Company registration number 01267599 (England and Wales)
C S LABELS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
C S LABELS LIMITED
COMPANY INFORMATION
Directors
Christophe Beke
Ives Declerck
Martin Denduyver
Mr Paul Humpage
Mr A James
Company number
01267599
Registered office
Unit 1 Steelpark Trading Estate
Steelpark Way
Wolverhampton
England
WV11 3BF
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
C S LABELS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
C S LABELS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Fair review of the business
Following on from the sale of the company to the Asteria Group, turnover did not hit expectations. It has fallen by 6.36% to a little over £6.9m. The group believes this to be a temporary downturn which will be reversed in the 2023 year.
Gross profit remained consistent at north of 52.5%, with the company achieving a £3.7m
The directors still believe the company to benefit from membership of the group, with economies of scales being achieved towards the end of the year and into the new financial year.
Asteria has shown continued to support the company's philosophy of investing in machinery and digital technology, with large investment during the year into a couple of large machines. some of which were relocated to a new premises
Administration costs as a whole stayed relatively consistent year on year which is expected and is line with the budgeted figures prepared by management.
Principal risks and uncertainties
No new risks have presented themselves during the year, so continued pressure on raw material costs, staff and energy prices are still the main risks and uncertainties associated with the company. These costs have been past onto customers with relative ease, as shown by the consistent gross profit margin achieved.
With the support of the Asteria group, we are still confident that we can navigate any challenges presented to maintain price levels and profitability.
Key performance indicators
The group measures performance on a monthly basis by reviewing turnover, gross profit margin and operating profit.
Mr A James
Director
20 June 2023
C S LABELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of manufacturer of labels.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Christophe Beke
Ives Declerck
Martin Denduyver
Mr Paul Humpage
Mr A James
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr A James
Director
20 June 2023
C S LABELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The directors are responsible for preparing the annual 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). 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 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
C S LABELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C S LABELS LIMITED
- 4 -
Opinion
We have audited the financial statements of C S Labels Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
C S LABELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C S LABELS LIMITED
- 5 -
Matters on which we are required to report by exception
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.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, if available;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
C S LABELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C S LABELS LIMITED
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
20 June 2023
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
C S LABELS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
6,940,798
7,412,302
Cost of sales
(3,270,966)
(3,519,917)
Gross profit
3,669,832
3,892,385
Distribution costs
(88,701)
(78,023)
Administrative expenses
(2,974,059)
(2,924,225)
Other operating income
1,500
20,565
Operating profit
5
608,572
910,702
Interest receivable and similar income
8
23,229
85
Interest payable and similar expenses
9
(32,988)
(35,685)
Profit before taxation
598,813
875,102
Tax on profit
10
(86,526)
(257,505)
Profit for the financial year
512,287
617,597
The profit and loss account has been prepared on the basis that all operations are continuing operations.
C S LABELS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
£
£
Profit for the year
512,287
617,597
Other comprehensive income
-
-
Total comprehensive income for the year
512,287
617,597
C S LABELS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,827,488
2,932,920
Current assets
Stocks
13
283,255
707,420
Debtors
14
2,800,555
1,182,396
Cash at bank and in hand
503,274
1,866,025
3,587,084
3,755,841
Creditors: amounts falling due within one year
15
(1,464,460)
(1,934,778)
Net current assets
2,122,624
1,821,063
Total assets less current liabilities
4,950,112
4,753,983
Creditors: amounts falling due after more than one year
16
(266,770)
(558,540)
Provisions for liabilities
Provisions
18
103,000
151,542
Deferred tax liability
19
472,705
448,551
(575,705)
(600,093)
Net assets
4,107,637
3,595,350
Capital and reserves
Called up share capital
21
545
545
Share premium account
19,978
19,978
Capital redemption reserve
570
570
Profit and loss reserves
4,086,544
3,574,257
Total equity
4,107,637
3,595,350
The financial statements were approved by the board of directors and authorised for issue on 20 June 2023 and are signed on its behalf by:
Mr A James
Director
Company Registration No. 01267599
C S LABELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2021
545
19,978
570
2,956,660
2,977,753
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
617,597
617,597
Balance at 31 December 2021
545
19,978
570
3,574,257
3,595,350
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
512,287
512,287
Balance at 31 December 2022
545
19,978
570
4,086,544
4,107,637
C S LABELS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
13,729
1,262,107
Interest paid
(32,988)
(35,685)
Income taxes paid
(245,401)
(81,661)
Net cash (outflow)/inflow from operating activities
(264,660)
1,144,761
Investing activities
Purchase of tangible fixed assets
(757,284)
(173,113)
Proceeds from disposal of tangible fixed assets
56,683
15,000
Interest received
23,229
85
Net cash used in investing activities
(677,372)
(158,028)
Financing activities
Payment of finance leases obligations
(420,719)
(82,696)
Net cash used in financing activities
(420,719)
(82,696)
Net (decrease)/increase in cash and cash equivalents
(1,362,751)
904,037
Cash and cash equivalents at beginning of year
1,866,025
961,988
Cash and cash equivalents at end of year
503,274
1,866,025
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information
C S Labels Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 Steelpark Trading Estate, Steelpark Way, Wolverhampton, England, WV11 3BF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over life of lease
Plant and equipment
15% - 25% reducing balance
Fixtures and fittings
15% straight line/ 33% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Manufacturing and supply of labels and printed products
6,940,798
7,412,302
2022
2021
£
£
Other revenue
Interest income
23,229
85
Grants received
1,500
-
4
Exceptional item
2022
2021
£
£
Expenditure
Exceptional item - Dilapidations provision
(48,542)
151,542
Included within administrative expenses is an exceptional item movement of £48,542 (2021: £151,542). This relates to a dilapidation provision for repair expenditure of a leased premises vacated during the year. The closing provision relates to a payment made after the balance sheet date, of £103,000. The movement therefore, is a reduction in the provision to leave this balance.
