W.E.Roberts (Packing Supplies) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00774872 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2020

for

W.E.Roberts (Packing Supplies) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

A W E Roberts

S W T Roberts

P T Roberts

R J Puffette

Ms S T Roberts

SECRETARY:

A W E Roberts

REGISTERED OFFICE:

First Floor, West Barn

North Frith Farm, Ashes Lane

Hadlow

Tonbridge

Kent

TN11 9QU

BUSINESS ADDRESS:

Thames Works

Grove Road

Northfleet

Kent

DA11 9AX

REGISTERED NUMBER:

00774872 (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 for the year ended 31 December 2020.

REVIEW OF 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 company's principle trade is the sale of corrugated cardboard packaging products and associated items.

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 and gross margin.

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

28 October 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of selling ancillary packaging materials and stock size cases.

DIVIDENDS

An interim dividend of 187.20 per share was paid on 31 December 2020. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2020 will be £ 187,200 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 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 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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 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. They are 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.

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 company'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 company'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

28 October 2021

Opinion

We have audited the financial statements of W.E.Roberts (Packing Supplies) Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 December 2020 and of its 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 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 auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 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 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.

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.

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:

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 vis 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 our 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 company is subject to laws and regulations that directly affect the financial statements, including: the company'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 company 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 hae such an effect: employment legislation; health and safety legislation; trade legislation; data protection legislation; anti-bribery and corruption legislation.

International Standards on Auditing (UK) 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 International Auditing Standards (UK).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

28 October 2021

TURNOVER

4,433,918

3,314,871

Cost of sales

(3,325,847

)

(2,515,437

)

GROSS PROFIT

1,108,071

799,434

Administrative expenses

(1,017,571

)

(796,578

)

OPERATING PROFIT

90,500

2,856

Interest payable and similar expenses

4

(1,502

)

(1,012

)

PROFIT BEFORE TAXATION

5

88,998

1,844

Tax on profit

6

(6,953

)

(11,230

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

82,045

(9,386

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

82,045

(9,386

)

FIXED ASSETS

Tangible assets

8

61,937

51,425

CURRENT ASSETS

Stocks

9

206,978

232,528

Debtors

10

684,055

771,887

Cash at bank and in hand

34,094

472

925,127

1,004,887

CREDITORS

Amounts falling due within one year

11

815,418

773,952

NET CURRENT ASSETS

109,709

230,935

TOTAL ASSETS LESS CURRENT LIABILITIES

171,646

282,360

CREDITORS

Amounts falling due after more than one year

12

27,494

33,053

NET ASSETS

144,152

249,307

CAPITAL & RESERVES

Called up share capital

15

1,000

1,000

Retained earnings

16

143,152

248,307

SHAREHOLDERS' FUNDS

144,152

249,307

The financial statements were approved by the Board of Directors and authorised for issue on 28 October 2021 and were signed on its behalf by:

R J Puffette - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2019

1,000

257,693

258,693

Changes in equity

Total comprehensive income

-

(9,386

)

(9,386

)

Balance at 31 December 2019

1,000

248,307

249,307

Changes in equity

Dividends

-

(187,200

)

(187,200

)

Total comprehensive income

-

82,045

82,045

Balance at 31 December 2020

1,000

143,152

144,152

1.	STATUTORY INFORMATION

W.E.Roberts (Packing Supplies) 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 Company 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Turnover

Turnover is recognised when it is probable that the economic benefits will flow to the company 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.

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.

Improvements to property

-

over the lease term

Plant & machinery

-

25% on cost

Motor vehicles

-

20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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.

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

459,751

324,428

Social security costs

29,642

26,295

Other pension costs

5,636

2,971

495,029

353,694

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

2020

2019

Office & management

7

7

Manufacturing & warehouse

12

8

19

15

2020

2019

£

£

Directors' remuneration

-

-

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank interest

-

1

Hire purchase

1,502

1,011

1,502

1,012

5.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2020

2019

£

£

Depreciation - owned assets

14,707

12,427

Depreciation - assets on hire purchase contracts

10,143

10,143

Profit on disposal of fixed assets

(1,750

)

(5,300

)

Auditors' remuneration

7,250

6,950

6.

