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REGISTERED NUMBER: 00547564 (England and Wales)















SARIA Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2021






SARIA Limited (Registered number: 00547564)






Contents of the Financial Statements
for the Year Ended 31 December 2021




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 9

Income Statement 12

Other Comprehensive Income 13

Balance Sheet 14

Statement of Changes in Equity 16

Cash Flow Statement 17

Notes to the Cash Flow Statement 18

Notes to the Financial Statements 19


SARIA Limited

Company Information
for the Year Ended 31 December 2021







DIRECTORS: J G Braide
A R Smith
R V Ratcliffe
P A Simpson
F - B Thier


SECRETARY: J G Braide


REGISTERED OFFICE: Ings Road
Doncaster
South Yorkshire
DN5 9TL


REGISTERED NUMBER: 00547564 (England and Wales)


SENIOR STATUTORY AUDITOR: Ian Parsons FCA


AUDITORS: Paylings
Accountants
Statutory Auditors
No.2 Silkwood Office Park
Fryers Way
Wakefield
West Yorkshire
WF5 9TJ


BANKERS: HSBC plc
City Office
33 Park Row
Leeds
West Yorkshire
LS1 1LD


SOLICITORS: Ramsdens Solicitors
7 King Street
Mirfield
West Yorkshire
WF14 8AW

SARIA Limited (Registered number: 00547564)

Strategic Report
for the Year Ended 31 December 2021

Business Overview

SARIA Limited (SARIA) operates in a wide range of sectors associated with the food chain, renewable energy, and recycling.

The Group's companies manufacture quality products for use in human and animal foodstuffs, agriculture, aquaculture, and industrial applications. The Group also produces biofuels and renewable energy and provides services for farming and the food industry.

The Group's operations can be split into the following distinct sectors:

Edible food manufacture, trading, and distribution
Pet food ingredient manufacturing
Food waste recycling
Renewable energy generation
High risk animal by-product collection and processing

In addition to the key areas outlined above, the Group also participates in two specialist joint ventures in the pet food sector.

The Group has an active presence as a service provider or product customer at each stage of the food chain - from farm gate to post-consumer plate. The Group operates a variety of processing operations based on a unique range of production platforms tailored to customer needs and achieving the most appropriate balance of environmental efficiency and cost effectiveness.

The company's turnover relates to the sale to third parties of finished goods produced by other group companies; also, as a company SARIA Limited provides management services to other group members. The accounts are prepared for the company only and do not include subsidiary results.

Section 172(1) Companies Act 2006 Statement

The Directors of SARIA Limited consider both collectively and individually that they have acted in good faith, and in a manner most likely to create and promote the success of the company for the benefit of its members as a whole as defined by s172(1) Companies Act 2006 during the year ended 31st December 2021 supported by delivery of the long-term business plan ("the plan").

In developing and implementing the plan, the directors have considered the following key objectives as defined by s172 of the Companies Act:

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, and
f) The need to act fairly as between members of the company.

The implementation of the plan is underpinned by the introduction of the SARIA SE & Co. KG Group global policies on corporate compliance which set out our obligations in the following key areas:

1) Appropriate working conditions

The company respects human rights and employment law, without exception.

The board of directors' respects human rights in strict accordance with the European Convention on Human Rights (ECHR). We reject all forms of forced or compulsory labour. Equally, we are opposed to all forms of child labour. The minimum age for admission to employment shall be as set out in the respective national legislation or collective bargaining agreements - provided these comply with the Minimum Age Convention adopted by the International Labour Organisation (ILO).


SARIA Limited (Registered number: 00547564)

Strategic Report
for the Year Ended 31 December 2021

The company promotes equal opportunities and equal treatment of employees, rejecting all forms of discrimination on any ground whatsoever, e.g., race, ethnic origin, gender, religion, political or other opinion, disability, age, or sexual identity. The company recruits and promotes employees solely based on professional qualifications and performance.

2) Health and safety

The promotion of high standards of health, safety and welfare at work is a prime objective for the company, its employees and business partners (such as contractors and other service providers). The Board of Directors therefore affirm the company will do all that is reasonably practicable to protect its employees and other people who meet the company or its products from personal injury or hazards to health, arising from any foreseeable risks.

3) Fair competition and integrity in our business dealings

As the board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible and sustainable manner, both financially and environmentally.

Collectively we will continue to operate to the high standards of integrity expected of a business such as ours, and to employ a system of continuous improvement with training and development in line with our commitment to responsible behaviour.

When dealing with all partners, whether they are suppliers, customers, or other stakeholders, we will ensure the relationship is always maintained in a professional and responsible manner. A principal objective from our plan is the delivery of long-term successful returns for the company and our business partners.

4) Cooperation with the authorities

The company is committed to maintaining a constructive relationship with all the relevant authorities while safeguarding its own interests and rights.

5) Correct payment of taxes and duties

The company's parent, SARIA Group, has a presence in many countries and is a stakeholder in the local economies in which it operates. The payment of taxes is essential for the stability and infrastructure of an economy, and therefore also has a direct impact on factors that are important for our success.

Declaring and paying taxes and duties in time and in accordance with legal requirements is a social responsibility that we take very seriously.

We aim to fulfil our tax obligations in an accurate and timely manner, to pay the appropriate amount due and always act in good faith in our dealings with the tax authorities in the countries in which we operate. To achieve this aim, we have put in place an internal control system that can prevent or detect material errors.

6) Processing and using our products in accordance with the law

Compliance with legal regulations on the production and use of our products is essential.

The SARIA Group specialises in the recycling of animal by- products and other materials of organic origin. These raw materials are often subject to statutory requirements governing both their processing and future applications.