5
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
59
(1,461)
Government grants
(1,500)
-
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
16,750
Depreciation of owned tangible fixed assets
798,964
795,012
Loss/(profit) on disposal of tangible fixed assets
37,117
(1,484)
Impairment of stocks recognised or reversed
7,923
Operating lease charges
18,105
18,296
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
55
62
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
2,090,327
2,390,762
Pension costs
34,284
73,313
2,124,611
2,464,075
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
260,194
482,884
Company pension contributions to defined contribution schemes
34,284
73,313
294,478
556,197
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
125,954
-
Company pension contributions to defined contribution schemes
1,427
-
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
56
85
Interest receivable from group companies
23,173
Total income
23,229
85
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
8
Interest receivable and similar income
(Continued)
- 19 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
23,229
85
9
Interest payable and similar expenses
2022
2021
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
32,988
35,685
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
62,372
245,464
Deferred tax
Origination and reversal of timing differences
24,154
12,041
Total tax charge
86,526
257,505
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
598,813
875,102
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
113,774
166,269
Effect of change in corporation tax rate
5,798
103,687
Permanent capital allowances in excess of depreciation
(41,625)
(813)
Depreciation on assets not qualifying for tax allowances
2,907
4,319
Deferred tax adjustments in respect of prior years
5,672
(15,957)
Taxation charge for the year
86,526
257,505
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2022
2021
Notes
£
£
In respect of:
Stocks
13
7,923
Recognised in:
Cost of sales
-
7,923
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
489,178
5,458,632
227,352
99,880
6,275,042
Additions
4,640
721,781
8,450
22,413
757,284
Disposals
(5,076)
(606,618)
(18,963)
(50,440)
(681,097)
At 31 December 2022
488,742
5,573,795
216,839
71,853
6,351,229
Depreciation and impairment
At 1 January 2022
211,182
2,914,848
184,199
31,893
3,342,122
Depreciation charged in the year
19,073
750,472
11,728
17,691
798,964
Eliminated in respect of disposals
(571,337)
(26,092)
(19,916)
(617,345)
At 31 December 2022
230,255
3,093,983
169,835
29,668
3,523,741
Carrying amount
At 31 December 2022
258,487
2,479,812
47,004
42,185
2,827,488
At 31 December 2021
277,996
2,543,784
43,153
67,987
2,932,920
13
Stocks
2022
2021
£
£
Work in progress
10,967
32,077
Finished goods and goods for resale
272,288
675,343
283,255
707,420
The company holds consignment stock of £45,286 (2021: £46,333) that is not recognised on the balance sheet.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
14
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,124,174
1,001,969
Amounts owed by group undertakings
823,173
Other debtors
770,387
95,422
Prepayments and accrued income
82,821
85,005
2,800,555
1,182,396
15
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Obligations under finance leases
17
270,021
398,970
Trade creditors
812,500
937,447
Corporation tax
62,435
245,464
Other taxation and social security
99,399
206,044
Other creditors
5,713
7,231
Accruals and deferred income
214,392
139,622
1,464,460
1,934,778
16
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Obligations under finance leases
17
266,770
558,540
17
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
270,021
398,970
In two to five years
266,770
558,540
536,791
957,510
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
18
Provisions for liabilities
2022
2021
£
£
Dilapidations provision
103,000
151,542
Movements on provisions:
Dilapidations provision
£
Additional provisions in the year
103,000
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
473,327
448,551
Retirement benefit obligations
(622)
-
472,705
448,551
2022
Movements in the year:
£
Liability at 1 January 2022
448,551
Charge to profit or loss
24,154
Liability at 31 December 2022
472,705
The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,284
73,313
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
21
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
184
184
184
184
Ordinary B Shares of £1 each
243
243
243
243
Ordinary C Shares of £1 each
113
113
113
113
Ordinary D Shares of £1 each
5
5
5
5
545
545
545
545
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Group companies
71,986
-
51,391
-
Loans made
Loans received
2022
2021
2022
2021
£
£
£
£
Entities with control, joint control or significant influence over the company
1,800,000
-
1,000,000
-
£23,172 of interest was charged on the loan of £1,800,000 outstanding with a company held within the group.
