REGISTERED NUMBER: 07477792 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
for |
Purico Speciality Paper Company Limited |
REGISTERED NUMBER: 07477792 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
for |
Purico Speciality Paper Company Limited |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Purico Speciality Paper Company Limited |
Company Information |
for the Year Ended 31 December 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Park House |
37 Clarence Street |
Leicester |
Leicestershire |
LE1 3RW |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Group Strategic Report |
for the Year Ended 31 December 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
The Group produces a range of specialist paper products, including casing, tea, coffee and overlay papers. The Group's business strategy is market focussed and includes investment in developing new products to meet the changing needs of its customers. |
REVIEW OF BUSINESS |
Results for 2022 were in line with expectations given the challenging conditions continuing to be felt throughout the world, including raw material price increases, high energy costs and increases in packaging and distribution costs. This is testament to the stability of the core business in Devon Valley Limited. |
Turnover in total for the Group decreased from £43.9m to £28.6m. This is due to the discontinued turnover of £17.2m in 2021 from Union Papertech Limited. Following a difficult period of trading Union Papertech Limited was moved into Administration . The company was unable to recover the huge increase in the cost of energy and raw materials as some customers refused to accept significant price increase necessary to recover the increased costs of production. Due to the loss of control of this subsidiary, the company has not been consolidated in the Group accounts for the year ended 31 December 2022. |
Gross margin percentage increased from 19.3% to 21.5% as the Group has continued to react to the pressures in raw materials and logistical challenges. Demand for the Group's products remain strong providing confidence in the future prospects for the company. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The business and financial performance may be adversely affected by down turns in the target markets that the Group serves. Demand for the Group's products is driven by consumption of those products which is often affected by general economic conditions. However, despite challenging economic conditions, demand for the product remained strong during 2022. |
The industry in which the Group operates remains highly competitive. Further increases in capacity will lead to increased competition without increased market demand for products. Increased competition could reduce the Group's sales and profitability. To counter this impact, the Group continues to expand the product base. |
The cost of raw materials and energy used to manufacture our products could increase, or the availability of key raw materials could be more constrained. As a result, the Group is subject to risks in terms of raw materials and energy cost fluctuation. This is mitigated where possible by placing forward orders at fixed prices for raw materials and energy. In addition, the Group works continuously to improve its carbon footprint to mitigate energy price rises that have been unprecedented since the last quarter of 2021. |
The impact of foreign exchange movements can have significant impacts on the Group's results particularly as the Group trades significantly in overseas markets. The Group mitigates these risks using forward exchange contracts. |
KEY PERFORMANCE INDICATORS |
The Group uses several key performance indicators to track performance which include turnover, gross margin and net profit before tax. Movements in these indicators have ben discussed in the business review above. |
ON BEHALF OF THE BOARD: |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Report of the Directors |
for the Year Ended 31 December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a manufacturer of speciality papers for the tea and coffee industry and overlay products. |
DIVIDENDS |
The directors did not recommend the payment of any dividends on the ordinary shares during the year (2021 - £nil). |
The A preference shares carry rights to fixed dividends each year and as such £500 (2021 - £500) has been accrued as dividends payable on these shares. |
DIRECTORS |
The directors who have held office during the period from 1 January 2022 to the date of this report are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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. |
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. |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Report of the Directors |
for the Year Ended 31 December 2022 |
AUDITORS |
The auditors, Torr Waterfield Limited, 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 |
Purico Speciality Paper Company Limited |
Opinion |