All processing of materials by the company is carried out in strict compliance with this legislation, without any exceptions. Our company is careful to ensure that the products we supply to our customers are used solely in accordance with their legally defined specific purpose.


SARIA Limited (Registered number: 00547564)

Strategic Report
for the Year Ended 31 December 2021

The plan involves a fundamental commitment to enhancing our environmental performance in key areas, including but not restricted to - emissions to air, water and land, carbon-intensity of our operations, reductions in our supply chain carbon impact alongside efficiency improvements.

As an example of the company's commitment to reducing environmental impact, the largest processing site in the UK is now self-sufficient in electricity - electricity which previously was imported from the national grid.

The site uses an embedded anaerobic digestion (AD) plant to generate renewable energy for the use in human and animal food processing plants, the energy is created from previously unusable 'waste' streams from the processing plants; the AD plant now supplies 100% of the sites' energy needs.

The only by-product from the processing plants is an organic fertiliser used by local farmers, the fertiliser is used to replace traditional fossil-fuel based materials.

Key Performance Indicators (KPIs)

As shown in the company's profit and loss account on page 12, the company's result has decreased to a profit of £756,226 (2020 £2,537,614). At the year end the shareholder's funds were £128,429,692 (2020 £127,913,263).

SARIA manages its operations on a divisional basis. For this reason, the company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance, or position of the business.

The principal challenge faced by the company during the period related to ongoing market difficulties brought about by the global Coronavirus pandemic, the measures brought in by the UK government to deal with the public health impact and the knock-on effects to raw material and finished product markets.

Following the re-introduction of national lockdown measures first introduced by the UK government in March 2020, the company experienced significant adverse impacts which required the introduction of appropriate contingency measures.

The company responded to the challenges by implementing a multi-layered contingency response, ensuring the health and safety of our staff and their families were addressed in the first instance whilst also ensuring the business operations remained "COVID-safe" in line with the advice issued by UK Government.

The company accessed funding from the Government's Job Retention Scheme to support the costs of staff furloughed due to a reduction in business operations.

Risk

With businesses active across a wide variety of sectors and operating large-scale processing operations always entails risk. Beside market developments, we are also affected by global events such as commodity market price changes driven by weather patterns; such events entail risks but also present us with new opportunities.

The Group is faced with challenges when conducting analyses and making decisions. If we do not incorporate market developments or if we evaluate them incorrectly, they may pose serious business risks. The risks affecting SARIA are largely dealt with on a group basis, apart from the ones highlighted below:




Business Unit / Area Risk Mitigation Factor


SARIA Limited (Registered number: 00547564)

Strategic Report
for the Year Ended 31 December 2021

Legal and regulatory risks The granting of operating permits, or the
withdrawal or variation of permits
already granted, and changes to the legal
environment or regulations could
adversely affect the Group's operations
and development projects.
Political, legal and regulatory developments
affecting the Group's operations and projects
are monitored closely. The Group is an
active member of trade associations in the
UK & Europe to gain a clear understanding
of regulatory changes.

Health & Safety Health & safety incidents could result in
harm to the Group's employees,
contractors or local communities.
Ensuring safety and wellbeing is an
ethical obligation for the Group. Poor
safety records or serious accidents could
have a serious impact on the Group's
production and reputation.
The Group focuses on identifying, mitigating
and managing the safety risks inherent across
its operations. The Group's objective is to
create a safety culture through regular
training and awareness campaigns for
employees and contractors. The Group
operates a 'best practice' system of in-house
training to develop an embedded health &
safety culture.
Environment and Employees

SARIA recognises the importance of its environmental responsibilities and implements policies to reduce any damage that might be caused to the environment.

Initiatives designed to minimise the company's impact on the environment include improving our energy use efficiency, reduction in carbon emissions by using only renewable fuel and minimising the consumption of water.

Details of the number of employees and related costs can be found on page 22 of the financial statements.

The company participates in the group's policies and practices regarding Health and Safety at work, pension, and health care schemes.

Future Developments

The directors anticipate that they will continue to develop the company's established activities including providing management facilities for the Group.

The Company will continue to invest in plant modernisation within the rendering sectors; the investment program will deliver reduced operating costs with enhanced environmental performance.

The directors will closely monitor the ongoing effect of 'Brexit' on the business following the United Kingdom's withdrawal from the European Union.

ON BEHALF OF THE BOARD:





J G Braide - Secretary


29 April 2022

SARIA Limited (Registered number: 00547564)

Report of the Directors
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.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2021.

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.

J G Braide
A R Smith
R V Ratcliffe
P A Simpson
F - B Thier

POLITICAL DONATIONS AND EXPENDITURE
There have been no political donations paid within the period.

STREAMLINED ENERGY AND CARBON REPORTING
Covering energy use and associated greenhouse gas emissions relating to gas, electricity and transport, intensity ratios and information relating to energy efficiency actions. The below data relates to Saria Ltd and all of its subsidiaries and joint venture companies, with the exception of T Quality Limited that will report its own SECR data.

Current reporting year (Jan 21 - Dec 21)

Key Performance Indicator (KPI) Amount '21 Amount '20 Unit
Electricity Usage 41,243,737 40,997,951 kWh
Gas Usage 362,621,791 382,809,562 kWh
Diesel Usage 6,941,756 5,089,669 litres

Total emissions generated through use of purchased electricity 8,757 9,558 tCO2e
Total emissions generated through combustion of gas 66,418 70,387 tCO2e
Total emissions generated through business travel 18,781 13,680 tCO2e
Total gross emissions 93,956 93,626 tCO2e




Intensity ratio (total gross emissions)



0.0965



0.0998
tCO2e per
tonne of
material
processed


Energy efficiency actions

We are committed to responsible energy management and will practice energy efficiency throughout our organisation, wherever it is cost effective. We recognize that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions.
We have implemented the policies below for the purpose of increasing the businesses energy efficiency in the relevant financial year.

