REGISTERED NUMBER: 04010883 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
for |
Tiffin Sandwiches Limited |
REGISTERED NUMBER: 04010883 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
for |
Tiffin Sandwiches Limited |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Income and Retained Earnings | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
Tiffin Sandwiches Limited |
Company Information |
for the Year Ended 31 May 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Phillipa Symington ACA CA(SA) |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Oak Tree House, Harwood Road |
Northminster Business Park |
Upper Poppleton |
York |
YO26 6QU |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Group Strategic Report |
for the Year Ended 31 May 2023 |
The directors present their strategic report of the company and the group for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
The Directors are very satisfied with the overall performance of the business this year. We are particularly pleased with our levels of growth coupled with feedback from our customers. Our operating system in our supply chain, assembly facilities and logistics is running smoothly and has the capacity to absorb current growth. |
The business has taken a long time to feel 'normal' post pandemic and whilst our markets have not returned to how they behaved in 2019 many of our sectors have reached a level of stability. Overall, our markets have become more predictable in the past year. A key exception being strike action that impacted our schools, university and travel sections in the first half of the year, we are hopeful that the recent pattern of resolution contained, and this feeds through to a smoother demand pattern. |
Overall sales increased by 27% during the period. This was due to a combination of three factors. Additional units sold, new business wins and price increases. Our education sector performed strongly in the year. European holiday bookings were up this year which fed through to strong growth in the travel sector. Whilst commentary would suggest that commuters have been slow to return to the office our new menu launch last October meant we sold more units and increased value. The outlook for our key sectors is promising and we believe we are set up for a similar growth through the balance of 2023 and into 2024. |
On the procurement side it has been a turbulent year. Food inflation remains stubbornly high for most of our ingredients and this mixed with poor exchange rates and the uncertainty around the war in Ukraine has meant cost price increases couldn't be avoided. Fortunately, our business growth has fed through to better economies of scale, and this coupled with our long standing supply base has meant we have worked closely with suppliers to ensure increases have been kept to a minimum. More broadly whilst inflation overall is in decline worldwide the stickiness of food inflation in the UK remains, and whilst we expect price spikes to become less frequent moving forward, we are planning for a similarly turbulent year in 2024. |
In June 2023 we completed our first key milestones on our journey to Net Zero with the installation of Solar Panels at our Desside Factory. Commissioned on the 21st of June we have been generating power for 2 months now and are able to track production and consumption real time. In the first two months this has reduced emissions of CO2 by over 10 tonnes, We expect our panel installation to mean this site is 35% self sufficient annually |
In summary, the outlook is positive, and we can report a strong start to this financial year. |
KEY PERFORMANCE INDICATORS |
The directors consider the key performance indicators of the business to be as follows: |
Increase in sales 27.07% (2022: 119.51%) |
Increase in pre-tax profit 37.28% (2022: 97.00%) |
Shareholders equity £3.065m (2022: £3.238m) |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Group Strategic Report |
for the Year Ended 31 May 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the group are - |
Competitive risk: |
The group receives its income through a variety of markets and seeks to minimise its reliance on a particular sector. Should a fall occur in one sector the impact on turnover would be minimal by the spread of work into other sectors. |
Exposure to credit risk: |
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that customers pay promptly upon delivery. Consideration of payment history and customers credit worthiness are considered in each case. Details of the groups debtors are show in Note 15 to the financial statements. |
Liquidity risk: |
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets. |
ON BEHALF OF THE BOARD: |
13 October 2023 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Report of the Directors |
for the Year Ended 31 May 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the preparation and supply of pre-packed food. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 May 2023 will be £2,380,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
No political donations and expenditure has been incurred during the current or prior year. |
RESEARCH AND DEVELOPMENT |
