NDC Polipak Limited - Period Ending 2021-12-31
NDC Polipak Limited - Period Ending 2021-12-31
Registration number:
NDC Polipak Limited
for the Year Ended 31 December 2021
NDC Polipak Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Recognised Gains and Losses |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Statement of Cash Flows |
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Notes to the Financial Statements |
NDC Polipak Limited
Company Information
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Directors |
Mr P N Cox Mr G F Grove Mr N M Grove Mrs A J Cox Mr N Clancy |
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Company secretary |
Mr N M Grove |
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Registered office |
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Auditors |
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NDC Polipak Limited
Strategic Report for the Year Ended 31 December 2021
The directors present their strategic report for NDC Polipak Limited (hereinafter referred to as "NDC") for the year ended 31 December 2021.
Principal activity
The principal activity of the Group is the manufacture and distribution of recycled polythene films, building accessories for the DIY and building industry sectors, packaging products as well as the manufacture of both high-performance polythene bags and bulk polypropylene sacks.
Fair review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
The Group’s revenues have been resilient in the aftermath of Covid 19, the markets and demand for our products have increased, in addition selling prices have increased during the year due to rising material prices.
The Group's key financial and other performance indicators are those that communicate the financial performance and strength of the Group as a whole, these being turnover and earnings before interest, taxation, depreciation and amortisation (EBITDA).
During the financial year turnover increased to £25,144,412 from £18,478,189. EBITDA increased to £1,386,475 from £1,147,435.
Principal risks and uncertainties
The directors believe that the principal risks and uncertainties which affect the business are:
Market demand
The markets for the Group's products are subject to variations in market demand. This is partly related to the general level of disposable income and the effect on the DIY market and the level of activity in the construction industry.
Waste material prices and availability
The Group's key inputs for recycling and manufacture are a range of flexible plastic and similar waste materials from a wide range of sources. Management seeks to maintain excellent relations with existing suppliers and continually expand the range of sources of feed stock to ensure that its key raw material supply is secure.
Prime material prices
The price of prime compound material fluctuates as it is a widely traded commodity. Though not directly linked, the price of prime compound material has an influence on the general market price level for the waste products and recycled polymer compounds which are its feed stock. Management monitors prime material prices and seeks to manage buying so as to remain competitive on film products.
NDC Polipak Limited
Strategic Report for the Year Ended 31 December 2021 (continued)
Government policy
The recycling industry is subject to and is affected by a range of government regulations. Management keeps up to date with regulations through the membership of trade bodies and ensures that the business complies with all its obligations.
Credit risk
The Group sells to customers on credit and is therefore subject to the risk of non-payment due to financial failure of a customer. Credit checks and references are taken on new and existing accounts and credit limits are set. Credit insurance is used by the business where and when it is felt to be appropriate.
Liquidity
Forecast short term and long-term cash generation and usage are regularly reviewed by the directors and management to monitor the Group's free cash resources.
Exchange rates
The Group has some exposure to fluctuations in foreign exchange although this risk is reduced compared to previous years. Management monitors the exchange rates and have facilities in place to use forward exchange contracts to mitigate risk as appropriate.
Energy costs
As a process business and a significant consumer of energy our business can be impacted by major price movements. Management monitor energy prices and look to lock in prices when advantageous. Management are committed to improving the efficiency of production equipment in order to reduce costs at each manufacturing site.
Weather conditions
A number of products are dependent on seasonal weather conditions and certain weather conditions could lead to reduced demand for some of our products. Management are committed to diversifying the market portfolio to mitigate this risk and also closely monitor stock levels for seasonal products.
Going concern
The financial statements have been prepared on the going concern basis. In adopting the going concern basis for preparing the financial statements, the Directors have prepared cash flow forecasts for a period of 14 months from the date of approval of these financial statements which indicate that taking account of reasonably possible downsides, the Group will have sufficient funds to meet its liabilities as they fall due for that period.
The uncertainty as to the future impact in the Group of the recent increase in energy prices has been considered as part of the Group’s adoption of the going concern basis. Based on latest forecasts and projections taking into account available information, the use of the going concern basis is appropriate and conditions outlined below.