We have audited the financial statements of Purico Speciality Paper Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 31 December 2022 and of the group's loss 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. |
Material uncertainty relating to going concern |
We draw attention to note 2 in the financial statements, which indicates that if the the ultimate parent company of Clary Limited and the wider group were to withdraw its support, the Group would be unlikely to be able to discharge its liabilities. As stated in note 2, these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Company's and Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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. Our evaluation of the directors' assessment of the Group and Company's ability to continue to adopt the going concern basis of accounting included obtaining confirmation from Clary Limited that it will continue to support the Company and Group and that repayment of the amounts owed to it and its' group undertakings will not be demanded in a manner that would be detrimental to the financial stability of the Group and Company. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, 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. |
Report of the Independent Auditors to the Members of |
Purico Speciality Paper Company Limited |
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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors 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 Report of the Directors. |
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 three, 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 |
Purico Speciality Paper Company 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. |
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: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
The capability to detect irregularities is based on the auditor identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and then designing and performing audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
a) Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, the following approach was taken: |
- | Understanding the nature of the industry and sector, control environment and business performance; |
- | Consideration of the results of our enquiries of management and those charged with governance about their own identification and assessment of the risks of irregularities; |
- | Understanding the group's policies and procedures on compliance with laws and regulations and management of fraud risk, including documentation of instances of non-compliance of laws and regulations and instances of actual, suspected or alleged fraud; |
- | Consideration of matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud; |
- | Understanding the legal and regulatory frameworks that the Group operates in through enquiry of management and those charged with governance and understanding the group's industry and sector. The key laws and regulations that were considered to have an effect on material amounts and disclosures in the financial statements included the Companies Act and tax legislation. |
b) Audit response to risks identified |
Based on this understanding, the following audit procedures were designed and performed to respond to the risks identified: |
- | Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations described as having a direct effect on the financial statement; |
- | Enquiring of management, those charged with governance and, where applicable, the group's solicitors concerning actual and potential litigation and claims; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | Reviewing minutes of meetings of those charged with governance and, where applicable, correspondence with regulators; |
- | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; |
- | Communication of potential fraud risks to all engagement team members and remaining alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Report of the Independent Auditors to the Members of |
Purico Speciality Paper Company Limited |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 |
Statutory Auditor |
Park House |
37 Clarence Street |
Leicester |
Leicestershire |
LE1 3RW |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.22 | 31.12.22 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4 | 28,652,274 | - | 28,652,274 |
Cost of sales | (22,495,484 | ) | - | (22,495,484 | ) |
GROSS PROFIT | 6,156,790 | - | 6,156,790 |
Distribution costs | (2,613,023 | ) | - | (2,613,023 | ) |
Administrative expenses | (4,381,904 | ) | - | (4,381,904 | ) |
(838,137 | ) | - | (838,137 | ) |
Other operating income | 284,909 | - | 284,909 |
OPERATING LOSS | 6 | (553,228 | ) | - | (553,228 | ) |
Interest receivable and similar income | 7,971 | - | 7,971 |
Interest payable and similar expenses | 7 | (299,155 | ) | - | (299,155 | ) |
LOSS BEFORE TAXATION | (844,412 | ) | - | (844,412 | ) |
Tax on loss | 8 | (265,823 | ) | - | (265,823 | ) |
LOSS FOR THE FINANCIAL YEAR | ( | ) | ( | ) |