Innovation is critical to the future of the Group and as a result, Tiffin Sandwiches continually undertakes research and development work in a bid to reduce and ultimately eliminate its carbon footprint as well as seeking to minimise manufacturing costs and improve product quality. |
Previous successes within the R&D Tax Credits scheme gives the Group confidence to continue to review packaging and processing methods as well as seeking to improve product shelf-life without detriment to quality. Additionally, new product development work in many areas, including frozen, is a vital element of the strategic approach of Tiffin Sandwiches. |
EMPLOYEES |
The group's employment policies are designed to attract and retain quality and suitable staff. The group involves employees at all levels of the organisation through regular communication and meetings to understand current and future performance. |
The group recognises that it has clear obligations towards all its employees to ensure that people with disabilities are afforded equal opportunities to enter employment and progress within the organisation. In addition to complying with the requirements of the Equality Act 2010, the group follows procedures designed to provide for fair consideration and selection of disabled applicants and to satisfy their training and career development needs. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Report of the Directors |
for the Year Ended 31 May 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Tiffin Sandwiches Limited |
Opinion |
We have audited the financial statements of Tiffin Sandwiches Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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 and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Tiffin Sandwiches Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Tiffin Sandwiches Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this. |
We undertake the following procedures to identify and respond to these risks of non-compliance: |
- | Understanding the key legal and regulatory frameworks that are applicable to the Group. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be financial reporting legislation, taxation legislation, food standards agency, fire precautions, health & safety, GDPR and employment law. |
- | Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance |
- | Review of board minutes and correspondence with regulators. |
- | Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed. |
- | Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We do not consider there to be any significant key estimates, assumptions or judgements. |
- | Identifying and testing unusual journal entries, with a particular focus on manual journal entries. |
We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
Tiffin Sandwiches 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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Oak Tree House, Harwood Road |
Northminster Business Park |
Upper Poppleton |
York |
YO26 6QU |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Consolidated |
Statement of Income and |
Retained Earnings |
for the Year Ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 35,976,817 | 28,312,214 |
Cost of sales | 27,187,940 | 22,154,187 |
GROSS PROFIT | 8,788,877 | 6,158,027 |
Distribution costs | 369,721 | 271,308 |
Administrative expenses | 5,646,605 | 4,342,563 |
6,016,326 | 4,613,871 |
2,772,551 | 1,544,156 |
Other operating income | 3 | 42,437 | 528,854 |
OPERATING PROFIT | 5 | 2,814,988 | 2,073,010 |
Interest receivable and similar income | 1,092 | 1,028 |
2,816,080 | 2,074,038 |
Interest payable and similar expenses | 6 | 89,951 | 88,218 |
PROFIT BEFORE TAXATION | 2,726,129 | 1,985,820 |
Tax on profit | 7 | 518,443 | 450,816 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year as previously reported |
3,237,514 |
4,322,510 |
Dividends | 9 | (2,380,000 | ) | (1,700,000 | ) |
Prior year adjustment - corrections of material errors |
- |
(920,000 |
) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
3,065,200 |
3,237,514 |
Profit attributable to: |
Owners of the parent | 2,207,686 | 1,535,004 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Consolidated Balance Sheet |
31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 9,780 | 20,089 |
Tangible assets | 12 | 7,112,625 | 3,956,663 |
Investments | 13 | - | - |
7,122,405 | 3,976,752 |
CURRENT ASSETS |
Stocks | 14 | 648,610 | 439,172 |
Debtors | 15 | 5,071,340 | 4,598,129 |
Cash at bank | 1,621,838 | 5,191,961 |
7,341,788 | 10,229,262 |
CREDITORS |
Amounts falling due within one year | 16 | 8,778,774 | 10,051,422 |
NET CURRENT (LIABILITIES)/ASSETS | (1,436,986 | ) | 177,840 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,685,419 |
4,154,592 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(1,901,465 |
) |
(420,135 |
) |
PROVISIONS FOR LIABILITIES | 21 | (718,554 | ) | (496,743 | ) |
NET ASSETS | 3,065,400 | 3,237,714 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 200 | 200 |
Retained earnings | 3,065,200 | 3,237,514 |
SHAREHOLDERS' FUNDS | 3,065,400 | 3,237,714 |
The financial statements were approved by the Board of Directors and authorised for issue on 13 October 2023 and were signed on its behalf by: |
