Ravenwood Packaging Limited Company accounts

RAVENWOOD PACKAGING LIMITED - Company Information

62 false false false true false false false false false false true false false false false false false 2020-04-01 Sage Accounts Production Advanced 2020 - FRS102_2019 1,095,540 653,848 1 1 1 138,920 16,780 122,140 xbrli:pure xbrli:shares iso4217:GBP 05189924 2020-04-01 2021-03-31 05189924 2021-03-31 05189924 2020-03-31 05189924 2019-04-01 2020-03-31 05189924 2020-03-31 05189924 core:PlantMachinery 2020-04-01 2021-03-31 05189924 core:FurnitureFittings 2020-04-01 2021-03-31 05189924 bus:RegisteredOffice 2020-04-01 2021-03-31 05189924 bus:OrdinaryShareClass1 2020-04-01 2021-03-31 05189924 bus:LeadAgentIfApplicable 2020-04-01 2021-03-31 05189924 bus:Director1 2020-04-01 2021-03-31 05189924 core:WithinOneYear 2021-03-31 05189924 core:WithinOneYear 2020-03-31 05189924 core:LandBuildings core:OwnedOrFreeholdAssets 2020-03-31 05189924 core:LandBuildings core:LongLeaseholdAssets 2020-03-31 05189924 core:PlantMachinery 2020-03-31 05189924 core:FurnitureFittingsToolsEquipment 2020-03-31 05189924 core:MotorVehicles 2020-03-31 05189924 core:LandBuildings core:OwnedOrFreeholdAssets 2021-03-31 05189924 core:LandBuildings core:LongLeaseholdAssets 2021-03-31 05189924 core:PlantMachinery 2021-03-31 05189924 core:FurnitureFittingsToolsEquipment 2021-03-31 05189924 core:MotorVehicles 2021-03-31 05189924 core:LandBuildings core:OwnedOrFreeholdAssets 2020-04-01 2021-03-31 05189924 core:LandBuildings core:LongLeaseholdAssets 2020-04-01 2021-03-31 05189924 core:FurnitureFittingsToolsEquipment 2020-04-01 2021-03-31 05189924 core:MotorVehicles 2020-04-01 2021-03-31 05189924 core:AfterOneYear 2021-03-31 05189924 core:AfterOneYear 2020-03-31 05189924 core:UKTax 2020-04-01 2021-03-31 05189924 core:UKTax 2019-04-01 2020-03-31 05189924 core:RetainedEarningsAccumulatedLosses 2020-04-01 2021-03-31 05189924 core:RetainedEarningsAccumulatedLosses 2019-04-01 2020-03-31 05189924 bus:OrdinaryShareClass1 2019-04-01 2020-03-31 05189924 core:RetainedEarningsAccumulatedLosses 2020-03-31 05189924 core:RetainedEarningsAccumulatedLosses 2019-03-31 05189924 core:RetainedEarningsAccumulatedLosses 2021-03-31 05189924 core:RetainedEarningsAccumulatedLosses 2020-03-31 05189924 core:ShareCapital 2021-03-31 05189924 core:ShareCapital 2020-03-31 05189924 core:BetweenOneFiveYears 2021-03-31 05189924 core:BetweenOneFiveYears 2020-03-31 05189924 core:DeferredTaxation 2020-04-01 2021-03-31 05189924 core:CostValuation core:Non-currentFinancialInstruments 2021-03-31 05189924 core:Non-currentFinancialInstruments 2021-03-31 05189924 core:Non-currentFinancialInstruments 2020-03-31 05189924 core:AcceleratedTaxDepreciationDeferredTax 2021-03-31 05189924 core:AcceleratedTaxDepreciationDeferredTax 2020-03-31 05189924 core:LandBuildings core:OwnedOrFreeholdAssets 2020-03-31 05189924 core:LandBuildings core:LongLeaseholdAssets 2020-03-31 05189924 core:PlantMachinery 2020-03-31 05189924 core:FurnitureFittingsToolsEquipment 2020-03-31 05189924 core:MotorVehicles 2020-03-31 05189924 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2021-03-31 05189924 core:LeasedAssetsHeldAsLessee core:MotorVehicles 2020-03-31 05189924 core:DeferredTaxation 2020-03-31 05189924 core:DeferredTaxation 2021-03-31 05189924 bus:LeadAgentIfApplicable 2019-04-01 2020-03-31 05189924 bus:FRS102 2020-04-01 2021-03-31 05189924 bus:Audited 2020-04-01 2021-03-31 05189924 bus:FullAccounts 2020-04-01 2021-03-31 05189924 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2020-04-01 2021-03-31 05189924 bus:PrivateLimitedCompanyLtd 2020-04-01 2021-03-31 05189924 bus:OrdinaryShareClass1 2021-03-31 05189924 bus:OrdinaryShareClass1 2020-03-31 05189924 core:OfficeEquipment 2020-04-01 2021-03-31 05189924 core:OtherGroupMember1 2020-04-01 2021-03-31 05189924 core:OtherGroupMember1 2021-03-31

