IRIS Accounts Productionv23.3.0.41804100636Board of Directors30.1.2228.1.2328.1.23truefalsetruetruefalsefalsefalsetruetruefalseFair value modelOrdinary1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure041006362022-01-29041006362023-01-28041006362022-01-302023-01-28041006362021-01-30041006362021-01-312022-01-29041006362022-01-2904100636ns16:EnglandWales2022-01-302023-01-2804100636ns15:PoundSterling2022-01-302023-01-2804100636ns11:Director12022-01-302023-01-2804100636ns11:PrivateLimitedCompanyLtd2022-01-302023-01-2804100636ns11:FRS1022022-01-302023-01-2804100636ns11:Audited2022-01-302023-01-2804100636ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-01-302023-01-2804100636ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-01-302023-01-2804100636ns11:FullAccounts2022-01-302023-01-280410063612022-01-302023-01-2804100636ns11:OrdinaryShareClass12022-01-302023-01-2804100636ns11:Director22022-01-302023-01-2804100636ns11:Director32022-01-302023-01-2804100636ns11:Director42022-01-302023-01-2804100636ns11:Director52022-01-302023-01-2804100636ns11:Director62022-01-302023-01-2804100636ns11:Director72022-01-302023-01-2804100636ns11:Director82022-01-302023-01-2804100636ns11:Director92022-01-302023-01-2804100636ns11:CompanySecretary12022-01-302023-01-2804100636ns11:RegisteredOffice2022-01-302023-01-2804100636ns6:CurrentFinancialInstruments2023-01-2804100636ns6:CurrentFinancialInstruments2022-01-2904100636ns6:Non-currentFinancialInstruments2023-01-2804100636ns6:Non-currentFinancialInstruments2022-01-2904100636ns6:ShareCapital2023-01-2804100636ns6:ShareCapital2022-01-2904100636ns6:RetainedEarningsAccumulatedLosses2023-01-2804100636ns6:RetainedEarningsAccumulatedLosses2022-01-2904100636ns6:ShareCapital2021-01-3004100636ns6:RetainedEarningsAccumulatedLosses2021-01-3004100636ns6:RetainedEarningsAccumulatedLosses2021-01-312022-01-2904100636ns6:RetainedEarningsAccumulatedLosses2022-01-302023-01-280410063612022-01-302023-01-2804100636ns6:NetGoodwill2022-01-302023-01-2804100636ns6:IntangibleAssetsOtherThanGoodwill2022-01-302023-01-2804100636ns16:UnitedKingdom2022-01-302023-01-2804100636ns16:UnitedKingdom2021-01-312022-01-2904100636ns16:Europe2022-01-302023-01-2804100636ns16:Europe2021-01-312022-01-2904100636ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-01-302023-01-2804100636ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-01-312022-01-2904100636ns11:HighestPaidDirector2022-01-302023-01-2804100636ns11:HighestPaidDirector2021-01-312022-01-2904100636ns6:PlantEquipmentOtherAssetsUnderOperatingLeases2022-01-302023-01-2804100636ns6:PlantEquipmentOtherAssetsUnderOperatingLeases2021-01-312022-01-2904100636ns6:OwnedAssets2022-01-302023-01-2804100636ns6:OwnedAssets2021-01-312022-01-2904100636ns6:NetGoodwill2021-01-312022-01-2904100636ns6:ComputerSoftware2022-01-302023-01-2804100636ns6:ComputerSoftware2021-01-312022-01-2904100636ns6:HirePurchaseContracts2022-01-302023-01-2804100636ns6:HirePurchaseContracts2021-01-312022-01-2904100636ns11:OrdinaryShareClass12021-01-312022-01-2904100636ns6:NetGoodwill2022-01-2904100636ns6:ComputerSoftware2022-01-2904100636ns6:NetGoodwill2023-01-2804100636ns6:ComputerSoftware2023-01-2804100636ns6:NetGoodwill2022-01-2904100636ns6:ComputerSoftware2022-01-2904100636ns6:LandBuildings2022-01-2904100636ns6:PlantMachinery2022-01-2904100636ns6:LandBuildings2022-01-302023-01-2804100636ns6:PlantMachinery2022-01-302023-01-2804100636ns6:LandBuildings2023-01-2804100636ns6:PlantMachinery2023-01-2804100636ns6:LandBuildings2022-01-2904100636ns6:PlantMachinery2022-01-2904100636ns6:LeasedAssetsHeldAsLessee2022-01-302023-01-2804100636ns6:WithinOneYearns6:CurrentFinancialInstruments2023-01-2804100636ns6:WithinOneYearns6:CurrentFinancialInstruments2022-01-2904100636ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2023-01-2804100636ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2022-01-2904100636ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2023-01-2804100636ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2022-01-2904100636ns6:HirePurchaseContracts2023-01-2804100636ns6:HirePurchaseContracts2022-01-2904100636ns6:WithinOneYear2023-01-2804100636ns6:WithinOneYear2022-01-2904100636ns6:BetweenOneFiveYears2023-01-2804100636ns6:BetweenOneFiveYears2022-01-2904100636ns6:MoreThanFiveYears2023-01-2804100636ns6:MoreThanFiveYears2022-01-2904100636ns6:AllPeriods2023-01-2804100636ns6:AllPeriods2022-01-2904100636ns6:Secured2023-01-2804100636ns6:Secured2022-01-2904100636ns6:DeferredTaxation2022-01-2904100636ns6:OtherProvisionsContingentLiabilities2022-01-2904100636ns6:DeferredTaxation2022-01-302023-01-2804100636ns6:OtherProvisionsContingentLiabilities2022-01-302023-01-2804100636ns6:DeferredTaxation2023-01-2804100636ns6:OtherProvisionsContingentLiabilities2023-01-2804100636ns11:OrdinaryShareClass12023-01-2804100636ns6:RetainedEarningsAccumulatedLosses2022-01-29

