Caseware UK (AP4) 2022.0.179 2022.0.179 2022-10-312022-10-312021-11-01ASCO Foods is in the import and distribution of Filipino, Thai, Vietnamese, Cambodian, and other South East and Far East Asian ambient and frozen foods.falsefalse2822false 04095454 2020-11-01 2021-10-31 04095454 2021-11-01 2022-10-31 04095454 2022-10-31 04095454 2021-10-31 04095454 2020-11-01 04095454 1 2021-11-01 2022-10-31 04095454 1 2020-11-01 2021-10-31 04095454 3 2021-11-01 2022-10-31 04095454 3 2020-11-01 2021-10-31 04095454 5 2021-11-01 2022-10-31 04095454 5 2020-11-01 2021-10-31 04095454 d:CompanySecretary1 2021-11-01 2022-10-31 04095454 d:Director1 2021-11-01 2022-10-31 04095454 d:Director2 2021-11-01 2022-10-31 04095454 d:Director3 2021-11-01 2022-10-31 04095454 d:RegisteredOffice 2021-11-01 2022-10-31 04095454 e:Buildings 2021-11-01 2022-10-31 04095454 e:Buildings 2022-10-31 04095454 e:Buildings 2021-10-31 04095454 e:Buildings e:OwnedOrFreeholdAssets 2021-11-01 2022-10-31 04095454 e:PlantMachinery 2021-11-01 2022-10-31 04095454 e:PlantMachinery 2022-10-31 04095454 e:PlantMachinery 2021-10-31 04095454 e:PlantMachinery e:OwnedOrFreeholdAssets 2021-11-01 2022-10-31 04095454 e:FurnitureFittings 2021-11-01 2022-10-31 04095454 e:FurnitureFittings 2022-10-31 04095454 e:FurnitureFittings 2021-10-31 04095454 e:FurnitureFittings e:OwnedOrFreeholdAssets 2021-11-01 2022-10-31 04095454 e:OwnedOrFreeholdAssets 2021-11-01 2022-10-31 04095454 e:CurrentFinancialInstruments 2022-10-31 04095454 e:CurrentFinancialInstruments 2021-10-31 04095454 e:Non-currentFinancialInstruments 2022-10-31 04095454 e:Non-currentFinancialInstruments 2021-10-31 04095454 e:CurrentFinancialInstruments e:WithinOneYear 2022-10-31 04095454 e:CurrentFinancialInstruments e:WithinOneYear 2021-10-31 04095454 e:Non-currentFinancialInstruments e:AfterOneYear 2022-10-31 04095454 e:Non-currentFinancialInstruments e:AfterOneYear 2021-10-31 04095454 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-10-31 04095454 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2021-10-31 04095454 e:Non-currentFinancialInstruments e:MoreThanFiveYears 2022-10-31 04095454 e:Non-currentFinancialInstruments e:MoreThanFiveYears 2021-10-31 04095454 e:ReportableOperatingSegment1 2021-11-01 2022-10-31 04095454 e:ReportableOperatingSegment1 2020-11-01 2021-10-31 04095454 f:UnitedKingdom 2021-11-01 2022-10-31 04095454 f:UnitedKingdom 2020-11-01 2021-10-31 04095454 f:RestEuropeOutsideUK 2021-11-01 2022-10-31 04095454 f:RestEuropeOutsideUK 2020-11-01 2021-10-31 04095454 e:UKTax 2021-11-01 2022-10-31 04095454 e:UKTax 2020-11-01 2021-10-31 04095454 e:ShareCapital 2021-11-01 2022-10-31 04095454 e:ShareCapital 2022-10-31 04095454 e:ShareCapital 2020-11-01 2021-10-31 04095454 e:ShareCapital 2021-10-31 04095454 e:ShareCapital 2020-11-01 04095454 e:RetainedEarningsAccumulatedLosses 2021-11-01 2022-10-31 04095454 e:RetainedEarningsAccumulatedLosses 2022-10-31 04095454 e:RetainedEarningsAccumulatedLosses 2020-11-01 2021-10-31 04095454 e:RetainedEarningsAccumulatedLosses 2021-10-31 04095454 e:RetainedEarningsAccumulatedLosses 2020-11-01 04095454 e:AcceleratedTaxDepreciationDeferredTax 2022-10-31 04095454 e:AcceleratedTaxDepreciationDeferredTax 2021-10-31 04095454 d:OrdinaryShareClass1 2021-11-01 2022-10-31 04095454 d:OrdinaryShareClass1 2022-10-31 04095454 d:OrdinaryShareClass1 2021-10-31 04095454 d:FRS102 2021-11-01 2022-10-31 04095454 d:Audited 2021-11-01 2022-10-31 04095454 d:FullAccounts 2021-11-01 2022-10-31 04095454 d:PrivateLimitedCompanyLtd 2021-11-01 2022-10-31 04095454 e:HirePurchaseContracts e:WithinOneYear 2022-10-31 04095454 e:HirePurchaseContracts e:WithinOneYear 2021-10-31 04095454 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-10-31 04095454 e:HirePurchaseContracts e:BetweenOneFiveYears 2021-10-31 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 04095454







