Financial Statements
For the year ended 31 December 2025
Registered number: 03218045
Company Information
Contents
Strategic report
For the year ended 31 December 2025
The directors present their Strategic report for the year ended 31 December 2025.
The profit for the year amounted to £563,386 (2024: £431,457).
On 26 February 2025 MM Bangor Ltd was purchased by Cordovan Acquisitions II Limited and on 29 May 2025 the company changed its name to CB Paper Sacks Ltd.
The Company is confident that recent investments in equipment and automation will enable it to maintain its competitive advantage in the face of increased competition. The Directors regard further investment in both production and people as necessary for continuing success in the medium to long term future.
The Company operates in an environment subject to a range of risks and uncertainties which are actively managed through established procedures and strategic initiatives.
Supply chain disruption remains a key risk, particularly in light of ongoing geopolitical instability. To mitigate this, the Company has implemented robust supply chain management processes, including diversification of suppliers and closer monitoring of procurement activities to ensure continuity of supply.
Competitive pressure within the UK and Ireland packaging markets continues to present a challenge. The Company addresses this risk by differentiating itself through value-added services, including rapid response times for product delivery and customer queries. In addition, maintaining strong, long-term relationships with both customers and suppliers remains central to sustaining its competitive position
Price, Foreign exchange & Liquidity Risk
The Company is exposed to commodity price risk, mainly in paper and polyethylene. Given the Company's size the cost of managing the price risk outweighs any potential benefits. Any Foreign exchange risk is mitigated by a natural hedging as the company buys and sells in both GBP & EUR.
Supply chain disruption remains a key risk, particularly in light of ongoing geopolitical instability. To mitigate this, the Company has implemented robust supply chain management processes, including diversification of suppliers and closer monitoring of procurement activities to ensure continuity of supply.
Competitive pressure within the UK and Ireland packaging markets continues to present a challenge. The Company addresses this risk by differentiating itself through value-added services, including rapid response times for product delivery and customer queries. In addition, maintaining strong, long-term relationships with both customers and suppliers remains central to sustaining its competitive position
Price, Foreign exchange & Liquidity Risk
The Company is exposed to commodity price risk, mainly in paper and polyethylene. Given the Company's size the cost of managing the price risk outweighs any potential benefits. Any Foreign exchange risk is mitigated by a natural hedging as the company buys and sells in both GBP & EUR.
The directors consider the availability of detailed financial key performance indicators to be limited.
Performance during the period has been monitored primarily through:
• Contribution margin;
• Operating profit;
• EBITDA; and
• Cash flow and working capital management.
Performance during the period has been monitored primarily through:
• Contribution margin;
• Operating profit;
• EBITDA; and
• Cash flow and working capital management.
Page 1
Strategic report (continued)
For the year ended 31 December 2025
The directors also monitor non-financial performance indicators, including:
• Development and implementation of new operational processes; and
• Health and safety.
• Development and implementation of new operational processes; and
• Health and safety.
This report was approved by the board on 11 June 2026 and signed on its behalf.
Page 2
Directors' report
For the year ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The profit for the year, after taxation, amounted to £563,386 (2024 - £431,457).
The directors do not recommend the payment of a dividend (2024: £Nil).
The directors who served during the year were:
The Directors are not aware of any likely changes in the Company's activities in the next year.
Page 3
Directors' report (continued)
For the year ended 31 December 2025
There have been no significant events affecting the Company since the year end.
The auditor, Grant Thornton (NI) LLP, were appointed during the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 11 June 2026 and signed on its behalf.
Page 4
Independent auditor's report to the members of CB Paper Sacks Ltd. (formerly, MM Bangor Ltd.)
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 the date 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.
Page 5
Independent auditor's report to the members of CB Paper Sacks Ltd. (formerly, MM Bangor Ltd.) (continued)
Other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
∙the information given in the Directors' report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' report and the Strategic Report have been prepared in accordance with applicable legal requirements.
Page 6
Independent auditor's report to the members of CB Paper Sacks Ltd. (formerly, MM Bangor Ltd.) (continued)
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to Data Privacy Law, Employment Law, Environmental Regulations, and Health and Safety Laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK tax legislation. The Audit engagement partner considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions.
Page 7
Independent auditor's report to the members of CB Paper Sacks Ltd. (formerly, MM Bangor Ltd.) (continued)
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Belfast
11 June 2026
Page 8
Statement of comprehensive income
For the year ended 31 December 2025
Page 9
Balance sheet
As at 31 December 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 June 2026 .
The notes on pages 12 to 30 form part of these financial statements.
Page 10
Statement of changes in equity
For the year ended 31 December 2025
Statement of changes in equity
For the year ended 31 December 2024
Page 11
Notes to the financial statements
For the year ended 31 December 2025
The Company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 6a Gallamore Lane Industrial Estate, Gallamore Lane, Market Rasen, Lincolnshire, England, LN8 3HA.
The principal activity of the Company in the year under review is the manufacture of industrial paper sacks primarily used in the food and animal feed industries.
On 26th February 2025, the Company was acquired by Cordovan Acquisitions II Limited who assumed 100% of the share capital of the company from the MM Packaging and Securing Solutions Limited Group.