REGISTERED NUMBER: 04100636 (England and Wales)
















FRESHLINC LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

30 JANUARY 2022 TO 28 JANUARY 2023






FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)







CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023






Page



Company Information  

1



Strategic Report  

2


to


5


Report of the Directors  

6


to


7


Report of the Independent Auditors  

8


to


10


Income Statement  

11



Other Comprehensive Income  

12



Statement of Financial Position  

13



Statement of Changes in Equity  

14



Notes to the Financial Statements

15


to


25



FRESHLINC LIMITED


COMPANY INFORMATION

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023









DIRECTORS:

A E Day


R Hancox


S J King


M J Tate


L S Juniper


A R Holland


S Johnson


A P Marchant


P McCarthy




SECRETARY:

A E Day




REGISTERED OFFICE:

Wool Hall Farm


Cross Gate


Wykeham


Spalding


Lincolnshire


PE12 6HW




REGISTERED NUMBER:

04100636 (England and Wales)




INDEPENDENT AUDITORS:

Duncan & Toplis Limited


Enterprise Way


Pinchbeck


Spalding


Lincolnshire


PE11 3YR




SOLICITORS:

Roythornes LLP


Enterprise Way


Pinchbeck


SPALDING


Lincolnshire


PE11 3YR


FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


STRATEGIC REPORT

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


BUSINESS REVIEW


Turnover grew again during the year.  This increase was driven by new business opportunities, further organic growth from our existing customer base and through substantial growth within two of our more recently established operating sectors leading to turnover increasing by £17m (13%) year on year, with double digit growth achieved for the second year in succession.


Key factors driving this increase in sales were:


- Additional business within our chilled network, with increased volumes for one existing retail customer, whilst distribution commenced for a further major retailer during the year and continues to grow into the new financial year.


- The further development of the FloraLinc business, generating substantially higher revenues from an ever-growing number of clients, through supplying distribution services for all Horticulture products grown within the UK and Europe to main retail outlets and the majority of the UK garden centre sector.