NDC Polipak Limited
Strategic Report for the Year Ended 31 December 2021 (continued)
The Group is committed to investing in new equipment which by its nature is more energy efficient than the machinery it replaces. To this end there are commitments in place to reduce the energy consumption of the plant through future investment as well as other cost control measures. The business benefits from having a Climate Change Agreement as well as being part of the Energy Intensive Industries Compensation Scheme which is overseen by the Department for Business, Energy and Industrial Strategy (BEIS). Furthermore, the UK government announced in September 2022 the Energy Bill Relief Scheme which is a new 6-month support scheme for businesses. Although not completely finalized we believe these measures will further protect the Group from prohibitively high energy costs over the winter 22/23 period.
The Group’s track record of dealing with several major accounts and discussions relating to the forthcoming increases means that the directors are confident that even with the increasing costs the Group would be able to continue satisfactorily.
The industry depends significantly on maintaining access to liquidity, including that enabled by governments. NDC is undertaking significant measures internally to preserve cash and liquidity as well as operational efficiency and cost savings.
The consolidated NDC group maintains a strong statement of financial position including substantial bank facilities.
The Directors have concluded that the combination of these circumstances does not represent a material uncertainty that casts doubt upon the Group’s ability to continue as a going concern. Nevertheless, after making enquiries and considering the uncertainties described above, in light of the available bank facilities outlined, the directors have a reasonable expectation that the Group has access to adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Approved by the
.........................................
Company secretary and director
NDC Polipak Limited
Directors' Report for the Year Ended 31 December 2021
The directors present their report and the for the year ended 31 December 2021.
Directors of the group
The directors who held office during the year were as follows:
Information included in the Strategic Report
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, we have included fair review of the company's business, review of principal risks and uncertainties, financial instruments and review of key performance indicators within the Strategic Report as set out on page 1 to 3.
Financial instruments
Objectives and policies
The company's operations are exposed to a range of financial risks including the effects of changes in interest rates on debt, foreign currency rates, credit risk and liquidity risk.
The company's principal financial instruments comprise sterling, US Dollars and Euro cash balances, together with trade debtors and trade creditors that arise directly from its operations.
Price risk, credit risk, liquidity risk and cash flow risk
The directors believe that the principal risks and uncertainties which affect the business are:
Market demand
The markets for the company's products are subject to variations in market demand. This is partly related to the general level of disposable income and the effect on the DIY market and the level of activity in the construction industry.
Waste material prices and availability
The company's key inputs for recycling and manufacture are a range of flexible plastic and similar waste materials from a wide range of sources. Management seeks to maintain excellent relations with existing suppliers and continually expand the range of sources of feed stock to ensure that its key raw material supply is secure.
Prime material prices
The price of prime compound material fluctuates as it is a widely traded commodity. Though not directly linked, the price of prime compound material has an influence on the general market price level for the waste products and recycled polymer compounds which are its feed stock. Management monitors prime material prices and seeks to manage buying so as to remain competitive on film products.
Government policy
The recycling industry is subject to and is affected by a range of government regulations. Management keeps up to date with regulations through the membership of trade bodies and ensures that the business complies with all of its obligations.
Credit risk
The company sells to customers on credit and is therefore subject to the risk of non-payment due to financial failure of a customer. Credit checks and references are taken on new and existing accounts and credit limits are set. Credit insurance is used by the business where and when it is felt to be appropriate.
Liquidity
Forecast short term and long term cash generation and usage are regularly reviewed by the directors and management to monitor the company's free cash resources.
NDC Polipak Limited
Directors' Report for the Year Ended 31 December 2021 (continued)
Exchange rates
The company's principal exchange rate exposure is to the US Dollar and the Euro. The company buys in both denominations and as such there is exposure to foreign exchange rate fluctuations. A weak sterling relative to the dollar and Euro has an adverse impact on the business and results in higher priced purchases. Management monitor the exchange rates and have facilities in place to use forward exchange contracts to mitigate risk as appropriate.