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2022


ASCO FOODS LIMITED






































img77d9.png                        

 


ASCO FOODS LIMITED
 


 
COMPANY INFORMATION


Directors
S S Chadha 
R S Chadha 
A S Chadha 




Company secretary
S S Chadha



Registered number
04095454



Registered office
Units 7 & 8, Amersham Commercial Park Raans Road

Amersham

United Kingdom

HP6 6JY




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


ASCO FOODS LIMITED
 



CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 26


 


ASCO FOODS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2022

Principal Activity
 
The company's principal activities continued to be those of importer and wholesale distributors of Oriental foods and drinks.

Business review and financial key performance indicators
 
ASCO Foods is in the import and distribution of Filipino, Thai, Vietnamese, Cambodian, and other South East and Far East Asian ambient and frozen foods.
The Directors of ASCO Foods consider  turnover and profit to be the key KPI's for the company. Turnover for the year increased to £20,369,986 (2021: £15,210,642), whilst the profit before tax reduced to £1,134,550 (2021:£1,775,369).
A review of the year has shown that turnover has increased , however, our overall profitability has reduced as a result of additional costs incurred in the period:
Sales Team Revisiting the Market: The field sales team returned visiting customers once it was safe to do so post-pandemic. The return to face to face interaction was welcomed by all and allowed ASCO to secure new accounts and build on sales and customers secured during the pandemic. ASCO adapted to changing market conditions to capitalise on these opportunities.
Food Service Boost: The food service sector played a significant role in our sales growth. As restaurants returned to normal operation, this led to increased demand for ASCO's products.  Despite market shortages, we were well placed to drive the introduction of products via our partners to secure growth.
Increased Costs: It's not uncommon for businesses to incur increased costs as they scale and adapt to new market conditions. A return to field sales etc and the resulting increase in costs was expected, ASCO had planned for this growth and the associated expenses.

Principal risks and uncertainties
 
The directors of the business and the execution of the company’s strategy is subject to a number of risks.
There are several contracts and key agency agreements for the supply of key products and brands which the company is a party, and these are managed to ensure that actions can be taken to mitigate any risks that arise.
During the year under review, the business remains cautious and is mindful of the economic conditions that our customers operate under. The company is also exposed to the challenging market conditions due to foreign exchange rate volatility, commodity price increases, continued disruption in supply chains and soaring energy prices. Coupled with the financial turbulence arising from political events in the UK, the overall effect has been to create a very uncertain economic outlook in general and consumer spending in particular. How this uncertainty will manifest itself in future consumer spending has yet to be fully understood.
The company operates in the wholesale market where there are constant new entrants and strong competition. The directors maintain a proactive sourcing and marketing process to ensure that its products and brands receive the attention that they require to support the growth of the business.
The Directors of the company continue with plans for future growth and development of the business.


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



S S Chadha
Director

Date: 25 October 2023
Page 1

 


ASCO FOODS LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2022

The directors present their report and the financial statements for the year ended 31 October 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the 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 for the Company's financial statements 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.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £895,616 (2021 -£1,427,789).

The directors approved and paid £294,000 in dividends (2021: £270,000). The directors are proposing to pay an amount of £342,000 post year end. 

Directors

The directors who served during the year were:

S S Chadha 
R S Chadha 
A S Chadha 

Future developments

The external commercial environment is expected to remain competitive in 2023. However, the directors remain confident that the company will be able to maintain and improve on its current level of performance in the future.
The company will face challenges arising primarily from continued disruption in the global supply chains and higher cost inflation, which are expected to continue for the foreseeable future. The directors will maintain policies to adapt to these changing conditions and to ensure the companies long term future.
We continue to invest in the development of our major brands and in the development of new products for our operations.  The directors regard the investment in new product development as integral to the continuing success of the business and ensuring that we are able to continue to meet the needs of our customers.
The directors do not forsee any changes to the principal activity of the company.

