Caseware UK (AP4) 2021.0.152 2021.0.152 2021-12-312021-12-312021-12-312021-01-01falseSales and distribution00falsefalse 2617732 2021-01-01 2021-12-31 2617732 2020-01-01 2020-12-31 2617732 2021-12-31 2617732 2020-12-31 2617732 2020-01-01 2617732 c:CompanySecretary1 2021-01-01 2021-12-31 2617732 c:Director1 2021-01-01 2021-12-31 2617732 c:Director4 2021-01-01 2021-12-31 2617732 c:Director5 2021-01-01 2021-12-31 2617732 c:RegisteredOffice 2021-01-01 2021-12-31 2617732 c:Agent1 2021-01-01 2021-12-31 2617732 d:CurrentFinancialInstruments 2021-12-31 2617732 d:CurrentFinancialInstruments 2020-12-31 2617732 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 2617732 d:CurrentFinancialInstruments d:WithinOneYear 2020-12-31 2617732 d:ShareCapital 2021-01-01 2021-12-31 2617732 d:ShareCapital 2021-12-31 2617732 d:ShareCapital 2020-01-01 2020-12-31 2617732 d:ShareCapital 2020-12-31 2617732 d:ShareCapital 2020-01-01 2617732 d:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 2617732 d:RetainedEarningsAccumulatedLosses 2021-12-31 2617732 d:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 2617732 d:RetainedEarningsAccumulatedLosses 2020-12-31 2617732 d:RetainedEarningsAccumulatedLosses 2020-01-01 2617732 d:FinancialAssetsAmortisedCost 2021-12-31 2617732 d:FinancialAssetsAmortisedCost 2020-12-31 2617732 d:FinancialLiabilitiesAmortisedCost 2021-12-31 2617732 d:FinancialLiabilitiesAmortisedCost 2020-12-31 2617732 c:OrdinaryShareClass1 2021-01-01 2021-12-31 2617732 c:OrdinaryShareClass1 2021-12-31 2617732 c:OrdinaryShareClass1 2020-12-31 2617732 c:OrdinaryShareClass2 2021-01-01 2021-12-31 2617732 c:OrdinaryShareClass2 2021-12-31 2617732 c:OrdinaryShareClass2 2020-12-31 2617732 c:FRS102 2021-01-01 2021-12-31 2617732 c:Audited 2021-01-01 2021-12-31 2617732 c:FullAccounts 2021-01-01 2021-12-31 2617732 c:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 2617732 d:Subsidiary1 2021-01-01 2021-12-31 2617732 d:Subsidiary1 1 2021-01-01 2021-12-31 2617732 d:Subsidiary2 2021-01-01 2021-12-31 2617732 d:Subsidiary2 1 2021-01-01 2021-12-31 2617732 c:Consolidated 2021-12-31 2617732 c:ConsolidatedGroupCompanyAccounts 2021-01-01 2021-12-31 2617732 6 2021-01-01 2021-12-31 xbrli:shares iso4217:GBP xbrli:pure
Registered number: 2617732








img56ef.png





KEPAK U.K. LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

 
KEPAK U.K. LIMITED
 

CONTENTS



Page
Company Information
 
 
1
Group Strategic Report
 
 
2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 9
Consolidated Statement of Comprehensive Income
 
 
10
Consolidated Statement of Financial Position
 
 
11
Company Statement of Financial Position
 
 
12
Consolidated Statement of Changes in Equity
 
 
13
Company Statement of Changes in Equity
 
 
14
Consolidated Statement of Cash Flows
 
 
15
Consolidated Analysis of Net Debt
 
 
16
Notes to the Financial Statements
 
 
17 - 24


 
KEPAK U.K. LIMITED
 

COMPANY INFORMATION


DIRECTORS
Simon Walker 
Robert Grogan 
John Horgan 




COMPANY SECRETARY
Liam Keating



REGISTERED NUMBER
2617732



REGISTERED OFFICE
The Snackhouse
St. Georges Park

Kirkham

Preston

PR4 2DZ




INDEPENDENT AUDITORS
HSOC Accountants Limited
Chartered Accountants and Statutory Audit Firm