Energy costs
As a process business and a significant consumer of energy our business can be impacted by major price movements. Management monitor energy prices and look to lock in prices when advantageous. Management are committed to improving the efficiency of production equipment in order to reduce costs at each manufacturing site.
Weather conditions
A number of products are dependent on seasonal weather conditions and certain weather conditions could lead to reduced demand for some of our products. Management are committed to diversifying the market portfolio to mitigate this risk and also closely monitor stock levels for seasonal products.
Future developments
The directors view the prospects for the business confidently. The Company's strategy is to invest in expanding output to take advantage of the growth opportunities which the directors and management believe exist in the market.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
.........................................
Company secretary and director
NDC Polipak Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
NDC Polipak Limited
Independent Auditor's Report to the Members of NDC Polipak Limited
Opinion
We have audited the financial statements of NDC Polipak Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Recognised Gains and Losses, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2021 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The impact of uncertainties due to the UK exiting the European Union
Uncertainties related to the effects of Brexit are relevant to understanding our audit of the financial statements. The audit assess and challenges the reasonableness of estimates made by the directors, such as recoverability of assets and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company’s future prospects and performance.
Brexit is a significant economic event for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the company’s future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Brexit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 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 our understanding of the group and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK and European regulatory principles, and we considered the extent to which non-compliance might have a material effect on the financial statements of the group. We also considered those laws and regulations that have a direct impact on the financial statements of the group, such as the Companies Act 2006 and UK tax legislation and equivalent local laws and regulations applicable to in-scope components.
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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
NDC Polipak Limited
Independent Auditor's Report to the Members of NDC Polipak Limited (continued)
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 or apparent material misstatements, 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 Statement of Directors' Responsibilities [set out on page 7], 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.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Capability of the audit in detecting irregularities, including fraud
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:
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Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK and European regulatory principles, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. |
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We also considered those laws and regulations that have a direct impact on the financial statements of the Company, such as the Companies Act 2006 and UK tax legislation and equivalent local laws and regulations applicable to in-scope components. |
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We have also 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 are related to management bias in accounting estimates and judgemental areas of the financial statements. |
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Audit procedures performed by the engagement team included: |
NDC Polipak Limited
Independent Auditor's Report to the Members of NDC Polipak Limited (continued)
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discussions with the Board of Directors and management, regarding consideration of known or suspected instances of non-compliance with laws and regulation and fraud; |
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evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities; |
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reviewing relevant meeting minutes including those of the Board of Directors; |
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identifying and testing journal entries based on risk criteria; |
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We designed our audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and testing transactions entered into outside of the normal course of the Company's business specifically in respect of acquisitions and disposals. |
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As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; |
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control; |
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
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There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorresponsibilities. 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.
......................................
For and on behalf of
Charter House, 56 High Street
Sutton Coldfield
B72 1UJ
NDC Polipak Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2021
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Note |
2021 |
2020 |
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|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
- |
|
|
Interest payable and similar expenses |
( |
( |
|
|
(155,299) |
(98,266) |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit/(loss) for the financial year |
|
( |
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
|
( |
NDC Polipak Limited
Consolidated Statement of Recognised Gains and Losses for the Year Ended 31 December 2021
|
2021 |
2020 |
|
|
Profit/(loss) for the year |
|
( |
|
Deficit on revaluation of other assets |
( |
( |
|
Share of associates and joint ventures other comprehensive income |
|
|
|
9,149 |
21,385 |
|
|
Total comprehensive income for the year |
|
( |
|
Total comprehensive income attributable to: |
||
|
Owners of the company |
|
( |
NDC Polipak Limited
(Registration number: 03858503)
Consolidated Balance Sheet as at 31 December 2021
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Note |
2021 |
2020 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
|
|
||
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Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
1,036,200 |
1,036,200 |
|
|
Share premium reserve |
497,689 |
497,689 |
|
|
Revaluation reserve |
228,105 |
244,923 |
|
|
Financial instruments loan present value reserve |
260,360 |
286,327 |
|
|
Profit and loss account |
2,051,026 |
1,815,489 |
|
|
Equity attributable to owners of the company |
4,073,380 |
3,880,628 |
|
|
Total equity |
4,073,380 |
3,880,628 |
Approved and authorised by the
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NDC Polipak Limited
(Registration number: 03858503)
Balance Sheet as at 31 December 2021
|
Note |
2021 |
2020 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
1,036,200 |
1,036,200 |
|
|
Share premium reserve |
497,689 |
497,689 |
|
|
Revaluation reserve |
228,105 |
244,923 |
|
|
Financial instruments loan present value reserve |
260,360 |
286,327 |
|
|
Retained earnings |
2,003,905 |
1,929,068 |
|
|
Shareholders' funds |
4,026,259 |
3,994,207 |
The company made a profit after tax for the financial year of £48,870 (2020 - loss of £26,175).