COMPANY REGISTRATION NUMBER: 05189924

Ravenwood Packaging Limited

Financial Statements

31 March 2021

Ravenwood Packaging Limited

Financial Statements

Year ended 31 March 2021

Contents	Page

Strategic report	1

Director's report	2

Independent auditor's report to the member	4

Statement of income and retained earnings	8

Statement of financial position	9

Statement of cash flows	10

Notes to the financial statements	11

Ravenwood Packaging Limited

Strategic Report

Year ended 31 March 2021

The principal activities of the company are producing, selling and servicing packaging machines and the service and sale of motorbikes and specialist cars .

Turnover showed an increase of £1.9 million and a decrease in gross profit margin of 0.6%. Our profit on ordinary activities before taxation increased by £849,124. Current year trading for 2021/22 has started well with growth in turnover to date.

The director considers the principal key performance indicators used to monitor the company performance as turnover, gross profit percentage and profit on ordinary activities before taxation.

The company manages business and supply chain risks to minimise the impact on the continuity of the business. The business has invested significantly in research and development of packaging machine design and the turnover and profits are reflective of the success of this work which should continue. Key risks to the company include fluctuations in foreign currency. This risk is managed by the operation of a dollar and euro account as well as close monitoring and planning by management. Another risk to the business is the technological advances in packaging machinery. This is being addressed by the investment in recruitment of staff, staff training and the expenditure in research and development. The effect of the Covid 19 pandemic on the company has been across all departments. Considerable effort has had to be made under ever changing trading conditions and challenges. The company has had to work harder to minimise the ongoing issues.

During 2021/22 the company will continue to invest in product development as well as continuing to explore opportunities to improve efficiency of its operations.

This report was approved by the board of directors on 25 March 2022 and signed on behalf of the board by:

P E Beamish
Director

Registered office:

Unit 1 Brunel Business Court

Eastern Way

Bury St Edmunds

Suffolk

IP32 7AJ

Ravenwood Packaging Limited

Director's Report

Year ended 31 March 2021

The director presents his report and the financial statements of the company for the year ended 31 March 2021 .

Director

The director who served the company during the year was as follows:

P E Beamish

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Director's responsibilities statement

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 25 March 2022 and signed on behalf of the board by:

P E Beamish
Director

Registered office:

Unit 1 Brunel Business Court

Eastern Way

Bury St Edmunds

Suffolk

IP32 7AJ

Ravenwood Packaging Limited

Independent Auditor's Report to the Member of Ravenwood Packaging Limited

Year ended 31 March 2021

Opinion

We have audited the financial statements of Ravenwood Packaging Limited (the 'company') for the year ended 31 March 2021 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our 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 our evaluation of the director's conclusions, we considered the inherent risks to the company's business model and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period. Our conclusions based on this work:

- we consider that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

- we have not identified, and agree with the director's assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the company will continue in operation.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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. 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: Our risk assessment procedures included: - inquiring with the key management personnel of the Company's high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud. - reading management meeting minutes - using analytical procedures to identify any unusual or unexpected relationships - identifying journal entries and other adjustments to test based on risk criteria and compare the identified risk to supporting documentation. These included entries with contras to typically unrelated accounts - assess significant accounting estimates for bias In determining the audit procedures, we took in to account the results of our evaluation and testing of the operating effectiveness of the risk management controls. We did not identify any additional fraud risks. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. - 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 internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

S J Cook MA FCA

(Senior Statutory Auditor)

