ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

STRAPACK UK LIMITED - Company Information

Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312024-05-152024-05-282023-12-312023-12-312024-05-1502023-01-01false0falsefalse 03104788 2023-01-01 2023-12-31 03104788 2022-01-01 2022-12-31 03104788 2023-12-31 03104788 2022-12-31 03104788 2022-01-01 03104788 c:CompanySecretary1 2023-01-01 2023-12-31 03104788 c:Director1 2023-01-01 2023-12-31 03104788 c:Director2 2023-01-01 2023-12-31 03104788 c:Director3 2023-01-01 2023-12-31 03104788 c:RegisteredOffice 2023-01-01 2023-12-31 03104788 d:Buildings 2023-01-01 2023-12-31 03104788 d:Buildings d:LongLeaseholdAssets 2023-01-01 2023-12-31 03104788 d:PlantMachinery 2023-01-01 2023-12-31 03104788 d:MotorVehicles 2023-01-01 2023-12-31 03104788 d:FurnitureFittings 2023-01-01 2023-12-31 03104788 d:ComputerEquipment 2023-01-01 2023-12-31 03104788 d:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 03104788 d:CurrentFinancialInstruments 2023-12-31 03104788 d:CurrentFinancialInstruments 2022-12-31 03104788 d:Non-currentFinancialInstruments 2023-12-31 03104788 d:Non-currentFinancialInstruments 2022-12-31 03104788 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 03104788 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 03104788 d:ShareCapital 2023-01-01 2023-12-31 03104788 d:ShareCapital 2023-12-31 03104788 d:ShareCapital 2022-01-01 2022-12-31 03104788 d:ShareCapital 2022-12-31 03104788 d:ShareCapital 2022-01-01 03104788 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03104788 d:RetainedEarningsAccumulatedLosses 2023-12-31 03104788 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 03104788 d:RetainedEarningsAccumulatedLosses 2022-12-31 03104788 d:RetainedEarningsAccumulatedLosses 2022-01-01 03104788 c:OrdinaryShareClass1 2023-01-01 2023-12-31 03104788 c:OrdinaryShareClass1 2023-12-31 03104788 c:OrdinaryShareClass1 2022-12-31 03104788 c:FRS102 2023-01-01 2023-12-31 03104788 c:Audited 2023-01-01 2023-12-31 03104788 c:FullAccounts 2023-01-01 2023-12-31 03104788 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03104788 d:Subsidiary1 2023-01-01 2023-12-31 03104788 d:Subsidiary1 1 2023-01-01 2023-12-31 03104788 c:Consolidated 2023-12-31 03104788 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 03104788 2 2023-01-01 2023-12-31 03104788 5 2023-01-01 2023-12-31 03104788 6 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 03104788

STRAPACK UK LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

STRAPACK UK LIMITED

COMPANY INFORMATION

Directors	K Nishimura
	T Shimojima
	A N Cillo


Company secretary	A W Lea


Registered number	03104788


Registered office	Gordian House
	Brunel Road
	Basingstoke
	Hampshire
	RG21 6XX


Independent auditors	Shaw Gibbs (Audit) Limited
	Statutory Auditor
	Wey Court West
	Union Road
	Farnham
	Surrey
	GU9 7PT

STRAPACK UK LIMITED

CONTENTS

	Page
Group Strategic Report	1
Directors' Report	2 - 3
Independent Auditors' Report	4 - 8
Consolidated Statement of Comprehensive Income	9
Consolidated Balance Sheet	10 - 11
Company Balance Sheet	12
Consolidated Statement of Changes in Equity	13
Company Statement of Changes in Equity	14
Consolidated Statement of Cash Flows	15
Consolidated Analysis of Net Debt	16
Notes to the Financial Statements	17 - 33

STRAPACK UK LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction

The directors present their strategic report for the year ended 31 December 2023.

