REGISTERED NUMBER: |
READY EGG PRODUCTS LIMITED |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 |
REGISTERED NUMBER: |
READY EGG PRODUCTS LIMITED |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 4 |
Directors' Report | 5 | to | 8 |
Independent Auditors' Report | 9 | to | 12 |
Income Statement | 13 |
Statement of Financial Position | 14 |
Statement of Changes in Equity | 15 |
Notes to the Financial Statements | 16 | to | 25 |
READY EGG PRODUCTS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: |
186 Main Street |
Lisnaskea |
Fermanagh |
BT92 0JF |
SOLICITORS: |
42-46 Fountain Street |
Belfast |
Co. Antrim |
BT1 5EB |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The directors present their strategic report for the year ended 31 December 2021. |
REVIEW OF THE BUSINESS |
Ready Egg Products Limited has delivered a strong trading performance for the year ended 31 December 2021 and the business remains in a strong financial position. |
Revenue for the year had increased by £5.480m to £62.883m (2020: £57.403m). Gross profit margin has increased to 30.4% (2020: 27.3%). The Company generated profit before tax of £9.556m (2020: £8.382m). |
The Company's production facilities are located in Lisnaskea, Co. Fermanagh, Northern Ireland and a second facility in Chesterfield, England. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company directors recognise the key business risks and uncertainties relating to the industry, product, pricing and profitability. The directors continue to work closely with suppliers and customers to carefully manage the company's operations. |
The food production and processing sector is affected by many factors including commodity markets, government and EU legislation, changes in international agricultural practices, competition and disease outbreaks among poultry flocks. The board has put in place systems and procedures which monitor these factors. |
Competition risk: |
Competition risk comes from other egg manufacturers. The directors manage this risk by ensuring a quality product is offered to all customers at a competitive price. |
Financial risk: |
The Company's operations expose it to financial risk in relation to price risk, foreign exchange risk and credit risk. The Company has a risk management programme in place to limit the adverse effects on the financial performance of the Company by monitoring levels of risk and the related financial costs. |
Price risk: |
The Company is exposed to commodity price risk of its operations. However, given the size of the Company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature. |
Foreign exchange risk: |
While the greater part of the Company's revenue and expenses are dominated in sterling, the Company is exposed to some foreign exchange risk in the normal course of business, in particular due to sales in euros. |
Credit risk: |
The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit on any adverse effects on the financial performance of the Company. |
Covid-19 risk: |
The directors continue to monitor the situation closely and implement changes where necessary to minimise the risk of business disruptions. The Company is flexible, has adapted easily to both social distancing amongst employees and the change to its customer base. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
SECTION 172(1) STATEMENT |
The directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so had regard, amongst other matters, to: |
a) the likely consequences of any decision in the long term |
b) the interests of the Company's employees |
c) the need to foster the Company's business relationships with suppliers, customers and others |
d) the impact of the Company's operations on the community and the environment |
e) the desirability of the Company maintaining a reputation for high standards of business conduct |
f) the need to act fairly as between members of the Company |
The directors have had regard to the matters set out in sections 172(1)(a)-(f) when discharging their section 172 duties. |
The Company undertakes many local community engagements and is a proud member of Business in the Community. Working together with other member companies, we are focussed on undertaking projects and initiatives that will build a better society and a more sustainable future. We also offer work placement programmes to provide students an opportunity to develop their knowledge and skillset within the working environment. |
Employee welfare is at the core of the Company's values. We invest in the services of an external occupational nurse once a year for free health checks which include eye and hearing tests and fitness to work in a food environment screening. Our life assurance scheme with Legal & General is available for all employees and our Employee Assistance Programme (EAP) is a welcome platform providing information, advice, training and services to help employees deal with events and issues in everyday work and personal life. |
Food safety and animal welfare are fundamental to the Company. All our sites are accredited to BRC Global Standards for Food Safety (Grade AA) and our inhouse laboratory is certified by CLAS, the leading independent accreditation scheme for the food industry. Our products are produced to exacting standards and customer specifications with the most robust and intricate supply chain systems ensuring full traceability. Our agricultural manager ensures our farmers remain educated on changing regulations within the industry and continue to supply the high-quality eggs that we, and our customers demand. |
