Pafra Adhesives Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 00644949 (England and Wales)

Pafra Adhesives Limited

Audited Financial Statements

for the period

1 April 2022 to 31 December 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

A G Steward

X Desimpel

P D Lee

Secretary:

A G Steward

Registered office:

Pafra House

Bentalls

Basildon

Essex

SS14 3BU

Registered number:

00644949 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants and Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

Fixed assets

Intangible assets

5

415,828

489,333

Tangible assets

6

2,848,968

2,839,203

Investments

7

-

1

3,264,796

3,328,537

Current assets

Stocks

1,417,238

1,389,793

Debtors

8

2,466,115

2,524,515

Cash at bank

695,107

343,356

4,578,460

4,257,664

Creditors

Amounts falling due within one year

9

1,565,511

1,772,436

Net current assets

3,012,949

2,485,228

Total assets less current liabilities

6,277,745

5,813,765

Provisions for liabilities

11

(258,933

)

(258,933

)

Pension asset

15

1,114,500

684,000

Net assets

7,133,312

6,238,832

Capital and reserves

Called up share capital

12

873,710

873,710

Share premium

13

194,474

194,474

Revaluation reserve

13

2,033,662

2,033,662

Capital redemption reserve

13

810,816

810,816

Retained earnings

13

3,220,650

2,326,170

Shareholders' funds

7,133,312

6,238,832

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 September 2023 and were signed on its behalf by:

P D Lee - Director

1.	Statutory information

Pafra Adhesives 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer on dispatch of the goods and when sales invoices are issued.

Goodwill

Goodwill acquired is capitalised and amortised over 10 years as in the opinion of the directors this represents the period over which the goodwill is effective.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to amortise the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold

Straight line over 50 years on buildings

Plant and machinery

Straight line over 4 or 10 years

Fixtures, fittings & equipment

Straight line over 4 years

Laboratory equipment

Straight line over 4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

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 period comprises current and deferred tax. Tax is recognised in the statement of comprehensive incomeIncome 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.

The company is a beneficiary of Research & Development (R&D) tax relief from the UK Government in the form of reductions in its annual tax liability, as well as repayable tax credits. Current tax assets or reductions in current tax liabilities for R&D claims are only recognised when the amount can be reliably determined and the probability of HM Revenue & Customs accepting the claim is considered high.

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 period 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.

Research and development

Expenditure on research and development is expensed in the year in which it is incurred.

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.

Pension costs and other post-retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The company operates a defined benefit scheme which was withdrawn for all contributing members with effect from 31 October 2001.

The company adopted FRS17-'Retirement Benefits' in full in 2005. As a result of this, the regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.

Payments in respect of other post-retirement benefits are charged to profit or loss in the period to which they relate.

3.	Employees and directors

The average number of employees during the period was 21 (2022 - 26 ) .

4.	Auditors' remuneration

Period

1/4/22

to

Year ended

31/12/22

31/3/22

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

11,000

13,000

5.	Intangible fixed assets

Goodwill

£

Cost

At 1 April 2022

and 31 December 2022

980,018

Amortisation

At 1 April 2022

490,685

Amortisation for period

73,505

At 31 December 2022

564,190

Net book value

At 31 December 2022

415,828

At 31 March 2022

489,333

6.	Tangible fixed assets

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

Cost

At 1 April 2022

2,600,000

1,259,941

432,000

Additions

-

22,280

-

At 31 December 2022

2,600,000

1,282,221

432,000

Depreciation

At 1 April 2022

12,000

1,059,155

420,033

Charge for period

9,000

33,328

3,456

At 31 December 2022

21,000

1,092,483

423,489

Net book value

At 31 December 2022

2,579,000

189,738

8,511

At 31 March 2022

2,588,000

200,786

11,967

Motor

Computer

vehicles

equipment

Totals

£

£

£

Cost

At 1 April 2022

-

346,489

4,638,430

Additions

37,328

-

59,608

At 31 December 2022

37,328

346,489

4,698,038

Depreciation

At 1 April 2022

-

308,039

1,799,227

Charge for period

-

4,059

49,843

At 31 December 2022

-

312,098

1,849,070

Net book value

At 31 December 2022

37,328

34,391

2,848,968

At 31 March 2022

-

38,450

2,839,203

Included in cost of land and buildings is freehold land of £ 1,750,000 (2022 - £ 1,750,000 ) which is not depreciated.

Freehold land and buildings were valued by Kemsley LLP on 4 March 2021. The figure above represents the valuation plus subsequent additions.

7.	Fixed asset investments

Shares in

group

undertakings

£

Cost

At 1 April 2022

1

Disposals

(1

)

At 31 December 2022

-

Net book value

At 31 December 2022

-

At 31 March 2022

1

Pafra Limited was dissolved on 21 June 2022.

8.

Debtors: amounts falling due within one year

2022

2022

£

£

Trade debtors

2,233,771

2,271,532

Amounts owed by group undertakings

156,000

156,000

Tax

-

54,271

Prepayments

76,344

42,712

2,466,115

2,524,515

9.

