Registration number:
G.H. Sheldon Wholesale Bakers Limited
for the Year Ended 28 February 2023
G.H. Sheldon Wholesale Bakers Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
G.H. Sheldon Wholesale Bakers Limited
Company Information
Directors |
Mr Graham Sheldon Mrs Barbara Sheldon Mr Lee Sheldon Mrs Sarah Sheldon |
Company secretary |
Mrs Sarah Sheldon |
Registered office |
|
Auditors |
|
G.H. Sheldon Wholesale Bakers Limited
Strategic Report for the Year Ended 28 February 2023
The directors present their strategic report for the year ended 28 February 2023.
Principal activity
The principal activity of the company is that of a wholesale baker.
Fair review of the business
The year to 28th February 2023 again showed good progress. Sales increased by £4.5M as our own brand products became better known throughout the country. We invested just under £236K in new plant and commercial vehicles on top of the £3.1M invested in the previous two years. This made the total investment in fixed assets over three years almost £3.3M. It was important for us to do this so that we could meet the requirements of our customers at busy times of the year without compromising our quality of product and reliability for delivery on time. We believe we have a very enviable reputation among our customers for these particular attributes.
The year to 28th February 2023 was very difficult, as it would have been for everyone in the trade. After a good start, by August we were suffering from huge increases in the price of ingredients and specifically where the cost of our main ingredient increased by around 75%. At the same time there were large increases in the cost of gas and electricity and in transportation. This hit profits significantly as it took time to pass on these increases to customers, In this situation we did well to report a profit before tax of £727,942 albeit well down on the previous years £1,842,667.
In the period after the year end of 28th February 2023 costs continued to rise. The company has negotiated sales price rises and whilst there is a time lag before the new prices take effect the company is confident that trading figures for the coming year will show acceptable levels of profitability. The company continues to deliver what can be variable orders on time and with a high standard of product. This along with other factors enable the company to show a significant increase in turnover whilst maintaining the goodwill to our many satisfied customers.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2023 |
2022 |
|
Turnover growth |
% |
14.88 |
15.64 |
Gross profit margin |
% |
8.40 |
13.21 |
Profit before tax |
£ |
727,942 |
1,842,667 |
G.H. Sheldon Wholesale Bakers Limited
Strategic Report for the Year Ended 28 February 2023
Principal risks and uncertainties
G.H.Sheldon Wholesale Bakers Limited operates in the very competitive Great British grocery market. In order to manage this we continue to develop our brand and strengthen our management expertise.
The company is exposed to commodity markets, principally wheat and energy. The level of volatility remains significant within these cost areas and, with the consumer environment remaining challenging, cost recovery is difficult. The directors consider the processes we have in place for managing risk in these areas to be appropriate.
The remaining principal risks and uncertainties faced by the business in the next 12 months include:
- changes in the retailer landscape and consumer behaviour
- delivery of capital investment projects and the impact of competitor activity.
Given the current economic environment the directors continue to ensure that a full risk assessment is a key part of all decision making.
Engagement with employees
The company provides employees with information on matters of concern to them as employees and consult employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions which are likely to affect their interests.
Approved and authorised by the
......................................... |
G.H. Sheldon Wholesale Bakers Limited
Directors' Report for the Year Ended 28 February 2023
The directors present their report and the financial statements for the year ended 28 February 2023.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company uses various financial instruments. These include finance lease agreements and cash. Items such as trade debtors and trade creditors that arise directly from its operations are also used. The main purpose of these financial instruments is to raise finance for the company's operations.
The main risks arising from the company's financial instruments are liquidity risk, interest rate risk, and credit risk.
- Liquidity risk is managed by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is managed by using overdraft facilities.
- Interest rate risk is managed by using fixed rate facilities, therefore reducing exposure to rate fluctuations.
- The company's principal financial asset, and therefore its principal credit risk, is trade debtors. Trade debts are monitored closely and the company does not have a history of impairments.
Price risk, credit risk, liquidity risk and cash flow risk
The business' principal financial statements comprise bank balances, bank overdrafts, trade debtors, trade creditors and finance lease agreements. The main purpose of these instruments are to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity
of funding and flexibility through the use of overdrafts at floating rates of interest.
Trade debtors are managed in respect of credit and cash flow by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed
by ensuring that there are sufficient funds to meet the payments.
G.H. Sheldon Wholesale Bakers Limited
Directors' Report for the Year Ended 28 February 2023
Employment of disabled persons
Applications for employment by disabled persons are always fully considered and it is the policy of the Company that training, career development and promotion of disabled persons should, as far as practicable, be identical to that of other employees.
Employee involvement
The Company is an equal opportunities employer and consults and discusses with employees on matters that are likely to affect the employee's interests.
