The Wool Packaging Company Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06900094 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 May 2021

for

The Wool Packaging Company Ltd

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

A F Morris

D K Spilsbury

J H Morris

REGISTERED OFFICE:

Units 1a & 1b, Tungsten Park

Opal Way

Stone Business Park

Stone

Staffordshire

ST15 0SS

REGISTERED NUMBER:

06900094 (England and Wales)

FIXED ASSETS

Tangible assets

4

206,353

243,141

CURRENT ASSETS

Stocks

430,062

256,640

Debtors

5

1,457,525

1,064,723

Cash at bank and in hand

855,992

731,132

2,743,579

2,052,495

CREDITORS

Amounts falling due within one year

6

1,636,661

1,373,430

NET CURRENT ASSETS

1,106,918

679,065

TOTAL ASSETS LESS CURRENT LIABILITIES

1,313,271

922,206

CREDITORS

Amounts falling due after more than one year

7

(24,518

)

(43,193

)

PROVISIONS FOR LIABILITIES

(17,900

)

(26,100

)

NET ASSETS

1,270,853

852,913

CAPITAL AND RESERVES

Called up share capital

184

184

Retained earnings

1,270,669

852,729

SHAREHOLDERS' FUNDS

1,270,853

852,913

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6 October 2021 and were signed on its behalf by:

J H Morris - Director

1.	STATUTORY INFORMATION

The Wool Packaging Company Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' including the provisions of Section 1A ''Small Entities'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements cover the company as an individual entity and are presented in Pounds Sterling (£) being the functional currency.

The financial statements have been prepared on a going concern basis on the assumption that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have made this assessment with regard to the company’s current and expected performance. Particular consideration has been given to the impact of the Coronavirus on the company's ability to operate for the foreseeable future.

Related party exemption

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 entities within the group where the relationship is one of being wholly owned.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods

Turnover from the sale of goods is recognised when all the following conditions are satisfied:

-

the company has transferred to the buyer the significant risks and rewards of ownership of the goods;

-

the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-

the amount of turnover can be measured reliably;

-

it is probable that the economic benefits associated with the transaction will flow to the company; and

-

the costs incurred or to be incurred in respect of the transition can be measured reliably.

Usually, turnover from the sale of goods is recognised when the goods are delivered and legal title has passed.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

10% on cost

Plant and machinery

-

20% or 25% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33.33% on cost

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

Stocks

Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

Basic financial assets and liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future cash flows discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax if applicable. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

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 statement of financial position 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.

Hire purchase and leasing commitments

Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed

assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and

their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful

lives. Finance leases are those where substantially all of the benefits and risks of ownership are

assumed by the company. Obligations under such agreements are included in creditors net of the

finance charge allocated to future periods. The finance element of the rental payment is charged to

the profit and loss account so as to produce a constant periodic rate of charge on the net obligation

outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership

remain with the lessor are charged to profit and loss account on a straight-line basis.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 49 (2020 - 38 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 June 2020

22,175

359,983

70,915

Additions

17,775

27,219

5,649

Disposals

-

(9,022

)

-

At 31 May 2021

39,950

378,180

76,564

DEPRECIATION

At 1 June 2020

9,539

205,726

65,233

Charge for year

3,996

59,589

3,920

Eliminated on disposal

-

(6,586

)

-

At 31 May 2021

13,535

258,729

69,153

NET BOOK VALUE

At 31 May 2021

26,415

119,451

7,411

At 31 May 2020

12,636

154,257

5,682

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 June 2020

108,251

30,493

591,817

Additions

-

14,559

65,202

Disposals

-

(7,142

)

(16,164

)

At 31 May 2021

108,251

37,910

640,855

DEPRECIATION

At 1 June 2020

41,513

26,665

348,676

Charge for year

25,287

6,762

99,554

Eliminated on disposal

-

(7,142

)

(13,728

)

At 31 May 2021

66,800

26,285

434,502

NET BOOK VALUE

At 31 May 2021

41,451

11,625

206,353

At 31 May 2020

66,738

3,828

243,141

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 June 2020

and 31 May 2021

101,151

DEPRECIATION

At 1 June 2020

34,413

Charge for year

25,287

At 31 May 2021

59,700

NET BOOK VALUE

At 31 May 2021

41,451

At 31 May 2020

66,738

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

1,366,908

1,010,779

Other debtors

90,617

53,944

1,457,525

1,064,723

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Hire purchase contracts (see note 8)

18,675

17,993

Trade creditors

1,234,949

777,453

Amounts owed to group undertakings

-

200,000

Taxation and social security

304,948

249,645

Other creditors

78,089

128,339

1,636,661

1,373,430

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Hire purchase contracts (see note 8)

24,518

43,193

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2021

2020

£

£

Net obligations repayable:

Within one year

18,675

17,993

Between one and five years

24,518

43,193

43,193

61,186

Non-cancellable

operating leases

2021

2020

£

£

Within one year

301,790

79,487

Between one and five years

852,563

185,533

1,154,353

265,020

Total lease payments recognised as an expense during the period amounted to £73,382 (2020 - £69,251).

9.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Hire purchase contracts

43,193

61,186

The hire purchase contracts are secured against the assets financed.

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2021 and 31 May 2020:

2021

2020

£

£

J H Morris

Balance outstanding at start of year

-

-

Amounts advanced

18,113

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

18,113

-

The advance is unsecured, repayable on demand and interest is charged at a rate of 2.5% per annum, where the balance exceeds £10,000.

11.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions of £4,837 (2020 - £3,447) were payable to the fund at the balance sheet date and are included in creditors.