The Company is renowned for our deep-rooted commitment to caring for the environment and every year we participate in the Business in the Community Environmental Benchmarking Survey. In 2021 we aim to have a new state-of-the-art waste water treatment facility fully operational. This will ensure we remain within our environmental consent limits whilst giving us the capacity to grow our expanding customer base. The Company has also voluntarily entered into Climate Change Agreements (CCAs) at both our sites as a further commitment to meeting and |
exceeding energy efficiency and carbon reduction targets in exchange for CCL relief until 31 March 2025. As well as |
proactively working to reduce our carbon emissions year-on-year, any CCL relief received will be reinvested in energy efficiency projects. |
Refer to the Principal risks and uncertainties section in the Strategic Report for further information concerning Company initiatives relating to the performance of the directors S172 duties. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
KEY PERFORMANCE INDICATORS |
Financial key performance indicators: |
2021 | 2020 |
£'000 | £'000 |
Revenue | 62,883 | 57,403 |
Gross Profit | 19,139 | 15,697 |
Gross Profit Margin | 30.4% | 27.3% |
Non-financial key performance indicators: |
2021 | 2020 |
Average number of employees | 146 | 154 |
FUTURE DEVELOPMENTS |
The Company is committed to long term creation of shareholder value by increasing the Company's market share in the UK and Irish markets. The economic environment continues to evolve and is making a return to relative stability and certainty. Overall in the coming year the Company aims to maintain revenue and operating profits. The Company will continue to develop relations with suppliers, generate new business where possible and increase retention levels while remaining highly competitive. The Company is continually researching and developing new products and services to ensure it continues to provide a strong product to the market. |
ENVIRONMENT |
The Company recognises its corporate responsibility to carry out its operations whilst ensuring that there is minimal environmental impact. The directors continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce wastage wherever possible. |
EMPLOYEES |
Employees are kept as fully informed as practicable about developments within the business. It is the policy of the Company to offer opportunities to all employees having regard to their aptitudes and abilities in relation to jobs available. |
The Company is aware of its requirements as a large employer in respect of the Modern Slavery Act 2015 in requiring large employers to be transparent about their efforts to eradicate Slavery and Human Trafficking in their supply chain. The Company has a policy in place in respect of same, a copy of which is available on the Company's website. The policy is made in accordance with Section 54(1) of the Modern Slavery Act 2015 and is reviewed on an annual basis. |
ON BEHALF OF THE BOARD: |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The directors present their report with the financial statements of the Company for the year ended 31 December 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the Company is that of egg processing. |
DIVIDENDS |
Dividends amounting to £nil were paid during 2021 (2020: £4,000,000). The directors do not recommend the payment of a final dividend (2020: £Nil). |
RESEARCH AND DEVELOPMENT |
The Company continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
The Company made no political donations or incurred any political expenditure during the current year (2020: £Nil). |
POST BALANCE SHEET EVENT |
Post year end, in March 2022, Ready Egg Products Limited acquired 100% of share capital in Skea Egg Farms Limited. |
DISCLOSURES REQUIRED UNDER SCHEDULE 7 |
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties and future developments in the Company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Ready Egg Products is committed to operating a responsible business. This commitment is reflected in initiatives aimed at making a positive impact on society and the environment, through our operations and with key stakeholders including customers, colleagues, communities and suppliers. This includes the following: |
Environment: |
The Company is renowned for our deep-rooted commitment to caring for the environment and every year we participate in the Business in the Community Environmental Benchmarking Survey. In 2021 we aim to have a new state-of-the-art waste water treatment facility fully operational. This will ensure we remain within our environmental consent limits whilst giving us the capacity to grow our expanding customer base. The Company has also voluntarily entered into Climate Change Agreements (CCAs) at both our sites as a further commitment to meeting and exceeding energy efficiency and carbon reduction targets in exchange for CCL relief until 31 March 2025. |
As well as proactively working to reduce our carbon emissions year-on-year, any CCL relief received will be reinvested in energy efficiency projects. |
Employee Engagement: |
