Cherwell Packaging Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 01320468 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

FOR

CHERWELL PACKAGING LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

J S C Hodge

REGISTERED OFFICE:

Southfield Road

Kineton Road Industrial Estate

Southam

Warwickshire

CV47 OFB

REGISTERED NUMBER:

01320468 (England and Wales)

AUDITORS:

Magma Audit LLP

Chartered Accountants

Statutory Auditor

Magma House, 16 Davy Court

Castle Mound Way

Rugby

CV23 0UZ

FIXED ASSETS

Tangible assets

4

71,674

101,546

Investments

5

321,150

321,150

392,824

422,696

CURRENT ASSETS

Stocks

318,909

350,694

Debtors

6

1,182,020

1,205,965

Cash at bank

46,981

41,520

1,547,910

1,598,179

CREDITORS

Amounts falling due within one year

7

(1,506,204

)

(1,486,283

)

NET CURRENT ASSETS

41,706

111,896

TOTAL ASSETS LESS CURRENT LIABILITIES

434,530

534,592

CREDITORS

Amounts falling due after more than one year

8

(63,636

)

(90,801

)

PROVISIONS FOR LIABILITIES

(13,158

)

(16,536

)

NET ASSETS

357,736

427,255

CAPITAL AND RESERVES

Called up share capital

70,000

70,000

Capital redemption reserve

30,000

30,000

Retained earnings

257,736

327,255

SHAREHOLDERS' FUNDS

357,736

427,255

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the director and authorised for issue on 22 March 2024 and were signed by:

J S C Hodge - Director

1.	STATUTORY INFORMATION

Cherwell Packaging Limited is a limited company, registered in England and Wales. Its registered office address is Southfield Road, Kineton Road Industrial Estate, Southam, CV47 0FB and the registered number is 01320468.

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 are presented in sterling rounded to the nearest £.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of returns, discounts and rebates allowed by the company and value added taxes.

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e)when the specific criteria relating to each of company’s sales channels have been met.

Preparation of consolidated financial statements

The company and its subsidiary form a small group. The company is therefore not required to produce consolidated financial statements and has not done so. These financial statements present information about the company as a single entity.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

Long leasehold land & buildings

-

20% straight line

Fixtures and fittings

-

10% straight line

Motor vehicles

-

25% straight line

Computer equipment

-

20 - 50% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, including trade and other debtors, cash and bank balances, investments and loans to fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Invoice discounting

The gross amount of invoice discounted debts are included in trade debtors and a corresponding liability in respect of proceeds received from factors are shown within current liabilities. Charges and interest are recognised in the profit and loss account as they accrue.

Leasing commitments

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Employee benefits

The company contributes to a defined contribution plan for the benefit of its employees. Contributions are recognised in profit or loss as they become payable.

Share capital

Ordinary shares are classified as equity.

Investments

Investments held as fixed assets are shown at cost less provision for permanent diminution in value.

Provisions for liabilities and charges

Provisions are made where an event has taken place that gives the company a legal and constructive obligation that probably requires settlement by a transfer of economic benefit and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account the relevant risks and uncertainties.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 22 (2022 - 22 ) .

4.	TANGIBLE FIXED ASSETS

Long

leasehold

Fixtures

land &

and

Motor

Computer

buildings

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 September 2022

39,739

390,131

260,059

377,500

1,067,429

Additions

-

-

-

2,386

2,386

Disposals

(3,097

)

-

-

-

(3,097

)

At 31 August 2023

36,642

390,131

260,059

379,886

1,066,718

DEPRECIATION

At 1 September 2022

30,572

335,022

228,993

371,296

965,883

Charge for year

2,000

9,072

18,019

3,167

32,258

Eliminated on disposal

(3,097

)

-

-

-

(3,097

)

At 31 August 2023

29,475

344,094

247,012

374,463

995,044

NET BOOK VALUE

At 31 August 2023

7,167

46,037

13,047

5,423

71,674

At 31 August 2022

9,167

55,109

31,066

6,204

101,546

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 September 2022

and 31 August 2023

321,150

NET BOOK VALUE

At 31 August 2023

321,150

At 31 August 2022

321,150

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

973,505

1,014,751

Other debtors

42,828

56,754

Prepayments and accrued income

165,687

134,460

1,182,020

1,205,965

Trade debtors includes £678,082 (2022: £685,596) of invoice discounted debts.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

79,107

39,992

Hire purchase contracts

1,161

10,530

Trade creditors

585,415

583,592

Amounts owed to group undertakings

1

1

Taxation and social security

73,112

74,194

Other creditors

767,408

777,974

1,506,204

1,486,283

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

63,636

89,640

Hire purchase contracts

-

1,161

63,636

90,801

9.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

100,000

129,632

Invoice discounting creditor

678,082

685,596

Hire purchase contracts

1,161

11,691

779,243

826,919

The invoice discounting creditor and bank loan are secured by an unlimited debenture incorporating a fixed and floating charge.

The net obligation under hire purchase contracts is secured on the asset to which it relates.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Luke Edwards (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP

11.	OPERATING LEASE COMMITMENTS

Operating lease commitments not included in the balance sheet amount to £35,625 (2022: £58,125).

12.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The company rents property from the Cherwell Packaging Executive Pension Scheme in which the Director is a trustee. Rent and other administrative expenses during the year amounted to £57,684 (2022: £40,319) of which £17,000 (2022: £nil) is included in accruals.