FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
COMPANY INFORMATION
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ABLEBOX LIMITED
CONTENTS
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ABLEBOX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2021
YE 2021 results demonstrate continued growth and success for Ablebox. Turnover increased by 21.8%, year-on-year, at £14.3m, ahead of sales target, achieving a Profit Before Tax of £2.64m.
It was a progressive year being the first full year with 100% vertical integration following the installation of the brand-new, state-of-the-art corrugator. This investment came at a pivotal time when the world had been hit by a global pandemic. Many businesses had to close with the population being forced to stay at home. However, segments of the corrugated industry saw an uplift in demand during the Covid pandemic and Ablebox was fortunate to have benefitted, utilising the new corrugator plus other key investments to provide a fundamental capacity advantage to cope with the increase in demand. The Company achieved stable, continuous supply to its customers without the protracted lead times which was seen by many Competitors. The industry experienced rising raw material costs due to increased global pressure on the supply-demand balance for all raw materials, especially containerboard paper used for corrugated boxes. The rationale behind this was a combination of consumer demand increased, as the world locked down, and huge supply chain disruptions globally. The longer-term effects are continued movement towards shopping online, with deliveries made in boxes, and serious environmental concerns around the use of plastic packaging. This has further driven demand in environmentally friendly and sustainable paper-based packaging solutions. Where possible, these direct material cost increases were delayed - but inevitably unsustainable to absorb and needed to be passed onto Customers through price increases. However, this will have had a negative effect on gross profit margin. The business is focussed on adding value, driving efficiencies and general productivity to be leaner and make up for lost gross margin percentage. Throughout the pandemic, the business quickly reacted to the everchanging situation of Covid by tightening internal controls and investing heavily in preventative measures to reduce the risks to its Employees, Customers and Suppliers, whilst continuing its trade and operations in a safe and efficient manner. The company remains in a strong position going into FY 2022.
a) Price risk - The company is exposed to price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to price risk exceed any potential benefits.
b) Credit risk - The company has implemented policies for its finance operations that require appropriate credit checks on potential customers before finance is given. The nature of the company's main operations does not give rise to significant credit risk. c) Liquidity risk - The company actively maintains debt finance in respect of bank loans, hire purchases and an invoice financing facility that is designed to ensure the company has sufficient available funds for operations and expansions. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. d) Covid-19 risk - the Covid-19 pandemic has presented potential operational and economic risks to the business. The company has introduced measures to mitigate these risks, and believes that the measures in place have limited the Company's exposure to the risk.
The Board monitor performance by reference to various key performance indicators. These performance indicators are reviewed and discussed at monthly Board Meetings:
2021 2020 Turnover £14.3m £11.7m Profit before Tax £2.64m £1.00m EBITDA £3.33m £1.48m EBITDA % 23.6% 12.7%
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ABLEBOX LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
This report was approved by the board on 27 January 2022
and signed on its behalf.
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ABLEBOX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2021
The directors present their report and the financial statements for the year ended 30 April 2021.
The directors are responsible for preparing the Strategic report, the Directors' report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the Company'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 Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £
2,123,350
(2020:
£
768,969
)
.
The directors who served during the year were:
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ABLEBOX LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
There have been no significant events affecting the Company since the year end.
The auditors, Bishop Fleming LLP, 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.
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ABLEBOX LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABLEBOX LIMITED
We have audited the financial statements of Ablebox Limited (the 'Company') for the year ended 30 April 2021, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows; the analysis of net debt
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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. 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.
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ABLEBOX LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABLEBOX LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the 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 Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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ABLEBOX LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABLEBOX LIMITED (CONTINUED)
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 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 have considered the nature of the wider economy, the industry and sector, the company’s internal control environment as well as the company’s performance;
• We have considered the results of enquires of management and the directors about their own identification and assessments of the risks and irregularities within the company; • We have reviewed the documentation of key processes and controls. Moreover, we have performed walkthrough testing to confirm that the systems are operating inline with documentation and controls are being adhered to; • We have considered any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and • We have considered the matters discussed amongst the audit engagement team regarding how and where fraud may occur within the financial statements and any potential indicators of fraud. As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut-off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override. Furthermore, we have also identified and obtained an understanding of the legal and regulatory frameworks which govern the company. Laws and regulations that are of direct significance to the company and of which non-compliance could result in a material misstatement are considered to be: UK Companies Act, FRS 102 and UK tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which are fundamental to the company’s ability to operate or avoid material penalty. These include: sale of goods act, employment laws, occupational health and safety and environment agency regulations regarding the disposal of waste. Our procedures to respond to risks identified included the following: • Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue; • Enquiring of Directors and management concerning actual and potential litigation and claims; • Performing procedures to confirm material compliance with the requirements of the above regulations; • Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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ABLEBOX LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ABLEBOX LIMITED (CONTINUED)
• Reviewing minutes of Director meetings; and
• In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and assessing whether the judgements made in making accounting estimates are indicative of a potential bias. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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.
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
2nd Floor Stratus House
Emperor Way
Exeter Business Park
EX1 3QS
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ABLEBOX LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
REGISTERED NUMBER:
02547129
STATEMENT OF FINANCIAL POSITION
AS AT
30 APRIL 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
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ABLEBOX LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
Ablebox Limited is a private company limited by shares and is incorporated in England. The address of its registered office and principle place of business is 23 Buckland Road, Pen Mill Trading Estate, Yeovil, Somerset, BA21 5HA.
2.
ACCOUNTING POLICIES
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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Despite the ongoing COVID-19 pandemic, the Company enjoyed a successful year to 30 April 2021 with increased levels of revenue and profitability. This trend has continued since the year-end.
The directors are confident about the future for the Company and, accordingly, have adopted the going concern basis for the preparation of these accounts.
Functional and presentation currency
Transactions and balances
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
2.
ACCOUNTING POLICIES (continued)
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
2.
ACCOUNTING POLICIES (continued)
Depreciation is provided on the following basis:
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.
Where software is integral to the company’s operations and closely aligned with its plant and machinery, then the cost of such software is capitalised as a tangible fixed asset. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of income and retained earnings.
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
2.
ACCOUNTING POLICIES (continued)
At each reporting 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.
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
2.
ACCOUNTING POLICIES (continued)
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are 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. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. Useful economic lives of tangible assets The annual depreciation charge is sensitive to any changes in the estimated useful life and residual values of tangible assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in the estimated economic lives or residual life. Criteria used to assess the economic life and residual value includes technological advancement, economic utilisation, physical condition of the asset and future investments. Impairment of stocks The company's products are subject to changing market demand. It is therefore necessary to consider on a periodic basis the recoverability of the cost of stocks and the associated impairment. Management calculates impairments by considering the nature and condition of the stocks and applies assumptions around anticipated saleability of finished goods and future usage of raw materials, overheads and labour. Impairment of debtors On a periodic basis management makes an estimation of the recoverability of debtors. Management makes such estimations based on the credit rating of debtors, the ageing profile, and historical experience.
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
Following the balance sheet date, legislation has been substantively enacted which will increase the main rate of corporation tax from 19% to 25% from 1 April 2023.
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
13.
TANGIBLE FIXED ASSETS (CONTINUED)
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
Capital redemption reserve
Profit and loss account
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ABLEBOX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £157,629 (2020: £76,966). Contributions totalling £27,473 (2020: £22,543) were payable to the fund at the balance sheet date and are included in creditors.
There is no ultimate controlling party.
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