Training is paramount to our employees professional learning and development across all areas of the business. We continue to proactively invest in training and development to ensure our employees have an opportunity to progress and enhance their knowledge and skill base, which will in turn, further enhance our forward thinking and highly skilled workforce. |
Community Engagement: |
The Company undertakes many local community engagements and is a proud member of Business in the Community. Working together with other member companies, we are focussed on undertaking projects and initiatives that will build a better society and a more sustainable future. We also offer work placement programmes to provide students an opportunity to develop their knowledge and skillset within the working environment. A number of charities that benefitted from donations from the Company in the year included Cancer Connect NI, NI Deaf Youth Association, Macmillian Cancer Support and Lisnaskea and Enniskillen Foodbank. |
Further details can be found on our website at www.readyeggproducts.com/about/ |
STREAMLINED ENERGY AND CARBON REPORTING |
The following Streamlined Energy and Carbon Report (SECR) provides environmental impact information in accordance with the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013. |
The company aims to ensure the environment is left in a better condition for future generations, this strategy underlines the importance of Environmental, Social and Governance (ESG) as well as sustainability in supporting the future growth and development of the business. As a company we have made meaningful progress in the last financial year in understanding our environmental impact and developing mitigation measures. |
Measure |
For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
Units |
Energy consumption used to calculate emissions |
12,352,091 |
10,945,171 |
kWh |
Emissions from purchased electricity |
1,067.50 |
1,124.73 |
tCO2e |
Emissions from gas and fuels | 1,579.50 | 1,288.08 | tCO2e |
Emissions from transportation | 159.09 | 173.62 | tCO2e |
Total Gross tCO2e | 2,806.09 | 2,586.43 | tCO2e |
Intensity ratio | 0.059 | 0.060 | Gross tCO2e/production tonne |
Methodology |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Consumption and CO2e emission data has been calculated in line with the 2019 UK Government environmental reporting guidance. The Emission Factor Databases used are consistent with the 2019 UK Government environmental reporting guidance, utilising the current published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the year to 31 December 2021. |
Estimations undertaken to cover missing billing periods for properties directly invoiced to the Company were calculated on a kWh/day pro-rata basis at meter level. These estimations equated to 5% of the reported consumption. These full year estimations were applied to 2 electricity supplies and 1 gas supply for the Company. |
Intensity metrics have been calculated utilising the 2021 reportable figures for units produced, and tCO2e for both individual sources and total emissions were then divided by this figure to determine the tCO2e per metric. |
Energy Efficiency |
The Company is committed to year on year improvements in their operational energy efficiency. As such, a register of energy efficiency measures available to the Company has been complied, with a view to implementing these measures in the next 5 years. Measures ongoing and undertaken in 2022 include the installation of new efficient equipment, replacement of lighting with LED equivalents and installation of pipework insulation to reduce heat loss. In 2022, measures prioritised for implementation include installation of a new steam boiler, replacement and relocation of solar panels, replacement of old hot water calorifiers, continuation of lighting replacement with LED equivalents, further installation of pipework insulation and installation of a heat exchanger to replace old boilers in boiling and processing. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
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 Company'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 Company's auditors are aware of that information. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
AUDITORS |
The auditors, CavanaghKelly (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
READY EGG PRODUCTS LIMITED |
Opinion |
We have audited the financial statements of Ready Egg Products Limited (the 'Company') for the year ended 31 December 2021 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and 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 Company's affairs as at 31 December 2021 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. |
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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the 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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
READY EGG PRODUCTS LIMITED |
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 where 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 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 Directors' Responsibilities Statement set out on page seven, 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 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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