For and on behalf of

David Roberton & Co

Chartered accountants & statutory auditor

84 Whiting Street

Bury St Edmunds

Suffolk

IP33 1NZ

30 March 2022

Ravenwood Packaging Limited

Statement of Income and Retained Earnings

Year ended 31 March 2021

		2021	2020
Note		£	£
Turnover	4	18,482,906	16,520,908

Cost of sales	15,872,080	14,083,735
	-------------	-------------
Gross profit	2,610,826	2,437,173

Administrative expenses		1,518,907	1,843,901
Other operating income		387,078	–
		------------	------------
Operating profit	5	1,478,997	593,272

Other interest receivable and similar income	9	8	199
Interest payable and similar expenses	10	109,464	73,054
		------------	------------
Profit before taxation		1,369,541	520,417

Tax on profit	11	274,001	( 133,431)
		------------	---------
Profit for the financial year and total comprehensive income		1,095,540	653,848
		------------	---------

Dividends paid and payable	12	( 226,000)	( 350,000)

Retained earnings at the start of the year	2,778,656	2,474,808
	------------	------------
Retained earnings at the end of the year	3,648,196	2,778,656
	------------	------------

All the activities of the company are from continuing operations.

Ravenwood Packaging Limited

Statement of Financial Position

31 March 2021

	2021	2020
Note	£	£

Fixed assets

Tangible assets	13	3,823,167	3,737,274
Investments	14	1	1
		------------	------------
		3,823,168	3,737,275

Current assets

Stocks	15	6,844,113	6,177,369
Debtors	16	2,013,980	1,787,621
Cash at bank and in hand		4,263	6,202
		------------	------------
		8,862,356	7,971,192

Creditors: amounts falling due within one year	18	7,117,018	6,938,418
		------------	------------
Net current assets		1,745,338	1,032,774
		------------	------------
Total assets less current liabilities		5,568,506	4,770,049

Creditors: amounts falling due after more than one year	19	1,798,169	1,852,472

Provisions	21	122,140	138,920
		------------	------------
Net assets		3,648,197	2,778,657
		------------	------------

Capital and reserves

Called up share capital	24	1	1
Profit and loss account	25	3,648,196	2,778,656
		------------	------------
Shareholder funds		3,648,197	2,778,657
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 25 March 2022 , and are signed on behalf of the board by:

P E Beamish
Director

Company registration number: 05189924

Ravenwood Packaging Limited

Statement of Cash Flows

Year ended 31 March 2021

	2021	2020
Note	£	£

Cash flows from operating activities

Profit for the financial year	1,095,540	653,848

Adjustments for:
Depreciation of tangible assets	256,057	239,106
Other interest receivable and similar income	( 8)	( 199)
Interest payable and similar expenses	109,464	73,054
Gains on disposal of tangible assets	( 4,642)	( 45,123)
Tax on profit	274,001	( 133,431)
Accrued (income)/expenses	( 189,313)	93,324

Changes in:
Stocks	( 666,744)	( 2,510,438)
Trade and other debtors	( 226,359)	507,209
Trade and other creditors	406,392	1,409,816
	------------	------------
Cash generated from operations	1,054,388	287,166

Interest paid	( 109,464)	( 73,054)
Interest received	8	199
Tax paid	( 70,323)	( 2,829)
	------------	---------
Net cash from operating activities	874,609	211,482
	------------	---------

Cash flows from investing activities

Purchase of tangible assets	( 347,387)	( 1,166,293)
Proceeds from sale of tangible assets	10,079	69,207
	------------	------------
Net cash used in investing activities	( 337,308)	( 1,097,086)
	------------	------------

Cash flows from financing activities

Proceeds from borrowings	( 142,634)	687,661
Payments of finance lease liabilities	( 35,703)	43,387
Dividends paid	( 226,000)	( 350,000)
	------------	------------
Net cash (used in)/from financing activities	( 404,337)	381,048
	------------	------------

Net increase/(decrease) in cash and cash equivalents		132,964	( 504,556)
Cash and cash equivalents at beginning of year		(176,963)	327,593
		---------	---------
Cash and cash equivalents at end of year	17	( 43,999)	( 176,963)
		---------	---------

Ravenwood Packaging Limited

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 1 Brunel Business Court, Eastern Way, Bury St Edmunds, Suffolk, IP32 7AJ.