- Continued expansion of our ambient business, FLX, with additional volumes managed from our operating centres in Carrington, Huthwaite and Teddington, together with further growth in volumes at our garden products storage operation at Runcorn. A dry powder tanker operation was established during the year, supplying solutions to a well-known UK business and this operation will see growth in the new year both in scale and customer base.


Operational performance for the year was very encouraging, with a strong financial result, despite the late delivery of replacement vehicles and trailers. As a result of this delay, fleet size reduced during the summer period and additional subcontract resource was introduced to fulfil our peak requirements.


During the year our investment in in-house training came to fruition.  A significant number of drivers have successfully progressed from a car licence to an HGV qualification.  The FreshLinc Group is now recognised as a DVSA Delegated Examiner centre for both practical and theory examinations. Not only can we train drivers, but we also have a DVSA approved examiner within the business who can conduct HGV driving examinations and, together with our Compliance Department, we are able to deliver all theoretical training and testing as well as the required CPC courses.  This significant investment ensures that we have a professional, enthusiastic and committed pool of drivers for today and tomorrow as the business continues to expand.


During the year the Group has invested in its infrastructure with the purchase of a 35-acre site in Pinchbeck, Spalding, allowing us to establish our FloraLinc business. Since the acquisition, considerable renovation works were completed, to provide a high-quality growing environment both under glass and outside, for our onsite customer.  This has ensured the site provides a facility allowing for expansion within the horticultural sector.


Further investment at our Spalding depot, with the acquisition of an adjoining acre of development land, has provided increased options as we upgrade our yard operations and traffic flows through the site.  This, together with the addition of two new loading bays to our existing warehouse, provides increased capacity and flexibility.


Considerable investment in our fleet replacement program, with commercial vehicles replaced at a maximum of 3-year intervals, ensures we operate a ‘best in class’ fleet from a fuel usage and emissions perspective.


We believe the increased volumes carried in the various divisions of our business, together with the continual increase in the diversity of our operations, and the ongoing development of our distribution and warehousing network will constantly drive efficiency, economies of scale and provide a sound foundation for further profitable business growth.



FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


STRATEGIC REPORT

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


FUTURE OUTLOOK

We are conscious of the significant inflationary pressure we are currently experiencing, especially given the substantial increase in new tractor unit and trailer pricing, higher borrowing costs and considerable increases in the National Living wage in the year ahead, that are all affecting the wider industry.


We expect the current year to provide opportunities for further growth, albeit this may well be at the expense of margin, as we continue to invest for the future.


Since the year end, we have established an ambient warehousing and distribution facility at our Peterborough PS140 site, a brand new 140,000 square feet storage facility, comprising 25,000 pallet racking locations. This operation will offer a full range of value added and re-work services to its customers together with enabling us to expand our ambient cross dock offering   We look forward to this site reaching capacity as the year progresses.  This investment has enabled FLX to operate at scale within the ambient distribution arena.


We have also secured another specialist contract, which requires further bespoke equipment including crane-based tractor units and various types of specialist trailers, with this operation planned to fully commence by the end of July 2023.


Volumes continue to grow within FloraLinc during the first part of the new financial year, with an ever-increasing number of growers using FloraLinc as their haulier of choice.


Despite the challenges we face in terms of the economic outlook, we are confident we will continue to deliver a first-class, bespoke services to our customer base, and produce satisfactory returns for the business and shareholders.


Our track record of consistent substantial growth over the past few years, and our sustained investment in the scale of operation, geographic coverage and network, together with the service levels our customers demand, will continue to give us the opportunity to further diversify our customer base, scale and capabilities.


Our dedicated and committed employees remain our key asset as the business diversifies and flourishes.


PRINCIPAL RISKS AND UNCERTAINTIES

The principal financial risk facing the company would be a loss of its customer base. However the company has performed very well by winning new business through its focus on cost control and high service levels, and given the growth and diversification of the recent past, our reliance on any one key contract has been reduced significantly.


The company is also subject to environmental and health and safety risks and mitigates these by a focus on training, equipment maintenance, fleet replacement programme and stringent internal audit controls.