Loss attributable to: |
Owners of the parent | (1,110,235 | ) |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2022 |
31.12.21 | 31.12.21 | 31.12.21 |
Continuing | Discontinued | Total |
as | restated |
Notes | £ | £ | £ |
TURNOVER | 4 | 26,676,100 | 17,264,897 | 43,940,997 |
Cost of sales | (20,467,442 | ) | (14,995,251 | ) | (35,462,693 | ) |
GROSS PROFIT | 6,208,658 | 2,269,646 | 8,478,304 |
Distribution costs | (2,720,672 | ) | (1,918,262 | ) | (4,638,934 | ) |
Administrative expenses | (16,867,427 | ) | (2,754,320 | ) | (19,621,747 | ) |
(13,379,441 | ) | (2,402,936 | ) | (15,782,377 | ) |
Other operating income | 226,455 | 66,441 | 292,896 |
OPERATING LOSS | 6 | (13,152,986 | ) | (2,336,495 | ) | (15,489,481 | ) |
Interest receivable and similar income | 11,035 | - | 11,035 |
Interest payable and similar expenses | 7 | (202,339 | ) | (104,253 | ) | (306,592 | ) |
LOSS BEFORE TAXATION | (13,344,290 | ) | (2,440,748 | ) | (15,785,038 | ) |
Tax on loss | 8 | (186,772 | ) | 463,716 | 276,944 |
LOSS FOR THE FINANCIAL YEAR | ( | ) | ( | ) | ( | ) |
Loss attributable to: |
Owners of the parent | (15,508,094 | ) |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as | restated |
Notes | £ | £ |
LOSS FOR THE YEAR | (1,110,235 | ) | (15,508,094 | ) |
OTHER COMPREHENSIVE INCOME |
Revaluation of plant & machinery | 491,985 | - |
Retranslation of overseas operation | (59,394 | ) | 21,000 |
Income tax relating to components of other comprehensive income | (109,760 | ) | - |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | 322,831 | 21,000 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (787,404 | ) | (15,487,094 | ) |
Note |
Prior year adjustment | 11 | 190,740 | 303,578 |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT | (596,664 | ) | (15,183,516 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (596,664 | ) | (15,183,516 | ) |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Consolidated Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
as | restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 8,230,245 | 8,779,000 |
Tangible assets | 13 | 2,626,188 | 5,117,809 |
Investments | 14 | - | - |
10,856,433 | 13,896,809 |
CURRENT ASSETS |
Stocks | 15 | 6,529,270 | 7,977,105 |
Debtors | 16 | 5,460,088 | 8,026,290 |
Cash at bank and in hand | 481,584 | 945,332 |
12,470,942 | 16,948,727 |
CREDITORS |
Amounts falling due within one year | 17 | (8,739,758 | ) | (12,487,181 | ) |
NET CURRENT ASSETS | 3,731,184 | 4,461,546 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 14,587,617 | 18,358,355 |
CREDITORS |
Amounts falling due after more than one year | 18 | (19,175,865 | ) | (19,346,786 | ) |
PROVISIONS FOR LIABILITIES | 20 | (539,965 | ) | (3,351,878 | ) |
NET LIABILITIES | (5,128,213 | ) | (4,340,309 | ) |
CAPITAL AND RESERVES |
Called up share capital | 21 | 14,000,000 | 14,000,000 |
Revaluation reserve | 22 | 382,225 | 1,294,667 |
Foreign exchange reserve | 22 | (55,154 | ) | 4,240 |
Retained earnings | 22 | (19,455,284 | ) | (19,639,216 | ) |
(5,128,213 | ) | (4,340,309 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on 24 March 2024 and were signed on its behalf by: |
K Z Drazdzewska - Director |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Company Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
as | restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 | ( | ) | ( | ) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 18 | ( | ) | ( | ) |
NET LIABILITIES | ( | ) | ( | ) |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 | ( | ) | (15,790,898 | ) |
( | ) | ( | ) |
Company's loss for the financial year | (921,705 | ) | (25,251,083 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up | Foreign |
share | Retained | Revaluation | exchange | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2021 | 14,000,000 | (4,434,200 | ) | 1,294,667 | (16,760 | ) | 10,843,707 |
Prior year adjustment | - | 303,578 | - | - | 303,578 |
As restated | 14,000,000 | (4,130,622 | ) | 1,294,667 | (16,760 | ) | 11,147,285 |
Changes in equity |
Dividends | - | (500 | ) | - | - | (500 | ) |
Total comprehensive income | - | (15,698,834 | ) | - | 21,000 | (15,677,834 | ) |
Balance at 31 December 2021 | 14,000,000 | (19,829,956 | ) | 1,294,667 | 4,240 | (4,531,049 | ) |
Prior year adjustment | - | 190,740 | - | - | 190,740 |
As restated | 14,000,000 | (19,639,216 | ) | 1,294,667 | 4,240 | (4,340,309 | ) |
Changes in equity |
Disposal of subsidiary | - | 1,294,667 | (1,294,667 | ) | - | - |
Dividends | - | (500 | ) | - | - | (500 | ) |
Total comprehensive income | - | (1,110,235 | ) | 382,225 | (59,394 | ) | (787,404 | ) |
Balance at 31 December 2022 | 14,000,000 | (19,455,284 | ) | 382,225 | (55,154 | ) | (5,128,213 | ) |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Prior year adjustment | - |
As restated |
Changes in equity |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 31 December 2021 | ( | ) | (1,793,440 | ) |
Prior year adjustment | - |
As restated | ( | ) | ( | ) |