- Upgrade vehicles to more energy efficient models where possible
- Introduction of hybrid/fully electric vehicles into the car portfolio
- Upgrade plant & machinery to improve on energy performance where possible
- Servicing and adjustment to existing plant & machinery to improve on energy performance where possible

SARIA Limited (Registered number: 00547564)

Report of the Directors
for the Year Ended 31 December 2021

- Increased availability and encouraged use of video conferencing.
- Reduced travel costs by reducing number of face to face meetings with clients and suppliers

The following energy efficiency measures are being implemented or are under consideration for implementation during 2022

- Carbon reduction by biomass combustion
- Specifically investing in low energy processes and techniques at Widnes & Nottingham circa £8m during 2022
- Continue to replace/upgrade vehicles and plant & machinery for more energy efficient options

Methodology used in the calculation of disclosures

ESOS methodology (as specified in Complying with the Energy Savings Opportunity Scheme version 6, published by the Environment Agency 28/10/2019) used in conjunction with Government GHG reporting conversion factors.

DISCLOSURE IN THE STRATEGIC REPORT
The directors have chosen to include details of engagement with suppliers, customers and others in business relationships with the company in their strategic report, as this is deemed to be of strategic importance to the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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.

SARIA Limited (Registered number: 00547564)

Report of the Directors
for the Year Ended 31 December 2021


AUDITORS
The auditors, Paylings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



J G Braide - Secretary


29 April 2022

Report of the Independent Auditors to the Members of
SARIA Limited

Opinion
We have audited the financial statements of SARIA Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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

Report of the Independent Auditors to the Members of
SARIA 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities 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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- reviewed the nature of the industry and sector, the control environment and business performance for the year.
- identifying the laws and regulations the company operates within and enquiring with management if they are aware of any
non compliance issues.
- discussed how and where fraud may occur with all members of the audit engagement team.
- in line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management override.
We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any
bias, and assessed the rationale behind any significant or unusual transactions.
- reviewed directors' minutes to assess if any indications of fraud or non compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
SARIA 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Ian Parsons FCA (Senior Statutory Auditor)
for and on behalf of Paylings
Accountants
Statutory Auditors
No.2 Silkwood Office Park
Fryers Way
Wakefield
West Yorkshire
WF5 9TJ

29 April 2022

SARIA Limited (Registered number: 00547564)

Income Statement
for the Year Ended 31 December 2021

2021 2020
Notes £    £    £    £   

TURNOVER 3 24,873,366 60,765,931

Other operating income 20,093,654 18,563,205
44,967,020 79,329,136

Raw materials and consumables 28,360,445 63,915,321
Other external expenses 123,458 158,244
28,483,903 64,073,565
16,483,117 15,255,571

Staff costs 4 7,093,027 7,012,860
Depreciation 2,433,138 2,507,991
Other operating expenses 8,552,041 6,428,706
18,078,206 15,949,557
OPERATING LOSS 5 (1,595,089 ) (693,986 )

Income from participating interests 1,890,000 4,226,572
Interest receivable and similar income 7 2,154,977 2,409,924
Other finance income 24 440,000 639,000
4,484,977 7,275,496
2,889,888 6,581,510
Amounts written off investments 8 - 1,729,682
2,889,888 4,851,828

Interest payable and similar expenses 9 2,174,810 2,410,428
PROFIT BEFORE TAXATION 715,078 2,441,400

Tax on profit 10 (41,148 ) (96,214 )
PROFIT FOR THE FINANCIAL YEAR 756,226 2,537,614

SARIA Limited (Registered number: 00547564)

Other Comprehensive Income
for the Year Ended 31 December 2021

2021 2020
Notes £    £   

PROFIT FOR THE YEAR 756,226 2,537,614


OTHER COMPREHENSIVE INCOME
Revaluation of properties
Return on plan assets (1,924,000 ) 15,296,000
Changes in assumptions 1,696,000 (15,369,000 )
Experience gains & losses arising on 2,789,000 (655,000 )
pension scheme liabilities
Effect of change in def tax rate - pens
Effect of change in def tax rate - cap g
Income tax relating to components of other
comprehensive income

(2,800,797

)

(499,559

)
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

(239,797

)

(1,227,559

)
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

516,429

1,310,055

SARIA Limited (Registered number: 00547564)

Balance Sheet
31 December 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 1 1
Tangible assets 12 62,098,006 63,650,158
Investments 13 15,868,631 15,868,631
Investment property 14 750,000 750,000
78,716,638 80,268,790

CURRENT ASSETS
Stocks 15 130,642 37,164
Debtors 16 113,598,812 112,916,951
Cash at bank and in hand 6,640 722,961
113,736,094 113,677,076
CREDITORS
Amounts falling due within one year 17 85,211,513 78,310,250
NET CURRENT ASSETS 28,524,581 35,366,826
TOTAL ASSETS LESS CURRENT
LIABILITIES

107,241,219

115,635,616

CREDITORS
Amounts falling due after more than one year 18 (2,500,000 ) (12,000,000 )

PROVISIONS FOR LIABILITIES 21 (9,678,527 ) (6,921,353 )

PENSION ASSET 24 33,367,000 31,199,000
NET ASSETS 128,429,692 127,913,263

SARIA Limited (Registered number: 00547564)