Market Risk


Market risk encompasses three types of risk, being currency risk, fair value interest rate and price risk. The company's policies for managing fair value interest rate risk are considered along with those for managing cash flow interest rate risk and are set out in the section entitled "interest rate risk" below.


Liquidity Risk


The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.


Short-term flexibility is achieved by an asset backed bank lending facility.


Interest Rate Risk


The company finances its operations through a mixture of retained profits, bank borrowings and hire purchase agreements. The company’s exposure to interest rate fluctuations on its borrowings is mitigated by the use of fixed interest hire purchase agreements.


Credit Risk


The company’s principal financial assets are cash and trade debtors.

In order to manage credit risk, the directors set limits for customers based on a combination of payment history, and third-party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.



FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


STRATEGIC REPORT

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


SECTION 172(1) STATEMENT

FreshLinc Limited: Stakeholder Engagement


As the Board at FreshLinc, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders.  This statement addresses the ways in which we as a Board manage this responsibility.


Promoting the company's success for its members


FreshLinc Ltd was started as part of Lincolnshire Field Products Limited in 2000 by Robin Hancox and two other stakeholders of that business in 2000 and was incorporated as a separate trading entity in 2008. The company continues to be owned and controlled by the original 3 stakeholders, with Robin Hancox continuing to be the majority shareholder.  We’re proud of the way in which, over the last decade or so, the company has continued to achieve consistent long-term growth and has provided employment, training and financial reward for an increasing number of colleagues, together with its owners.


We aim to be the best-in-class haulier within all the marketplaces in which we trade and have demonstrated a strong history of customer service in the chilled logistics arena.  In a competitive market, dominated by several large 4PL businesses, we strive to continue to grow our business through further opportunities with our current customers and through new business based on our reputation for quality of service, accessibility to colleagues at all levels within our business, and personal relationships developed over time with our customer base.


We acknowledge that, in order to progress to the next phase in the company’s future, it is likely that we will need to enhance our asset base and form strategic partnerships with other companies and groups in the sectors within which we operate.  We continue to explore possibilities along these lines.  In doing so, our twin aims are to maximise the company’s ability to grow profits and market share whilst returning the highest possible value to the shareholders.


We make strategic decisions based on long-term objectives.  In particular, this has meant significant investment in our warehousing and IT infrastructures, to enable us to offer visibility of our operation to our customer base to meet their varied and time critical needs. Investment will continue over the coming years to ensure we continue to offer state of the art facilities and IT systems as the company continues to grow in both scale and diversity of goods handled.


Engaging with stakeholders


Our key stakeholders, and the ways in which we engage with them, are as follows:


Our employees


Our distribution operations rely heavily on a skilled team including warehouse operatives, HGV drivers operations staff and management on a twenty four hour, 7 day a week basis, as well as a focused central team of business development, finance, HR and IT professionals.  We are renowned for our customer service, which requires us to adapt to last-minute changes and challenges faced in operating over 300 vehicles and 800 trailers, delivering to multiple locations on a daily basis, to tight delivery schedules and ever-increasing demands for the order process to be just in time.  We cannot achieve this without our team.


Recruitment and retention of staff is therefore a critical business activity.  We help to engage with team members by:


- setting remuneration at market-leading rates,


- providing training and career development support,


Our customers and suppliers


We invest heavily in our fleet replacement programme ensuring we have the most fuel efficient and environmentally beneficial vehicles, together with a robust driver training and compliance system, to ensure we can continue to offer customers the best quality distribution service for their products to marketplace.  We meet with key customers at least every quarter to review new opportunities.


Our business model prioritises quality and delivery. We believe we are competitive in our chosen marketplaces, but feel it is our consistently high service levels that differentiate us from our peers. Our customers value the high degree of interaction and expertise, from the tender process through to renewal of contracts.


We have built and will maintain a reputation for transparency and fair dealing in our interaction with customers and suppliers.




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


STRATEGIC REPORT

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


Our community


We are a private company with the original three shareholders, all of whom continue to work within the group businesses, with our roots in farming the fertile soils around Spalding, and we continue to be a significant employer in the local community. We provide distribution services to several local charities at Christmas time and at various other religious festivals on an annual basis.


Our planet


Our industry contributes to environmental pollution and we are working hard to minimise the impact of our operations. We operate exclusively Euro VI vehicles within our fleet and our focus on driver behaviour enables us to ensure our impact on the environment is minimised.  We introduced a solar array to our main operational site during 2021, which has enabled us to  generate circa 25% of our energy consumption each year.


FINANCIAL KEY PERFORMANCE INDICATORS

The company measures its financial performance using the following measures:


- Growth in turnover is a key measure of the company’s success in winning new business and retaining existing customers. Turnover in the period of £144,888,241 shows a 13.6% increase on the previous year’s turnover of £127,565,670.


- Gross profit of £18,449,914 was 12.7% of turnover and compared to £11,836,181 (9.3% of turnover) in the previous year, this represents a 3.4% increase year on year, reflecting the continued growth within the business.


- Operating Profit of £5,941,025 in the period is stated after other operating charges of £13,054,514 and other operating income of £545,625 and represents 4.1% of turnover, compared to the £1,510,962 operating profit and 1.2% margin achieved during the previous period.


OTHER KEY PERFORMANCE INDICATORS

The company measures its non-financial performance in several areas as follows:


- The securing of new business is a critical area if the business is to continue to grow. The value of contracts won during the period is therefore closely monitored by the directors.


- The service delivery to key customers is measured and reported on a daily, weekly and monthly basis, in conjunction with those key customers in areas such as delivery on time, service availability and quality scores.


- A number of operating KPI's relating to vehicle operation are monitored within the business to ensure operational efficiency is maximized, especially through all seasonal peaks.


ON BEHALF OF THE BOARD:






R Hancox - Director



7 August 2023


FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


REPORT OF THE DIRECTORS

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


The directors present their report with the financial statements of the company for the period 30 January 2022 to 28 January 2023.


PRINCIPAL ACTIVITY

The principal activity of the company is haulage and freight transport of temperature controlled and ambient FMCG, together with general distribution services within the UK and Europe.

DIVIDENDS

No interim dividend was paid during the period.  The directors recommend a final dividend of £100 per share.


The total distribution of dividends for the period ended 28 January 2023 will be £ 100,000 .


DIRECTORS

The directors shown below have held office during the whole of the period from 30 January 2022 to the date of this report.


A E Day

R Hancox

S J King

M J Tate

L S Juniper

A R Holland

S Johnson

A P Marchant

P McCarthy


POLITICAL DONATIONS AND EXPENDITURE

The donation costs totalled £15,346 (2022: £3,848), they are not political donations.


EMPLOYEE INVOLVEMENT

Company personnel policies ensure that all employees are made aware on a regular basis of the company's policies and progress.


DISABLED EMPLOYEES

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.


DIRECTORS' RESPONSIBILITIES STATEMENT

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained
in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


REPORT OF THE DIRECTORS

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023



STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:






R Hancox - Director



7 August 2023


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

FRESHLINC LIMITED


Opinion

We have audited the financial statements of FreshLinc Limited (the 'company') for the period ended 28 January 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 January 2023 and of its profit for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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


Conclusions relating to going concern

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


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


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


Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.


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


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


Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception

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


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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

FRESHLINC LIMITED



Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements

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


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


We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.


The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws and regulations as part of our financial statements audit. This included the identification and testing of unusual material journal entries and challenging management on key areas of uncertainty being the estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies.


Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Food Safety regulations, Haulage and operator regulations and Employment laws. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection. This inspection included a review of the external audits conducted in the year, confirmation of renewed relevant memberships and licenses and a detailed walkthrough of Health and Safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statements items.


Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, international omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.