Business review

The group aims to present a balanced and comprehensive review of its business during the year and its position at the year end. This review is consistent with the nature and size of the business and is written in the context of normal business risks and uncertainties.
The group considers its key performance indicators to be turnover and profitability. These accounts show the results of the company's and groups performance for the year ended 31 December 2023, with the comparatives covering the year ended 31 December 2023. The directors can report that sales have increased by 16.3% when compared to revenue of £13,980,469 for continued operation ih the prior year and this is testament to the business strategy and the improved trading conditions. The profit before tax has significantly increased by 29% to £1,025,157 (2022: £790,428 for continued operation). The directors feel that these results are satisfactory given the challenges encountered in trading in the post-pandemic period.
The gross profit margin has remained consistent for continuing operation with the previous year. The company continues to control overheads and operating costs at a competitive level to ensure it remains competitive in the marketplace.

Principal risks and uncertainties

The disruption and some uncertainty seen in the prior year arising from the pandemic and Brexit is likely to continue to affect the trading conditions in 2024, however, it is hoped that 2024 will see the economy begin to move forward as more businesses start to open up and the level of trading activity across all sectors shows signs of improving. The difficulties associated with leaving the European Union have been well documented but there is no expectation of any lasting impairment to any of the markets the company operates in across the UK and Ireland.

This report was approved by the board and signed on its behalf.

T Shimojima

Director

Date: 15 May 2024

Page 1

STRAPACK UK LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The company is a holding company and did not trade during the financial year. Strapack UK Limited has an investment in Gordian Strapping Limited.
The principal activity of the group continued to be the sale and hire of strapping and packaging equipment throughout Europe, and in addition in the UK, the provision of after-sales machine maintenance and servicing and the supply of consumable strapping materials.

Results and dividends

The profit for the year, after taxation, amounted to £823,960 (2022 - £627,408).

Ordinary dividends were paid during the year amounting to £ 300,000. Since the year end no dividend was declared or paid out of reserves.

Directors

The directors who served during the year were:

K Nishimura

T Shimojima

A N Cillo

Page 2

STRAPACK UK LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

The business continues to offer a wide range of equipment and services that enhance the offering the group provides as a leading UK specialist end of production line packaging equipment supplier. Opportunities for growth exist in each area of activity and specific strategies are in place to maximise sales and growth during 2024. The group has taken specific pricing actions to increase sales revenue across several product areas in an effort to protect profit margins, and develop acceptable full year profits. The directors will continue to monitor this area through frequent management process and activity and take any necessary steps to ensure the company achieves budgeted annual targets.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, Shaw Gibbs (Audit) Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

T Shimojima

Director

Date: 15 May 2024

Page 3

STRAPACK UK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRAPACK UK LIMITED

Opinion

We have audited the financial statements of Strapack UK Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.

Page 4

STRAPACK UK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRAPACK UK LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company 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.

Page 5

STRAPACK UK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRAPACK UK LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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 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 directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

STRAPACK UK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRAPACK UK LIMITED (CONTINUED)

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 an Auditors' 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 Group 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estitnates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

Page 7

STRAPACK UK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRAPACK UK LIMITED (CONTINUED)

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 Auditors' 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.

Stephen Morgan FCA (Senior Statutory Auditor)

for and on behalf of

Shaw Gibbs (Audit) Limited

Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT

28 May 2024

Page 8

STRAPACK UK LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2023

	2023	2022
Note	£	£


Turnover	4	16,258,605	13,980,469
Cost of sales		(10,681,985)	(9,163,805)
Gross profit		5,576,620	4,816,664
Administrative expenses		(4,498,140)	(3,978,382)
Operating profit	5	1,078,480	838,282
Interest receivable and similar income	9	55,451	-
Interest payable and similar expenses	10	(31,362)	(17,707)
Profit before taxation		1,102,569	820,575
Tax on profit	11	(278,609)	(193,167)
Profit for the financial year		823,960	627,408


Unrealised surplus on revaluation of tangible fixed assets	-	304,385
Other comprehensive income for the year	-	304,385
Total comprehensive income for the year	823,960	931,793

Profit for the year attributable to:
Owners of the parent Company	823,960	627,408
	823,960	627,408

Total comprehensive income for the year attributable to:
Owners of the parent Company	823,960	931,793
	823,960	931,793

The notes on pages 17 to 33 form part of these financial statements.