Balance Sheet - continued
31 December 2021

2021 2020
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 22 211,188 211,188
Share premium 23 62,449,110 62,449,110
Revaluation reserve 23 11,357,890 11,548,019
Capital redemption reserve 23 50,000 50,000
Investment revaluation reserve 23 419,148 419,148
Retained earnings 23 53,942,356 53,235,798
SHAREHOLDERS' FUNDS 128,429,692 127,913,263


The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2022 and were signed on its behalf by:





A R Smith - Director


SARIA Limited (Registered number: 00547564)

Statement of Changes in Equity
for the Year Ended 31 December 2021

Called up
share Retained Share
capital earnings premium
£    £    £   

Balance at 1 January 2020 211,188 51,790,247 62,449,110

Changes in equity
Total comprehensive income - 1,445,551 -
Balance at 31 December 2020 211,188 53,235,798 62,449,110

Changes in equity
Total comprehensive income - 706,558 -
Balance at 31 December 2021 211,188 53,942,356 62,449,110
Capital Investment
Revaluation redemption revaluation Total
reserve reserve reserve equity
£    £    £    £   

Balance at 1 January 2020 11,683,515 50,000 419,148 126,603,208

Changes in equity
Total comprehensive income (135,496 ) - - 1,310,055
Balance at 31 December 2020 11,548,019 50,000 419,148 127,913,263

Changes in equity
Total comprehensive income (190,129 ) - - 516,429
Balance at 31 December 2021 11,357,890 50,000 419,148 128,429,692

SARIA Limited (Registered number: 00547564)

Cash Flow Statement
for the Year Ended 31 December 2021

2021 2020
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (1,703,047 ) (2,984,934 )
Interest paid (2,174,810 ) (2,410,428 )
Tax paid (2,475 ) (59,836 )
Net cash from operating activities (3,880,332 ) (5,455,198 )

Cash flows from investing activities
Purchase of tangible fixed assets (2,169,539 ) (1,057,047 )
Sale of tangible fixed assets 1,288,551 -
Interest received 2,154,977 2,409,924
Dividends received 1,890,000 4,226,572
Net cash from investing activities 3,163,989 5,579,449

(Decrease)/increase in cash and cash equivalents (716,343 ) 124,251
Cash and cash equivalents at beginning of year 2 722,961 598,710

Cash and cash equivalents at end of year 2 6,618 722,961

SARIA Limited (Registered number: 00547564)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2021

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2021 2020
£    £   
Profit before taxation 715,078 2,441,400
Depreciation charges 2,469,640 2,507,309
(Profit)/loss on disposal of fixed assets (36,502 ) 682
Pension charge 833,000 606,000
Write off of fixed asset investments - 1,733,681
Finance costs 2,174,810 2,410,428
Finance income (4,484,977 ) (7,275,496 )
1,671,049 2,424,004
(Increase)/decrease in stocks (93,478 ) 378,754
(Increase)/decrease in trade and other debtors (681,859 ) 1,537,105
Decrease in trade and other creditors (2,598,759 ) (7,324,797 )
Cash generated from operations (1,703,047 ) (2,984,934 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 6,640 722,961
Bank overdrafts (22 ) -
6,618 722,961
Year ended 31 December 2020
31.12.20 1.1.20
£    £   
Cash and cash equivalents 722,961 598,710


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.21 Cash flow At 31.12.21
£    £    £   
Net cash
Cash at bank and in hand 722,961 (716,321 ) 6,640
Bank overdrafts - (22 ) (22 )
722,961 (716,343 ) 6,618
Total 722,961 (716,343 ) 6,618

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements
for the Year Ended 31 December 2021

1. STATUTORY INFORMATION

SARIA Limited 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Preparation of consolidated financial statements
The financial statements contain information about SARIA Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Rethmann SE & Co. KG, Norbert-Rethmann-Platz 1 59379 Selm, Germany.

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 wholly owned subsidiaries within the group.

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

Turnover is recognised on the sale of goods, on despatch of those goods from our sites when the significant risks and rewards of ownership are transferred to our customers.

Turnover is recognised on the performance of services, as and when those services are carried out.

Other income across the group arises from rental income (Saria Ltd only), head office/management charges (Saria Ltd only), raw material procurement charges (Saria Ltd only), and the recharge of operating costs incurred by an entity, where the facility of that entity is used by other group companies.

Straight recharge of costs that can be allocated directly to another group company are treated as recharges only, and the cost is passed directly to the other entity. No income is recognised in this instance.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2009, is being amortised evenly over its estimated useful life of ten years.

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life.

Freehold land - not depreciated
Freehold buildings - 3.03% on cost
Short leasehold - in accordance with the property
Long leasehold - in accordance with the property
Plant & machinery - 15% on reducing balance and 10% on cost
Motor vehicles - 16.67% - 25% on reducing balance

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Investment properties
In accordance with amendments to FRS102, investment properties will be revalued annually moving forward, and the aggregate surplus or deficit transferred to an investment revaluation reserve. No depreciation is provided in respect of investment properties.

The Companies Act 2006 requires all properties to be depreciated. However, this requirement conflicts with the generally accepted accounting principle set out in FRS 102. The directors consider that, because these properties are not held for consumption, but for their investment potential, to depreciate them would not give a true and fair view and that it is necessary to adopt FRS 102 in order to give a true and fair view.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company contributes to the SARIA Limited Group Pension Schemes, funded defined benefit schemes.

Since the above schemes were closed to new members the group has opened a defined contribution scheme to provide retirement benefits to employees.