Creditors: amounts falling due within one year

2022

2022

£

£

Trade creditors

1,185,109

1,480,174

Tax

44,729

-

Social security and other taxes

27,862

23,351

VAT

250,104

204,890

Other creditors

44,059

8,969

Accrued expenses

13,648

55,052

1,565,511

1,772,436

10.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2022

£

£

Within one year

11,237

31,915

Between one and five years

1,405

9,705

12,642

41,620

11.	Provisions for liabilities

2022

2022

£

£

Deferred tax

Other timing differences

213,750

213,750

Accelerated capital

allowances

45,183

45,183

258,933

258,933

Deferred tax

£

Balance at 1 April 2022

258,933

Balance at 31 December 2022

258,933

12.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2022

value:

£

£

872,210

Ordinary share capital

1

872,210

872,210

1,500

Preference share capital

1

1,500

1,500

873,710

873,710

The preference shares are non voting fixed cumulative shares with dividends of 7% payable per annum. The holders of preference shares have priority over the holders of ordinary shares in the event of the company being wound up.

13.

Reserves

Capital

Retained

Share

Revaluation

redemption

earnings

premium

reserve

reserve

Totals

£

£

£

£

£

At 1 April 2022

2,326,170

194,474

2,033,662

810,816

5,365,122

Profit for the period

481,980

481,980

Actuarial gain/(loss)

412,500

-

-

-

412,500

At 31 December 2022

3,220,650

194,474

2,033,662

810,816

6,259,602

14.	Disclosure under Section 444(5B) of the Companies Act 2006

The Auditors' Report was unqualified.

Jonathan Moughton (Senior Statutory Auditor)

for and on behalf of Haines Watts

15.	Employee benefit obligations

The pension scheme asset of £1,114,500 (March 2022: £684,000) consists of the scheme surplus of £1,486,000 (March 2022: £912,000) less the related deferred tax liability of £371,500 (March 2022: £228,000).

The company operates a pension scheme providing benefits based on final pensionable pay. On 5 October 2001 the company withdrew the scheme for all contributing members with effect from 31 October 2001. The assets of the scheme are held separately from those of the company, being invested with an insurance company. The contributions of the scheme were previously charged to the profit and loss account so as to spread the cost of the pensions over employees' working lives with the company. The contribution were determined by a qualified actuary on the basis of triennial valuations using the projected unit method.

The company adopted FRS17 - 'Retirement Benefits' in full in 2005. An independent actuarial assessment as at 31 December 2022 showed the market value of the scheme assets at the date as £4,102,000 (March 2022: £4,409,000).

The actuary's statement, dated 15 August 2022, is based on a valuation with an effective date of 31 December 2022.

The amounts recognised in the balance sheet are as follows:

Defined benefit

pension plans

2022

2022

£

£

Present value of funded obligations

(2,616,000

)

(3,497,000

)

Fair value of plan assets

4,102,000

4,409,000

1,486,000

912,000

Present value of unfunded obligations

-

-

Surplus

1,486,000

912,000

Deferred tax liability

(371,500

)

(228,000

)

Net asset

1,114,500

684,000

The amounts recognised in profit or loss are as follows:

Defined benefit

pension plans

2022

2022

£

£

Current service cost

-

-

Net interest on defined benefit liability

(18,000

)

(5,000

)

Past service cost

-

-

(18,000

)

(5,000

)

Actual return on plan assets

(225,000

)

368,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

2022

2022

£

£

Opening pension scheme liabilities

3,497,000

3,871,000

Interest on scheme liabilities

70,000

75,000

Actuarial gains and losses on scheme liabilities

(869,000

)

(200,000

)

Benefits paid

(82,000

)

(249,000

)

2,616,000

3,497,000

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

2022

2022

£

£

Opening fair value of scheme assets

4,409,000

3,960,000

Contributions by employer

-

330,000

Interest on scheme assets

88,000

80,000

Actuarial gains and losses on scheme assets

(313,000

)

288,000

Benefits paid

(82,000

)

(249,000

)

4,102,000

4,409,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

2022

2022

£

£

Actuarial gains/(losses)

556,000

488,000

Tax relating to actuarial gains/(losses)

(143,500

)

(211,090

)

412,500

276,910

The major categories of scheme assets as amounts of total scheme assets are as follows:

Defined benefit

pension plans

2022

2022

£

£

Equities

3,418,000

3,538,000

Bonds

449,000

562,000

Cash

235,000

309,000

4,102,000

4,409,000

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2022

2022

Discount rate

4.80%

2.70%

Retail Prices Index

3.40%

3.70%

Consumer Prices Index

2.60%

2.70%

Mortality assumptions

December 2022

March2022

Assumed life expectations on retirement at age 65:

Current age 65

- Males

86.8

86.8

- Females

89.1

89.0

Current age 45

- Males

87.9

87.8

- Females

90.2

90.2

Defined contribution scheme

The company operates a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the company. During the year the company contributed £164,981 (2021: £157,473).

16.	Related party disclosures

During the year the company made sales of £315,191 to and incurred and purchases of £436,270 from fellow subsidiaries. The net amount owed to such companies at 31 December 2022 was £113,525.

17.	Parent undertaking

As at 31 December 2022 the immediate parent company is Gluecom UK Limited, Shenstone Drive, Walsall, United Kingdom, WS9 8TP. The ultimate parent undertaking is DAM122 NV, a company incorporated in Belgium. The company's registered office and address for obtaining accounts is Pathoekeweg 122, 8000 Brugge, Belgium.