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
823,173
-
23
Ultimate controlling party
It is considered that Packaging PrintCo Nv is the ultimate parent company by virtue of their 100% ownership of the share capital of the company.
C S LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
24
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
512,287
617,597
Adjustments for:
Taxation charged
86,526
257,505
Finance costs
32,988
35,685
Investment income
(23,229)
(85)
Loss/(gain) on disposal of tangible fixed assets
37,117
(1,484)
Depreciation and impairment of tangible fixed assets
798,964
795,012
(Decrease)/increase in provisions
(48,542)
151,542
Movements in working capital:
Decrease/(increase) in stocks
424,165
(158,239)
(Increase)/decrease in debtors
(1,648,207)
21,866
Decrease in creditors
(158,340)
(457,292)
Cash generated from operations
13,729
1,262,107
25
Analysis of changes in net funds/(debt)
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
1,866,025
(1,362,751)
503,274
Obligations under finance leases
(957,510)
420,719
(536,791)
908,515
(942,032)
(33,517)
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.200Christophe BekeIves DeclerckMartin DenduyverMr Paul HumpageMr A James512287012675992022-01-012022-12-3101267599bus:Director12022-01-012022-12-3101267599bus:Director22022-01-012022-12-3101267599bus:Director32022-01-012022-12-3101267599bus:Director42022-01-012022-12-3101267599bus:Director52022-01-012022-12-3101267599bus:RegisteredOffice2022-01-012022-12-31012675992022-12-31012675992021-01-012021-12-3101267599core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3101267599core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31012675992021-12-3101267599core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3101267599core:PlantMachinery2022-12-3101267599core:FurnitureFittings2022-12-3101267599core:MotorVehicles2022-12-3101267599core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3101267599core:PlantMachinery2021-12-3101267599core:FurnitureFittings2021-12-3101267599core:MotorVehicles2021-12-3101267599core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101267599core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3101267599core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3101267599core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3101267599core:CurrentFinancialInstruments2022-12-3101267599core:CurrentFinancialInstruments2021-12-3101267599core:ShareCapital2022-12-3101267599core:ShareCapital2021-12-3101267599core:SharePremium2022-12-3101267599core:SharePremium2021-12-3101267599core:CapitalRedemptionReserve2022-12-3101267599core:CapitalRedemptionReserve2021-12-3101267599core:RetainedEarningsAccumulatedLosses2022-12-3101267599core:RetainedEarningsAccumulatedLosses2021-12-3101267599core:ShareCapital2020-12-3101267599core:SharePremium2020-12-3101267599core:CapitalRedemptionReserve2020-12-3101267599core:RetainedEarningsAccumulatedLosses2020-12-3101267599core:ShareCapitalOrdinaryShares2022-12-3101267599core:ShareCapitalOrdinaryShares2021-12-31012675992021-12-31012675992020-12-3101267599core:LandBuildingscore:LongLeaseholdAssets2022-01-012022-12-3101267599core:PlantMachinery2022-01-012022-12-3101267599core:FurnitureFittings2022-01-012022-12-3101267599core:MotorVehicles2022-01-012022-12-3101267599core:UKTax2022-01-012022-12-3101267599core:UKTax2021-01-012021-12-310126759912022-01-012022-12-310126759912021-01-012021-12-3101267599core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3101267599core:PlantMachinery2021-12-3101267599core:FurnitureFittings2021-12-3101267599core:MotorVehicles2021-12-3101267599core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-01-012022-12-3101267599core:Non-currentFinancialInstruments2022-12-3101267599core:Non-currentFinancialInstruments2021-12-3101267599core:WithinOneYear2022-12-3101267599core:WithinOneYear2021-12-3101267599core:BetweenTwoFiveYears2022-12-3101267599core:BetweenTwoFiveYears2021-12-3101267599bus:PrivateLimitedCompanyLtd2022-01-012022-12-3101267599bus:FRS1022022-01-012022-12-3101267599bus:Audited2022-01-012022-12-3101267599bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP