Company No:
Contents
The directors present their annual report and the unaudited financial statements of the Company for the financial year ended 31 January 2023.
GOING CONCERN
The company's forecasts and projections, taking account of possible changes in trading performance, show that the company can operate within the level of its current facilities.
At the date of signing these accounts, after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these accounts. The company therefore continues to adopt the going concern basis in preparing its financial statements.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible 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), including FRS 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 financial period.
In preparing these financial statements, the directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent; 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. The directors 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.
BUSINESS REVIEW
Despite the challenges posed by Brexit, Covid and the Ukraine/Russia conflict in recent years, the business has displayed remarkable resilience, delivered significant growth and returned to profitability in the year ended January 2023.
Turnover increased by 16% to £11.3m (2022 - £9.7m) and EBITDA bounced back to a profit. The improvement can be attributed to the successful implementation of various strategic initiatives as part of our ‘Game-changing Dinners’ 5-year plan. In addition to boosting revenue growth and streamlining our operations, we have successfully transitioned to a more agile, sustainable and profitable business model.
With a unique, resilient omni-channel approach and a strong network of manufacturing partners, we have a proven track record in bringing brands to market through both our own brands and brand licencing. We will continue to deliver growth through innovation, channel expansion and the launch of new brands onto both shelves and menus.
One of the attributes that allows us to remain agile, competitive & credible in the market is our own capabilities & expertise as a food manufacturer and we’re very proud of our BRC AA grade factory. From this we can produce great quality wet and dry flavours in both bulk and retail-ready formats that we supply across the food industry. Our site in Manchester is committed to minimising our environmental footprint through innovative solutions on packaging and energy, some of which are industry-firsts.
We are delighted to report that the company has gone from strength to strength post year end, winning new business and delivering further growth. We have continued to strengthen our foundations by investing in our brands, partners, assets and talented workforce. We are thrilled with the progress we’ve made in reshaping our business and look forward to sustaining this growth in the future.
Whilst markets shift and tastes change, one thing remains certain: people need to eat and our agile, resilient omni-channel business model is built to ensure that the flavour-packed brands we create, partner with & fuel are on shelf or on menu wherever & whenever they decide to eat.
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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(Appointed 06 September 2023) |
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(Appointed 06 September 2023) |
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(Resigned 06 September 2023) |
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(Resigned 25 February 2022) |
Approved by the Board of Directors and signed on its behalf by:
G M Dixon
Director |
Note | 2023 | 2022 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 3 |
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536,993 | 705,494 | |||
Current assets | ||||
Stocks |
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Debtors | 4 |
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Cash at bank and in hand |
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2,975,834 | 2,842,499 | |||
Creditors: amounts falling due within one year | 5 | (
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Net current assets | 559,047 | 407,022 | ||
Total assets less current liabilities | 1,096,040 | 1,112,516 | ||
Creditors: amounts falling due after more than one year | 6 | (
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Net assets |
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Capital and reserves | ||||
Called-up share capital | 7 |
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Capital redemption reserve |
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Profit and loss account |
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Total shareholders' funds |
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Directors' responsibilities:
The financial statements of Manchester Rusk Company Limited (registered number:
G M Dixon
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Manchester Rusk Company Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom and is registered in England and Wales. The address of the Company's registered office is Flava House, Beta Court, Harper Road, Sharston, Manchester, M22 4XR, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
At the Balance Sheet date the company had a net asset position and meets its working capital requirements with the facilities available.
The company's forecasts and projections, taking account of possible changes in trading performance, show that the company can operate within the level of its current facilities.
At the date of signing these accounts, after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these accounts. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.
**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.
Revenue is recognised upon the dispatch of goods.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Plant and machinery |
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Vehicles |
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Computer equipment |
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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.
2023 | 2022 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Plant and machinery | Vehicles | Computer equipment | Total | ||||
£ | £ | £ | £ | ||||
Cost | |||||||
At 01 February 2022 |
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Additions |
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Disposals |
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At 31 January 2023 |
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Accumulated depreciation | |||||||
At 01 February 2022 |
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Charge for the financial year |
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Disposals |
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At 31 January 2023 |
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Net book value | |||||||
At 31 January 2023 |
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At 31 January 2022 |
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Leased assets included above: | |||||||
Net book value | |||||||
At 31 January 2023 | 137,139 | 103,018 | 0 | 240,157 | |||
At 31 January 2022 | 23,441 | 97,358 | 0 | 120,799 |
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£ | £ | ||
Trade debtors |
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Prepayments |
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Corporation tax |
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Other debtors |
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2023 | 2022 | ||
£ | £ | ||
Bank loans |
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Trade creditors |
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Other loans |
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Accruals |
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Other taxation and social security |
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Obligations under finance leases and hire purchase contracts |
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Other creditors |
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2023 | 2022 | ||
£ | £ | ||
Bank loans |
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Obligations under finance leases and hire purchase contracts |
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2023 | 2022 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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7,504 | 7,504 |
The 7,500 Ordinary Shares have different rights.
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2023 | 2022 | ||
£ | £ | ||
within one year |
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between one and five years |
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after five years |
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Pensions
The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
2023 | 2022 | ||
£ | £ | ||
Unpaid contributions due to the fund (inc. in other creditors) |
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Transactions with the entity's directors
2023 | 2022 | ||
£ | £ | ||
Directors loan | 60,060 | 40,243 |
Included in other creditors is a directors loan. No interest has been charged on the outstanding balance during the year.