Adelaide House

90 Upper George’s Street

Dun Laoghaire

Co. Dublin




BANKERS
Allied Irish Banks
City Business Centre

26 Finsbury Square

London

EC2A 1DS




SOLICITORS
Forbes Solicitors
Oak House

28 Sceptre Way

Walton Summit

Preston

Lancashire

PR5 6AW




Page 1

 
KEPAK U.K. LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

BUSINESS REVIEW
 
The Group's turnover was £3,301,048 (31 December 2020 - £56,873,812). Net assets at 31 December 2021 amounted to £4,299,048 (2020 - £4,306,291).

PRINCIPAL RISKS AND UNCERTAINTIES
 
The Group does not face any unusual business risks or uncertainties.

FINANCIAL KEY PERFORMANCE INDICATORS
 
Management use a range of performance measures to monitor and manage the business. The performance
measure is as set out below:
Movement in Turnover
2021 vs. 2020 (94.2%)
2020 vs. 2019 (54.2%)
2019 vs. 2018 (25.8%)

DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP
 
The Directors of the Company must act in a way they consider, in good faith, would most likely promote the success of the Company for the benefits of its members as a whole, and in doing so have regard (amongst other matters) to:
•     The likely consequence of any decision in the long term
•     The interest of the Company’s employees
•     The need to foster the Company’s business relationships with suppliers, customer and others
•     The impact of the Company’s operations on the community and the environment
•     The desirability of the Company maintaining a reputation for high standards of business conduct
•     The need to act fairly as between members of the Company
The Board considers that it has complied in all material respects with their duties under Section 172 (1) of the Companies Act 2006.


This report was approved by the board on 22 August 2022 and signed on its behalf.





Simon Walker
Director

Robert Grogan
Director

Page 2

 
KEPAK U.K. LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The Directors present their report and the consolidated financial statements for the year ended 31 December 2021.

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare consolidated financial statements for each financial year. Under that law the Directors have elected to prepare the consolidated financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 consolidated 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 consolidated financial statements, the Directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the consolidated financial statements comply with the Companies Act 2006They 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.

RESULTS AND DIVIDENDS

The loss for the year, after taxation, amounted to £7,243 (2020 -loss £9,292).

No dividends or transfers to reserves are recommended by the directors (2020 - Nil).

DIRECTORS

The Directors who served during the year were:

Simon Walker 
Robert Grogan 
John Horgan 

FUTURE DEVELOPMENTS

It is the intention of the Directors to continue to develop the activities of the Group.

Page 3

 
KEPAK U.K. LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The Company and its Directors ensure that exceptional customer satisfaction is at the core of the business and it is recognised that, in order to perform successfully, engagement with employees and support where relevant is required as the employees represent the frontline of the delivery of service.
The Company culture is imperative to uphold and this is done so via the Directors and senior management team who are in direct contact with the employees on a regular basis to ensure all objectives are aligned and a good working environment exists within the Company. The Directors, via senior leadership, ensure the setting and maintaining of core Company values, and ensure ethical business behaviours.
The Company culture also includes a focus on building and maintaining relationships with key suppliers and customers, whose support is paramount to the ongoing success of the business. Key suppliers are kept up to date with business developments and offered opportunities as they arise for continued and growing business. Key customers have built a strong relationship with the Company which allows for a joint beneficial relationship with increased business and a common trust on the level of service provided.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

The auditorsHSOC Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22 August 2022 and signed on its behalf.
 





Simon Walker
Director
Robert Grogan
Director

Page 4

 
KEPAK U.K. LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK U.K. LIMITED
 

OPINION


We have audited the financial statements of Kepak U.K. Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 2021 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
KEPAK U.K. LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK U.K. LIMITED (CONTINUED)


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The Directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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.