READY EGG PRODUCTS 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
READY EGG PRODUCTS LIMITED |
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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
REVENUE | 5 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
9,319,260 | 8,207,169 |
Other operating income |
OPERATING PROFIT | 7 |
Finance income |
9,556,060 | 8,396,848 |
Finance costs | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Property, plant and equipment | 11 |
CURRENT ASSETS |
Inventories | 12 |
Receivables | 13 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PAYABLES |
Amounts falling due after more than one year |
15 |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
GOVERNMENT GRANTS | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2020 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | Statutory information |
Ready Egg Products Limited is a private company, limited by shares, incorporated in Northern Ireland. The Company's registered number and registered office address can be found on the Company Information page. |
2. | Statement of compliance |
The financial statements of the Company for the year ended 31 December 2021 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006. |
3. | Accounting policies |
Basis of preparation |
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company's financial statements. |
The financial statements are prepared in Sterling which is the functional currency of the Company, and rounded to the nearest pound (£), except when otherwise stated. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have complied with, including notification of, and no objection to, the use of exemptions by the Company's shareholders. |
The Company has taken advantage of the following exemptions: |
The Company has taken advantage of the exemption, under FRS 102 paragraph 3.17(d) from preparing a statement of cash flow, on the basis that it is a qualifying entity and its ultimate parent Company, Lough Erne Investments Limited, includes the Company's cash flow in its own consolidated financial statements; and from the financial instruments disclosures, required under FRS 102 paragraphs 11.8 to 11.9A, as the information is provided in the consolidated financial statement disclosures. |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods: |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the significant risks and rewards of ownership have been transferred to the buyer; |
- the company retains no continuing involvement or control over the goods; |
- the amount of revenue can be measured reliably; |
- it is probable that future economic benefits will flow to the company |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | Accounting policies - continued |
Property, plant and equipment and depreciation |
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
Freehold Land - Nil |
Freehold buildings - 5% Straight line |
Plant and machinery - 5% - 33% Straight line |
Fixtures, fittings and equipment - 15% - 33% Straight line |
The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable and is charged to the Income Statement. |
Inventories |
Inventories are stated at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | Accounting policies - continued |
Financial instruments |
The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Income Statement. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
Financial assets and liabilities are offset and 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. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | Accounting policies - continued |
Taxation and deferred taxation |
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. |
Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates that have been enacted or substantively enacted by the Statement of Financial Position date. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement. |
Hire purchase and leasing commitments |
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the Company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement. |
Employee benefits |
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. |
Distributions to equity holders |
Dividends and other distributions to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Government Grants |
Grants received in respect of capital equipment purchases are credited to a deferred income account and released to the profit and loss accounts over the useful life of the asset. |
4. | Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
a) Critical judgements in applying the entity's accounting policies |
There are no critical judgements in applying the entity's accounting policies. |
b) Key accounting estimates and assumptions |
There are no critical accounting estimates and assumptions. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
5. | Revenue |
Turnover which arises from continuing operations comprises the invoiced value of goods and services supplied by Ready Egg Products Limited exclusive of value added tax. Disclosure of turnover for each business and geographical segment is not given because, in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the Company. |
6. | Employees and directors |
Staff costs, including directors' remuneration, were as follows: |
2021 | 2020 |
£ | £ |
Wages and salaries | 3,636,786 | 3,329,587 |
