REGISTERED NUMBER: 04623230 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
FOR |
CLIFTON PACKAGING GROUP LIMITED |
REGISTERED NUMBER: 04623230 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
FOR |
CLIFTON PACKAGING GROUP LIMITED |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 14 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Statement of Cash Flows | 19 |
Notes to the Consolidated Financial Statements | 21 |
CLIFTON PACKAGING GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
109 Coleman Road |
Leicester |
Leicestershire |
LE5 4LE |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
The directors present their strategic report of the Company and the Group for the year ended 31st December 2022. |
REVIEW OF BUSINESS |
The directors are pleased with the progress made this year. The Group turnover during the year increased by 25.7% to £37.9m (2021: £30.2m), with gross profit increasing to £8.3m (2021: £7.7m) and profit before tax increasing to £2.6m (2021: £2.4m) The gross profit margin was 21.9% (2021: 25.7%). |
Group EBITDA during the year was £3.8m (2021: £3.5m). |
The directors are committed to continual investment in future years to increase the Company's capacity to continue to deliver a high level of service to customers. The directors are focusing on working in partnership with both it's suppliers and customers, to develop relationships in order to achieve the highest customer satisfaction. The directors believe that the continued commitment to invest in new technology and to further understand customer's requirements will enable them to exceed customers' expectations and further grow and develop the business over the coming years. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the key risks to the business through a framework of policies, procedures and internal controls. All policies are subject to board approval and ongoing review by management. Compliance with regulations, legal and ethical standards is a high priority for the Group and the finance department takes on an important oversight role in this regard, to ensure that a proper internal control framework exists to manage financial risks and that the controls operate effectively. |
The key risk to the business centres around the USD/GBP and EUR/GBP currency rate, due to the raw materials being purchased in these currencies. This risk is managed where possible through natural hedging of the currencies as well as product engineering. |
The Group also manages the risks by providing added value services to its customers through fast response times, high quality products and maintaining strong customer relationships. |
There is uncertainty around the outcome of an examination by an external expert as described in note 23 of the financial statements. |
Interest rate risk |
The Group finances its operations through a mixture of retained profit and external financing. Management periodically reviews its funding structures to ensure an optimal structure is in place, bearing in mind the commercial needs of the wider group and relevant legislation. |
Liquidity risk |
The Group seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
Human Resources |
The Group's employees are its most important resource. It is essential to the future success of the business that a skilled and motivated workforce is retained. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
FINANCIAL KEY PERFORMANCE INDICATORS |
Given the nature of the business, the directors have determined certain key performance indicators to help them to both understand and manage the growing customer base. These are monitored closely on at least a monthly basis and the Group will continue to monitor those measures that are key to ensuring that the Group remains profitable. The KPI's are regularly circulated to the key management team to ensure full visibility by those helping to drive the business forward. |
Turnover and gross profit are seen as key performance indicators, as margins for these businesses need to be healthy due to significant staff costs and other overheads. EBITDA is also seen as a key performance indicator. These have been disclosed above. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The directors ensure wherever possible that the business objectives are aligned with risk management. The directors are responsible for maintaining sound systems of internal control that provide reasonable assurance that the Group will not be hindered in achieving its business objectives by circumstances that are not foreseen. |
No major risks have been identified other than those relating to the uncertainties and challenges set out above. In this respect, the directors have built up a strong team of staff with whom they work closely on a regular basis to ensure these risks are mitigated effectively. |
FUTURE DEVELOPMENTS |
The Group will continue to seek opportunities to maximise turnover and profitability as the economy tries to recover from the covid-19 pandemic. |
The Group is focused on delivering innovative and great value products to its customers, allowing them to differentiate themselves in an increasingly competitive landscape. Management remain wary of the economic climate and have reflected this within its forecasts. The results for the year to date show the business to be in line with its projections, supported by growth in the order book. The directors are cautiously optimistic that their forecasts can be achieved. |