Page 9

STRAPACK UK LIMITED

REGISTERED NUMBER: 03104788

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2023

		2023		2022
Note		£		£

Fixed assets
Tangible assets	13		2,400,886		2,275,303
			2,400,886		2,275,303
Current assets
Stocks	15	2,880,305		2,952,497
Debtors: amounts falling due within one year	16	2,045,142		2,491,251
Cash at bank and in hand	17	1,466,092		2,103,354
		6,391,539		7,547,102
Creditors: amounts falling due within one year	18	(2,285,441)		(3,697,477)
Net current assets			4,106,098		3,849,625
Total assets less current liabilities			6,506,984		6,124,928
Creditors: amounts falling due after more than one year	19		(568,991)		(630,895)
Provisions for liabilities
Deferred taxation	21	(135,285)		(135,285)
			(135,285)		(135,285)
Net assets excluding pension asset			5,802,708		5,358,748
Net assets			5,802,708		5,358,748

Page 10

STRAPACK UK LIMITED

REGISTERED NUMBER: 03104788

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2023

		2023		2022
Note		£		£

Capital and reserves
Called up share capital	22	1,100,000	1,100,000
Revaluation reserve		304,385	304,385
Profit and loss account		4,398,323	3,954,363
Equity attributable to owners of the parent Company		5,802,708	5,358,748
		5,802,708	5,358,748

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 May 2024.

T Shimojima

Director

The notes on pages 17 to 33 form part of these financial statements.

Page 11

STRAPACK UK LIMITED

REGISTERED NUMBER: 03104788

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2023

		2023		2022
Note		£		£

Fixed assets
Investments	14		857,000		857,000
			857,000		857,000
Current assets
Debtors: amounts falling due after more than one year	16	1,266,086		-
Debtors: amounts falling due within one year	16	115,002		1,472,441
Cash at bank and in hand	17	414,053		256,371
		1,795,141		1,728,812
Creditors: amounts falling due within one year	18	(1,000)		(1,000)
Net current assets			1,794,141		1,727,812
Total assets less current liabilities			2,651,141		2,584,812


Net assets excluding pension asset			2,651,141		2,584,812
Net assets			2,651,141		2,584,812

Capital and reserves
Called up share capital	22		1,100,000		1,100,000
Profit and loss account brought forward		1,484,812		1,457,952
Profit for the year		446,329		326,860
Other changes in the profit and loss account		(380,000)		(300,000)
Profit and loss account carried forward			1,551,141		1,484,812
			2,651,141		2,584,812

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 May 2024.

T Shimojima

Director

The notes on pages 17 to 33 form part of these financial statements.

Page 12

STRAPACK UK LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

	Called up share capital	Revaluation reserve	Profit and loss account	Equity attributable to owners of parent Company	Total equity
	£	£	£	£	£
At 1 January 2022	1,100,000	-	3,626,955	4,726,955	4,726,955
Comprehensive income for the year
Profit for the year	-	-	627,408	627,408	627,408
Surplus on revaluation of freehold property	-	304,385	-	304,385	304,385
Other comprehensive income for the year	-	304,385	-	304,385	304,385
Total comprehensive income for the year	-	304,385	627,408	931,793	931,793
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(300,000)	(300,000)	(300,000)
Total transactions with owners	-	-	(300,000)	(300,000)	(300,000)

At 1 January 2023	1,100,000	304,385	3,954,363	5,358,748	5,358,748
Comprehensive income for the year
Profit for the year	-	-	823,960	823,960	823,960
Other comprehensive income for the year	-	-	-	-	-
Total comprehensive income for the year	-	-	823,960	823,960	823,960
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(380,000)	(380,000)	(380,000)
Total transactions with owners	-	-	(380,000)	(380,000)	(380,000)
At 31 December 2023	1,100,000	304,385	4,398,323	5,802,708	5,802,708

The notes on pages 17 to 33 form part of these financial statements.

Page 13

STRAPACK UK LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2022	1,100,000	1,457,952	2,557,952
Comprehensive income for the year
Profit for the year	-	326,860	326,860
Other comprehensive income for the year	-	-	-
Total comprehensive income for the year	-	326,860	326,860
Contributions by and distributions to owners
Dividends: Equity capital	-	(300,000)	(300,000)
Total transactions with owners	-	(300,000)	(300,000)

At 1 January 2023	1,100,000	1,484,812	2,584,812
Comprehensive income for the year
Profit for the year	-	446,329	446,329
Other comprehensive income for the year	-	-	-
Total comprehensive income for the year	-	446,329	446,329
Contributions by and distributions to owners
Dividends: Equity capital	-	(380,000)	(380,000)
Total transactions with owners	-	(380,000)	(380,000)
At 31 December 2023	1,100,000	1,551,141	2,651,141

The notes on pages 17 to 33 form part of these financial statements.

Page 14

STRAPACK UK LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

			2023	2022
			£	£

Cash flows from operating activities
Profit for the financial year	823,960	627,408
Adjustments for:
Depreciation of tangible assets	294,941	332,647
Interest paid	31,362	17,707
Interest received	(55,451)	-
Taxation charge	278,609	193,167
Decrease/(increase) in stocks	72,192	(641,590)
Decrease/(increase) in debtors	446,113	(708,537)
(Decrease)/increase in creditors	(1,371,603)	1,197,100
Corporation tax (paid)	(321,869)	(78,061)
Net cash generated from operating activities	198,254	939,841

Cash flows from investing activities
Purchase of tangible fixed assets	(420,526)	(332,973)
Sale of tangible fixed assets	-	(180)
Interest received	55,451	-
Net cash from investing activities	(365,075)	(333,153)
Cash flows from financing activities
Repayment of loans	(59,079)	(55,250)
Dividends paid	(380,000)	(300,000)
Interest paid	(31,362)	(17,707)
Net cash used in financing activities	(470,441)	(372,957)
Net (decrease)/increase in cash and cash equivalents	(637,262)	233,731
Cash and cash equivalents at beginning of year	2,103,354	1,869,623
Cash and cash equivalents at the end of year	1,466,092	2,103,354

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,466,092	2,103,354
	1,466,092	2,103,354

The notes on pages 17 to 33 form part of these financial statements.

Page 15

STRAPACK UK LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2023


At 1 January 2023	Cash flows	At 31 December 2023
£	£	£

Cash at bank and in hand	2,103,354	(637,262)	1,466,092
Debt due after 1 year	(630,895)	61,904	(568,991)
Debt due within 1 year	(58,994)	(2,825)	(61,819)
	1,413,465	(578,183)	835,282

The notes on pages 17 to 33 form part of these financial statements.

Page 16

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1.	General information

Strapack UK Limited (03104788) is a private company, limited by shares, registered in England and Wales. The company's registered office is Gordian House, Brunel Road, Basingstoke, Hampshire, RG21 6XX.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being .

Page 17

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Income from the manufacture and sale of the tensional strapping and packaging equipment is recognised at the date of invoice (which usually coincides with date of dispatch of goods) net of VAT and trade discounts.
Income from the hired plant and equipment is accounted for over the rental period on a straight line basis.
Income from the maintenance contracts on the hired plant and machinery is accounted for over the contract period on a straight line basis. Income from service call outs not covered by the contract is recognised when the service performance has been approved by the customer.

2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 18

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.9

Current and deferred 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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

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;

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

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.10

Tangible fixed assets

Tangible fixed assets under the cost model 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.