The pension charge represents contributions payable to the funds in respect of the accounting period.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021 2020
£    £   
United Kingdom 18,132,343 30,302,528
Europe 2,093,169 13,692,132
South America 44,568 532,090
Asia 4,264,709 15,364,835
Africa 338,577 874,346
24,873,366 60,765,931

4. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 5,557,158 5,659,766
Social security costs 720,414 780,171
Other pension costs 815,455 572,923
7,093,027 7,012,860

The average number of employees during the year was as follows:
2021 2020

Office & administration 60 64
Processing & collection 71 66
131 130

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

4. EMPLOYEES AND DIRECTORS - continued

2021 2020
£ £
Directors' remuneration 890,640 1,085,237
Directors' pension costs 909,215 848,809


The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes 5 5


Information regarding the highest paid director is as follows:
2021 2020
£ £
Emoluments etc 290,153 309,088
Accrued annual pension benefit at 31 December 2021 78,285 72,177




5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

2021 2020
£    £   
Hire of plant and machinery 116,432 127,207
Depreciation - owned assets 2,469,642 2,507,309
(Profit)/loss on disposal of fixed assets (36,502 ) 682
Auditors' remuneration 26,880 20,675
Foreign exchange differences 118,027 (9,914 )
Operating leases 2,464,671 2,680,491

6. EXCEPTIONAL ITEMS
2021 2020
£    £   
Exceptional items (7,914 ) -

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2021 2020
£    £   
Bank interest - 1,910
Intercompany interest 2,153,904 2,403,523
Sundry interest 1,073 4,491
2,154,977 2,409,924

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

8. AMOUNTS WRITTEN OFF INVESTMENTS
2021 2020
£    £   
Amounts written off
investments - 1,729,682

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Bank interest (3,763 ) -
Intercompany interest 2,133,908 -
Other interest 44,665 2,410,428
2,174,810 2,410,428

10. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2021 2020
£    £   
Current tax:
UK corporation tax - 324,444
Under/(over) provision 2,475 751
Total current tax 2,475 325,195

Deferred tax (43,623 ) (421,409 )
Tax on profit (41,148 ) (96,214 )

UK corporation tax has been charged at 19% (2020 - 19%).

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

10. TAXATION - continued

Reconciliation of total tax credit 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 715,078 2,441,400
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 -
19%)

135,865

463,866

Effects of:
Expenses not deductible for tax purposes 349,454 345,355
Income not taxable for tax purposes (359,100 ) (803,049 )
Adjustments to tax charge in respect of previous periods 2,474 751
Chang in tax rate on provision for deferred taxes (13,091 ) 167,203
Non taxable provision release - (1,010,214 )
Derecognise DTA on losses - 739,874
Superdeduction (93,293 ) -
Deferred tax on loss unprovided for (63,457 ) -
Total tax credit (41,148 ) (96,214 )

Tax effects relating to effects of other comprehensive income

2021
Gross Tax Net
£    £    £   
Revaluation of properties
Return on plan assets (1,924,000 ) 481,000 (1,443,000 )
Changes in assumptions 1,696,000 (424,000 ) 1,272,000
Experience gains & losses arising on 2,789,000 (697,250 ) 2,091,750
pension scheme liabilities
Effect of change in def tax rate - pens - (1,871,940 ) (1,871,940 )
Effect of change in def tax rate - cap g - (288,607 ) (288,607 )
2,561,000 (2,800,797 ) (239,797 )

2020
Gross Tax Net
£    £    £   
Revaluation of properties
Return on plan assets 15,296,000 (2,906,240 ) 12,389,760
Changes in assumptions (15,369,000 ) 2,920,110 (12,448,890 )
Experience gains & losses arising on (655,000 ) 124,450 (530,550 )
pension scheme liabilities
Effect of change in deferred tax rate - (637,879 ) (637,879 )
(728,000 ) (499,559 ) (1,227,559 )

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

10. TAXATION - continued

Subject to agreement with H M Revenue & Customs, the company has trading losses of £5,148,578 and capital losses of £nil (2020 £3,894,072 trading losses and £1,729,682 capital losses) available to carry forward against future trading profits. Deferred tax assets have only been recognised on the trading losses incurred in the current year as Saria are not certain that those incurred earlier will be able to be utilised.

11. INTANGIBLE FIXED ASSETS
Trademarks Development
Goodwill & licences costs Totals
£    £    £    £   
COST
At 1 January 2021
and 31 December 2021 4,424,214 3,001 84,495 4,511,710
AMORTISATION
At 1 January 2021
and 31 December 2021 4,424,214 3,000 84,495 4,511,709
NET BOOK VALUE
At 31 December 2021 - 1 - 1
At 31 December 2020 - 1 - 1

12. TANGIBLE FIXED ASSETS
Freehold Short Long Plant &
property leasehold leasehold machinery
£    £    £    £   
COST OR VALUATION
At 1 January 2021 70,891,021 123,025 200,000 11,920,737
Additions 498,001 - - 269,189
Disposals (1,507,207 ) - - -
Reclassification/transfer - - - -
At 31 December 2021 69,881,815 123,025 200,000 12,189,926
DEPRECIATION
At 1 January 2021 10,514,514 114,549 40,629 10,221,108
Charge for year 1,678,670 2,975 6,728 318,126
Eliminated on disposal (262,737 ) - - -
Reclassification/transfer - - - -
At 31 December 2021 11,930,447 117,524 47,357 10,539,234
NET BOOK VALUE
At 31 December 2021 57,951,368 5,501 152,643 1,650,692
At 31 December 2020 60,376,507 8,476 159,371 1,699,629