Page 2

 


ASCO FOODS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022

Financial instruments

Financial risk management is disclosed within principle risks are uncertainties within the Strategic Report.
 
Engagement with employees

The Directors are committed to recruiting and retaining engaged and motivated employees who are willing and able to contribute to the success of the business. The company continually review salary benchmarks to ensure the salaries are competitive and reflective of the local conditions.

Engagement with suppliers, customers and others

Suppliers
The Directors with many years of experience have developed a network of suppliers who are able to supply the range and quality of product our customers require. 
Customers
Most customer trade with us on a regular basis to make their purchases, so engaging them with our sales representatives has developed strong bonds between them and staff.

Disclosure of information to auditors

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

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

Post balance sheet events

The directors do not consider there are any important events affecting the company after balance sheet date.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





S S Chadha
Director

Date: 25 October 2023

Page 3

 


ASCO FOODS LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS LIMITED

Qualified opinion


We have audited the financial statements of Asco Foods Limited (the 'Company') for the year ended 31 October 2022, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 October 2022 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 qualified opinion on financial statements


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Page 4

 


ASCO FOODS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS LIMITED (CONTINUED)

Conclusions relating to going concern


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


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


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



Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, 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.


Page 5

 


ASCO FOODS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS LIMITED (CONTINUED)

Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting
legislation. We determined that the following laws and regulations were most significant including: 
 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Page 6

 


ASCO FOODS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS LIMITED (CONTINUED)




Sarah Hallam FCCA (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

25 October 2023
Page 7

 


ASCO FOODS LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2022

2022
Unaudited 2021
Note
£
£

  

Turnover
 4 
20,369,986
15,210,642

Cost of sales
  
(15,681,774)
(11,039,710)

Gross profit
  
4,688,212
4,170,932

Distribution costs
  
(257,325)
(196,098)

Administrative expenses
  
(3,147,059)
(2,215,483)

Other operating income
 5 
-
82,578

Operating profit
 6 
1,283,828
1,841,929

Interest payable and similar expenses
 10 
(149,278)
(66,560)

Profit before tax
  
1,134,550
1,775,369

Tax on profit
 11 
(238,934)
(347,580)

Profit for the financial year
  
895,616
1,427,789

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 13 to 26 form part of these financial statements.

Page 8

 


ASCO FOODS LIMITED
REGISTERED NUMBER:04095454



BALANCE SHEET
AS AT 31 OCTOBER 2022

2022
Unaudited 2021
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,933,820
1,990,258

  
1,933,820
1,990,258

Current assets
  

Stocks
 13 
4,839,253
2,883,117

Debtors: amounts falling due within one year
 14 
2,771,278
1,916,075

Cash at bank and in hand
  
816,249
1,264,345

  
8,426,780
6,063,537

Creditors: amounts falling due within one year
 15 
(6,212,327)
(4,523,778)

Net current assets
  
 
 
2,214,453
 
 
1,539,759

Total assets less current liabilities
  
4,148,273
3,530,017

Creditors: amounts falling due after more than one year
 16 
(451,215)
(455,911)

Provisions for liabilities
  

Deferred tax
 19 
(58,011)
(36,675)

  
 
 
(58,011)
 
 
(36,675)

Net assets
  
3,639,047
3,037,431


Capital and reserves
  

Called up share capital 
 20 
102
102

Profit and loss account
 21 
3,638,945
3,037,329

  
3,639,047
3,037,431


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S S Chadha
Director

Date: 25 October 2023

The notes on pages 13 to 26 form part of these financial statements.

Page 9


 
ASCO FOODS LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2022



Called up share capital
Profit and loss account
Total equity


£
£
£



At 1 November 2020
102
1,879,540
1,879,642



Comprehensive income for the year


Profit for the year
-
1,427,789
1,427,789

Total comprehensive income for the year
-
1,427,789
1,427,789



Contributions by and distributions to owners


Dividends: Equity capital
-
(270,000)
(270,000)



Total transactions with owners
-
(270,000)
(270,000)





At 1 November 2021
102
3,037,329
3,037,431



Comprehensive income for the year


Profit for the year
-
895,616
895,616

Total comprehensive income for the year
-
895,616
895,616



Contributions by and distributions to owners


Dividends: Equity capital
-
(294,000)
(294,000)



Total transactions with owners
-
(294,000)
(294,000)



At 31 October 2022
102
3,638,945
3,639,047



The notes on pages 13 to 26 form part of these financial statements.
Page 10

 