ON BEHALF OF THE BOARD: |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
The directors present their report with the financial statements of the Company and the Group for the year ended 31st December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the Group in the year under review was that of flexible packaging materials and retail and distribution of packaging machinery. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DONATIONS |
Donations during the year were £20,275 (2021: £30,000). |
GOING CONCERN |
The directors continue to adopt the going concern basis in preparing the financial statements. Their assessment of going concern is presented in note 2. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently; |
- | make judgements 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 and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and 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. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
AUDITORS |
The auditors, Watergates Ltd (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CLIFTON PACKAGING GROUP LIMITED |
Opinion |
We have audited the financial statements of Clifton Packaging Group Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31st December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, 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 affairs as at 31st December 2022 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 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 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 and 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. |
Emphasis of matter - Uncertain outcome of examination |
We draw attention to note 23 to the financial statements which describes the uncertain future outcome with regards to potential historical unrecognised rebate income and costs. We are not aware of the potential final impact, nor its quantification, as the matter is still ongoing, to be examined and determined by a professional expert with disclosure reports to HMRC. Our opinion is not modified in respect of this matter. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CLIFTON PACKAGING GROUP LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinions 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 where 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CLIFTON PACKAGING GROUP LIMITED |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The extent to which the audit was considered capable of detecting irregularities including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the sector, we also considered the nature of the group's industry and it's control environment; |
- we focused on laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006 and taxation legislation; as well as laws and regulations which do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's ability to operate or avoid a material penalty. These included GDPR and health & safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering and testing of the key internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations, as well as substantive procedures. |
To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CLIFTON PACKAGING GROUP LIMITED |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators and the group's legal advisors. |
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 Report of the Auditors. |
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 a Report of the Auditors 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 |
109 Coleman Road |
Leicester |
Leicestershire |
LE5 4LE |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
TURNOVER | 4 | 37,923,812 | 30,165,934 |
Cost of sales | (29,602,621 | ) | (22,422,716 | ) |
GROSS PROFIT | 8,321,191 | 7,743,218 |
Administrative expenses | (5,808,123 | ) | (5,522,169 | ) |
2,513,068 | 2,221,049 |
Other operating income | 192,222 | 235,848 |
OPERATING PROFIT | 6 | 2,705,290 | 2,456,897 |
Interest receivable and similar income | 3,864 | - |
2,709,154 | 2,456,897 |
Interest payable and similar expenses | 7 | (69,167 | ) | (85,452 | ) |
PROFIT BEFORE TAXATION | 2,639,987 | 2,371,445 |
Tax on profit | 8 | (312,814 | ) | (608,085 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,327,173 | 1,763,360 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,327,173 | 1,763,360 |
OTHER COMPREHENSIVE OTHER | COMPREHENSIVE INCOME |
Revaluation of property |
Income tax relating to other comprehensive other comprehensive income |
- |
(82,716 |
) |
OTHER COMPREHENSIVE FOR THE YEAR, NET OF INCOME TAX |
- |
(82,716 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,327,173 |
1,680,644 |
Total comprehensive income attributable to: |
Owners of the parent | 2,327,173 | 1,680,644 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31ST DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 15,113 | 110,801 |
Tangible assets | 11 | 8,486,387 | 9,479,894 |
Investments | 12 | - | - |
8,501,500 | 9,590,695 |
CURRENT ASSETS |
Stocks | 13 | 4,905,080 | 4,973,359 |
Debtors | 14 | 18,552,966 | 12,577,739 |
Cash at bank and in hand | 254,045 | 1,600,725 |