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

12. TANGIBLE FIXED ASSETS - continued

Fixtures Assets
and Motor under
fittings vehicles construction Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2021 3,259,964 5,679,124 15,745 92,089,616
Additions 257,422 713,775 - 1,738,387
Disposals (5,195 ) - (7,579 ) (1,519,981 )
Reclassification/transfer - 1,025,297 - 1,025,297
At 31 December 2021 3,512,191 7,418,196 8,166 93,333,319
DEPRECIATION
At 1 January 2021 2,696,509 4,852,149 - 28,439,458
Charge for year 304,331 158,812 - 2,469,642
Eliminated on disposal (5,195 ) - - (267,932 )
Reclassification/transfer - 594,145 - 594,145
At 31 December 2021 2,995,645 5,605,106 - 31,235,313
NET BOOK VALUE
At 31 December 2021 516,546 1,813,090 8,166 62,098,006
At 31 December 2020 563,455 826,975 15,745 63,650,158

Transfer of assets between group companies have been done using gross cost and gross depreciation, rather than using net book value as the cost to the acquirer. This has been done in order to preserve historical information in relation to the properties of the group, in particular previous revaluations. This is considered to be the most appropriate method both from an accounting and tax perspective.

Cost or valuation at 31 December 2021 is represented by:

Freehold Short Long Plant &
property leasehold leasehold machinery
£    £    £    £   
Valuation in 2011 4,422,834 - (309,010 ) -
Valuation in 2014 (2,115,457 ) - - -
Cost 67,574,438 123,025 509,010 12,189,926
69,881,815 123,025 200,000 12,189,926

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

12. TANGIBLE FIXED ASSETS - continued

Fixtures Assets
and Motor under
fittings vehicles construction Totals
£    £    £    £   
Valuation in 2011 - - - 4,113,824
Valuation in 2014 - - - (2,115,457 )
Cost 3,512,191 7,418,196 8,166 91,334,952
3,512,191 7,418,196 8,166 93,333,319

If land and buildings had not been revalued they would have been included at the following historical cost:

2021 2020
£    £   
Cost 67,352,639 68,280,773
Aggregate depreciation 22,840,801 21,339,085

Value of land in freehold land and buildings 14,109,730 14,684,880

Land and buildings were valued on an existing use value basis on 31 December 2014 by Sanderson Weatherall LLP .

For a revalued item of property, an entity may elect to use as its deemed cost, its revalued amount on transition to FRS102. The requirement for a triennial valuation is then no longer applicable. The decision was taken to apply this election to the group when transition to FRS102 occurred.

The Directors have assessed the current carrying values of the properties held by the group and deem these to reasonably reflect the fair value of such properties.

13. FIXED ASSET INVESTMENTS
Shares in Interest
group in joint
undertakings venture Totals
£    £    £   
COST
At 1 January 2021
and 31 December 2021 15,649,511 219,120 15,868,631
NET BOOK VALUE
At 31 December 2021 15,649,511 219,120 15,868,631
At 31 December 2020 15,649,511 219,120 15,868,631

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

13. FIXED ASSET INVESTMENTS - continued

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

SARVAL (Hartshill) Limited
Registered office: United Kingdom
Nature of business: Processor of animal by products
%
Class of shares: holding
£1 ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves (15,709,366 ) (14,309,920 )
Loss for the year (1,399,446 ) (1,868,543 )

John Knight (Animal By Products) Limited
Registered office: United Kingdom
Nature of business: In Liquidation
%
Class of shares: holding
£1 ordinary

The company made a distribution in specie of £nil (2020 - £1,000) during the year.

J L Thomas and Company Limited
Registered office: United Kingdom
Nature of business: In Liquidation
%
Class of shares: holding
£1 ordinary

SECANIM Limited
Registered office: United Kingdom
Nature of business: Processor of animal by products
%
Class of shares: holding
25p ordinary 100.00
3% non-cumulative preference 100.00
2021 2020
£    £   
Aggregate capital and reserves 3,122,641 7,363,280
Loss for the year (4,240,639 ) (4,758,011 )

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

13. FIXED ASSET INVESTMENTS - continued

Nortech Foods Limited
Registered office: United Kingdom
Nature of business: Dripping refiner
%
Class of shares: holding
£1 ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves 1,457,527 1,919,582
(Loss)/profit for the year (462,055 ) 494,857

Acacia Foods Limited
Registered office: United Kingdom
Nature of business: In Liquidation
%
Class of shares: holding
£1 ordinary

The company made a distribution in specie of £nil (2020 - £1) during the year.

Perimax (Scotland) Limited
Registered office: United Kingdom
Nature of business: In Liquidation
%
Class of shares: holding
£1 ordinary

The company paid dividends of £nil (2020 - cash dividends of £768,185 and a distribution in specie of £984,368) during the year.

SARVAL Limited
Registered office: United Kingdom
Nature of business: Processor of poultry by products
%
Class of shares: holding
£1 ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves (11,415,898 ) (11,218,455 )
Loss for the year (197,443 ) (36,560 )

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

13. FIXED ASSET INVESTMENTS - continued

T Quality Limited
Registered office: United Kingdom
Nature of business: Wholesaler to the catering industry
%
Class of shares: holding
£1 ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves 12,949,961 10,171,763
Profit for the year 2,778,198 1,565,915

ReFood UK Limited
Registered office: United Kingdom
Nature of business: Energy production from waste recycling
%
Class of shares: holding
£1 ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves 5,999,985 5,642,942
Profit for the year 357,042 772,440

Frazer (Butchers) Limited
Registered office: United Kingdom
Nature of business: In Liquidation
%
Class of shares: holding
£1 ordinary

The company made a distribution in specie of £nil (2020 - £1,000) during the year.