D D McLean - Director |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Company Balance Sheet |
31 May 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,209,783 | 1,728,730 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Consolidated Cash Flow Statement |
for the Year Ended 31 May 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,002,814 | 5,757,852 |
Interest paid | (44,624 | ) | (47,762 | ) |
Interest element of hire purchase and finance lease rental payments paid |
(45,327 |
) |
(40,456 |
) |
Tax paid | (224,440 | ) | (203,728 | ) |
Net cash from operating activities | 2,688,423 | 5,465,906 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (4,093,209 | ) | (1,231,798 | ) |
Sale of tangible fixed assets | 17,638 | 88,951 |
Interest received | 1,092 | 1,028 |
Net cash from investing activities | (4,074,479 | ) | (1,141,819 | ) |
Cash flows from financing activities |
New loans in year | 1,175,961 | - |
Loan repayments in year | (1,378,716 | ) | (1,150,000 | ) |
Movement in intercompany balances | (160,000 | ) | - |
Movement in hire purchase/finance lease | 558,688 | 219,251 |
Equity dividends paid | (2,380,000 | ) | (1,700,000 | ) |
Net cash from financing activities | (2,184,067 | ) | (2,630,749 | ) |
(Decrease)/increase in cash and cash equivalents | (3,570,123 | ) | 1,693,338 |
Cash and cash equivalents at beginning of year |
2 |
5,191,961 |
3,498,623 |
Cash and cash equivalents at end of year | 2 | 1,621,838 | 5,191,961 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 May 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,726,129 | 1,985,820 |
Depreciation charges | 938,154 | 1,073,223 |
Profit on disposal of fixed assets | (8,236 | ) | (23,050 | ) |
Finance costs | 89,951 | 88,218 |
Finance income | (1,092 | ) | (1,028 | ) |
3,744,906 | 3,123,183 |
Increase in stocks | (209,438 | ) | (137,355 | ) |
Increase in trade and other debtors | (1,124,293 | ) | (713,730 | ) |
Increase in trade and other creditors | 591,639 | 3,485,754 |
Cash generated from operations | 3,002,814 | 5,757,852 |
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 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 1,621,838 | 5,191,961 |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 5,191,961 | 3,498,623 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.6.22 | Cash flow | At 31.5.23 |
£ | £ | £ |
Net cash |
Cash at bank | 5,191,961 | (3,570,123 | ) | 1,621,838 |
5,191,961 | (3,570,123 | ) | 1,621,838 |
Debt |
Hire purchase and finance leases | (782,707 | ) | (558,688 | ) | (1,341,395 | ) |
Debts falling due within 1 year | (1,500,000 | ) | 1,378,716 | (121,284 | ) |
Debts falling due after 1 year | - | (1,175,961 | ) | (1,175,961 | ) |
(2,282,707 | ) | (355,933 | ) | (2,638,640 | ) |
Total | 2,909,254 | (3,926,056 | ) | (1,016,802 | ) |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
1. | STATUTORY INFORMATION |
Tiffin Sandwiches Limited is a |
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 United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost convention. |
There were no material departures from that standard. |
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year and have been consistently applied within the same accounts. |
Going concern |
The directors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the group and the company to continue as a going concern. The directors make this assessment in respect of a period of at least one year from the date the financial statements are approved. |
The financial statements are prepared on the going concern basis which assumes that the group will continue to trade. If the group is unable to continue to trade, adjustments would be required to reduce the value of assets to their recoverable amounts, to provide for any further liabilities that might arise and to analyse long term liabilities as current liabilities. |
Basis of consolidation |
The group accounts consolidate the results of the company and its subsidiary Street Eats Food Limited under the acquisition method. |
Related party exemption |
The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Income recognition |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has been transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Goodwill |
Intangible assets |
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over |
their useful lives on the following bases: |
Software between 3 and 6 years |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
Tangible assets are derecognised on disposal or when no future economic benefits are expected. |
On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss account. |
Government grants |
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment. |
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. |
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Basic financial instruments are recognised at amortised cost with changes recognised in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | OTHER OPERATING INCOME |
Included within other income is CJRS monies received totalling £Nil (2022: £476,350). |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 9,652,977 | 8,228,670 |
Social security costs | 780,020 | 620,528 |
Other pension costs | 155,815 | 137,631 |