Changes in equity |
Dividends | - | ( | ) | ( | ) |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 31 December 2022 | ( | ) | ( | ) |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 568,964 | 805,839 |
Interest paid | (299,155 | ) | (306,592 | ) |
Tax paid | (194,793 | ) | (117,036 | ) |
Net cash from operating activities | 75,016 | 382,211 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (258,844 | ) | (703,914 | ) |
Disposal of subsidiary | (287,891 | ) | - |
Interest received | 7,971 | 11,035 |
Net cash from investing activities | (538,764 | ) | (692,879 | ) |
Decrease in cash and cash equivalents | (463,748 | ) | (310,668 | ) |
Cash and cash equivalents at beginning of year | 2 | 945,332 | 1,256,000 |
Cash and cash equivalents at end of year | 2 | 481,584 | 945,332 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Loss before taxation | (844,412 | ) | (15,785,038 | ) |
Depreciation charges | 942,038 | 2,422,902 |
Impairment of goodwill | - | 9,595,000 |
Increase in provisions | - | 2,975,000 |
Related party loan provision | 85,575 | - |
Finance costs | 299,155 | 306,592 |
Finance income | (7,971 | ) | (11,035 | ) |
474,385 | (496,579 | ) |
Decrease in stocks | 1,447,835 | 1,409,284 |
Decrease/(increase) in trade and other debtors | 2,578,148 | (174,368 | ) |
(Decrease)/increase in trade and other creditors | (3,931,404 | ) | 67,502 |
Cash generated from operations | 568,964 | 805,839 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 481,584 | 945,332 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
as restated |
£ | £ |
Cash and cash equivalents | 945,332 | 1,256,000 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 945,332 | (463,748 | ) | 481,584 |
945,332 | (463,748 | ) | 481,584 |
Total | 945,332 | (463,748 | ) | 481,584 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Purico Speciality Paper Company Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The financial statements of the Group and Company have been prepared on a going concern basis. Whilst both the Group and Company show net liabilities as at 31 December 2022, this has arisen due to the attributable loss to the Company and the Group of the administration of Union Papertech Limited. Of the liabilities £19,530,052 are liabilities owed to Clary Limited, the Group's ultimate parent company, and other companies also ultimately owned and controlled by Clary Limited. |
As such, the Group is reliant upon the support of Clary Limited, it's ultimate parent company. Clary Limited have confirmed that it will continue to support the Group for the foreseeable future. In order to help the Company and Group, the company has resolved to issue a further £6,000,000 ordinary shares to Clary Limited in exchange for a reduction of a like amount of debt due to Clary Limited, |
Clary Limited has also confirmed to the Group that repayments of the remainder of the amounts owed to it and its' subsidiaries will not be demanded in a manner that would be detrimental to the financial stability of the Group and Company. Taking into account this support, the directors have concluded that the going concern basis for the Group and Company is appropriate. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of the business combination using the purchase method. In the Balance Sheet, the acquirees' identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The combined results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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 the group's share 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 on a straight line basis to the Consolidated Profit and Loss Account over its useful economic life of 20 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: |
Improvements to property | - 20% on cost |
Plant and machinery | - 10-33% on cost |
Motor vehicles | - 33% on cost |
Computer equipment | - 33% on cost |
Motor vehicles | - 16.67% on cost |
The expected useful lives of assets are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Revaluation of tangible fixed assets |
The group has adopted the revaluation model for plant and machinery which are held at fair value less any subsequent depreciation or impairment. Fair value is assessed as the estimated market value at the reporting date, Revaluation gains and losses are recognised in Other Comprehensive Income and accumulate in the Revaluation Reserve. |
Stocks |
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. |
Cost is calculated using a first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition. |
Financial instruments |
The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at closing rate are recognised in other comprehensive income. |
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. |
Dividends |
Equity dividends are recognised when they become legally payable. |