ASCO FOODS LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2022

2022
Unaudited 2021
£
£

Cash flows from operating activities

Profit for the financial year
895,616
1,427,789

Adjustments for:

Depreciation of tangible assets
123,523
82,566

Interest payable
149,278
66,560

Taxation charge
238,934
347,580

(Increase) in stocks
(1,956,136)
(1,095,686)

(Increase) in debtors
(855,203)
(338,618)

Increase in creditors
1,159,292
431,773

Corporation tax (paid)/received
(139,057)
172

Net cash generated from operating activities

(383,753)
922,136


Cash flows from investing activities

Purchase of tangible fixed assets
(67,085)
-

Sale of tangible fixed assets
-
(600,554)

Net cash from investing activities

(67,085)
(600,554)

Cash flows from financing activities

New secured loans
8,269,707
695,052

Repayment of loans
(8,019,002)
(89,089)

Other new loans
-
450,180

Repayment of/new finance leases
120,503
-

Dividends paid
(294,000)
(270,000)

Interest paid
(116,393)
(66,560)

Net cash used in financing activities
(39,185)
719,583

Net (decrease)/increase in cash and cash equivalents
(490,023)
1,041,165

Cash and cash equivalents at beginning of year
1,243,730
202,565

Cash and cash equivalents at the end of year
753,707
1,243,730


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
816,249
1,264,345

Bank overdrafts
(62,542)
(20,615)

753,707
1,243,730


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 


ASCO FOODS LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2022





At 1 November 2021
Cash flows
New finance leases
At 31 October 2022
£

£

£

£

Cash at bank and in hand

1,257,772

(441,523)

-

816,249

Bank overdrafts

(20,615)

(41,927)

-

(62,542)

Debt due after 1 year

(455,911)

91,588

-

(364,323)

Debt due within 1 year

(3,142,476)

(342,293)

-

(3,484,769)

Finance leases

-

-

(120,503)

(120,503)


(2,361,230)
(734,155)
(120,503)
(3,215,888)

The notes on pages 13 to 26 form part of these financial statements.

Page 12

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

1.


General information

ASCO Foods Limited is a private limited company incorporated and domiciled in England & Wales.  The registered address is Units 7 & 8, Amersham Commercial Park Raans Road, Amersham, Buckinghamshire, HP6 6JY.
The principal activity of the company during the year was the distribution of food and drink products with a variety of speciality products.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Going concern

The company meets its day to day working capital requirements through its cash reserves and borrowings.  The company retains net assets £3,639,047, (2021 - £3,3037,431) at the balance sheet date. After making enquires, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.  The company therefore continues to adopt the going concern basis in preparing its financial statements.

 
2.3

Revenue

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

Sale of goods

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

 
2.4

Borrowing costs

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

Page 13

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
25 Years
Plant and machinery
-
5 Years
Fixtures and fittings
-
5 Years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.9

Debtors

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

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.11

Creditors

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

 
2.12

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Page 15

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)


2.12
Financial instruments (continued)


Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 16

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

2.Accounting policies (continued)


2.12
Financial instruments (continued)


Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make consistent judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
Due to historic record keeping practices, the company has written off unreconciled balances in the customer and supplier ledgers to a suspense account of £182,678. Management have determined that this balance should be written off with £33,821 being allocated to sales and £215,959 being allocated to cost of sales.

Page 17

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Sale of goods
20,369,986
15,210,642

20,369,986
15,210,642


Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
20,222,922
14,862,070

European
147,064
348,572

20,369,986
15,210,642



5.


Other operating income

2022
2021
£
£

Other operating income
-
82,578

-
82,578



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
(88,687)
45,491


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
32,500
-
Page 18

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
1,380,988
1,064,434

Social security costs
106,761
87,347

Cost of defined contribution scheme
20,517
16,674

1,508,266
1,168,455


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Direct Staff
18
15



Administrators
3
3



Sales
7
4

28
22


9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
269,233
253,576

Company contributions to defined contribution pension schemes
3,963
-

273,196
253,576


During the year retirement benefits were accruing to no directors (2021 -NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £80,000 (2021 -£80,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,231 (2021 -£1,231).