Future developments
The company have various plans to increase production but they require substantial expenditure on buildings and plant. Due to the ongoing economic circumstances and the increases in interest rates affecting both our company and our customers it is not considered the time to enter into large scale expansion projects. We will continue to do what we do well in producing high quality products, whose sales regularly increase from year to year.
Research and development
The company is currently undertaking research and development to improve production techniques and introduce new products. Costs are written off to the profit and loss account or capitalised as plant and equipment.
Going concern
The directors have a reasonable expectation that the company will have adequate resources to continue for the foreseeable future and the company therefore continues to adopt the going concern basis in preparing its financial statements.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors The Moffatts Partnership LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
......................................... |
G.H. Sheldon Wholesale Bakers Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
G.H. Sheldon Wholesale Bakers Limited
Independent Auditor's Report to the Members of G.H. Sheldon Wholesale Bakers Limited
Opinion
We have audited the financial statements of G.H. Sheldon Wholesale Bakers Limited (the 'company') for the year ended 28 February 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 28 February 2023 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
G.H. Sheldon Wholesale Bakers Limited
Independent Auditor's Report to the Members of G.H. Sheldon Wholesale Bakers Limited
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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the 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.
G.H. Sheldon Wholesale Bakers Limited
Independent Auditor's Report to the Members of G.H. Sheldon Wholesale Bakers Limited
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the company, we identified that the principle risks of non-compliance with laws and regulations related to breaches of the legal and regulatory framework that the company operates in. We considered the extent to which non-compliance might have a material effect on the financial statements. The key laws and regulations we considered in this context included UK Companies Act 2006, employment law, health and safety and tax legislation.
G.H. Sheldon Wholesale Bakers Limited
Independent Auditor's Report to the Members of G.H. Sheldon Wholesale Bakers Limited
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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G.H. Sheldon Wholesale Bakers Limited
Independent Auditor's Report to the Members of G.H. Sheldon Wholesale Bakers Limited
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Suite 1.1, First Floor
Jackson House
Sibson Road
M33 7RR
G.H. Sheldon Wholesale Bakers Limited
Profit and Loss Account for the Year Ended 28 February 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
806,367 |
1,949,449 |
|
Other interest receivable and similar income |
- |
|
|
Interest payable and similar expenses |
( |
( |
|
(78,425) |
(106,782) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
G.H. Sheldon Wholesale Bakers Limited
Statement of Comprehensive Income for the Year Ended 28 February 2023
2023 |
2022 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
G.H. Sheldon Wholesale Bakers Limited
(Registration number: 01436865)
Balance Sheet as at 28 February 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
1,000 |
1,000 |
|
Retained earnings |
6,268,087 |
5,812,136 |
|
Shareholders' funds |
6,269,087 |
5,813,136 |
Approved and authorised by the
......................................... |
G.H. Sheldon Wholesale Bakers Limited
Statement of Changes in Equity for the Year Ended 28 February 2023
Share capital |
Retained earnings |
Total |
|
At 1 March 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 28 February 2023 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 March 2021 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 28 February 2022 |
|
|
|
G.H. Sheldon Wholesale Bakers Limited
Statement of Cash Flows for the Year Ended 28 February 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
- |
|
|
Finance income |
- |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 March |
|
|
|
Cash and cash equivalents at 28 February |
2,273,866 |
1,851,255 |
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
At the time of approving the financial statements the directors have a reasonable expectation that the company will have adequate resources to continue for the foreseeable future and the company therefore continues to adopt the going concern basis in preparing its financial statements.
Judgements
In the course of preparing the financial statements, no judgements have been made in the process of applying the accounting policies, other than those involving estimations, that have had a significant effect on the amounts recognised in the financial statements. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when goods are delivered and accepted by customers, when the risks and rewards of ownership of the goods have passed to the buyer and the amount can be measured reliably.
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Government grants
Government grants are recognised under the accrual model. Income is recognised in the same period that the related expenditure the grant is intended to compensate is incurred.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and Machinery |
20% reducing balance basis |
Plant and Machinery |
10% straight line basis |
Furniture and Equipment |
25% reducing balance basis |
Computer Equipment |
25% reducing balance basis |
Motor Vehicles |
25% reducing balance basis |
Buildings |
10% straight line basis |
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated over their estimated useful life. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Impairment
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
|
|
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Government grants |
The amount of grants recognised in the financial statements was £
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
2023 |
2022 |
|
Gain/loss on disposal of property, plant and equipment |
- |
( |
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Loss on disposal of property, plant and equipment |
- |
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
Distribution |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax (credit)/expense from unrecognised tax loss or credit |
( |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
Total tax charge |
|
|
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Deferred tax
Deferred tax assets and liabilities
2023 |
Liability |
|
|
|
2022 |
Liability |
|
|
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £333,062 (2022 - £384,986).