Page 19

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.10

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold land and buildings	-	39 years straight line
Leasehold improvements	-	5 years straight line
Plant and machinery	-	Between 10% and 20% straight line
Motor vehicles	-	20% straight line
Fixtures and fittings	-	20% straight line
Computer equipment	-	20% straight line
Machines on hire	-	Over the term of lease

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.

2.11

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the 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.

Page 20

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.18

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual

Page 21

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.18

Financial instruments (continued)

interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group's accounting policies, the directors arc required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that arc not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arc recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on
amounts recognised in the financial statements.
Stock provision
The directors have reviewed the year end stock value and based on their knowledge of the business and experience of the industry, consider that the provision that has been made, for all stock items not sold within the last four years, is accurate and that no further adjustment is deemed necessary. This provision is reviewed annually to ensure that the estimate remains reasonable.

Page 22

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Sales of goods and equipment	13,591,880	11,454,236
Maintenance revenue	2,366,478	2,191,371
Machines on hire revenue	300,247	334,862
	16,258,605	13,980,469

Analysis of turnover by country of destination:

					2023	2022
					£	£

United Kingdom	15,648,521	13,438,525
Rest of Europe	610,084	541,944
	16,258,605	13,980,469

	Exchange differences	32,822	12,636
	Other operating lease rentals	4,540	-

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements

22,500

Page 23

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

The average monthly number of employees, including the directors, during the year was as follows:

	2023	2022
	No.	No.

Engineering	20	18
Distribution	19	20
Administration	12	9

	51	47

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

8.	Directors' remuneration

During the year retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.

9.	Interest receivable
		2023	2022
		£	£

	Other interest receivable	55,451	-
		55,451	-

10.	Interest payable and similar expenses
		2023	2022
		£	£

Bank interest payable	31,129	17,707
Other loan interest payable	233	-
	31,362	17,707

Page 24

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Corporation tax
Current tax on profits for the year	278,609	193,167
	278,609	193,167

Total current tax	278,609	193,167

	Deferred tax
	Total deferred tax	-	-


	Taxation on profit on ordinary activities	278,609	193,167

Profit on ordinary activities before tax

1,102,569

820,575

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)	275,642	155,909
Effects of:
Non-tax deductible amortisation of goodwill and impairment	4,266	3,234
Capital allowances for year in excess of depreciation	18,865	26,378
Other differences leading to an increase (decrease) in the tax charge	(20,164)	7,646
Total tax charge for the year	278,609	193,167

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

12.	Dividends
		2023	2022
		£	£

	Dividends	380,000	300,000
		380,000	300,000

Page 26

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13.	Tangible fixed assets
	Group

	Freehold property	Long-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings
	£	£	£	£	£
Cost or valuation
At 1 January 2023	164,791	1,495,208	80,177	157,987	68,101
Additions	-	-	2,361	257,243	1,480
Disposals	-	-	-	-	-
At 31 December 2023	164,791	1,495,208	82,538	415,230	69,581
Depreciation
At 1 January 2023	40,486	25,505	69,106	13,009	55,337
Charge for the year on owned assets	29,350	38,257	4,592	56,668	10,843
Disposals	-	-	-	-	-
At 31 December 2023	69,836	63,762	73,698	69,677	66,180
Net book value
At 31 December 2023	94,955	1,431,446	8,840	345,553	3,401
At 31 December 2022	124,306	1,469,703	11,071	144,978	12,764

Page 27

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13.Tangible fixed assets (continued)

	Computer equipment	Other fixed assets	Total
	£	£	£
Cost or valuation
At 1 January 2023	76,850	1,080,479	3,123,593
Additions	1,170	158,272	420,526
Disposals	-	(251,559)	(251,559)
At 31 December 2023	78,020	987,192	3,292,560
Depreciation
At 1 January 2023	33,035	611,813	848,291
Charge for the year on owned assets	13,509	141,723	294,942
Disposals	-	(251,559)	(251,559)
At 31 December 2023	46,544	501,977	891,674
Net book value
At 31 December 2023	31,476	485,215	2,400,886
At 31 December 2022	43,815	468,666	2,275,303