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


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

FRESHLINC LIMITED



Use of our report

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





Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR


7 August 2023


FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


INCOME STATEMENT

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023



Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22


Notes

£   

£   



TURNOVER

3

144,888,241


127,565,670




Cost of sales

126,438,327


115,729,489



GROSS PROFIT

18,449,914


11,836,181




Administrative expenses

13,054,514


10,732,493



5,395,400


1,103,688




Other operating income

545,625


407,274



OPERATING PROFIT

5

5,941,025


1,510,962




Interest receivable and similar income

2,508


4,683



5,943,533


1,515,645




Interest payable and similar expenses

6

302,257


176,530



PROFIT BEFORE TAXATION

5,641,276


1,339,115




Tax on profit

7

969,736


294,828



PROFIT FOR THE FINANCIAL PERIOD

4,671,540


1,044,287




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


OTHER COMPREHENSIVE INCOME

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023



Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22


Notes

£   

£   



PROFIT FOR THE PERIOD

4,671,540


1,044,287





OTHER COMPREHENSIVE INCOME

-


-



TOTAL COMPREHENSIVE INCOME FOR THE

PERIOD

4,671,540


1,044,287




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


STATEMENT OF FINANCIAL POSITION

28 JANUARY 2023



2023

2022



Notes

£   

£   

£   

£   


FIXED ASSETS

Intangible assets

9

507,955


608,854



Tangible assets

10

8,908,760


6,291,510



Investment property

11

240,000


240,000



9,656,715


7,140,364




CURRENT ASSETS

Stocks

12

304,743


236,347



Debtors

13

31,959,268


32,317,555



Cash at bank

13,797


47,196



32,277,808


32,601,098



CREDITORS

Amounts falling due within one year

14

27,421,957


30,769,000



NET CURRENT ASSETS

4,855,851


1,832,098



TOTAL ASSETS LESS CURRENT LIABILITIES

14,512,566


8,972,462




CREDITORS

Amounts falling due after more than one year

15

(749,205

)

(304,642

)



PROVISIONS FOR LIABILITIES

19

(1,310,396

)

(786,395

)


NET ASSETS

12,452,965


7,881,425




CAPITAL AND RESERVES

Called up share capital

20

1,000


1,000



Retained earnings

21

12,451,965


7,880,425



SHAREHOLDERS' FUNDS

12,452,965


7,881,425




The financial statements were approved by the Board of Directors and authorised for issue on 7 August 2023 and were signed on its behalf by:






R Hancox - Director



FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023



Called up



share


Retained


Total


capital


earnings


equity

£   

£   

£   



Balance at 31 January 2021

1,000


7,036,138


7,037,138




Changes in equity

Dividends

-


(200,000

)

(200,000

)


Total comprehensive income

-


1,044,287


1,044,287



Balance at 29 January 2022

1,000


7,880,425


7,881,425




Changes in equity

Dividends

-


(100,000

)

(100,000

)


Total comprehensive income

-


4,671,540


4,671,540



Balance at 28 January 2023

1,000


12,451,965


12,452,965




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


1.

STATUTORY INFORMATION



FreshLinc Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.  



Financial Reporting Standard 102 - reduced disclosure exemptions


The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":




the requirements of Section 7 Statement of Cash Flows;



the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);



the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.



Critical accounting judgements and key sources of estimation uncertainty

Some of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on the director's prior experiences and using their best knowledge of the relevant facts and circumstances. Actual results may differ from the amounts included in the financial statements. Information about such judgements and estimations is included in the accounting policies and/or notes to the accounts. The key areas are summarised below;

Judgements in applying accounting policies
- The directors must judge whether all of the conditions required for the turnover to be recognised in profit and loss for the financial year, as set out in revenue note, have been met.

Sources of estimation uncertainty
- Insurance provisions are based on amounts expected to be paid out in respect of insurance claims
- Bad debt provision is reviewed on a client by client basis and estimated based on the likelihood of debt being recovered.
- Depreciation and amortisation rates are based on estimates of the useful economic lives and residual values of the assets involved.