Intangible assets |
Goodwill |
Total |
|
Cost or valuation |
||
At 1 March 2022 |
|
|
At 28 February 2023 |
|
|
Amortisation |
||
At 1 March 2022 |
|
|
Amortisation charge |
|
|
At 28 February 2023 |
|
|
Carrying amount |
||
At 28 February 2023 |
|
|
At 28 February 2022 |
|
|
Amortisation expense of intangible fixed assets for the year and last year are included in administrative expenses.
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 March 2022 |
|
|
|
|
Additions |
- |
|
|
|
At 28 February 2023 |
|
|
|
|
Depreciation |
||||
At 1 March 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
At 28 February 2023 |
|
|
|
|
Carrying amount |
||||
At 28 February 2023 |
|
|
|
|
At 28 February 2022 |
|
|
|
|
Included within the net book value of land and buildings above is £171,902 (2022 - £214,205) in respect of freehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Other property, plant and equipment |
1,371,670 |
1,848,240 |
Motor vehicles |
271,631 |
531,937 |
1,643,301 |
2,380,177 |
Stocks |
2023 |
2022 |
|
Raw materials and consumables |
|
|
The cost of stocks recognised as an expense in the year amounted to £12,725,061 (2022 - £9,980,577).
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Debtors |
Current |
2023 |
2022 |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
Cash and cash equivalents |
2023 |
2022 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
Income tax liability |
189,168 |
167,539 |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 March 2022 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 28 February 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,000 |
|
1,000 |
Rights, preferences and restrictions
Ordinary Shares have the following rights, preferences and restrictions: |
Reserves |
Share capital
Represents the nominal value of shares that have been issued.
Profit and loss account
Includes all current and prior period retained profits and losses.
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Loans and borrowings |
2023 |
2022 |
|
Non-current loans and borrowings |
||
HP and finance lease liabilities |
|
|
2023 |
2022 |
|
Current loans and borrowings |
||
HP and finance lease liabilities |
|
|
Bank overdraft
The bank overdraft is renewed annually and has a variable interest rate. It is repayable on demand.
The bank overdraft is secured by a debenture over the assets of the company and a legal charge over the business property.
Obligations under leases and hire purchase contracts |
Finance leases
Finance leases relate to plant and equipment as well as motor vehicles. The lease agreements generally have fixed lease payments and include the option to purchase the equipment at the conclusion of the lease agreement. The finance leases are secured by the lessor's title to the leased assets.
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Dividends |
Interim dividends paid
2023 |
2022 |
|||
Interim dividend of £ |
|
|
||
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
Analysis of changes in net debt |
At 1 March 2022 |
Financing cash flows |
Other non-cash changes |
At 28 February 2023 |
|
Cash and cash equivalents |
||||
Cash |
1,851,255 |
422,611 |
- |
2,273,866 |
Borrowings |
||||
Long term borrowings |
(757,155) |
- |
374,047 |
(383,108) |
Short term borrowings |
(486,578) |
486,578 |
(374,047) |
(374,047) |
(1,243,733) |
486,578 |
- |
(757,155) |
|
|
|
- |
|
|
|
Related party transactions |
Key management personnel
The company considers the directors of the company to be the only key management personnel of the business.
Transactions with directors |
2023 |
At 1 March 2022 |
Advances to director |
Repayments by director |
Other payments made to company by director |
At 28 February 2023 |
Mr Lee Sheldon |
|||||
Mr Lee Sheldon |
|
|
- |
- |
|
Mrs Sarah Sheldon |
|||||
Mrs Sarah Sheldon |
( |
|
- |
- |
( |
Mr Graham Sheldon |
|||||
Mr Graham and Mrs Barbara Sheldon |
( |
|
( |
(30,640) |
( |
G.H. Sheldon Wholesale Bakers Limited
Notes to the Financial Statements for the Year Ended 28 February 2023
2022 |
At 1 March 2021 |
Advances to director |
Repayments by director |
Other payments made to company by director |
At 28 February 2022 |
Mr Lee Sheldon |
|||||
Mr Lee Sheldon |
|
|
( |
- |
|
Mrs Sarah Sheldon |
|||||
Mrs Sarah Sheldon |
( |
|
( |
- |
( |
Mr Graham Sheldon |
|||||
Mr Graham and Mrs Barbara Sheldon |
( |
|
( |
(38,400) |
( |
Other transactions with directors |
Director's loan accounts are repayable on demand.
During the year, dividends of £162,000 (2022 - £209,500) were paid to directors of the company.
During the year, rent was paid to Mr Graham and Mrs Barbara Sheldon of £120,000 (2022: £120,000) by the company.
Summary of transactions with other related parties
This is the directors pension scheme and during the year rent was paid to it of £54,000 (2022 - £54,000). At the balance sheet date the amount due to GH Sheldon Pension Scheme was £nil (2022 - £nil).
Ultimate controlling party |
The ultimate controlling party is