Direct Packaging (U.K.) Ltd.

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Direct Packaging (U.K.) Ltd. is a private company, limited by shares, incorporated in England & Wales, registered number 03480709 . The registered office is Unit 28, North East Wholesale Fruit Marke, Gateshead, Tyne & Wear, NE11 0QY.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover / Revenue Recognition Policy

Turnover represents the amounts receivable for goods sold and services provided in the ordinary course of business, net of trade discounts, rebates, returns and applicable sales taxes/VAT.

The Company’s principal activities comprise the collection, recovery, repair and refurbishment of pallets, the sale of new and refurbished pallets, and the provision of packaging, distribution and related logistics services.

Sale of pallets

Revenue from the sale of new, recovered or refurbished pallets is recognised when control of the goods has transferred to the customer. This will normally occur when the pallets are delivered to the customer or collected by the customer, depending on the agreed terms of sale, and the Company has fulfilled its performance obligations.

Pallet collection and recovery services

Where customers are charged for the collection, recovery, sorting or handling of pallets, revenue is recognised when the relevant service has been performed. Where collection and associated processing form part of a single contractual service, revenue is recognised as the service is completed in accordance with the contractual arrangements.

Packaging services

Revenue from packaging services is recognised as the services are provided. Where packaging materials are supplied as part of the service, revenue is recognised in accordance with the substance of the arrangement and when the relevant goods or services have been transferred to the customer.

Distribution and logistics services

Revenue from distribution, delivery and other logistics services is recognised when the relevant service has been performed. Where services are provided over a period of time, revenue is recognised over that period by reference to the extent of services performed.

Combined goods and services

Where a customer contract includes more than one element, such as the supply of pallets together with packaging, collection or distribution services, the Company considers whether the elements represent separate performance obligations. Where appropriate, the transaction price is allocated between the respective goods and services and revenue is recognised when each obligation is satisfied.

Turnover excludes VAT and other sales-related taxes and is stated after deductions for trade discounts, rebates, credits and returns.

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	20% Reducing Balance
Motor Vehicles	25% Reducing Balance

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Direct Packaging (U.K.) Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

2.4. Leasing and Hire Purchase Contracts

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

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.5. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.6. Financial Instruments

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

Basic financial instruments, including trade and other debtors, cash and bank balances, trade and other creditors and loans, are initially recognised at transaction price and subsequently measured at amortised cost, less any impairment where appropriate.

2.7. Foreign Currencies

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

2.8. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.9. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 37 (2025: 31)

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Direct Packaging (U.K.) Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

4. Tangible Assets

	Plant & Machinery	Motor Vehicles	Total
	£	£	£
Cost
As at 1 February 2025	253,033	291,829	544,862
Additions	41,085	46,950	88,035

As at 31 January 2026	294,118	338,779	632,897

Depreciation
As at 1 February 2025	122,337	164,112	286,449
Provided during the period	27,977	32,394	60,371

As at 31 January 2026	150,314	196,506	346,820

Net Book Value
As at 31 January 2026	143,804	142,273	286,077

As at 1 February 2025	130,696	127,717	258,413

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2026	2025
	£	£
Motor Vehicles	95,956	67,950

5. Stocks

	2026	2025
	£	£
Stock	25,000	52,000

6. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	1,109,989	722,296
Other debtors	719,534	697,930

	1,829,523	1,420,226

7. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	38,423	31,946
Trade creditors	497,059	314,206
Bank loans and overdrafts	3,510	10,500
Other creditors	118,765	73,759
Taxation and social security	234,266	174,961

	892,023	605,372

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Direct Packaging (U.K.) Ltd.

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

8. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	36,637	27,910
Bank loans	-	3,397

	36,637	31,307

9. Obligations Under Finance Leases and Hire Purchase

	2026	2025
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	38,423	31,946
Later than one year and not later than five years	36,637	27,910

	75,060	59,856

	75,060	59,856

10. Deferred Taxation

The provision for deferred tax is made up as follows:

	2026	2025
	£	£
Other timing differences	71,519	64,603

11. Share Capital

	2026	2025
	£	£
Allotted, Called up and fully paid	100	100

12. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2026	2025
	£	£
Not later than one year	149,029	159,313
Later than one year and not later than five years	291,267	341,425

	440,296	500,738

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		286,077		258,413

			286,077		258,413
CURRENT ASSETS
Stocks	5	25,000		52,000
Debtors	6	1,829,523		1,420,226
Cash at bank and in hand		77,844		57,777

		1,932,367		1,530,003
Creditors: Amounts Falling Due Within One Year	7	(892,023 )		(605,372 )

NET CURRENT ASSETS (LIABILITIES)			1,040,344		924,631

TOTAL ASSETS LESS CURRENT LIABILITIES			1,326,421		1,183,044

Creditors: Amounts Falling Due After More Than One Year	8		(36,637 )		(31,307 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	10		(71,519 )		(64,603 )

NET ASSETS			1,218,265		1,087,134

CAPITAL AND RESERVES
Called up share capital	11		100		100
Profit and Loss Account			1,218,165		1,087,034

SHAREHOLDERS' FUNDS			1,218,265		1,087,134