Wells By Products Limited
Registered office: United Kingdom
Nature of business: In Liquidation
%
Class of shares: holding
£1 ordinary

The company paid dividends of £nil (2020 - cash dividends of £30,725, and a distribution in specie of £1) during the year.

Frome Vale GB Limited
Registered office: United Kingdom
Nature of business: In Liquidation
%
Class of shares: holding
£10 Ordinary

The company made distributions in specie of £nil (2020 - £93,296) during the year.

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

13. FIXED ASSET INVESTMENTS - continued

FD Statton & Son Limited
Registered office: United Kingdom
Nature of business: Fallen stock collection
%
Class of shares: holding
£1 ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves 1,658,386 1,668,894
(Loss)/profit for the year (10,508 ) 108,890

Joint ventures

APC (GB) Limited
Registered office: United Kingdom
Nature of business: Manufacture of functional proteins
%
Class of shares: holding
£1 ordinary 50.00
2021 2020
£    £   
Aggregate capital and reserves 7,591,888 8,111,927
Profit for the year 2,579,960 3,089,725

The company paid dividends of £2,500,000 (2020 - £3,100,000) during the year.

SPF (United Kingdom) Limited
Registered office: United Kingdom
Nature of business: Manufacture of petfood palatability ingredients
%
Class of shares: holding
£1 ordinary 40.00
2021 2020
£    £   
Aggregate capital and reserves 3,289,629 3,671,299
Profit for the year 1,618,330 1,984,585

The company paid dividends of £1,600,000 (2020 - £2,000,000) during the year.

ReFood Ltd
Registered office: United Kingdom
Nature of business: Non-trading company
%
Class of shares: holding
£1 ordinary 50.00

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

14. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 January 2021
and 31 December 2021 750,000
NET BOOK VALUE
At 31 December 2021 750,000
At 31 December 2020 750,000

Fair value at 31 December 2021 is represented by:
£   
Valuation in 2011 367,486
Valuation in 2014 8,761
Valuation in 2019 67,900
Cost 305,853
750,000

If investment properties had not been revalued they would have been included at the following historical cost:

2021 2020
£    £   
Cost 305,853 305,853

Investment properties were valued on an existing use value basis on 31 December 2019 by Sanderson Weatherall LLP .

15. STOCKS
2021 2020
£    £   
Stocks 130,642 37,164

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade debtors 1,621,845 6,666,782
Amounts owed by group undertakings 110,725,336 105,077,759
Other debtors 30,666 135,214
Retention account 55,442 332,978
VAT 145,421 -
Prepayments 1,020,102 704,218
113,598,812 112,916,951

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Bank loans and overdrafts (see note 19) 22 -
Trade creditors 1,641,063 1,283,432
Amounts owed to group undertakings 81,430,948 73,999,452
Social security and other taxes 753,133 896,110
VAT - 4,140
Other creditors 953,960 1,803,521
Accrued expenses 432,387 323,595
85,211,513 78,310,250

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021 2020
£    £   
Amounts owed to group undertakings 2,500,000 12,000,000

19. LOANS

An analysis of the maturity of loans is given below:

2021 2020
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 22 -

20. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2021 2020
£    £   
Within one year 1,467,274 1,973,250
Between one and five years 1,012,874 2,010,259
2,480,148 3,983,509

21. PROVISIONS FOR LIABILITIES
2021 2020
£    £   
Deferred tax
Accelerated capital allowances 379,314 (88,333 )
Capital Gain - Holdover claim 1,324,454 1,451,073
Pension asset 8,341,750 5,927,810
Other timing differences (53,365 ) (40,557 )
Tax losses (313,626 ) (328,640 )
9,678,527 6,921,353

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

21. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2021 6,921,353
Credit to Income Statement during year (43,623 )
Charge/(credit) through equity 2,800,797
Balance at 31 December 2021 9,678,527

Deferred Tax has been provided for at 19% on balances expected to unwind in the next 12 months and at 25% on balances expected to unwind thereafter. The current rate of corporation tax is 19%, however it is legislated to increase to 25% from 1st April 2023.

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
103,482 A Ordinary £1 103,482 103,482
107,706 B Ordinary £1 107,706 107,706
211,188 211,188

The A Ordinary and B Ordinary shares rank pari passu in all respects.

23. RESERVES
Retained Share Revaluation
earnings premium reserve
£    £    £   

At 1 January 2021 53,235,798 62,449,110 11,548,019
Profit for the year 756,226
Revaluation - Freehold (288,607 ) - -
Pension scheme movement 48,810 - -
Transfer to/from revaluation
reserve 190,129 - (190,129 )
At 31 December 2021 53,942,356 62,449,110 11,357,890

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

23. RESERVES - continued
Capital Investment
redemption revaluation
reserve reserve Totals
£    £    £   

At 1 January 2021 50,000 419,148 127,702,075
Profit for the year 756,226
Revaluation - Freehold - - (288,607 )
Pension scheme movement - - 48,810
At 31 December 2021 50,000 419,148 128,218,504

24. EMPLOYEE BENEFIT OBLIGATIONS

The company pays contributions to two defined benefit arrangements operated by the SARIA Limited group. The payments are made to independent trusts.

The company is unable to identify its share of the underlying assets and liabilities of the schemes and therefore company pension contributions to the schemes are accounted for as if they were of a defined contribution type.

The schemes are valued triennially by a qualified independent actuary. The most recent actuarial valuation was to 5 April 2019.

