Newspace Containers Limited - Period Ending 2022-12-31
Newspace Containers Limited - Period Ending 2022-12-31
Registration number:
Newspace Containers Limited
for the Year Ended 31 December 2022
Newspace Containers Limited
Contents
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Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Newspace Containers Limited
Company Information
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Director |
J L R Cicero |
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Company secretary |
W J Elliot |
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Registered office |
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Auditor |
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Newspace Containers Limited
Strategic Report for the Year Ended 31 December 2022
The strategic report for the year ended 31 December 2022.
Principal activity
The principal activity of the company is of portable anti-vandal accommodation.
Fair review of the business
As reported in the company’s Income Statement, revenue for the year ended 31 December 2022 was £18.9m compared to £22.6m for the year ended 31 December 2021. Gross Profit for the year was £4.37m representing 23.1% of total revenues compared to £4.43m for the prior year representing 19.6% of total revenues.
Revenue has fallen by 16.4% year on year, 2021 was an exceptional year and 2022 was a year of change which began with the abrupt end to the COVID-19 restrictions, that Newspace had benefited from in 2021. Social distancing restrictions were lifted and a number of units on hire to support the efforts in fighting the pandemic were returned to hire companies and in turn their utilisation levels fell below the threshold for triggering investment. The business had to adapt quickly working to develop new products and to engage with a new customer base (working increasingly with end users that operate their own fleet). The business worked to mitigate the impact of reduced volumes by tighter control of its direct labour and overtime. Whilst also working to complete “make vs buy” reviews for sub-assemblies, that lead to a number of insourcing projects. This was further enhanced by a review and optimisation of the inventory on hand, which in turn gave rise to strong levels of cash generation.
Administration expenses increased by £0.9m on 2021 owing to continued investment into quality, continuous improvement and an operating lease for a new fleet of forklift trucks, the business was also exposed to inflationary pressures and had to respond to the cost of living pressures.
The focus for the medium term is to increase sales and profit from pre-pandemic levels by diversifying and developing new products and markets. However, in anticipation of the financial year ended 2023 we remain cautious owing to a variety of external economic factors. We will work with our customers and supply chain to ensure sustainable growth thereafter.
Newspace maintains its industry leading reputation for quality and service this enabled the business to protect profits in 2022. This will be evidenced by our extensive research and product development on fire rated products for use on construction sites in light of changes to guidance and legislation.
Furthermore, our focus on both thermal performance and energy efficiency will also provide a platform for growth beyond pre pandemic levels in the medium term.
The company's key financial and other performance indicators during the year were as follows:
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Unit |
2022 |
2021 |
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Gross profit margin |
% |
23.12 |
19.58 |
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EBIT |
% |
3.79 |
7.14 |
|
ROCCE (Return on controllable capital employed) |
% |
26.53 |
38.94 |
Newspace Containers Limited
Strategic Report for the Year Ended 31 December 2022 (continued)
Principal risks and uncertainties
Operational and compliance risks are constantly being monitored, and procedures are being implemented to tackle issues as they arise. Financial risks relating to the falling value of Sterling are minimised by the company’s transactions all being in the UK. Credit risk is constantly monitored and working capital is being improved by a reduction in stock.
Reputational and strategic risks should be reduced with the support of our parent company, with the emphasis being on increasing the variety of quality products.
Cost of living
Newspace have observed imported inflation in the economy and noted the impact of interest rate rises, food and fuel inflation were having on its employees and as such moved to complete a pay review in December 2022, working to protect its skilled workforce.
Approved by the
.........................................
Director
Newspace Containers Limited
Director's Report for the Year Ended 31 December 2022
The report and the financial statements for the year ended 31 December 2022.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company finances its activities with a combination of cash and short term deposits. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the company. The company does not consider that it is materially exposed to price risk.
Liquidity risk
The directors' aim is to ensure the company has sufficient liquid resources to meet its operational requirements. This is closely monitored to minimise the exposure to risk.