The principal activity of the Company in the year under review is the manufacture of industrial paper sacks primarily used in the food and animal feed industries.
On 26th February 2025, the Company was acquired by Cordovan Acquisitions II Limited who assumed 100% of the share capital of the company from the MM Packaging and Securing Solutions Limited Group.
2.Accounting policies
Information on the impact of first-time adoption of FRS 102 is given in note 26.
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:
Page 12
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
The amendments early adopted relate principally to:
Leases (Section 20)
Under the revised lease accounting requirements, the Company recognises a right of use asset and a corresponding lease liability for most lease arrangements at the commencement date. The lease liability is measured at the present value of future lease payments, discounted using the interest rate implicit in the lease or, where this cannot be readily determined, the Company’s incremental borrowing rate. The right of use asset is initially measured at an amount equal to the lease liability, adjusted for any lease payments made at or before commencement.
The Company has applied the permitted recognition exemptions for short term leases and leases of low value assets, with payments in respect of these leases recognised as an expense on a straight line basis over the lease term.
The revised lease accounting requirements have been applied prospectively from the date of initial application, with no restatement of comparative information, in accordance with FRS 102.
Revenue (Section 23)
Under the revised revenue recognition requirements, revenue is recognised when (or as) the Company satisfies a performance obligation by transferring control of a promised good or service to a customer. The amount recognised reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
The Company applies the five step model set out in Section 23 to:
The revised revenue requirements have been applied in accordance with the transition provisions of FRS 102.
Page 13
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
The Company's Directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and have therefore adopted the going concern basis of accounting in preparing the financial statements.
Page 14
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
The Company has contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company adjusts the transaction prices of these contracts for the time value of money.
Sale of goods
Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.
A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.
Interest income is recognised in profit or loss using the effective interest method.
Page 15
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
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.
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.
Page 16
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Depreciation 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:
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.
Page 17
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
At the commencement date of the lease, the Company recognises a right-of-use asset which is measured at cost. The cost of the right-of-use asset comprises:
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives.
When impairment indicators exist, the right-of-use asset is assessed for impairment.
For leases where it is highly probable that the purchase option will be exercised and ownership of the underlying asset transferred to the lessee by the end of the lease term, the entity depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset.
Right-of-use assets are presented within the tangible fixed assets line in the balance sheet.
Lease liabilities
At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the obtainable borrowing rate as the interest rate implicit in the lease cannot be readily determined. The obtainable borrowing rate is the rate of interest the Company would have to pay to borrow, over a similar term, an amount similar to the total undiscounted value of the lease payments included in the measurement of the lease liability.
The lease payments include:
The variable payments that are based on a percentage of revenue earned are not considered in calculating the lease liability balance and are recognised in profit or loss when incurred.
In addition, the lease liability is remeasured if there is a change in the lease payments, a change in the lease term, a change in the assessment of an option to purchase the underlying asset or a modification (that is not accounted for as a separate lease).
The lease liability is presented within creditors in the statement of balance sheet.
Page 18
Notes to the financial statements
For the year ended 31 December 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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 comprehensive income.
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 balance sheet date.
Page 19
Notes to the financial statements
For the year ended 31 December 2025
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There were no significant judgements, apart from those involving estimates, made by the directors which had a significant effect on the amounts recognised in these financial statements.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are:
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There were no significant judgements, apart from those involving estimates, made by the directors which had a significant effect on the amounts recognised in these financial statements.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are:
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of property, plant and equipment.
Estimates are made in respect of the recoverable value of trade and other debtors. When assessing the level of provisions required, factors including current trading experience, historical experience and the ageing profile of debtors are considered.
(c) Impairment of stock
The company makes an assessment at the end of each financial year of whether there is objective evidence that inventory is impaired. If an item of inventory is impaired, the identified inventory is measured at its selling price less costs to complete and sell and the resulting impairment loss is recognised in profit or loss. Where a reversal of the impairment loss is recognised the impairment loss is reversed, up to the original impairment loss, and is recognised in profit or loss.
Page 20
Notes to the financial statements
For the year ended 31 December 2025
Analysis of turnover by country of destination:
Page 21
Notes to the financial statements
For the year ended 31 December 2025
Page 22
Notes to the financial statements
For the year ended 31 December 2025
Page 23
Notes to the financial statements
For the year ended 31 December 2025
10.Taxation (continued)
Page 24
Notes to the financial statements
For the year ended 31 December 2025
10.Taxation (continued)
There were no factors that may affect future tax charges.
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
Page 25
Notes to the financial statements
For the year ended 31 December 2025
Page 26
Notes to the financial statements
For the year ended 31 December 2025
Page 27
Notes to the financial statements
For the year ended 31 December 2025
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
Page 28
Notes to the financial statements
For the year ended 31 December 2025
18.Deferred taxation (continued)
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Called up share capital
Profit and loss account
Page 29
Notes to the financial statements
For the year ended 31 December 2025
The Company's immediate parent undertaking, Cordovan Acquisitions II Limited, includes the company in its consolidated financial statements. The consolidated is in accordance with Financial Reporting Standard 102.
Page 30