10,588,812 | 8,986,829 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 3 | 3 |
Direct | 385 | 342 |
Administrative | 62 | 56 |
The average number of employees by undertakings that were proportionately consolidated during the year was 450 (2022 - 401 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 111,323 | 142,594 |
Directors' pension contributions to money purchase schemes | 3,125 | 3,796 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 3 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 85,218 | 63,438 |
Other operating leases | 404,957 | 443,981 |
Depreciation - owned assets | 615,823 | 556,500 |
Depreciation - assets on hire purchase contracts and finance leases | 312,022 | 279,314 |
Profit on disposal of fixed assets | (8,236 | ) | (23,050 | ) |
Goodwill amortisation | - | 221,983 |
Computer software amortisation | 10,309 | 15,426 |
Auditors' remuneration - |
subsidiaries | 22,000 | 16,500 |
Auditors' remuneration - |
consolidation | 2,000 | 2,000 |
Rent received | (11,733 | ) | (19,600 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest on late paid PAYE | 601 | 4,240 |
Other interest | 159 | 471 |
Bank loan interest | 43,864 | 43,051 |
Hire purchase | 45,327 | 40,456 |
89,951 | 88,218 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 325,141 | 252,950 |
Overprovided corporation tax | (28,509 | ) | (29,757 | ) |
Total current tax | 296,632 | 223,193 |
Deferred tax | 221,811 | 227,623 |
Tax on profit | 518,443 | 450,816 |
UK corporation tax has been charged at 20 % (2022 - 19 %). |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 2,726,129 | 1,985,820 |
Profit multiplied by the standard rate of corporation tax in the UK of 20 % (2022 - 19 %) |
545,226 |
377,306 |
Effects of: |
Expenses not deductible for tax purposes | (48,897 | ) | (11,786 | ) |
Adjustments to tax charge in respect of previous periods | (28,509 | ) | (29,757 | ) |
Impact of change in deferred tax rate | 50,623 | 115,053 |
Total tax charge | 518,443 | 450,816 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
B Ordinary shares of £1 each |
Interim | 2,380,000 | 1,700,000 |
10. | COMPARATIVES |
Whilst preparing the accounts for the year ended 31 May 2023 we have aligned the statutory accounts to the management accounts in respect of the current and prior period. This disclosure is considered more relevant to management reporting, and although this has resulted in certain of the comparative values individually not agreeing to the prior year signed accounts, overall profit and retained earnings has not changed. |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 June 2022 |
and 31 May 2023 | 443,966 | 35,515 | 479,481 |
AMORTISATION |
At 1 June 2022 | 443,966 | 15,426 | 459,392 |
Amortisation for year | - | 10,309 | 10,309 |
At 31 May 2023 | 443,966 | 25,735 | 469,701 |
NET BOOK VALUE |
At 31 May 2023 | - | 9,780 | 9,780 |
At 31 May 2022 | - | 20,089 | 20,089 |
Company |
Computer |
software |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
AMORTISATION |
At 1 June 2022 |
Amortisation for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 June 2022 | 647,747 | 1,182,816 | 3,682,037 |
Additions | 2,491,442 | - | 528,281 |
Disposals | - | - | - |
At 31 May 2023 | 3,139,189 | 1,182,816 | 4,210,318 |
DEPRECIATION |
At 1 June 2022 | 17,097 | 364,013 | 2,403,955 |
Charge for year | 7,891 | 118,281 | 359,303 |
Eliminated on disposal | - | - | - |
At 31 May 2023 | 24,988 | 482,294 | 2,763,258 |
NET BOOK VALUE |
At 31 May 2023 | 3,114,201 | 700,522 | 1,447,060 |
At 31 May 2022 | 630,650 | 818,803 | 1,278,082 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 June 2022 | 2,756,877 | 20,139 | 8,289,616 |
Additions | 1,073,486 | - | 4,093,209 |
Disposals | (32,392 | ) | - | (32,392 | ) |
At 31 May 2023 | 3,797,971 | 20,139 | 12,350,433 |
DEPRECIATION |
At 1 June 2022 | 1,529,473 | 18,415 | 4,332,953 |
Charge for year | 440,903 | 1,467 | 927,845 |
Eliminated on disposal | (22,990 | ) | - | (22,990 | ) |
At 31 May 2023 | 1,947,386 | 19,882 | 5,237,808 |
NET BOOK VALUE |
At 31 May 2023 | 1,850,585 | 257 | 7,112,625 |
At 31 May 2022 | 1,227,404 | 1,724 | 3,956,663 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 June 2022 | 80,056 | 1,006,828 | 1,086,884 |
Additions | - | 1,027,031 | 1,027,031 |
Transfer to ownership | - | (27,503 | ) | (27,503 | ) |
At 31 May 2023 | 80,056 | 2,006,356 | 2,086,412 |
DEPRECIATION |
At 1 June 2022 | 33,099 | 243,968 | 277,067 |
Charge for year | - | 312,022 | 312,022 |
Transfer to ownership | - | (14,402 | ) | (14,402 | ) |
At 31 May 2023 | 33,099 | 541,588 | 574,687 |
NET BOOK VALUE |
At 31 May 2023 | 46,957 | 1,464,768 | 1,511,725 |
At 31 May 2022 | 46,957 | 762,860 | 809,817 |
Company |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 June 2022 |
Additions |
Disposals |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 June 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Freehold property relates to land at cost of £2,491,442 (2022: £nil) which is not depreciated |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 June 2022 |
Additions |
Transfer to ownership | (21,222 | ) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Transfer to ownership | (14,402 | ) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Po Box CO Tiffin, 20 Commondale Way, Euroway Industrial Estate, Bradford, West Yorkshire, BD4 6SF |