Credit risk
The company offers its customers credit. Before credit terms are agreed, an assessment of the customer's credit rating is undertaken to ensure there is not a major credit risk to the company. Credit limits are set accordingly.
Future developments
The future developments of the company are discussed in the Strategic Report.
Going concern
The company meets its day to day working capital requirements through cash generated from operations.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
At the time of signing the financial statements, the company had significant positive cash balances. The Directors believe that the company’s cost base can be effectively controlled and flexed to meet any reduction in income but are confident that this will not be required.
Based on the factors set out above the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
Disclosure of information to the auditor
The director has taken steps that ought to have taken as a director in order to make aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that of and of which the auditors are unaware.
Newspace Containers Limited
Director's Report for the Year Ended 31 December 2022 (continued)
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised for issue by the
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Newspace Containers Limited
Statement of Director's Responsibilities
The responsibilities for preparing the Annual 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 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 director is required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The 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 to ensure that the financial statements comply with the Companies Act 2006. 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.
Newspace Containers Limited
Independent Auditor's Report to the Members of Newspace Containers Limited
Opinion
We have audited the financial statements of Newspace Containers Limited (the 'company') for the year ended 31 December 2022, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, and Notes to the Financial Statements, including 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 2022 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 auditor 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 director's 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 other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
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 course of 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.
Newspace Containers Limited
Independent Auditor's Report to the Members of Newspace Containers Limited (continued)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the 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 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 the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 6], 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 have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud; |
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challenging assumptions and judgements made by management in their significant accounting estimates; |
Newspace Containers Limited
Independent Auditor's Report to the Members of Newspace Containers Limited (continued)
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auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and |
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reviewing financial statement disclosures and testing to support documentation. |
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Statutory Auditor
Chartered Accountants
Bulman House
Regent Centre
Newcastle upon Tyne
NE3 3LS
Azets Audit Services is a trading name of Azets Audit Services Limited
Newspace Containers Limited
Income Statement for the Year Ended 31 December 2022
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Note |
2022 |
2021 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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- |
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Operating profit |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
- |
( |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Newspace Containers Limited
(Registration number: 04099207)
Statement of Financial Position as at 31 December 2022
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Note |
2022 |
2021 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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Approved and authorised for issue by the
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Newspace Containers Limited
Statement of Changes in Equity for the Year Ended 31 December 2022
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Share capital |
Profit and loss account |
Total |
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At 1 January 2021 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 December 2021 |
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Share capital |
Profit and loss account |
Total |
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At 1 January 2022 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 December 2022 |
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Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements have been prepared in sterling, which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
Name of parent of group
These financial statements are consolidated in the financial statements of GCH Corporation Limited.
The financial statements of GCH Corporation Limited may be obtained from 2 Castle Business Village, Station Road, Hampton, Middlesex, TW12 2BX.
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Accounting policies (continued) |
Judgements
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. |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. |
Assessing nature of lease - The Company has entered into commercial leases and as a lessee it obtains use of property, plant and equipment. The classification as operating or finance lease requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. |
Taxation - Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Stock valuation - The cost of finished goods and work in progress comprises direct materials and, where applicable direct labour and those overheads that have been occurred in bringing the inventories to their present location and condition. Management judgement is required to determine the overheads and labour allocated to these items of stock. A further judgement is required at each reporting date to assess which items are to be provided for within the stock provision.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Accounting policies (continued) |
Government grants
Government grants are recognised using the accrual model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
The Coronavirus Job Retention Scheme (CJRS) results in cash payments from government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on a temporary leave of absence from working for the employer). This is a government grant which should be accounted for as such in accordance with FRS 102 Section 24.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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2 |
Accounting policies (continued) |
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Asset class |
Depreciation method and rate |
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Plant and machinery |
10% straight line |
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Motor vehicles |
25% straight line |
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Office equipment |
10% straight line |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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2 |
Accounting policies (continued) |
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
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2022 |
2021 |
|
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Sale of goods |
|
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The analysis of the company's Turnover for the year by market is as follows:
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2022 |
2021 |
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UK |
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2022 |
2021 |
|
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Other operating income |
|
- |
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Operating profit |
Arrived at after charging/(crediting)
|
2022 |
2021 |
|
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Depreciation expense |
|
|
|
Profit on disposal of property, plant and equipment |
( |
- |
|
Interest payable and similar expenses |
|
2022 |
2021 |
|
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Interest on obligations under finance leases and hire purchase contracts |
- |
|
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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2022 |
2021 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
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2022 |
2021 |
|
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Production |
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Administration and support |
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Other departments |
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Director's remuneration |
The directors' remuneration for the year was as follows:
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2022 |
2021 |
|
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Remuneration |
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Contributions paid to money purchase schemes |
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|
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121,958 |
114,769 |
The above details of directors' emoluments do not include the emoluments of Mr J L R Cicero, which are paid by the parent company and recharged to the company as part of a management charge. This management charge, which in 2022 amounted to £368,000 also includes a recharge of administration costs borne by the parent company on behalf of the company and it is not possible to identify separately the amount of the director's emoluments.