23,712,091 | 19,151,823 |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
15 |
(9,994,784 |
) |
(8,409,082 |
) |
NET CURRENT ASSETS | 13,717,307 | 10,742,741 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
22,218,807 |
20,333,436 |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
16 |
(775,675 |
) |
(1,046,044 |
) |
PROVISIONS FOR LIABILITIES | 20 | (941,188 | ) | (1,112,621 | ) |
NET ASSETS | 20,501,944 | 18,174,771 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued |
31ST DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 21 | 18,003 | 18,003 |
Revaluation reserve | 22 | 1,033,950 | 1,033,950 |
Capital redemption reserve | 22 | 2,001 | 2,001 |
Retained earnings | 22 | 19,447,990 | 17,120,817 |
SHAREHOLDERS' FUNDS | 20,501,944 | 18,174,771 |
The financial statements were approved by the Board of Directors and authorised for issue on 9th June 2023 and were signed on its behalf by: |
Mr Z J Sheikh - Director | Mr T J Sheikh - Director |
Mr S R Sheikh - Director |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31ST DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
15 |
( |
) |
( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
COMPANY STATEMENT OF FINANCIAL POSITION - continued |
31ST DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve | 22 |
Capital redemption reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,249,934 | 1,708,062 |
The financial statements were approved by the Board of Directors and authorised for issue on |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st January 2021 | 18,003 | 15,357,457 | 1,116,666 | 2,001 | 16,494,127 |
Changes in equity |
Total comprehensive income | - | 1,763,360 | (82,716 | ) | - | 1,680,644 |
Balance at 31st December 2021 | 18,003 | 17,120,817 | 1,033,950 | 2,001 | 18,174,771 |
Changes in equity |
Total comprehensive income | - | 2,327,173 | - | - | 2,327,173 |
Balance at 31st December 2022 | 18,003 | 19,447,990 | 1,033,950 | 2,001 | 20,501,944 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st January 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 31st December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31st December 2022 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
31/12/22 | 31/12/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 571,411 | 3,099,399 |
Interest paid | (8,812 | ) | (38,291 | ) |
Interest element of finance lease payments paid |
(34,360 |
) |
(20,907 |
) |
Finance costs paid | (25,995 | ) | (26,254 | ) |
Tax paid | (277,457 | ) | 49,574 |
Net cash from operating activities | 224,787 | 3,063,521 |
Cash flows from investing activities |
Purchase of tangible fixed assets | - | (251,190 | ) |
Sale of tangible fixed assets | 1 | 1,417 |
Interest received | 3,864 | - |
Net cash from investing activities | 3,865 | (249,773 | ) |
Cash flows from financing activities |
Loan repayments in year | (228,194 | ) | (1,587,182 | ) |
Capital repayments in year | (576,202 | ) | 822,155 |
Amount withdrawn by directors | (770,936 | ) | (701,663 | ) |
Net cash from financing activities | (1,575,332 | ) | (1,466,690 | ) |
(Decrease)/increase in cash and cash equivalents | (1,346,680 | ) | 1,347,058 |
Cash and cash equivalents at beginning of year |
2 |
1,600,725 |
253,667 |
Cash and cash equivalents at end of year |
2 |
254,045 |
1,600,725 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31/12/22 | 31/12/21 |
£ | £ |
Profit before taxation | 2,639,987 | 2,371,445 |
Depreciation charges | 989,394 | 995,736 |
Loss/(profit) on disposal of fixed assets | 99,800 | (1,416 | ) |
Finance costs | 69,167 | 85,452 |
Finance income | (3,864 | ) | - |
3,794,484 | 3,451,217 |
Decrease/(increase) in stocks | 68,279 | (718,155 | ) |
(Increase)/decrease in trade and other debtors | (5,204,291 | ) | 420,813 |
Increase/(decrease) in trade and other creditors | 1,912,939 | (54,476 | ) |
Cash generated from operations | 571,411 | 3,099,399 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 254,045 | 1,600,725 |
Year ended 31st December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 1,600,725 | 253,667 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,600,725 | (1,346,680 | ) | 254,045 |
1,600,725 | (1,346,680 | ) | 254,045 |
Debt |
Finance leases | (1,555,219 | ) | 576,202 | (979,017 | ) |
Debts falling due within 1 year | (228,194 | ) | 228,194 | - |
(1,783,413 | ) | 804,396 | (979,017 | ) |
Total | (182,688 | ) | (542,284 | ) | (724,972 | ) |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Clifton Packaging Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
The group financial statements consolidate the financial statements of Clifton Packaging Group Limited and all its subsidiary undertakings drawn up to 31 December each year. |
BASIS OF CONSOLIDATION |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity; generally conferred by holding a majority of voting rights. |
The financial statements of a subsidiary are recognised in the consolidated financial statements according to the full consolidation method from the date on which control is obtained until the date on which that control no longer exists. Pursuant to the full consolidation method, 100% of the assets, liabilities, income and expenses from subsidiaries are recognised in the consolidated financial statements. |