Social security costs | 323,708 | 310,873 |
Other pension costs | 86,908 | 62,827 |
4,047,402 | 3,640,460 |
The average number of employees, including directors employed during the year, was as follows: |
2021 | 2020 |
Production and processing staff | 135 | 143 |
Admin staff | 11 | 11 |
146 | 154 |
During the year, retirement benefits were accruing to four directors (2020: four) in respect of defined benefit pension schemes. |
2021 | 2020 |
£ | £ |
Directors' remuneration |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Taxation compliance services |
Other advisory services |
Foreign exchange differences | ( |
) |
Amortisation of Government grants | ( |
) | ( |
) |
8. | Finance costs |
2021 | 2020 |
£ | £ |
Bank interest |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
Over provision in respect of previous years | (307,711 | ) | - |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred Tax | ( |
) |
Research & Development | ( |
) | ( |
) |
Non trading loan relationship |
Total tax charge | 1,235,203 | 1,552,774 |
10. | Dividends |
2021 | 2020 |
£ | £ |
Ordinary shares of £1 each |
Interim paid |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
11. | Property, plant and equipment |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2021 |
Additions |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
Included above are assets held under finance leases or hire purchase contracts as follows: |
2021 | 2021 | 2020 | 2020 |
Carrying Amount | Depreciation Charge | Carrying Amount | Depreciation Charge |
£ | £ | £ | £ |
Plant & Machinery | 7,777 | 16,822 | 24,599 | 16,822 |
12. | Inventories |
2021 | 2020 |
£ | £ |
Raw materials |
Finished goods |
The replacement cost of inventories does not differ significantly from the figures shown. |
13. | Receivables |
2021 | 2020 |
£ | £ |
Trade receivables |
Amounts owed by group undertakings |
Other receivables |
VAT |
Prepayments |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
14. | Payables: amounts falling due |
within one year |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade payables |
Amounts owed to group undertakings |
Amounts owed to participating interests | 96,291 | 135,468 |
Tax |
Social security and other taxes |
Accruals and deferred income |
15. | Payables: amounts falling due |
after one more year |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 17) |
16. | Loans |
An analysis of the maturity of loans is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
17. | Leasing agreements |
Minimum lease payments under hire purchase fall due as follows: |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
18. | Secured debts |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 9,105 | 27,578 |
The bank facilities are secured by fixed charges over the property of Ready Egg Products Limited and a floating charge over the assets of the Company. |
Hire purchase liabilities are secured against the asset to which they relate. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
19. | Provisions for liabilities |
2021 | 2020 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred tax |
£ |
Balance at 1 January 2021 |
Provided during year |
Balance at 31 December 2021 |
20. | Government grants |
2021 | 2020 |
£ | £ |
Deferred government grants | 129,038 | 245,694 |
21. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 69,670 | 69,670 |
Ordinary 'B' shares | £1 | 18,300 | 18,300 |
Ordinary 'C' shares | £1 | 48,630 | 48,630 |
136,600 | 136,600 |
Each class of share has the right to vote, participate in dividends and return on capital of a | winding up or liquidation and is not subject to rights of redemption. |
22. | Parent company |
The Company regards Lough Erne Investments Limited as its parent Company. Lough Erne Investments Limited has included the results of Ready Egg Products Limited in its group financial statements, copies of which are available from its business address at Manor Waterhouse Farm, Lisnaskea, Co. Fermanagh, BT92 0BN. Lough Erne Investments Limited is a company registered in Northern Ireland. |
Mr Charles Crawford is the ultimate controlling party. |
23. | Contingent liabilities |
There is a contingent liability to repay certain government grants received under the terms of letters of offer from Invest Northern Ireland if the Company fails to honour certain undertakings and commitments. In the opinion of the directors the terms of the letters of offer have been complied with and no loss is expected. |
READY EGG PRODUCTS LIMITED (REGISTERED NUMBER: NI015561) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
24. | Capital commitments |
2021 | 2020 |
£ | £ |
Contracted but not provided for in the |
financial statements |
25. | 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. |
2021 | 2020 |
£ | £ |
Sales |
Purchases and Expenditure |
Amount due from related party |
Amount due to related party |
Greenfield Foods Limited, a Company established in Northern Ireland, owns 35.6% of the issued share capital of Ready Egg Products Limited and the companies have common directors. |
Lough Erne Investments Limited, a Company established in Northern Ireland, owns 51% of the issued share capital of Ready Egg Products and the companies have common directors. |
26. | Post balance sheet events |
Post year end, in March 2022, Ready Egg Products Limited acquired 100% of share capital in Skea Egg Farms Limited. |