The net book value of land and buildings may be further analysed as follows:
	2023	2022
	£	£

Freehold	94,956	124,307
Long leasehold	1,431,445	1,469,703
	1,526,401	1,594,010

Page 28

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

14.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2023	857,000
	At 31 December 2023	857,000

Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Gordian Strapping Limited

Gordian House, Brunel Road, Basingstoke, Hampshire, RG21 6:XX

Ordinary

100%

	The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
	Name	Aggregate of share capital and reserves	Profit/(Loss)

Gordian Strapping Limited

4,003,211

752,276

15.	Stocks
		Group	Group
		2023	2022
		£	£

Finished goods and goods for resale	2,880,305	2,952,497
	2,880,305	2,952,497

Page 29

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

16.	Debtors
		Group	Group	Company	Company
		2023	2022	2023	2022
		£	£	£	£


Amounts owed by group undertakings	-	-	1,266,086	-
	-	-	1,266,086	-

Group	Group	Company	Company
2023	2022	2023	2022
£	£	£	£


Trade debtors	2,008,073	2,437,286	-	-
Amounts owed by group undertakings	-	-	115,002	1,472,441
Other debtors	4,679	4,100	-	-
Prepayments and accrued income	32,390	49,865	-	-
	2,045,142	2,491,251	115,002	1,472,441

17.	Cash and cash equivalents
		Group	Group	Company	Company
		2023	2022	2023	2022
		£	£	£	£

Cash at bank and in hand	1,466,092	2,103,354	414,053	256,371
	1,466,092	2,103,354	414,053	256,371

18.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2023	2022	2023	2022
		£	£	£	£

Bank loans	61,819	58,994	-	-
Trade creditors	921,280	2,312,610	1,000	1,000
Corporation tax	71,848	115,106	-	-
Other taxation and social security	309,891	412,031	-	-
Other creditors	17,453	2,568	-	-
Accruals and deferred income	903,150	796,168	-	-
	2,285,441	3,697,477	1,000	1,000

Page 30

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

19.	Creditors: Amounts falling due after more than one year
		Group	Group
		2023	2022
		£	£

Bank loans	568,991	630,895
	568,991	630,895

The following liabilities were secured:
	Group	Group
	2023	2022
	£	£


Bank loans	-	689,889
	-	689,889

Details of security provided:

Bank loans are secured by a legal charge over the properly known as Gordian House, Brunel road, Basingstoke, .Hampshire, RG22 6XX

The original bank loan was for £1,007,500, with a repayment period of 15 years and an annual interest rate of 2.4%.

20.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group
		2023	2022
		£	£

Amounts falling due within one year
Bank loans	61,819	58,994
	61,819	58,994

Amounts falling due 2-5 years
Bank loans	568,991	630,895
	568,991	630,895
Amounts falling due after more than 5 years
	630,810	689,889

Page 31

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

21.	Deferred taxation
	Group

		2023
		£

	At beginning of year	(135,285)
	At end of year	(135,285)

		Group	Group
		2023	2022
		£	£

	Accelerated capital allowances	(135,285)	(135,285)
		(135,285)	(135,285)

22.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

1,100,000 (2022 - 1,100,000) Ordinary shares of £1.00 each	1,100,000	1,100,000

23.	Pension commitments

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24.	Commitments under operating leases
	At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2023	2022
		£	£

Not later than 1 year	63,740	48,076
Later than 1 year and not later than 5 years	53,073	-
	116,813	48,076

Page 32

STRAPACK UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

25.Other financial commitments

The company has a HM Revenue & Customs Duty Determent Guarantee.
There is a cross guarantee and debenture in place dated 5 June 2017 in favour of Barclays Bank Plc between Strapack UK Limited and Gordian Strapping Limited.

26.	Controlling party

The company's ultimate parent company and controlling party is Strapack Corporation. a company incorporated in Japan. The consolidated financial statements of Strapack Corporation are not available to the general public.

Page 33