Page 19

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

10.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
64,373
50,946

Mortgage interest payable
16,916
15,614

Other interest payable
67,989
-

149,278
66,560


11.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
227,785
317,745

Adjustments in respect of previous periods
(10,187)
-


217,598
317,745


Total current tax
217,598
317,745

Deferred tax


Origination and reversal of timing differences
21,336
29,835

Total deferred tax
21,336
29,835


Taxation on profit on ordinary activities
238,934
347,580
Page 20

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2021 -the same as) the standard rate of corporation tax in the UK of 19% (2021 -19%) as set out below:

2022
2021
£
£


Profit on ordinary activities before tax
1,134,550
1,775,369


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 -19%)
215,565
337,320

Effects of:


Expenses not deductible for tax purposes
37,075
-

Adjusting closing deferred tax to 19%
(3,539)
12,192

Fixed asset differences
(6,035)
(2,982)

Other permanent differences
6,055
1,050

Adjustments to tax charge in respect of prior periods
(10,187)
-

Total tax charge for the year
238,934
347,580


Factors that may affect future tax charges

In the budget of 03 March 2021, the Chancellor of the Exchequer announced that corporation tax rates will increase to 25% from April 2023. The Directors do not believe the impact of this increase to be material to the financial statements.

Page 21

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

12.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 November 2021
2,280,717
315,216
230,509
2,826,442


Additions
1,550
65,535
-
67,085



At 31 October 2022

2,282,267
380,751
230,509
2,893,527



Depreciation


At 1 November 2021
486,000
163,353
186,831
836,184


Charge for the year
71,422
42,387
9,714
123,523



At 31 October 2022

557,422
205,740
196,545
959,707



Net book value



At 31 October 2022
1,724,845
175,011
33,964
1,933,820



At 31 October 2021
1,794,717
151,863
43,678
1,990,258

Finance leases

The net book value of assets in relation to finance leases is £135,001 (2021: £167,386)


13.


Stocks

2022
2021
£
£

Finished goods
4,839,253
2,883,117

4,839,253
2,883,117



14.


Debtors

2022
2021
£
£


Trade debtors
2,570,695
1,820,027

Other debtors
81,629
58,699

Prepayments and accrued income
118,954
37,349

2,771,278
1,916,075


Page 22

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

15.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank overdrafts
62,542
20,615

Bank loans
3,034,589
2,692,296

Other loans
450,180
450,180

Trade creditors
1,430,529
747,808

Corporation tax
429,343
317,917

Other taxation and social security
38,128
20,703

Obligations under finance leases
33,611
-

Other creditors
18,893
150,965

Accruals and deferred income
714,512
123,294

6,212,327
4,523,778


The following liabilities were secured:

2022
2021
£
£



Bank overdrafts and bank loans
3,097,131
2,712,911

Obligations under finance leases
33,611
-

3,130,742
2,712,911

Details of security provided:

The finance leases are secured on the assets to which they relate to. Bank loans and overdrafts are secured on a fixed and floating charge over the assets of the company, where bank loans include a commercial mortgage. The mortgage is secured over the freehold property. 

Page 23

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

16.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
364,323
455,911

Obligations under finance leases
86,892
-

451,215
455,911


The following liabilities were secured:

2022
2021
£
£



Bank loans
364,323
455,911

Obligations under finance leases
86,892
-

451,215
455,911

Details of security provided:

The finance leases are secured on the assets to which they relate to. Bank loans and overdrafts are secured on a fixed and floating charge over the assets of the company, where bank loans include a commercial mortgage. The mortgage is secured over the freehold property. 

The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:

2022
2021
£
£


Repayable by instalments
27,981
119,571

27,981
119,571



Page 24

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022

17.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
3,034,589
2,692,296

Other loans
450,180
450,180


3,484,769
3,142,476


Amounts falling due after more than one year

Bank loans
336,342
336,340


336,342
336,340

Amounts falling due after more than 5 years

Bank loans
27,981
119,571

27,981
119,571

3,849,092
3,598,387



18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2022
2021
£
£


Within one year
33,611
100

Between 1-5 years
86,892
-

120,503
100


19.


Deferred taxation




2022


£






At beginning of year
(36,675)


Charged to profit or loss
(21,336)



At end of year
(58,011)

Page 25

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022
 
19.Deferred taxation (continued)

2022
2021
£
£


Accelerated capital allowances
(58,011)
(36,675)

(58,011)
(36,675)


20.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



102 (2021 -102) Ordinary shares shares of £1.00 each
102
102



21.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated Profit/Losses.


22.


Pension commitments

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme is £10,476 (2021: £2,617). 


23.


Related party transactions

A family member of the directors has provided the company with a loan which had a current year value of £450,180 (2021: £450,180). The loan is repayable on request and the the interest charged is on a simple basis across the total facility amount at 3% over the bank base. The interest paid thus far amounts to £35,104.  

 
Page 26