During the year the number of directors who were receiving benefits and share incentives was as follows:
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2022 |
2021 |
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Accruing benefits under money purchase pension scheme |
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Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
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Auditor's remuneration |
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2022 |
2021 |
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Audit of the financial statements |
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Taxation |
Tax charged/(credited) in the income statement
|
2022 |
2021 |
|
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Current taxation |
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UK corporation tax |
|
|
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UK corporation tax adjustment to prior periods |
|
- |
|
146,634 |
133,203 |
|
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Deferred taxation |
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Arising from origination and reversal of timing differences |
( |
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Arising from changes in tax rates and laws |
( |
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Total deferred taxation |
( |
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Tax expense in the income statement |
|
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The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2021 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
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2022 |
2021 |
|
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Profit before tax |
|
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Corporation tax at standard rate |
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|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
UK deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
|
Decrease from effect of tax incentives |
( |
( |
|
Decrease in UK and foreign current tax from unrecognised temporary difference from a prior period |
( |
- |
|
Total tax charge |
|
|
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
|
10 |
Taxation (continued) |
In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase from 19% to 25%. This new law was deemed substantively enacted on 24 May 2021 and the deferred tax balances at the year end have been calculated based on this rate.
Deferred tax
Deferred tax assets and liabilities
|
2022 |
Liability |
|
Accelerated tax depreciation |
276,238 |
|
Other timing differences |
(3,698) |
|
|
|
2021 |
Liability |
|
Accelerated tax depreciation |
300,023 |
|
Other timing differences |
(2,789) |
|
|
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2022 |
|
|
|
At 31 December 2022 |
|
|
|
Amortisation |
||
|
At 1 January 2022 |
|
|
|
At 31 December 2022 |
|
|
|
Carrying amount |
||
|
At 31 December 2022 |
- |
- |
|
At 31 December 2021 |
- |
- |
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
|
Tangible assets |
|
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2022 |
|
|
|
|
|
Additions |
|
|
- |
|
|
Disposals |
( |
- |
- |
( |
|
At 31 December 2022 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
( |
- |
- |
( |
|
At 31 December 2022 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2022 |
|
|
|
|
|
At 31 December 2021 |
|
|
|
|
|
Stocks |
|
2022 |
2021 |
|
|
Raw materials and consumables |
|
|
|
Work in progress |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
Debtors |
|
2022 |
2021 |
|
|
Trade debtors |
1,629,249 |
2,279,228 |
|
Amounts owed by group undertakings |
9,711,409 |
8,018,247 |
|
Prepayments |
|
|
|
Corporation tax asset |
|
|
|
|
|
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
|
Creditors |
|
Note |
2022 |
2021 |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Amounts owed to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2022 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 December 2022 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2022 |
2021 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
67 |
|
67 |
Newspace Containers Limited
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
|
Reserves |
Share capital
Share capital represents the issued share capital of the company.
Profit and loss account
Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2022 |
2021 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
- |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is