Approved and authorised by the
.........................................
Company secretary and director
NDC Polipak Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2021
Equity attributable to the parent company
|
Share capital |
Share premium |
Revaluation reserve |
Financial instruments loan present value reserve |
Profit and loss account |
Total |
|
|
At 1 January 2021 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
Other comprehensive income |
- |
- |
( |
( |
|
( |
|
Total comprehensive income |
- |
- |
( |
( |
|
|
|
At 31 December 2021 |
|
|
|
|
|
|
|
Share capital |
Share premium |
Revaluation reserve |
Financial instruments loan present value reserve |
Profit and loss account |
Total |
|
|
At 1 January 2020 |
|
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
- |
( |
( |
|
Other comprehensive income |
- |
- |
( |
( |
|
( |
|
Total comprehensive income |
- |
- |
( |
( |
( |
( |
|
At 31 December 2020 |
|
|
|
|
|
|
NDC Polipak Limited
Statement of Changes in Equity for the Year Ended 31 December 2021
|
Share capital |
Share premium |
Revaluation reserve |
Financial instruments loan present value reserve |
Profit and loss account |
Total |
|
|
At 1 January 2021 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
Other comprehensive income |
- |
- |
( |
( |
|
( |
|
Total comprehensive income |
- |
- |
( |
( |
|
|
|
At 31 December 2021 |
|
|
|
|
|
|
|
Share capital |
Share premium |
Revaluation reserve |
Financial instruments loan present value reserve |
Profit and loss account |
Total |
|
|
At 1 January 2020 |
|
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
- |
( |
( |
|
Other comprehensive income |
- |
- |
( |
( |
|
( |
|
Total comprehensive income |
- |
- |
( |
( |
( |
( |
|
At 31 December 2020 |
|
|
|
|
|
|
NDC Polipak Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2021
|
Note |
2021 |
2020 |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the year |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
|
Finance income |
( |
- |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
Increase in trade debtors |
( |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Decrease in deferred income, including government grants |
( |
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
|
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
|
|
|
Net cash flows from financing activities |
( |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
994,008 |
1,864,375 |
|
NDC Polipak Limited
Statement of Cash Flows for the Year Ended 31 December 2021
|
Note |
2021 |
2020 |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the year |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
|
Finance income |
( |
- |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
Increase in trade debtors |
( |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Decrease in deferred income, including government grants |
( |
( |
|
|
Net cash flow from operating activities |
|
( |
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
|
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Net cash flows from financing activities |
( |
|
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
989,674 |
1,719,672 |
|
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
|
General information |
The company is a private company limited by share capital, incorporated in England & Wales. The company's registration number is 03858503.
The address of its registered office is:
United Kingdom
The principal place of business is:
1 Garratts Lane
Old Hill
Cradley Heath
West Midlands
B64 5RE
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2021.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
2 |
Accounting policies (continued) |
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The financial statements have been prepared on the going concern basis. In adopting the going concern basis for preparing the financial statements, the Directors have prepared cash flow forecasts for a period of 14 months from the date of approval of these financial statements which indicate that taking account of reasonably possible downsides, the Group will have sufficient funds to meet its liabilities as they fall due for that period.