2. Statement of compliance

The accounts have been prepared in accordance with the provisions of FRS 102.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis . The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	25 to 50 years straight line
Long leasehold property	-	Over the life of the lease
Plant and machinery	-	16% straight line
Fixtures and fittings	-	10% straight line
Motor vehicles	-	4 to 5 years straight line
Equipment	-	33% straight line

Certain plant & machinery, motor vehicles, fixtures & fittings and equipment is depreciated at 20% per annum on the reducing balance .

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2021	2020
	£	£
Sale of goods	18,482,906	16,520,908
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2021	2020
	£	£
Depreciation of tangible assets	256,057	239,106
Gains on disposal of tangible assets	( 4,642)	( 45,123)
Impairment of trade debtors	11,383	131
	---------	---------

6. Auditor's remuneration

	2021	2020
	£	£
Fees payable for the audit of the financial statements	8,500	8,500
	------	------

7. Staff costs

The average number of persons employed by the company during the year, including the director, amounted to:

	2021	2020
	No.	No.
Production staff	49	49
Administrative staff	13	13
	----	----
	62	62
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2021	2020
	£	£
Wages and salaries	2,368,957	2,218,103
Social security costs	263,283	211,593
Other pension costs	99,867	79,611
	------------	------------
	2,732,107	2,509,307
	------------	------------

8. Director's remuneration

The director's aggregate remuneration in respect of qualifying services was:

	2021	2020
	£	£
Remuneration	49,616	61,016
Company contributions to defined contribution pension plans	4,847	4,563
	--------	--------
	54,463	65,579
	--------	--------

The number of directors who accrued benefits under company pension plans was as follows:

	2021	2020
	No.	No.
Defined contribution plans	1	1
	----	----

9. Other interest receivable and similar income

	2021	2020
	£	£
Interest on cash and cash equivalents	8	199
	----	----

10. Interest payable and similar expenses

	2021	2020
	£	£
Interest on banks loans and overdrafts	62,823	47,281
Interest on obligations under finance leases and hire purchase contracts	46,641	25,773
	---------	--------
	109,464	73,054
	---------	--------

11. Tax on profit

Major components of tax expense/(income)

	2021	2020
	£	£

Current tax:

UK current tax expense/(income)	290,781	( 70,323)
Adjustments in respect of prior periods	–	( 136,778)
	---------	---------
Total current tax	290,781	( 207,101)
	---------	---------

Deferred tax:

Origination and reversal of timing differences	( 16,780)	73,670
	---------	---------
Tax on profit	274,001	( 133,431)
	---------	---------

Reconciliation of tax expense/(income)

The tax assessed on the profit on ordinary activities for the year is higher than (2020: lower than) the standard rate of corporation tax in the UK of 19 % (2020: 19 %).

	2021	2020
	£	£
Profit on ordinary activities before taxation	1,369,541	520,417
	------------	---------
Profit on ordinary activities by rate of tax	260,213	98,879
Effect of expenses not deductible for tax purposes	856	6,980
Effect of capital allowances and depreciation	12,932	19,292
Effect of R&D tax credits	–	( 258,582)
	------------	---------
Tax on profit	274,001	( 133,431)
	------------	---------

12. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2021	2020
	£	£
Dividends on equity shares	226,000	350,000
	---------	---------

13. Tangible assets

	Freehold property	Long leasehold property	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Total
	£	£	£	£	£	£
Cost
At 1 Apr 2020	2,822,843	492,523	602,944	352,456	640,601	4,911,367
Additions	93,023	–	15,651	30,213	208,500	347,387
Disposals	–	–	–	–	( 9,114)	( 9,114)
	------------	---------	---------	---------	---------	------------
At 31 Mar 2021	2,915,866	492,523	618,595	382,669	839,987	5,249,640
	------------	---------	---------	---------	---------	------------
Depreciation
At 1 Apr 2020	173,717	175,466	206,457	241,130	377,323	1,174,093
Charge for the year	56,694	15,098	59,216	28,927	96,122	256,057
Disposals	–	–	–	–	( 3,677)	( 3,677)
	------------	---------	---------	---------	---------	------------
At 31 Mar 2021	230,411	190,564	265,673	270,057	469,768	1,426,473
	------------	---------	---------	---------	---------	------------
Carrying amount
At 31 Mar 2021	2,685,455	301,959	352,922	112,612	370,219	3,823,167
	------------	---------	---------	---------	---------	------------
At 31 Mar 2020	2,649,126	317,057	396,487	111,326	263,278	3,737,274
	------------	---------	---------	---------	---------	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Motor vehicles
	£
At 31 March 2021	71,760
	--------
At 31 March 2020	101,920
	---------