Page 6

 
KEPAK U.K. LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK U.K. LIMITED (CONTINUED)


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the 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.


Page 7

 
KEPAK U.K. LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK U.K. LIMITED (CONTINUED)


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 Group 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:

Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006. 
We evaluated the Directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions. 
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
• Discussing with the Directors and management their policies and procedures regarding compliance with laws and regulations;
• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
• Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud. 
Our audit procedures in relation to fraud included but were not limited to:
• Making enquiries of the Directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
• Gaining an understanding of the internal controls established to mitigate risks related to fraud;
• Discussing amongst the engagement team the risks of fraud; and
• Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.


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
Page 8

 
KEPAK U.K. LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK U.K. LIMITED (CONTINUED)


Auditors' Report.


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 2006Our 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.





Hugh McGeown, FCA (Senior Statutory Auditor)
for and on behalf of
HSOC Accountants Limited
Chartered Accountants and Statutory Audit Firm

22 August 2022
Page 9

 
KEPAK U.K. LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£
£

  

Turnover
 4 
3,301,048
56,873,812

Cost of sales
  
(3,300,942)
(56,873,812)

GROSS PROFIT
  
106
-

Administrative expenses
  
8
8

OPERATING PROFIT
  
114
8

Interest payable and similar expenses
 7 
(7,357)
(9,300)

LOSS BEFORE TAXATION
  
(7,243)
(9,292)

LOSS FOR THE FINANCIAL YEAR
  
(7,243)
(9,292)

(LOSS) FOR THE YEAR ATTRIBUTABLE TO:
  

Owners of the parent Company
  
(7,243)
(9,292)

  
(7,243)
(9,292)

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 17 to 24 form part of these financial statements.

Page 10

 
KEPAK U.K. LIMITED
REGISTERED NUMBER: 2617732

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

  

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 10 
47,851,310
31,332,863

  
47,851,310
31,332,863

Creditors: amounts falling due within one year
 11 
(43,552,262)
(27,026,572)

NET CURRENT ASSETS
  
 
 
4,299,048
 
 
4,306,291

TOTAL ASSETS LESS CURRENT LIABILITIES
  
4,299,048
4,306,291

  

NET ASSETS
  
4,299,048
4,306,291


CAPITAL AND RESERVES
  

Called up share capital 
 13 
7,000,000
7,000,000

Profit and loss account
 14 
(2,700,952)
(2,693,709)

  
4,299,048
4,306,291


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 August 2022.




Simon Walker
Robert Grogan
Director
Director

The notes on pages 17 to 24 form part of these financial statements.

Page 11

 
KEPAK U.K. LIMITED
REGISTERED NUMBER: 2617732

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

FIXED ASSETS
  

Investments
 9 
4
4

  
4
4

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 10 
47,851,310
31,332,863

  
47,851,310
31,332,863

Creditors: amounts falling due within one year
 11 
(43,552,266)
(27,026,576)

NET CURRENT ASSETS
  
 
 
4,299,044
 
 
4,306,287

TOTAL ASSETS LESS CURRENT LIABILITIES
  
4,299,048
4,306,291

  

  

NET ASSETS
  
4,299,048
4,306,291


CAPITAL AND RESERVES
  

Called up share capital 
 13 
7,000,000
7,000,000

Profit and loss account brought forward
  
(2,693,709)
(2,684,417)

Loss for the year
  
(7,243)
(9,292)

Profit and loss account carried forward
  
(2,700,952)
(2,693,709)

  
4,299,048
4,306,291


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 August 2022.




Simon Walker
Robert Grogan
Director
Director

The notes on pages 17 to 24 form part of these financial statements.