The Group holds cash reserves and has available funding in place
The uncertainty as to the future impact in the Group of the recent COVID-19 outbreak has been considered as part of the Group’s adoption of the going concern basis. Based on latest forecasts and projections taking into account available information and government guidelines, the use of the going concern basis is appropriate and conditions outlined below.
Due to the unprecedented level of restrictions being imposed by governments in response to the COVID-19 pandemic and the softening of demand, NDC shut down some manufacturing operations for a few weeks in April 2020, however other manufacturing areas ran extended hours due to the demand for products in those areas of the business and has since returned to above normal production levels prior to COVID-19. The Group’s ability to trade throughout much of 2020 means that the directors are confident that if there were to be a worsening in COVID-19 restrictions the Group would be able to continue satisfactorily.
The industry depends significantly on maintaining access to liquidity, including that enabled by governments. NDC is undertaking significant measures internally to preserve cash and liquidity as well as operational efficiency and cost savings.
The consolidated NDC group maintains a strong statement of financial position including substantial bank facilities.
The Directors have concluded that the combination of these circumstances does not represent a material uncertainty that casts doubt upon the Group’s ability to continue as a going concern. Nevertheless, after making enquiries and considering the uncertainties described above, in light of the available bank facilities outlined, the directors have a reasonable expectation that the Group has access to adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Materials and parts are also imported from within the EU and dependent on future trade talks may extend lead times however NDC will continue to choose the most efficient suppliers which will have the least impact on our production and maintenance schedules.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
2 |
Accounting policies (continued) |
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attached to them and the grants will be received.
Government grants are recognised using the accrual model and the performance model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity, with no future related costs, are recognised in income in the period in which it becomes receivable.
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
2 |
Accounting policies (continued) |
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Short leasehold property |
straight line over the life of the lease |
|
Plant and machinery |
15-30% of net book value |
|
Fixtures and fittings |
15-30% of net book value |
|
Hybrid motor vehicles |
25% straight line |
|
Other motor vehicles |
25% of net book value |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% Straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
2 |
Accounting policies (continued) |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
2 |
Accounting policies (continued) |
Share based payments
The company issues equity-settled and cash-settled share-based payments to certain employees (including directors). Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, together with a corresponding increase in equity, based upon the company's estimate of the shares that will eventually vest.
Fair value is measured using the Black-Scholes Pricing Model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
Where the terms of an equity-settled transaction are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification.
Where an equity-settled transaction is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the transaction is recognised immediately. However, if a new transaction is substituted for the cancelled transaction, and designated as a replacement transaction on the date that it is granted, the cancelled and new transactions are treated as if they were a modification of the original transaction, as described in the previous paragraph.
For cash-settled share-based payments, a liability equal to the portion of the goods and services received is recognised at the current fair value determined at each balance sheet date.
Financial instruments
Classification
Trade debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.
Where the arrangement with a trade debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.
A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.
Recognition and measurement
Trade creditors
Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.
Where the arrangement with a trade creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.
Borrowings
Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.
Commitments to receive a loan are measured at cost less impairment.