Preference dividends (whether the underlying shares are classified as liability or equity) are recognised when they become legally payable in accordance with the rights attaching to the shares. In the event of insufficient reserves for the dividend to be distributed, the dividends are accrued until such point where there are sufficient available profits for the dividend to be lawfully paid. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant factors and circumstances, having regards to prior experience, but actual results may differ form the the amounts included in the financial statements. Information about such judgements and estimation is contained in the accounting policies and/or notes to the financial statements. The key areas are summarised below: |
Sources of estimation uncertainty: |
- Depreciation rates are based on estimates of the useful lives and residual values of the assets involved; |
- Bad debt provisions are based in the likely recovery of the debtor balances. |
4. | TURNOVER |
The turnover and loss 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 |
as | restated |
£ | £ |
United Kingdom | 328,543 | 11,289,142 |
Rest of the world | 28,323,731 | 32,651,855 |
28,652,274 | 43,940,997 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
5. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Wages and salaries | 2,007,378 | 5,630,504 |
Social security costs | 162,371 | 483,803 |
Other pension costs | 123,274 | 307,259 |
2,293,023 | 6,421,566 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
as | restated |
Manufacturing and production | 50 | 118 |
Sales and distribution | 2 | 3 |
Administration | 7 | 18 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2021 - NIL). |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Directors' remuneration | - | - |
6. | OPERATING LOSS |
The operating loss is stated after charging: |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Depreciation - owned assets | 393,282 | 803,902 |
Goodwill amortisation | 548,755 | 1,619,000 |
Auditors' remuneration | 27,298 | 41,424 |
Auditors' remuneration for non audit work | 2,275 | 1,800 |
Foreign exchange differences | 20,177 | 15,151 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Bank interest | 75,606 | 81,602 |
Bank loan interest | - | 90,935 |
Other loan interest | 223,549 | 134,055 |
299,155 | 306,592 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the year was as follows: |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax | 122,146 | - |
Group relief | 146,553 | 41,652 |
Adjustments in respect of prior periods | - | (26,495 | ) |
Total current tax | 268,699 | 15,157 |
Deferred tax | (2,876 | ) | (292,101 | ) |
Tax on loss | 265,823 | (276,944 | ) |
UK corporation tax has been charged at 19 % (2021 - 19 %). |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Loss before tax | (844,412 | ) | (15,785,038 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) | (160,438 | ) | (2,999,157 | ) |
Effects of: |
Expenses not deductible for tax purposes | 392,149 | 2,651,213 |
Income not taxable for tax purposes | - | (82,000 | ) |
Capital allowances in excess of depreciation | - | (9,000 | ) |
Depreciation in excess of capital allowances | 10,059 | - |
Adjustments to tax charge in respect of previous periods | 24,053 | 5,000 |
Adjustments to deferred tax charge in respect of prior periods | - | 46,000 |
Foreign taxation | - | 7,000 |
Remeasurement of deferred tax for changes in tax rates | - | 104,000 |
Total tax charge/(credit) | 265,823 | (276,944 | ) |
Tax effects relating to effects of other comprehensive income |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of plant & machinery | 491,985 | (109,760 | ) | 382,225 |
Retranslation of overseas operation | (59,394 | ) | - | (59,394 | ) |
432,591 | (109,760 | ) | 322,831 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
8. | TAXATION - continued |
31.12.21 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of plant and machinery |
Retranslation of overseas operations | 21,000 | - | 21,000 |
21,000 | - | 21,000 |
Factors that may affect future tax charges |
From 1 April 2023, the rate of corporation tax in the United Kingdon has increased from 19% to 25%. |
The Finance Bill 2021 provided for an increase in the mainstream corporation tax rate to 25% from 1 April 2023. This law was substantively enacted on 14th May 2021. Deferred taxes at the balance sheet date have been measured using these enacted rates and reflected in these financial statements. Deferred tax has been calculated at 25%. |
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. | DIVIDENDS |
31.12.22 | 31.12.21 |
as |
restated |
Shares classified as equity |
£ | £ |
Class A Preference Shares | 500 | 500 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
11. | PRIOR YEAR ADJUSTMENT |
The prior year adjustment relates to the following: |
- | recognise accrued sundry income of £126,594 at 31 December 2021 |
- | recognise £500 of dividends payable as at 31 December 2021 on the preference shares treated as debt |
- | reclassify (including restatement to recoverable amount) assets in course of construction as stock |