Page 12

 
KEPAK U.K. LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 January 2020
7,000,000
(2,684,417)
4,315,583
4,315,583


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
(9,292)
(9,292)
(9,292)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(9,292)
(9,292)
(9,292)


At 1 January 2021
7,000,000
(2,693,709)
4,306,291
4,306,291


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
(7,243)
(7,243)
(7,243)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(7,243)
(7,243)
(7,243)


AT 31 DECEMBER 2021
7,000,000
(2,700,952)
4,299,048
4,299,048


The notes on pages 17 to 24 form part of these financial statements.

Page 13

 
KEPAK U.K. LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2020
7,000,000
(2,684,417)
4,315,583


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
(9,292)
(9,292)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(9,292)
(9,292)



At 1 January 2021
7,000,000
(2,693,709)
4,306,291


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
(7,243)
(7,243)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(7,243)
(7,243)


AT 31 DECEMBER 2021
7,000,000
(2,700,952)
4,299,048


The notes on pages 17 to 24 form part of these financial statements.

Page 14

 
KEPAK U.K. LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Loss for the financial year
(7,243)
(9,292)

ADJUSTMENTS FOR:

Interest paid
7,357
9,300

Decrease in debtors
1,958,553
7,055,325

(Increase) in amounts owed by groups
(18,477,000)
(12,012,310)

Increase/(decrease) in creditors
374
(84,055)

Increase in amounts owed to groups
14,141,073
16,944,679

NET CASH (USED IN) / GENERATED FROM OPERATING ACTIVITIES

(2,376,886)
11,903,647



CASH FLOWS FROM FINANCING ACTIVITIES

Interest paid
(7,357)
(9,300)

NET CASH USED IN FINANCING ACTIVITIES
(7,357)
(9,300)

(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(2,384,243)
11,894,347

Cash and cash equivalents at beginning of year
(1,068,019)
(12,962,366)

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
(3,452,262)
(1,068,019)


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Bank overdrafts
(3,452,262)
(1,068,019)

(3,452,262)
(1,068,019)


The notes on pages 17 to 24 form part of these financial statements.

Page 15

 
KEPAK U.K. LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2021




At 1 January 2021
Cash flows
At 31 December 2021
£

£

£

Bank overdrafts

(1,068,019)

(2,384,243)

(3,452,262)



(1,068,019)
(2,384,243)
(3,452,262)

The notes on pages 17 to 24 form part of these financial statements.

Page 16

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


GENERAL INFORMATION

The Company is limited by shares and incorporated in the United Kingdom, having its registered office at The Snackhouse, St. Georges Park, Kirkham, Preston, PR4 2DZ. The Company's registered number is 2617732. The Company's principal activity continued to be the sale and distribution of meat.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

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 business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The 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.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being Wednesday 1 January 2014.

Page 17

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.ACCOUNTING POLICIES (CONTINUED)

 
2.3

REVENUE RECOGNITION

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.5

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.6

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, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.7

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.8

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 18

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

TAXATION

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Directors have considered and evaluated the critical estimates and judgments the Company faces and have deemed them to be immaterial in the context of these accounts.


4.


TURNOVER

The whole of the turnover is attributable to the sale and distribution of meat.

Analysis of turnover by country of destination:

2021
2020
£
£

United Kingdom
3,301,048
56,873,812

3,301,048
56,873,812



5.


AUDITORS' REMUNERATION




The Company’s audit fee was borne by another group company.


6.


EMPLOYEES





The Group and Company have no employees other than the Directors, who did not receive any remuneration (2020 -£NIL).

Page 19

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

7.


INTEREST PAYABLE AND SIMILAR EXPENSES

2021
2020
£
£


Bank interest payable
7,357
9,300

7,357
9,300


8.