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
2 |
Accounting policies (continued) |
Impairment
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2021 |
2020 |
|
|
Sale of goods |
|
|
The analysis of the group's Turnover for the year by market is as follows:
|
2021 |
2020 |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Government grants |
The amount of grants recognised in the financial statements was £87,946 (2020 - £
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2021 |
2020 |
|
|
Government grants |
|
|
|
Miscellaneous other operating income |
- |
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2021 |
2020 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - other |
|
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
|
Other interest receivable and similar income |
|
2021 |
2020 |
|
|
Interest income on bank deposits |
|
- |
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Interest payable and similar expenses |
|
2021 |
2020 |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2021 |
2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2021 |
2020 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
617,126 |
524,341 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2021 |
2020 |
|
|
Received or were entitled to receive shares under long term incentive schemes |
|
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Auditors' remuneration |
|
2021 |
2020 |
|
|
Audit of these financial statements |
19,000 |
20,170 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
5,978 |
5,978 |
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2021 |
2020 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2021 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Revaluation of tangible assets |
- |
|
|
Unused tax losses |
|
- |
|
|
|
|
2020 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Revaluation of tangible assets |
- |
|
|
Unused tax losses |
|
- |
|
|
|
Company
Deferred tax assets and liabilities
|
2021 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Revaluation of tangible assets |
- |
|
|
Unused tax losses |
|
- |
|
|
|
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
12 |
Taxation (continued) |
|
2020 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Revaluation of tangible assets |
- |
|
|
Unused tax losses |
|
- |
|
|
|
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
Acquired through business combinations |
|
|
|
At 31 December 2021 |
|
|
|
Amortisation |
||
|
At 1 January 2021 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2021 |
|
|
|
Carrying amount |
||
|
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Tangible assets |
Group
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant & machinery |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2021 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
- |
( |
( |
|
At 31 December 2021 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2021 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
|
At 31 December 2021 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2021 |
|
|
|
|
|
|
At 31 December 2020 |
|
|
|
|
|
Included within the net book value of land and buildings above is £275,044 (2020 - £448,260) in respect of short leasehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2021 |
2020 |
|
|
Plant and machinery |
869,262 |
1,857,553 |
|
Motor vehicles |
194,700 |
108,508 |
|
1,063,962 |
1,966,061 |
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
14 |
Tangible assets (continued) |
Company
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant & machinery |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2021 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
- |
( |
( |
|
At 31 December 2021 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2021 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
|
At 31 December 2021 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2021 |
|
|
|
|
|
|
At 31 December 2020 |
|
|
|
|
|
Included within the net book value of land and buildings above is £275,044 (2020 - £448,260) in respect of short leasehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2021 |
2020 |
|
|
Plant and machinery |
657,136 |
1,633,910 |
|
Motor vehicles |
181,924 |
108,508 |
|
839,060 |
1,742,418 |
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2021 |
2020 |
|||
|
Subsidiary undertakings |
||||
|
|
Unit 3 St Nicholas House
|
|
|
|
|
Ireland |
||||
* indicates direct investment of the company
Subsidiary undertakings
|
Qualpack Limited
|
Company
|
2021 |
2020 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2021 |
|
|
Provision |
|
|
At 31 December 2021 |
- |
|
Carrying amount |
|
|
At 31 December 2021 |
|
|
At 31 December 2020 |
|
|
Stocks |
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Raw materials and consumables |
|
|
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
|
|
|
|
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2021 |
2020 |
2021 |
2020 |
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by related parties |
|
|
|
|
|
|
Other debtors |
- |
|
- |
- |
|
|
Prepayments |
|
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2021 |
2020 |
2021 |
2020 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to related parties |
- |
|
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other payables |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Corporation tax liability |
15,368 |
8,061 |
- |
- |
|
|
Deferred income |
|
|
|
|
|
|
CID facility |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Deferred income |
- |
|
- |
|
|
|
Other non-current financial liabilities |
|
|
|
|
|
|
2,094,191 |
2,632,852 |
1,975,499 |
2,463,987 |
||
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
19 |
Creditors (continued) |
HSBC Bank Plc CID facility of £2,410,539 (2020: £1,528,340) relates to advances against debtors under the terms of an invoice finance facility with HSBC Bank Plc
HSBC Bank Plc, HSBC Invoice Finance (UK) Limited and HSBC Asset Finance (UK) Limited hold debentures, fixed and floating charges over certain company assets.
AIB Commercial Services Limited have registered a fixed and floating charge over the assets of the company as security for its invoice discounting facility provided to the company. The charge was registered on 23rd February, 2012.
AIB Commercial Services Limited overdraft facility of €20,000 is secured by joint and several personal guarantees from the Qualpack Limited directors, Niall Clancy and Michael Doyle.