Nature of business: |
% |
Class of shares: | holding |
14. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 612,382 | 414,725 |
Finished goods | 36,228 | 24,447 |
648,610 | 439,172 |
15. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 4,354,597 | 3,532,005 |
Other debtors | 25,669 | 23,645 |
VAT | 468,965 | 325,409 |
Prepayments and accrued income | 222,109 | 65,988 |
5,071,340 | 3,947,047 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
15. | DEBTORS - continued |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | 651,082 |
Aggregate amounts | 5,071,340 | 4,598,129 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 121,284 | 1,500,000 |
Hire purchase contracts and finance leases (see note 19) | 615,891 |
362,572 |
Trade creditors | 3,550,722 | 2,888,865 |
Amounts owed to group undertakings | - | 651,082 |
Corporation tax | 365,661 | 293,469 |
Taxation and social security | 206,366 | 192,811 |
Other creditors | 288,798 | 292,886 |
Factoring account | 2,237,108 | 2,619,260 | 2,237,108 | 2,619,260 |
Amount owed to related party | 760,000 | 920,000 | - | - |
Accruals and deferred income | 632,944 | 330,477 |
8,778,774 | 10,051,422 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,175,961 | - |
Hire purchase contracts and finance leases (see note 19) | 725,504 |
420,135 |
1,901,465 | 420,135 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 121,284 | 1,500,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 25,693 | - |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,150,268 | - |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts | Finance leases |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Net obligations repayable: |
Within one year | 611,307 | 322,819 | 4,584 | 39,753 |
Between one and five years | 725,504 | 409,707 | - | 10,428 |
1,336,811 | 732,526 | 4,584 | 50,181 |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 411,773 | 390,773 |
Between one and five years | 548,528 | 939,301 |
960,301 | 1,330,074 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
19. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 1,297,245 | 1,500,000 |
Hire purchase contracts and finance leases | 1,341,395 | 782,707 | 1,304,799 | 661,795 |
Factoring account | 2,237,108 | 2,619,260 | 2,237,108 | 2,619,260 |
4,875,748 | 4,901,967 |
Prior year bank loan balance of £1,500,00 was repaid on 1 June 2022. The new bank loan of £1,297,245 is repayable over 5 years at a rate equal to the aggregate of (i) the bank margin of 2.120% per annum, and (ii) the floating base rate. The loan is due to mature on 30/11/2027. The bank loan is secured against the asset which it relate. |
Obligations under hire purchase and finance lease contracts are secured against the assets to which they relate. |
The factoring account balance is secured by fixed or floating charge over the assets of the company. |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 718,554 | 496,743 | 718,241 | 479,385 |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2022 | 496,743 |
Provided during year | 221,811 |
Balance at 31 May 2023 | 718,554 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 June 2022 |
Provided during year |
Balance at 31 May 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
50 | Ordinary | £1 | 50 | 51 |
50 | A Ordinary | £1 | 50 | 50 |
50 | B Ordinary | £1 | 50 | 49 |
50 | C Ordinary | £1 | 50 | 50 |
200 | 200 |
The rights attached to the Ordinary and B Ordinary shares in the capital of the company shall confer on the holders thereof the right to vote upon any resolution proposed at any General Meeting of the Company. |
The A Ordinary and C Ordinary shares in the capital of the company shall not confer on the holders thereof the right to vote upon any resolution proposed at any General Meeting of the Company and any member present at a General Meeting holding only 'A' or 'C' shares shall not be counted when calculating whether a quorum is present. |
On 8 August 2022, 1 Ordinary share was reclassified to 1 B Ordinary share. |
23. | CONTINGENT LIABILITIES |
A cross guarantee is in place between Barclays Bank PLC, Tiffin Sandwiches Limited, Street Eats Food Limited and T C Sandwich Holdings Limited for the Bank Loan in Tiffin Sandwiches Limited. The value of these as at 31 May 2023 is £1,297,245 (2022: £1,500,000). |
A cross guarantee is in place between Barclays Bank PLC, Tiffin Sandwiches Limited, Street Eats Food Limited and T C Sandwich Holdings Limited for the CID facility in Tiffin Sandwiches Limited. The value of these as at 31 May 2023 is £2,237,108 (2022: £2,619,260). |
24. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
2023 | 2022 |
£ | £ |
Purchases | 108,298 | 98,910 |
Amount due to related party | 760,000 | 920,000 |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
£ | £ |
Remuneration | 1,035,751 | 733,559 |
Tiffin Sandwiches Limited (Registered number: 04010883) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
24. | RELATED PARTY DISCLOSURES - continued |
Other related parties |
2023 | 2022 |
£ | £ |
Sales | 907 | 8,476 |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D D McLean and TC Sandwich Holdings Limited. |