W. E. Roberts (Holdings) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01812607 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2021

for

W. E. Roberts (Holdings) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Income and Retained Earnings

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

A W E Roberts

S W T Roberts

P T Roberts

R J Puffette

Ms S T Roberts

SECRETARY:

R J Puffette

REGISTERED OFFICE:

First Floor, West Barn

North Frith Farm, Ashes Lane

Hadlow

Tonbridge

Kent

TN11 9QU

REGISTERED NUMBER:

01812607 (England and Wales)

AUDITORS:

Deeks Evans Audit Services Limited

Statutory Auditor

First Floor, West Barn

North Frith Farm, Ashes Lane, Hadlow

Tonbridge

Kent

TN11 9QU

The directors present their strategic report of the company and the group for the year ended 31 December 2021.

REVIEW OF BUSINESS

The group's principal trade is the manufacture and sale of corrugated cardboard packaging products.

The directors of the board are satisfied with the performance of the group during the year, in which has been a very challenging year in terms of supply challenges and continued increased demand due to the Covid pandemic.

The results for the year set out on page 8 show a profit before tax of £1,305,104 (2020 £1,486,949)

PRINCIPLE RISKS AND UNCERTAINTIES

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 principal trade is the manufacture and sale of corrugated cardboard packaging products.

The Directors and Management of the group review key strategies and risks on a regular basis.

The Directors believe the following key risks have impacted the group.

1) The group is exposed to a continuing rise in raw materials and ancillary costs.

2) Low unemployment rates and a reduction in the local labour market have caused periodic challenges during the year

3) Our industry operates in a high energy usage industry. With the uncertainty in the energy market, the directors are continuing to invest in new technologies to reduce our demand for energy, in what is continuing to be an uncertain future for the energy industry.

FINANCIAL KEY INDICATORS

Turnover for the year increased from £19,922,711 to £24,960,465.

Gross profit margins have increased from £6,104,249 to £6,730,152.

We consider that our key performance indicators are those which communicate the financial performance and the strength of the company as a whole, these being turnover, gross margin and net profitability.

The business operates in a market where there can be a certain amount of uncertainty in respect of the long term pricing structure of the raw paper material. Purchasing of the raw paper material is therefore tightly controlled.

The business has adapted to and navigated the challenges of Brexit and the COVID-19 pandemic. The company has responded to the unprecedented demand placed on the industry due to these two events and we continue to invest and develop new technologies to maintain customer satisfaction whilst looking to drive business growth.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

ON BEHALF OF THE BOARD:

R J Puffette - Director

7 November 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2021 was £192,700; in respect of B ordinary shares £169,700 and in respect of C ordinary shares £23,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

A W E Roberts

S W T Roberts

P T Roberts

R J Puffette

Ms S T Roberts

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Deeks Evans Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R J Puffette - Director

7 November 2022

Opinion

We have audited the financial statements of W. E. Roberts (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 of the parent company 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 Auditors' 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.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience; through verbal and written communications with those charged with governance and other management: auditors and via inspection of the company's regulatory and legal correspondence.

We discussed with those charged with governance and other management the polices and procedures regarding

compliance with laws and regulations.

We communicated identified laws and regulations to the audit team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the group is subject to laws and regulations that directly affect the financial statements, including: the group's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulation as part of our procedures on the related financial statement items.

Secondly the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigation. We identified the following areas as those most likely to have such an effect: employment legislation; health and safety legislation; trade legislation; data protection legislation; anti-bribery and corruption legislation.

Auditing Standards limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

(a) identifying and testing journal entries, in particular those involving large or unusual account combinations

(b) obtaining third party confirmations of banking and finance arrangements and

(c) Ensuring that testing undertaken on transactions and the balance sheet includes a number of items selected on a random basis

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and preformed our audit in accordance with Auditing Standards.For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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

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 a Report of the Auditors 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.

Richard Young (Senior Statutory Auditor)

for and on behalf of Deeks Evans Audit Services Limited

Statutory Auditor

First Floor, West Barn

North Frith Farm, Ashes Lane, Hadlow

Tonbridge

Kent

TN11 9QU

7 November 2022

TURNOVER

3

24,960,465

19,922,711

Cost of sales

(18,230,313

)

(13,818,462

)

GROSS PROFIT

6,730,152

6,104,249

Distribution costs

(673,726

)

(333,940

)

Administrative expenses

(4,698,521

)

(4,232,796

)

1,357,905

1,537,513

Other operating income

40,074

5,625

OPERATING PROFIT

5

1,397,979

1,543,138

Interest receivable & similar income

5,673

7,332

1,403,652

1,550,470

Interest payable and similar expenses

6

(98,548

)

(63,521

)

PROFIT BEFORE TAXATION

1,305,104

1,486,949

Tax on profit

7

(128,655

)

(259,734

)

PROFIT FOR THE FINANCIAL YEAR

1,176,449

1,227,215

Retained earnings at beginning of year

3,092,302

2,052,287

Dividends

9

(192,700

)

(187,200

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

4,076,051

3,092,302

Profit attributable to:

Owners of the parent

1,176,449

1,227,215

FIXED ASSETS

Tangible assets

10

7,837,350

7,690,237

Investments

11

-

-

7,837,350

7,690,237

CURRENT ASSETS

Stocks

12

1,952,992

1,459,723

Debtors

13

5,465,990

4,330,107

Cash at bank and in hand

95,546

270,782

7,514,528

6,060,612

CREDITORS

Amounts falling due within one year

14

7,335,476

6,911,132

NET CURRENT ASSETS/(LIABILITIES)