At the balance sheet date the FRS 102 value of the liabilities was £118,227,000 (2020 - £124,821,000) and the market value of the assets was £151,594,000 (2020 - £156,020,000) giving a net asset of £33,367,000 (2020 - £31,199,000 ).

The above schemes have been closed to new members. The group has made alternate provision, in the form of a defined contribution scheme, for new employees or those not eligible to join the other schemes. This scheme is also administered on a group basis independently of any group company or director.

Total contributions payable by the company to the schemes during the year amounted to £815,455 (2020 - £572,923) after recharges to subsidiary companies. There were accrued pension contributions at the balance sheet date of £190,773 (2020 - £193,713).

The amounts recognised in profit or loss are as follows:

Defined benefit
pension plans
2021 2020
£    £   
Current service cost 875,000 815,000
Net interest from net defined benefit asset/liability (440,000 ) (639,000 )
Past service cost - -
435,000 176,000

Actual return on plan assets 2,229,000 2,876,000

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

24. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
2021 2020
£    £   
Opening defined benefit obligation 124,821,000 110,874,000
Current service cost 875,000 815,000
Contributions by employer (46,000 ) (45,000 )
Interest cost 1,789,000 2,237,000
Benefits paid (4,727,000 ) (5,084,000 )
Experience adjustments (2,789,000 ) 655,000
Actuarial (gains)/losses from changes in financial
assumptions

(1,696,000

)

15,369,000
118,227,000 124,821,000

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
2021 2020
£    £   
Opening fair value of scheme assets 156,020,000 142,768,000
Contributions by employer (4,000 ) 164,000
Expected return 2,229,000 2,876,000
Benefits paid (4,727,000 ) (5,084,000 )
Return on plan assets (excluding interest income) (1,924,000 ) 15,296,000
151,594,000 156,020,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
2021 2020
£    £   
Actuarial (gains)/losses from changes in financial
assumptions

1,696,000

(15,369,000

)
Return on plan assets (excluding interest income) (1,924,000 ) 15,296,000
Experience adjustments 2,789,000 (655,000 )
2,561,000 (728,000 )

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

24. EMPLOYEE BENEFIT OBLIGATIONS - continued

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit
pension plans
2021 2020
Equities & property - 1.73%
Bonds & gilts 91.60% 95.67%
Other 8.40% 2.60%
100.00% 100.00%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2021 2020
Discount rate 1.80% 1.45%
Future salary increases 4.65% 4.25%
Future pension increases 3.45% 3.05%

25. CAPITAL COMMITMENTS
2021 2020
£    £   
Contracted but not provided for in the
financial statements 2,476,339 46,712

26. RELATED PARTY DISCLOSURES

APC (GB) Limited

A company in which Saria Limited has a shareholding


Sales of products and services of £2,241,570 (2020 - £1,969,367).

2021 2020
£    £   
Amount due from related party at the balance sheet date 360,815 759,184

SPF (United Kingdom) Limited

A company in which Saria Limited has a shareholding


Sales of products and services of £365,444 (2020 - £364,395 ).

2021 2020
£    £   
Amount due from related party at the balance sheet date 65,473 90,703

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

26. RELATED PARTY DISCLOSURES - continued

Saria A/S Gmbh & Co. KG

Intermediate holding company


Purchases of goods and services of £nil (2020 - £nil) from the company.

2021 2020
£    £   
Amount due to related party at the balance sheet date 31,754 -

Saria SE & Co. KG

Intermediate holding company


All historical loans from this company were transferred in 2015 to SARIA International GmbH, however Saria Limited still has a cash pooling arrangement with the company, on which it either earns or pays interest. Interest amounting to £1,784,490 (2020 - £1,764,972) were incurred during the year. At the year end the balance owing by Saria Ltd on the cash pool was £69,696,396 (2020:£64,069,952).

2021 2020
£    £   
Amount due to related party at the balance sheet date 69,843,685 64,069,952

SARIA International GmbH

Intermediate holding company


The company purchased services of £784,497 (2020 - £738,948) and paid interest and similar charges of £346,628 (2020 - £545,882) to SARIA International GmbH.

The company owed £5,000,000 (2020 - £14,500,000) in loan balances to SARIA International GmbH at the year end. .

2021 2020
£    £   
Amount due to related party at the balance sheet date 5,268,891 14,812,131

SARIA Limited (Registered number: 00547564)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021

26. RELATED PARTY DISCLOSURES - continued

Rethmann Group

Fellow subsidiary and associated companies


The company made sales of goods and services of £nil, (2020 - £827,299). The sales in the prior year were those of a subsidiary via Saria. The subsidiary now sells directly to the related party.

The company made purchases in the year of £nil (2020 - £2,310) from other companies within the group.

2021 2020
£    £   
Amount due to related party at the balance sheet date 81,981 167,680

27. POST BALANCE SHEET EVENTS

Subsequent to the balance sheet date, the majority of the defined benefit obligation has been secured by buy-in policies and as such this proportion of liabilities is matched by annuities going forward. These bulk purchase annuity agreements with Legal and General were signed on 1 February 2022 by the Trustees of the Prosper De Mulder Group Pension Scheme and Prosper De Mulder Senior Executive Fund. The EFRBs is unaffected by these policies.

Subsequent to the balance sheet date, Saria Limited have completed on the sale of the land and buildings that they owned at Exeter.

28. ULTIMATE CONTROLLING PARTY

The controlling party is SARIA International GmbH.

The ultimate controlling party is the Rethmann family.

The ultimate controlling entity owned by the Rethmann family is Rethmann SE & Co. KG.