- | correction of amounts owed between group companies in relation to prior years group loss relief claims fo £372,545 |
The adjustments have the following effect on the financial statements: |
31.12.21 | 1.1.21 |
£ | £ |
Decrease in Tangible assets | (123,500 | (123,500 | ) |
Increase in Stock | 58,339 | 54,533 |
Increase in Prepayments and Accrued Income | 126,594 | - |
Increase in Amounts Owed from Group Undertakings | 372,045 | 372,545 |
Decrease in Corporation Tax creditor | 23,604 | - |
Decrease in Deferred Tax Provision | 38,000 | - |
Total increase in Net Assets | 495,082 | 303,578 |
Increase in Profit before tax | 129,136 |
Decrease in Tax on profit | 61,604 |
Total increase in Profit for the Financial Period | 190,740 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 11,276,000 |
AMORTISATION |
At 1 January 2022 | 2,497,000 |
Amortisation for year | 548,755 |
At 31 December 2022 | 3,045,755 |
NET BOOK VALUE |
At 31 December 2022 | 8,230,245 |
At 31 December 2021 | 8,779,000 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
13. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
to | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2022 | 740,258 | 7,735,289 | 16,911 | 540,488 | 9,032,946 |
Additions | 95,535 | 162,722 | - | 587 | 258,844 |
Disposals | (540,495 | ) | (4,221,278 | ) | (10,245 | ) | (365,954 | ) | (5,137,972 | ) |
Revaluations | - | (1,162,423 | ) | - | - | (1,162,423 | ) |
Exchange differences | - | 3,912 | - | - | 3,912 |
At 31 December 2022 | 295,298 | 2,518,222 | 6,666 | 175,121 | 2,995,307 |
DEPRECIATION |
At 1 January 2022 | 602,190 | 2,780,202 | 16,911 | 515,834 | 3,915,137 |
Charge for year | 24,654 | 360,607 | - | 8,021 | 393,282 |
Eliminated on disposal | (470,263 | ) | (1,454,459 | ) | (10,245 | ) | (353,837 | ) | (2,288,804 | ) |
Revaluation adjustments | - | (1,654,408 | ) | - | - | (1,654,408 | ) |
Exchange differences | - | 3,912 | - | - | 3,912 |
At 31 December 2022 | 156,581 | 35,854 | 6,666 | 170,018 | 369,119 |
NET BOOK VALUE |
At 31 December 2022 | 138,717 | 2,482,368 | - | 5,103 | 2,626,188 |
At 31 December 2021 | 138,068 | 4,955,087 | - | 24,654 | 5,117,809 |
Cost or valuation at 31 December 2022 is represented by: |
Improvements |
to | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2022 | - | (1,162,423 | ) | - | - | (1,162,423 | ) |
Cost | 295,298 | 3,680,645 | 6,666 | 175,121 | 4,157,730 |
295,298 | 2,518,222 | 6,666 | 175,121 | 2,995,307 |
If plant and machinery had not been revalued they would have been included at the following historical cost: |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Cost | 3,644,791 | 3,482,069 |
Aggregate depreciation | 1,654,408 | 1,293,801 |
Plant and machinery were valued on an open market basis on 31 December 2022 by the directors . |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
PROVISIONS |
At 1 January 2022 |
and 31 December 2022 | 25,800,000 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Environment House, 1 St. Marks Street, Nottingham, NG3 1DE |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Environment House, 1 St. Marks Street, Nottingham, NG3 1DE |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Environment House, 1 St. Marks Street, Nottingham, NG3 1DE |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Environment House, 1 St. Marks Street, Nottingham, NG3 1DE |
Nature of business: |
% |
Class of shares: | holding |
Following a very difficult period of trading, Union Papertech Limited was moved into Administration. Full provision of £25,800,000 has been made in December 2021 against the investment in Union Papertech Limited. As a consequence of the loss of control Union Papertech Limited has been deconsolidated from 1 January 2022 and is not included in the consolidated figures for the year ended 31 December 2022. |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
15. | STOCKS |
Group |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Raw materials | 3,508,474 | 4,007,798 |
Goods in transit | 1,136,159 | 1,636,108 |
Work-in-progress | 737,640 | 680,493 |
Finished goods | 1,146,997 | 1,652,706 |
6,529,270 | 7,977,105 |
Stock recognised in cost of sales during the year as an expense was £15,655,833 (2022 - £24,685,471). |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 4,410,438 | 6,466,767 |
Amounts owed by group undertakings | 184,259 | 71,344 |
Other debtors | 524,544 | 263,260 |
Amounts owed by related parties | - | 413,369 | - | 413,369 |
Corporation tax recoverable | 12,922 | 12,922 |
Prepayments and accrued income | 327,925 | 798,628 |
5,460,088 | 8,026,290 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Trade creditors | 3,887,604 | 3,932,324 |
Amounts owed to group undertakings | 354,187 | 244,112 |
Corporation tax | 119,906 | 46,000 |
Social security and other taxes | 168,601 | 572,123 |
Other creditors | 3,714,597 | 5,599,682 |
Amounts owed to related parties | - | 419,711 | - | - |
Accruals and deferred income | 494,863 | 1,673,229 |
8,739,758 | 12,487,181 |