179,052

(850,520

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,016,402

6,839,717

CREDITORS

Amounts falling due after more than one year

15

(3,317,582

)

(3,206,846

)

PROVISIONS FOR LIABILITIES

19

(412,200

)

(330,000

)

NET ASSETS

4,286,620

3,302,871

CAPITAL & RESERVES

Called up share capital

20

1,000

1,000

Revaluation reserve

21

152,419

209,569

Retained earnings

21

4,133,201

3,092,302

SHAREHOLDERS' FUNDS

4,286,620

3,302,871

The financial statements were approved by the Board of Directors and authorised for issue on 7 November 2022 and were signed on its behalf by:

R J Puffette - Director

P T Roberts - Director

FIXED ASSETS

Tangible assets

10

-

-

Investments

11

452,368

452,368

452,368

452,368

CURRENT ASSETS

Debtors

13

38,000

38,000

CREDITORS

Amounts falling due within one year

14

325,157

325,157

NET CURRENT LIABILITIES

(287,157

)

(287,157

)

TOTAL ASSETS LESS CURRENT LIABILITIES

165,211

165,211

CAPITAL & RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

164,211

164,211

SHAREHOLDERS' FUNDS

165,211

165,211

Company's profit for the financial year

192,700

187,200

The financial statements were approved by the Board of Directors and authorised for issue on 7 November 2022 and were signed on its behalf by:

R J Puffette - Director

P T Roberts - Director

Cash flows from operating activities

Cash generated from operations

1

761,722

3,214,806

Interest paid

(67,349

)

(18,947

)

Interest element of hire purchase payments paid

(31,199

)

(44,574

)

Tax paid

(162,414

)

(42,997

)

Net cash from operating activities

500,760

3,108,288

Cash flows from investing activities

Purchase of tangible fixed assets

(1,301,893

)

(5,436,866

)

Sale of tangible fixed assets

112,992

113,883

Interest received

5,673

7,332

Net cash from investing activities

(1,183,228

)

(5,315,651

)

Cash flows from financing activities

Loan repayments in year

(143,665

)

2,567,712

Capital repayments in year

356,771

(59,232

)

Amount introduced by directors

486,826

-

Equity dividends paid

(192,700

)

(187,200

)

Net cash from financing activities

507,232

2,321,280

(Decrease)/increase in cash and cash equivalents

(175,236

)

113,917

Cash and cash equivalents at beginning of year

2

270,782

156,865

Cash and cash equivalents at end of year

2

95,546

270,782

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

Profit before taxation

1,305,104

1,486,949

Depreciation charges

1,076,312

870,612

(Profit)/loss on disposal of fixed assets

(34,523

)

121,445

Finance costs

98,548

63,521

Finance income

(5,673

)

(7,332

)

2,439,768

2,535,195

Increase in stocks

(493,269

)

(46,059

)

Increase in trade and other debtors

(1,135,883

)

(97,092

)

(Decrease)/increase in trade and other creditors

(48,894

)

822,762

Cash generated from operations

761,722

3,214,806

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

95,546

270,782

Year ended 31 December 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

270,782

156,865

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.21

Cash flow

At 31.12.21

£

£

£

Net cash

Cash at bank and in hand

270,782

(175,236

)

95,546

270,782

(175,236

)

95,546

Debt

Finance leases

(1,290,220

)

(356,771

)

(1,646,991

)

Debts falling due within 1 year

(143,664

)

(3,917

)

(147,581

)

Debts falling due after 1 year

(2,424,048

)

147,581

(2,276,467

)

(3,857,932

)

(213,107

)

(4,071,039

)

Total

(3,587,150

)

(388,343

)

(3,975,493

)

1.	STATUTORY INFORMATION

W. E. Roberts (Holdings) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is recognised when it is probable that the economic benefits will flow to the group and when the revenue and costs, if applicable, can be measured reliably and on the following basis:

Sales of products is recognised on transfer of risks and rewards of ownership, which generally coincides with the time when products are delivered to customers and the title passed.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Long leasehold

-

over the lease term

Improvements to property

-

over the lease term

Plant & machinery

-

25% on cost and over 5 to 10 years

Motor vehicles

-

20% on cost

Computer equipment

-

25% on cost and 25% on reducing balance

Stocks

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 items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2021

2020

£

£

United Kingdom

24,960,465

19,922,711

24,960,465

19,922,711

4.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

5,467,038

4,471,168

Social security costs

439,929

401,730

Other pension costs

104,128

75,416

6,011,095

4,948,314

The average number of employees during the year was as follows:

2021

2020

Office & management

54

59

Manufacturing

118

108

172

167

2021

2020

£

£

Directors' remuneration

112,231

86,403

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021

2020

£

£

Other operating leases

-

360

Depreciation - owned assets

489,042

492,399

Depreciation - assets on hire purchase contracts

587,269

378,213

(Profit)/loss on disposal of fixed assets

(34,523

)

121,445

Auditors' remuneration

21,750

21,250

Auditors' remuneration for non audit work

18,600

16,060

Other non- audit services

-

300

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Bank interest

-

19

Bank loan interest

67,349

17,970

Other interest payable

-

958

Hire purchase

31,199

44,574

98,548

63,521

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

46,455

162,414

Deferred tax

82,200

97,320

Tax on profit

128,655

259,734

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Profit before tax

1,305,104

1,486,949

Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %)

247,970

282,520

Effects of:

Expenses not deductible for tax purposes

(90,362

)

(64,677

)

Capital allowances in excess of depreciation

(112,231

)

(56,822

)

Interest received

1,078

1,393

Deferred tax movement

82,200

97,320

Total tax charge

128,655

259,734