AIB Commercial Services Limited have secured joint and several personal guarantees from the directors Niall Clancy and Michael Doyle in the sum of €30,000 in support of the forward contract facility.
|
Loans and borrowings |
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
|
|
|
|
|
Hire purchase contracts |
|
|
|
|
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Non-current loans and borrowings |
||||
|
Bank borrowings |
|
|
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Share capital |
Allotted, called up and fully paid shares
|
2021 |
2020 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
800,000 |
|
800,000 |
|
|
|
200,000 |
|
200,000 |
|
|
|
36,200 |
|
36,200 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
A Ordinary shares have the following rights, preferences and restrictions: |
|
B Ordinary shares have the following rights, preferences and restrictions: |
|
D Ordinary shares have the following rights, preferences and restrictions: |
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
23 |
Obligations under leases and hire purchase contracts (continued) |
Company
Finance leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2021 |
2020 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Share-based payments |
Scheme details and movements
Options are forfeited if the employee leaves the company before the options vest.
The inputs into the Black-Scholes pricing model are as follows:
Weighted average share price £3 (2020 £3)
Weighted average exercise price £1 (2020 £1)
Expected volatility 100% (2020 100%)
Expected life 2 years (2020 3 years)
Expected dividend yield 2% (2020 2%)
The movements in the number of share options during the year were as follows:
|
2021 |
2020 |
|
|
Outstanding, start of period |
|
|
|
Outstanding, end of period |
|
|
|
|
||
The movements in the weighted average exercise price of share options during the year were as follows:
|
2021 |
2020 |
|
|
Outstanding, start of period |
|
|
|
Outstanding, end of period |
|
- |
|
|
||
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Company
Capital commitments
The total amount contracted for but not provided in the financial statements was £
|
Contingent liabilities |
Company
HSBC Bank Plc has an unlimited multilateral guarantee dated 12 November 2013 given by the company and Park Lane Developments (Midlands) Limited.
The company has a guarantee dated 09 September 2011 in favour HM Revenue & Customs for £30,000.
|
Related party transactions |
Group
Summary of transactions with other related parties
Summerbay Estates Limited is a related party by virtue of P N Cox being a director and the ultimate controlling party in both companies. No interest is being charged on the loan.
Included in debtors is an amount of £100,925 (2020: £100,925) owing from Evesham Properties Limited, a company in which A J Cox is a director. During the period the company was charged rent of £162,707 (2020: £162,707). No interest is being charged on the loan.
During the year the company paid rent £125,000 (2020: £125,000). Included in debors is an amount of £10,000 (2020: £nil), and included in creditors due within one year is an amount of £nil (2020: £376,474) with Park Lane Developments (Midlands) Limited, (as shareholder of the company). Interest is chargeable on the loan at 4.5% over the Bank of England base rate and is compounded quarterly. G F Grove, P N Cox and N M Grove are directors in Park Lane Developments (Midlands) Limited.
The company is exempt from disclosing other related party transactions, as they are with other group companies that are wholly owned within the NDC Polipak Limited group.
NDC Polipak Limited
Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)
|
Financial instruments |
Company
Categorisation of financial instruments
|
2021 |
2020 |
|
|
Financial liabilities measured at fair value through profit or loss |
|
|
Financial liabilities measured at fair value
Sturge Industries Limited loan
There is a loan included in creditors due over one year, due to Sturge Industries Limited, a company in which P N Cox is a director. The loan has no interest or repayment terms attached to it. The loan is only repayable with full shareholder approval. As such the directors assess the likely repayment date at each balance sheet date.
As the loan is intended to be available for a longer term but the timing of cash flows is uncertain; the directors have assessed the loan at each balance sheet date. The directors have reassessed the basis for repayment as 8 years from 31 December 2021. As there are no terms, the directors have used an interest rate of 5% to calculate the fair value of the loan.
The result is that the fair value of the loan has been calculated at £545,306 (2020: £519,339). Interest payable has been charged to the profit and loss account totalling £25,971 (2020: £24,730). The difference has been taken to other reserves and will be released over the estimated life span of the loan.
The fair value is £545,306 (2020 - £519,339) and the change in value included in profit or loss is £Nil (2020 - £Nil).