fundamental to the long-term success of the business.

Strategic objectives and long-term growth plans are monitored regularly through departmental and board reviews covering health, safety, quality and environmental matters (HSQE), financial performance, operations, human resources and principal risks and opportunities. These reviews support informed decision-making and ensure that operational activities remain aligned with the company’s strategic priorities.

HSQE considerations are central to the management of the business. The company is committed to maintaining safe working practices, protecting the health and wellbeing of employees and contractors, and minimising the environmental impact of its operations. The directors regard these matters as essential both to business performance and to maintaining the trust of stakeholders.

The company seeks to conduct all of its activities in a clear, fair and trustworthy manner. This approach is reflected in the long service of many employees and managers and in the longstanding relationships maintained with customers and suppliers.

Employee engagement remains a priority for the board. Employees are kept informed through meetings, newsletters and written and verbal communications, and their views are considered through consultation processes and working groups where appropriate. The company’s policy is to consult employees on matters affecting them and to comply with all relevant employment legislation and procedures.

Customer service continues to be a key differentiator for the business. Through the efforts of management and employees, the company seeks continuously to improve the quality of its products, responsiveness and technical support, with the objective of creating long-term value for customers and other stakeholders.

The company maintains constructive relationships with suppliers and seeks to deal with them fairly and responsibly. Credit arrangements are managed carefully, and robust debtor management procedures are maintained in order to protect cash flow and reduce exposure to bad debts.

The directors have overall responsibility for setting the company’s strategy, promoting its values and maintaining appropriate standards of governance. Their primary objective is to achieve the long-term sustainable success of the business and to generate value for shareholders while balancing the interests of all stakeholders.

During the forthcoming financial year the board will continue to review and enhance its engagement with employees, customers, suppliers and other stakeholders and will continue to challenge the effectiveness of those arrangements as part of its commitment to continuous improvement.

Equality and diversity

The company is committed to equal opportunities and seeks to ensure that all employees and stakeholders are treated fairly and with respect, regardless of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. Employment decisions are based on merit, qualifications and business needs, and the company aims to provide an inclusive working environment in which individuals are able to develop and contribute fully to the success of the business.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be the manufacture and conversion of board and packaging materials.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £535,000. The directors do not recommend payment of a further dividend.

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

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

The company is not required to report its carbon emissions and energy use data because this information is disclosed, on a consolidated basis, in the financial statements of Marblegrange Limited. Copies of these financial statements can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business, principal risks and uncertainties and financial risk management.

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.

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;

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

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

• 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Preston Board and Packaging Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including material 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 December 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 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 ethical responsibilities in accordance with those 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 auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial 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.

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.

As explained more fully in the directors' responsibilities statement, 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.

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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

• Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;

• Enquires with management about any known or suspected instances of fraud;

• Auditing the risk of fraud in revenue by testing a sample of transactions throughout the year, to ensure they have been recorded within the accounts;

• Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls; and

• Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.

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 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.

Preston Board and Packaging Limited is a private company limited by shares incorporated in England and Wales. The registered office is Arkwright Mill, Greenbank Street, Preston, PR1 7JS.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention, modified to include deemed cost. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the parent company are consolidated in the financial statements of Marblegrange Limited which are available from Companies House, Crown Way, Cardiff CF14 3UZ.

The directors have considered the impact of the principal risks and uncertainties on the business going forward. Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The turnover shown in the profit and loss account represents the value of all goods sold during the period, less returns received, at selling price exclusive of Value Added Tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the products, such as obsolescence, have been transferred to the customer.

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

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

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.

An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the selling price less the expected sales margin.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of

stocks over its estimated selling price is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash at bank and in hand 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.

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, 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.

The company has no assets that fall under the definition of other 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.

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The company has no liabilities that fall under the definition of other financial liabilities.

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

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.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The useful economic life of tangible fixed assets is judged at the point of purchase and reviewed at each balance sheet date. Further details are provided within note 1.4 to the financial statements. Freehold land is not depreciated.

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

Their aggregate remuneration comprised:

The actual (credit)/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:

On 1 April 2025, Preston Board and Packaging Limited transferred the trade and assets of the Preston branch of the company to PBP 24 Limited, a fellow group subsidiary.

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the reporting end date, the pension creditor was £nil (2024: £4,000).

The cumulative revaluation gains and losses in respect of land and buildings, except revaluation gains and losses recognised in profit or loss.

Cumulative profit and loss net of distributions to owners.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The directors consider the ultimate parent company to be Marblegrange Limited which is the only group undertaking that prepares group accounts including the financial statements of the company.

Copies of the group accounts of Marblegrange Limited will be delivered to, and will be available from, The Registrar of Companies, Companies Registration Office, Companies House, Maindy, Cardiff, CF14 3UZ.

On 31 January 2023 the Marblegrange Limited issued new classes of share capital, subsequently the company has no ultimate controlling party.