Included within other creditors is £3,607,025 (2021 - £3,439,893) relating to monies forwarded against trade debtors by RBS Invoice Finance Limited. This loan is secured by way of a fixed and floating charge over the assets of the company. |
Disclosure of the terms and conditions attached to the non-equity shares is made in note 21. |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Amounts owed to group undertakings | 19,175,865 | 19,346,786 | 18,893,514 | 19,073,096 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Within one year | 244,811 | 257,991 |
Between one and five years | 1,706,196 | 1,951,007 |
1,951,007 | 2,208,998 |
20. | PROVISIONS FOR LIABILITIES |
Group |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Deferred tax |
Accelerated capital allowances | 2,090 | 371,912 |
Other timing differences | 444,988 | 4,966 |
447,078 | 376,878 |
Other provisions | 92,887 | 2,975,000 |
Aggregate amounts | 539,965 | 3,351,878 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2022 | 376,878 | 2,975,000 |
Provided during year | 70,200 | - |
Utilised during year | - | (2,882,113 | ) |
Balance at 31 December 2022 | 447,078 | 92,887 |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
20. | PROVISIONS FOR LIABILITIES - continued |
Other provisions relates to the net assets of Union Papertech Limited as at December 2021. With the administration of Union Papertech Limited and the subsequent loss of control by the group, a provision for the net assets Union Papertech Limited at December 2021 fo £2,970,000 was fully provided for in the prior year. |
As a consequence of the loss of control, Union Papertech Ltd has been deconsolidated from the group at 1 January 2022. The provision has been utilised against the loss arising from the disposal of the subsidiary in the group. |
21. | CALLED UP SHARE CAPITAL |
Shares classed as equity |
Allotted, issued and fully paid: |
Nominal | 31.12.22 | 31.12.21 |
Number: | Class: | value: | £ | £ |
1,000,000 | Ordinary Shares | £1 | 1,000,000 | 1,000,000 |
5,000,000 | Class A Preference Shares | £1 | 5,000,000 | 5,000,000 |
8,000,000 | Class B Preference Shares | £1 | 8,000,000 | 8,000,000 |
14,000,000 | 14,000,000 |
Ordinary Shares carry full voting rights with no restrictions and have no restrictions on the repayment of capital. |
Class A Preference Shares carry a right to £0.001 per annum fixed dividend, payable cumulatively should distributable profits be insufficient on the due date. They have no voting rights or right to participate in any capital distribution, return of assets or reduction in capital, save in respect of the redemption at the company's option. |
Class B Preference Shares carry a right to 3% discretionary dividend. They have no voting rights or right to participate in any capital distribution, return of assets or reduction in capital, save in respect of the redemption at the company's option. |
22. | RESERVES |
Revaluation reserve |
The revaluation reserve includes all previous upwards revaluations in this and previous years. |
Foreign exchange reserve |
The foreign exchange reserve represents the movement in foreign exchange rates for the reporting of Purico USA Limited. |
Retained earnings |
Retained earnings includes all current and prior year retained profits and losses. |
23. | ULTIMATE PARENT COMPANY |
Clary Limited (incorporated in Isle of Man ) is regarded by the directors as being the company's ultimate parent company. |
Purico Speciality Paper Company Limited (Registered number: 07477792) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Entities with control, joint control or significant influence over | the entity |
Included within amounts owed to group undertakings is £13,893,743 (2021 - £13,884,582) owed to the parent company, Clary Limited. £13,611,392 (2021 - £13,610,892) of this relates to zero rated loan notes repayable over 15 years to Clary Limited. This loan is secured by a fixed and floating charge over the assets of the company. |
The Group has resolved to issue a further 6,000,000 ordinary shares to Clary Limited in exchange for a like for like reduction of the debt due to Clary Limited. |
Key management personnel of the entity or its parent (in the | aggregate) |
Key management personnel are considered to be the directors of the group and the directors of the subsidiary companies. total remuneration paid to these individuals during the year was £131,461 (2022 - £125,343). |
Other related parties |
31.12.22 | 31.12.21 |
as | restated |
£ | £ |
Rent paid | 200,000 | 179,425 |
Amount due from related party | 754 | 754 |
Other related parties are entities under common control. |
Amounts due from / to related parties: |
31.12.22 | 31.12.21 |
£ | £ |
Amounts due from Purico Limited | 10,672 | 71,345 |
Amounts due to Bolton Plastics Components Limited | 62,416 | 65,466 |
Amounts due to Cricklade House Hotel Limited | 109,517 | 8,579 |
Amounts due to Skeritts of Nottingham Limited | 619 | 1,250 |
Amounts due to Purico Limited | 4,577,888 | 4,781,661 |
Amounts due to Purico Group Limited | 885,868 | 849,359 |