Target Packaging Systems Limited, Clifton Packaging Limited and Azpac Foods Limited have been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the result and cash flows of these subsidiaries. |
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. |
GOING CONCERN |
The Group uses liquid resources and working capital balances that arise directly from its operations. The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Liquidity is monitored regularly by reference to forecasts and available facilities. The business has continued to fulfil significant order delivery commitments, confirm and progress negotiations on new orders for delivery in the next 12 months and secure payments, for prior and future deliveries. |
The business is financed through cash generated from operating activities as well as loans. Cash on the balance sheet is £254,045 (2021: £1,600,725) at 31 December 2022. Furthermore, profitability has increased during the year as highlighted in the strategic report. |
The directors have reviewed future projections, including preparing cash flow forecasts, which they feel adequately reflect the current uncertain economic environment. After considering all relevant uncertainties, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
TURNOVER |
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. |
Where cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. |
The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer (usually on dispatch of the goods); |
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Group will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
GOODWILL |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised evenly over its useful economic life of 20 years. |
TANGIBLE FIXED ASSETS |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment |
losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual |
value of each asset over its estimated useful life: |
Plant and machinery - 10% on cost |
Fixtures and fittings - 20% on cost |
Motor vehicles - 25% on cost |
Office equipment - 25% on cost |
No depreciation is charged on freehold land and buildings. It is the opinion of the directors that the life of the assets are so long and their residual value so high, that any depreciation is insignificant. In accordance with FRS102, annual impairment reviews are undertaken to confirm this treatment. The property is also regularly revalued to its fair value by way of carrying out professional valuations. |
The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
FIXED ASSET REVALUATION |
The Group has adopted the policy of using the revaluation model for freehold property. Revaluation gains are recognised in other comprehensive income. Subsequent to the revaluation, the amount carried on the books is the asset's revalued amount, less subsequent accumulated depreciation and accumulated impairment losses. |
IMPAIRMENT OF ASSETS |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
GOVERNMENT GRANTS |
Government grants is recognised in other revenue on an accruals basis, based on when the proceeds of the grants are receivable. |
STOCKS |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Cost comprises direct materials, and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. |
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. |
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. |
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. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
The Group only enters into basic financial instruments 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. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured: |
- at fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably; |
- at cost less impairment for all other investments. |
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 the Income Statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date. |
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. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
RESEARCH AND DEVELOPMENT |
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from one to three years reflecting the period of use for the relevant customer project. |
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. |
FOREIGN CURRENCIES |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. |
HIRE PURCHASE AND LEASING COMMITMENTS |
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the Group recognises annual rent expense equal to amounts owed to the lessor. |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Group's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are 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 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. |
Critical judgements in applying the Group's accounting policies |
The directors conclude that there are no critical judgements in applying the Group's accounting policies. |
Key source of estimation uncertainty |
Depreciation and amortisation rates are based on estimates of the useful lives and residual values of the assets involved. |