TAXATION


2021
2020
£
£



TOTAL CURRENT TAX
-
-

DEFERRED TAX

TOTAL DEFERRED TAX
-
-


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
-
-

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2020 -higher than) the standard rate of corporation tax in the UK of 19% (2020 -19%). The differences are explained below:

2021
2020
£
£


Loss on ordinary activities before tax
(7,243)
(9,292)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 -19%)
(1,376)
(1,765)

EFFECTS OF:


Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
1,376
1,765

TOTAL TAX CHARGE FOR THE YEAR
-
-

Page 20

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
8.TAXATION (CONTINUED)


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

The corporation tax rate for the year is 19% (2020 - 19%). Following Budget 2021 announcements, the proposal is to increase this rate to 25% with effect from 1 April 2023.


9.


FIXED ASSET INVESTMENTS

Company





Investments in Subsidiary Companies

£



COST OR VALUATION


At 1 January 2021
4



At 31 December 2021
4





SUBSIDIARY UNDERTAKINGS


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

British Beef Company Limited
The Snackhouse, St. Georges Park, Kirkham, Preston, PR4 2DZ
Brand protection
£1.00 Ordinary
100%
Kepak Proten Limited
The Snackhouse, St. Georges Park, Kirkham, Preston, PR4 2DZ
Brand protection
£1.00 Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2021 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

British Beef Company Limited
2
-

Kepak Proten Limited
2
-

Page 21

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

10.


DEBTORS

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Trade debtors
-
1,958,553
-
1,958,553

Amounts owed by group undertakings
47,851,310
29,374,310
47,851,310
29,374,310

47,851,310
31,332,863
47,851,310
31,332,863


All amounts fall due within one year.


11.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Bank overdrafts
3,452,262
1,068,019
3,452,262
1,068,019

Amounts owed to group undertakings
40,099,626
25,958,553
40,099,630
25,958,557

Other creditors
374
-
374
-

43,552,262
27,026,572
43,552,266
27,026,576


The repayment terms of trade creditors vary between on demand and sixty days. No interest is payable on trade creditors.
Tax and social insurance are subject to the terms of the relevant legislation. Interest accrues on late payment at the rate of 0.02% per day in Ireland and 3% per annum in the U.K. No interest was due at the financial year end date.
The terms of the accruals are based on the underlying contracts.
Other amounts included within creditors not covered by specific note disclosures are unsecured, interest free and repayable on demand.
The Company has granted fixed and floating charges on its assets to secure all the borrowings of the group from the banks providing facilities. All group borrowings are also secured by cross guarantees from group companies and the parent company. The group also has access to an overdraft facility which is secured on the third party debtors of the group.

Page 22

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

12.


FINANCIAL INSTRUMENTS

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

FINANCIAL ASSETS

Financial assets that are debt instruments measured at amortised cost
47,851,310
31,332,863
47,851,310
31,332,863


FINANCIAL LIABILITIES

Financial liabilities measured at amortised cost
(43,552,262)
(27,026,572)
-
-


13.


SHARE CAPITAL

2021
2020
£
£
AUTHORISED



1,000,000 (2020 -1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000
15,000,000 (2020 -15,000,000) Preference shares of £1.00 each
15,000,000
15,000,000

16,000,000

16,000,000

ALLOTTED, CALLED UP AND FULLY PAID



1,000,000 (2020 -1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000
6,000,000 (2020 -6,000,000) Preference shares of £1.00 each
6,000,000
6,000,000

7,000,000

7,000,000



14.


RESERVES

Profit and loss account

The profit and loss account reserve represents cumulative gains and losses recognised in the Income Statement, net of transfers to/from other reserves. 


15.


RELATED PARTY TRANSACTIONS

The Company has availed of the exemption under Section 33 of FRS 102 not to disclose transactions between wholly-owned group companies.
The Directors are considered to be the key management personnel of the Company. The Directors are not paid any remuneration by the Company.

Page 23

 
KEPAK U.K. LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

16.


CONTROLLING PARTY

The Company's parent is Kepak Holdings; the ultimate holding company is Kingate Investments Unlimited, an unlimited company incorporated in the Isle of Man.


Page 24