14. Investments

	Other investments other than loans
	£
Cost
At 1 April 2020 and 31 March 2021	1
	----
Impairment
At 1 April 2020 and 31 March 2021	–
	----

Carrying amount
At 31 March 2021	1
	----
At 31 March 2020	1
	----

15. Stocks

	2021	2020
	£	£
Work in progress	342,830	279,854
Finished goods and goods for resale	6,501,283	5,897,515
	------------	------------
	6,844,113	6,177,369
	------------	------------

16. Debtors

	2021	2020
	£	£
Trade debtors	1,512,339	1,202,917
Prepayments and accrued income	245,587	207,497
Corporation tax repayable	–	70,323
Other debtors	256,054	306,884
	------------	------------
	2,013,980	1,787,621
	------------	------------

17. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2021	2020
	£	£
Cash at bank and in hand	4,263	6,202
Bank overdrafts	( 48,262)	( 183,165)
	--------	---------
	( 43,999)	( 176,963)
	--------	---------

18. Creditors: amounts falling due within one year

	2021	2020
	£	£
Bank loans and overdrafts	121,469	377,102
Trade creditors	4,121,870	4,010,051
Accruals and deferred income	534,302	723,615
Corporation tax	220,458	–
Social security and other taxes	83,917	74,060
Obligations under finance leases and hire purchase contracts	31,923	35,704
Director loan accounts	477	–
Other creditors	2,002,602	1,717,886
	------------	------------
	7,117,018	6,938,418
	------------	------------

Creditors of £113,136 (2020-£377,102) are secured on the company's property.

19. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Bank loans and overdrafts	1,744,637	1,767,018
Obligations under finance leases and hire purchase contracts	53,532	85,454
	------------	------------
	1,798,169	1,852,472
	------------	------------

Creditors of £1,702,970 (2020-£1,767,018) are secured on the company's property.

Included within creditors: amounts falling due after more than one year is an amount of £1,427,693 (2020: £1,534,633) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

The company's bank loan is repayable by regular monthly instalments. Interest is charged at 2.25% over base rate.

20. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2021	2020
	£	£
Not later than 1 year	31,923	35,704
Later than 1 year and not later than 5 years	53,532	85,454
	--------	---------
	85,455	121,158
	--------	---------

21. Provisions

	Deferred tax (note 22)
	£
At 1 April 2020	138,920
Charge against provision	( 16,780)
	---------
At 31 March 2021	122,140
	---------

22. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2021	2020
	£	£
Included in provisions (note 21)	122,140	138,920
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2021	2020
	£	£
Accelerated capital allowances	122,140	138,920
	---------	---------

23. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 95,272 (2020: £ 75,048 ).

24. Called up share capital

Issued, called up and fully paid

	2021		2020
	No.	£	No.	£
Ordinary shares of £ 1 each	1	1	1	1
	----	----	----	----

25. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

26. Analysis of changes in net debt

	At 1 Apr 2020	Cash flows	At 31 Mar 2021
	£	£	£
Cash at bank and in hand	6,202	(1,939)	4,263
Bank overdrafts	(183,165)	134,903	(48,262)
Debt due within one year	(229,641)	124,034	(105,607)
Debt due after one year	(1,852,472)	54,303	(1,798,169)
	------------	---------	------------
	( 2,259,076)	311,301	( 1,947,775)
	------------	---------	------------

27. Related party transactions

During the year the company made sales of £ 815,876 to Ravenwood Packaging Asia Pacific Pty Ltd , a fellow subsidiary of Ravenwood Group Limited. At 31 March 2021 Ravenwood Packaging Asia Pacific Pty Ltd owed £ 150,385 to Ravenwood Packaging Limited .

Ravenwood Packaging Limited

Notes to the Financial Statements (continued)

Year ended 31 March 2021

28. Controlling party

The parent company, and ultimate controlling party, is Ravenwood Group Limited.