The Group manufactures and sells flexible packaging materials and is subject to changing consumer demands. Determining whether stock values are recoverable requires estimations based on up to date trading information. The directors use their knowledge of the business, the trading environment and future projections to assess whether provision is necessary in these areas. When calculating the stock provision, management considers the nature and condition of the stock as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. |
There is uncertainty around the outcome of an examination by an external expert as described in note 23 of the financial statements. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Group. |
An analysis of turnover by geographical market is given below: |
31/12/22 | 31/12/21 |
£ | £ |
United Kingdom | 37,868,279 | 29,764,109 |
Europe | 55,533 | 374,778 |
United States of America | - | 27,047 |
37,923,812 | 30,165,934 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
5. | EMPLOYEES AND DIRECTORS |
31/12/22 | 31/12/21 |
£ | £ |
Wages and salaries | 3,645,315 | 3,892,350 |
Social security costs | 381,086 | 385,543 |
Other pension costs | 66,837 | 71,831 |
4,093,238 | 4,349,724 |
The average number of employees during the year was as follows: |
31/12/22 | 31/12/21 |
Production staff | 97 | 96 |
Administrative | 36 | 36 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2021 - NIL). |
31/12/22 | 31/12/21 |
£ | £ |
Directors' remuneration | 135,000 | 392,000 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31/12/22 | 31/12/21 |
£ | £ |
Hire of plant and machinery | 76,222 | 80,778 |
Depreciation - owned assets | 893,706 | 900,048 |
Loss/(profit) on disposal of fixed assets | 99,800 | (1,416 | ) |
Goodwill amortisation | 95,688 | 95,688 |
Auditors' remuneration | 17,000 | 19,000 |
The auditing of accounts of any associate of the company | 6,000 | 6,000 |
Other non- audit services | 4,000 | - |
Foreign exchange differences | 11,243 | (32,659 | ) |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/12/22 | 31/12/21 |
£ | £ |
Bank interest payable | 6,351 | 23,986 |
Interest on other loans | 2,461 | 14,305 |
Hire purchase | 34,360 | 20,907 |
Invoice finance arrangements | 25,995 | 26,254 |
69,167 | 85,452 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/12/22 | 31/12/21 |
£ | £ |
Current tax: |
UK corporation tax | 654,369 | 511,721 |
Adjustments in respect of |
prior periods | (170,122 | ) | (18,083 | ) |
Total current tax | 484,247 | 493,638 |
Deferred tax | (171,433 | ) | 114,447 |
Tax on profit | 312,814 | 608,085 |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31/12/22 | 31/12/21 |
£ | £ |
Profit before tax | 2,639,987 | 2,371,445 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
501,598 |
450,575 |
Effects of: |
Expenses not deductible for tax purposes | 216,207 | 191,726 |
Adjustments to tax charge in respect of previous periods | (170,122 | ) | (18,083 | ) |
Capital allowances | (63,436 | ) | (130,580 | ) |
Deferred tax | (171,433 | ) | 114,447 |
Total tax charge | 312,814 | 608,085 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31st December 2022. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
8. | TAXATION - continued |
31/12/21 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of property | - | (82,716 | ) | (82,716 | ) |
Factors that may affect future tax charges |
Finance Bill 2021 included provisions to increase the main rate of corporation tax up to 25% from 1 April 2023, based on profitability. As this has been enacted by the balance sheet date, balances as at 31 December 2022 have been measured at 25%. The amended tax rate cause an increase in the deferred tax liability. |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 | 1,913,658 |
AMORTISATION |
At 1st January 2022 | 1,802,857 |
Amortisation for year | 95,688 |
At 31st December 2022 | 1,898,545 |
NET BOOK VALUE |
At 31st December 2022 | 15,113 |
At 31st December 2021 | 110,801 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
10. | INTANGIBLE FIXED ASSETS - continued |
Company |
Goodwill |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 |
AMORTISATION |
At 1st January 2022 |
Amortisation for year |
At 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1st January 2022 | 4,480,000 | 9,190,832 | 289,597 |
Disposals | - | (290,719 | ) | - |
At 31st December 2022 | 4,480,000 | 8,900,113 | 289,597 |
DEPRECIATION |
At 1st January 2022 | - | 4,411,690 | 134,801 |
Charge for year | - | 819,093 | 44,041 |
Eliminated on disposal | - | (190,919 | ) | - |
At 31st December 2022 | - | 5,039,864 | 178,842 |
NET BOOK VALUE |
At 31st December 2022 | 4,480,000 | 3,860,249 | 110,755 |
At 31st December 2021 | 4,480,000 | 4,779,142 | 154,796 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st January 2022 | 81,528 | 127,496 | 14,169,453 |
Disposals | - | (16,467 | ) | (307,186 | ) |
At 31st December 2022 | 81,528 | 111,029 | 13,862,267 |
DEPRECIATION |
At 1st January 2022 | 74,069 | 68,999 | 4,689,559 |
Charge for year | 7,458 | 23,114 | 893,706 |
Eliminated on disposal | - | (16,466 | ) | (207,385 | ) |
At 31st December 2022 | 81,527 | 75,647 | 5,375,880 |
NET BOOK VALUE |
At 31st December 2022 | 1 | 35,382 | 8,486,387 |
At 31st December 2021 | 7,459 | 58,497 | 9,479,894 |
Cost or valuation at 31st December 2022 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2020 | 1,378,600 | - | - |
Cost | 3,101,400 | 8,900,113 | 289,597 |
4,480,000 | 8,900,113 | 289,597 |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2020 | - | - | 1,378,600 |
Cost | 81,528 | 111,029 | 12,483,667 |
81,528 | 111,029 | 13,862,267 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
31/12/22 | 31/12/21 |
£ | £ |
Cost | 3,101,400 | 3,101,400 |
Freehold land and buildings were valued on an open market basis on 15th January 2020 by Innes England . |
The directors have considered the value of the freehold property taking account of current use and condition of the property and local market conditions prevailing at the balance sheet date. In their opinion the cost shown within the financial statements is a materially true and fair value. |
At the year end, the net book value of assets held under finance leases or hire purchase contracts, for the Company, included within plant and machinery is £1,252,303 (2021: £1,719,256). |
Company |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1st January 2022 |
Disposals | ( |
) |
At 31st December 2022 |
DEPRECIATION |
At 1st January 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st January 2022 |
Disposals | ( |
) | ( |
) |
At 31st December 2022 |
DEPRECIATION |
At 1st January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
Cost or valuation at 31st December 2022 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2020 | 1,378,600 | - | - |
Cost | 3,101,400 | 8,900,113 | 289,597 |
4,480,000 | 8,900,113 | 289,597 |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2020 | - | - | 1,378,600 |
Cost | 81,528 | 98,122 | 12,470,760 |
81,528 | 98,122 | 13,849,360 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
31/12/22 | 31/12/21 |
£ | £ |
Cost | 3,101,400 | 3,101,400 |
Freehold land and buildings were valued on an open market basis on 15th January 2020 by Innes England . |
The directors have considered the value of the freehold property taking account of current use and condition of the property and local market conditions prevailing at the balance sheet date. In their opinion the cost shown within the financial statements is a materially true and fair value. |
At the year end, the net book value of assets held under finance leases or hire purchase contracts, for the Company, included within plant and machinery is £1,252,303 (2021: £1,719,256). |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
The Group or the Company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
SUBSIDIARIES |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Raw materials | 2,886,365 | 2,735,324 |
Work-in-progress | 627,078 | 669,323 |
Finished goods | 1,391,637 | 1,568,712 |
4,905,080 | 4,973,359 |
Included within the above is a stock provision of £586,563 (2021: £468,654) recognised against stock at the year end. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Trade debtors | 10,432,249 | 6,786,677 |
Amounts owed by group undertakings | - | - |
Other debtors | 3,005,898 | 1,577,894 |
Directors' current accounts | 4,848,708 | 4,077,772 | 4,848,708 | 4,077,772 |
Prepayments and accrued income | 266,111 | 135,396 |
18,552,966 | 12,577,739 |
The Group has financing agreements whereby certain debts are subject to an invoice discounting agreement. For the year ended 31/12/2022, £1,442,236 (2021: £122,429) was owed to the Group in respect of debtors which have been financed. As the Group had not drawn down on these amounts, the balance in the current year was included within debtors. |
Amounts owed by group undertakings are unsecured, interest free and repayable on demand. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | - | 228,194 |
Finance leases (see note 18) | 248,193 | 576,202 |
Trade creditors | 7,330,650 | 6,136,165 |
Amounts owed to group undertakings | - | - |
Corporation tax | 808,538 | 601,748 |
Social security and other taxes | 91,117 | 86,547 |
Plastic packaging tax | 403,484 | - | 403,484 | - |
VAT | 579,924 | 221,060 | 512,081 | 171,848 |
Other creditors | 21,362 | 18,794 | 10,412 | 18,709 |
Accruals and deferred income | 489,340 | 518,196 |
Deferred government grants | 22,176 | 22,176 |
9,994,784 | 8,409,082 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Finance leases (see note 18) | 730,824 | 979,017 |
Deferred government grants | 44,851 | 67,027 |
775,675 | 1,046,044 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 228,194 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
31/12/22 | 31/12/21 |
£ | £ |
Gross obligations repayable: |
Within one year | 271,040 | 610,512 |
Between one and five years | 759,344 | 1,030,384 |
1,030,384 | 1,640,896 |
Finance charges repayable: |
Within one year | 22,847 | 34,310 |
Between one and five years | 28,520 | 51,367 |
51,367 | 85,677 |
Net obligations repayable: |
Within one year | 248,193 | 576,202 |
Between one and five years | 730,824 | 979,017 |
979,017 | 1,555,219 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
18. | LEASING AGREEMENTS - continued |
Company |
Finance leases |
31/12/22 | 31/12/21 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable | operating leases |
31/12/22 | 31/12/21 |
£ | £ |
Within one year | 560,000 | 712,279 |
Between one and five years | - | 560,000 |
560,000 | 1,272,279 |
Company |
Non-cancellable | operating leases |
31/12/22 | 31/12/21 |
£ | £ |
Within one year |
Between one and five years |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Bank loans | - | 228,194 |
Finance leases | 979,017 | 1,555,219 | 979,017 | 1,555,219 |
- | - | - | 228,194 |
979,017 | 1,783,413 |
The bank loan and invoice financing are secured against the assets of the Group, a charge over the debtor book and a legal first charge over the premises being Centurion Way, Meridian Business Park, Leicester, Leicestershire, LE19 1WH. |
The guarantee is secured by way of fixed and floating charges over all assets and property of the Group. |
There was no invoice financing debt outstanding at the year end. |
The net obligations under hire purchase contracts are secured on the assets to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
31/12/22 | 31/12/21 | 31/12/22 | 31/12/21 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 941,188 | 767,971 |
Other timing differences | - | 344,650 | - | 344,650 |
941,188 | 1,112,621 | 941,439 | 1,112,707 |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2022 | 1,112,621 |
Credit to Income Statement during year | (171,433 | ) |
Balance at 31st December 2022 | 941,188 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
20. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1st January 2022 |
Credit to Income Statement during year | ( |
) |
Balance at 31st December 2022 |
Deferred tax assets and liabilities are offset only where the Group has a legally enforceable right to do so and where the assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity or another entity within the Group. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/22 | 31/12/21 |
value: | £ | £ |
A Ordinary | 1 | 6,001 | 6,001 |
C Ordinary | 1 | 6,001 | 6,001 |
D Ordinary | 1 | 6,001 | 6,001 |
18,003 | 18,003 |
22. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1st January 2022 | 17,120,817 | 1,033,950 | 2,001 | 18,156,768 |
Profit for the year | 2,327,173 | 2,327,173 |
At 31st December 2022 | 19,447,990 | 1,033,950 | 2,001 | 20,483,941 |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
22. | RESERVES - continued |
Company |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1st January 2022 | 18,238,213 |
Profit for the year |
At 31st December 2022 | 20,488,147 |
23. | CONTINGENT LIABILITIES |
The group is subject to an examination by an external expert of a matter which has been discovered by the directors, with regards to potentially undisclosed items in the financial statements relating to historic years. Specifically, these relate to unrecognised income or costs. We have engaged external experts to quantify the impact, if any, with a voluntary disclosure to HMRC of these matters. There is uncertainty relating to the outcome of the matter. |
A preliminary disclosure was made after the year end but before the signing of the current year financial statements and audit report with regards to the above matter. It was identified to relate to rebate income for historic years, which has not previously been recognised in the financial statements. |
HMRC have issued corporation tax assessments amounting to £97,863 which have been included within creditors as a prior year adjustment. However the case is still ongoing and the total turnover, debtor and S455 impact has not yet been determined. |
The initial rebate income identified was £500,878 but we understand there may be further disclosures to be identified. The total amounts owed to the group, the party which owes the money to the group, the recoverability of the debtor, and the S455 position has not yet been quantified and ongoing examinations and disclosures are in place with HMRC to determine the actual impact. As a result, we have not made a prior year adjustment in this respect due to the uncertainty of the asset. |
24. | GUARANTEES AND OTHER FINANCIAL COMMITMENTS |
An indemnity has been given by the Group in respect of a guarantee given by Yorkshire Bank on behalf of HM Revenue & Customs. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31st December 2022 and 31st December 2021: |
31/12/22 | 31/12/21 |
£ | £ |
Mr Z J Sheikh |
Balance outstanding at start of year | 1,407,757 | 1,210,633 |
Amounts advanced | 234,572 | 197,124 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,642,329 | 1,407,757 |
Mr T J Sheikh |
Balance outstanding at start of year | 1,347,805 | 1,015,443 |
Amounts advanced | 247,830 | 332,362 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,595,635 | 1,347,805 |
Mr S R Sheikh |
Balance outstanding at start of year | 1,322,209 | 1,150,033 |
Amounts advanced | 288,535 | 172,176 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,610,744 | 1,322,209 |
26. | RELATED PARTY DISCLOSURES |
The group 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Included within the financial statements were the following transactions and balances with entities under common directorship: |
Expenses during the year: £726,000 (2021: £615,536) |
Amounts owed by related parties at the year end: £62,691 (2021: £220,752) |
During the year, a total of key management personnel compensation of £ 458,498 (2021 - £ 718,249 ) was paid. |
CLIFTON PACKAGING GROUP LIMITED (REGISTERED NUMBER: 04623230) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
27. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party are the shareholders of the parent company, in the current and preceding year. |