TAXATION

Analysis of the tax charge

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

2020

2019

£

£

Current tax:

UK corporation tax

6,953

-

Deferred tax

-

11,230

Tax on profit

6,953

11,230

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:

2020

2019

£

£

Profit before tax

88,998

1,844

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

16,910

350

Effects of:

Expenses not deductible for tax purposes

(10,895

)

(10,417

)

Capital allowances in excess of depreciation

-

(8,219

)

Depreciation in excess of capital allowances

938

-

Utilisation of tax losses

-

18,286

Deferred tax movement

-

11,230

Total tax charge

6,953

11,230

7.

DIVIDENDS

2020

2019

£

£

Ordinary shares of £1 each

Paid

187,200

-

8.	TANGIBLE FIXED ASSETS

Improvements

to

Plant &

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2020

32,000

158,190

124,258

357

314,805

Additions

-

28,562

-

6,800

35,362

At 31 December 2020

32,000

186,752

124,258

7,157

350,167

DEPRECIATION

At 1 January 2020

32,000

155,682

75,609

89

263,380

Charge for year

-

7,978

15,083

1,789

24,850

At 31 December 2020

32,000

163,660

90,692

1,878

288,230

NET BOOK VALUE

At 31 December 2020

-

23,092

33,566

5,279

61,937

At 31 December 2019

-

2,508

48,649

268

51,425

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 January 2020

and 31 December 2020

50,713

DEPRECIATION

At 1 January 2020

10,143

Charge for year

10,143

At 31 December 2020

20,286

NET BOOK VALUE

At 31 December 2020

30,427

At 31 December 2019

40,570

9.

STOCKS

2020

2019

£

£

Finished Goods

206,978

232,528

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

471,532

344,620

Amounts owed by fellow subsidiaries

166,847

390,536

Other debtors

554

-

Prepayments & accrued income

45,122

36,731

684,055

771,887

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 13)

10,289

8,635

Trade creditors

335,090

188,342

Amounts owed to parent company

38,000

-

Amounts owed to fellow subsidiaries

-

35,000

Corporation tax

6,953

-

Social security & other taxes

121,092

65,131

Other creditors

203,241

216,773

Accrued expenses

100,753

260,071

815,418

773,952

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 13)

27,494

33,053

13.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Gross obligations repayable:

Within one year

11,545

10,088

Between one and five years

28,862

35,308

40,407

45,396

Finance charges repayable:

Within one year

1,256

1,453

Between one and five years

1,368

2,255

2,624

3,708

Net obligations repayable:

Within one year

10,289

8,635

Between one and five years

27,494

33,053

37,783

41,688

Non-cancellable operating

leases

2020

2019

£

£

Within one year

110,000

110,000

Between one and five years

280,000

280,000

In more than five years

210,000

280,000

600,000

670,000

14.	SECURED DEBTS

W E Roberts (Corrugated) Limited, associated company, borrowed £500,000 repayable over 5 years from Roberts Pension Fund. Part of the loan agreement means that Roberts Pension Fund has a fixed and floating charge over all assets of this company, dated 27 September 2010.

Lloyds Bank plc letter of set off dated 23 October 2020 to include W E Roberts (Holdings) Limited and W E Roberts (Corrugated) Limited ,the effect of which is that there are cross guarantees and charges over all the company's assets.

Lloyds Commercial Finance Limited has a fixed and floating charge in the bank's standard form over the assets of the company dated 25 July 2011.

15.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

1,000

Ordinary

£1

1,000

1,000

16.

RESERVES

Retained

earnings

£

At 1 January 2020

248,307

Profit for the year

82,045

Dividends

(187,200

)

At 31 December 2020

143,152

17.	ULTIMATE PARENT COMPANY

The ultimate parent company is W.E.Roberts (Holdings) Limited, a company incorporated in England & Wales.

The ultimate parent company's registered office is 3 Boyne Park, Tunbridge Wells, TN4 8EN.

18.	RELATED PARTY DISCLOSURES

Other related parties

2020

2019

£

£

Rent paid (Profit & loss)

40,000

40,000

Amount due to related party

-

170,769