Going concern

The Directors have carried out a detailed and comprehensive review of the business, its future prospects and its ability to meet its obligations as they fall due. In the opinion of the Directors, the Company is expected to be able to continue trading within the current arrangements and consequently the financial statements have been prepared on a going concern basis.


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:



Revenue from haulage and freight transport services is recognised in the period in which the services are provided.



Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive income over 10 years.


Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on the following bases:

Software - 20-33% straight line

FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


2.

ACCOUNTING POLICIES - continued



Tangible fixed assets

Tangible fixed assets under the cost model, other than investment properties, 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.

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

Depreciation is provided on the following basis;

Freehold property - 2% - 10%
Plant and machinery - 5% - 33%

The assets' residual values, useful economic 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive income.


Investment property


Assets under construction are held at cost.



Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any differences in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive income.



Stocks


Stocks held by the company are diesel and consumables, not intended for resale. These are held at cost value and no impairment review is necessitated due to the nature of this stock


FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


2.

ACCOUNTING POLICIES - continued



Financial instruments

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 non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not attacked rate, the financial asset or liability is measured, at market, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Derivatives, including interest rate swaps, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of the derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate derivatives.


Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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


Deferred tax

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

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

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

FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


2.

ACCOUNTING POLICIES - continued



Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transactions and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive income.


Operating leases


Rentals paid under operating leases are charged to the Statement of Comprehensive income on a straight line basis over the lease term.



Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.



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 payments obligations.

The contributions are recognised as an expense in the Statement of Comprehensive income when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

Defined benefit pension plan

The company participates in the Lincolnshire Field Products Limited Pension and Life Assurance Scheme. This is a defined benefit scheme but the company is unable to identify its share of the underlying assets and liabilities and as such will account for the scheme as a defined contribution scheme. The Scheme was closed to future accrual on 31 August 2010.


Debtors and creditors


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.



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 at amortised cost using the effective interest method.



Finance costs


Finance costs are charged to the Statement of Comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issues costs are initially recognised as a reduction in the proceeds of the associated capital instrument.


FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


2.

ACCOUNTING POLICIES - continued



Provisions for liabilities


Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit and a reliable estimate can be made of the amount of the obligation.



Provisions are charged as an expense to the Statement of Comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.



When payments are eventually made, they are charged to the provision carried in the Balance Sheet.


3.

TURNOVER



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



An analysis of turnover by geographical market is given below:



Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



United Kingdom

132,832,128


117,056,838




Europe

12,056,113


10,508,832



144,888,241


127,565,670




4.

EMPLOYEES AND DIRECTORS


Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Wages and salaries

24,904,362


16,580,313




Social security costs

2,644,018


1,618,671




Other pension costs

411,748


265,230



27,960,128


18,464,214





The average number of employees during the period was as follows:


Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22



Operations staff

589


475




Administration staff

34


33



623


508





Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Directors' remuneration

821,614


438,069




Directors' pension contributions to money purchase schemes  

54,813


29,347




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


4.

EMPLOYEES AND DIRECTORS - continued



Information regarding the highest paid director is as follows:


Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Emoluments etc

351,530


211,113




Pension contributions to money purchase schemes

39,478


19,374




5.

OPERATING PROFIT



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



Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Hire of plant and machinery

12,296,737


12,303,649




Other operating leases

668,056


550,132




Depreciation - owned assets

819,529


655,953




(Profit)/loss on disposal of fixed assets

(13,180

)

7,833




Goodwill amortisation

93,407


93,407




Computer software amortisation

27,117


45,436




Auditors' remuneration

22,967


20,150




Auditors' remuneration for non audit work

-


2,750




Foreign exchange differences

20,148


21,711




6.

INTEREST PAYABLE AND SIMILAR EXPENSES



Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Bank interest

276,557


167,152




Hire purchase interest

25,700


9,378



302,257


176,530




7.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the period was as follows:


Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Current tax:


Prior year tax adjustment

(20,510

)

-




Payment for group loss relief

800,000


-




Total current tax

779,490


-





Deferred tax

190,246


294,828




Tax on profit

969,736


294,828




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


7.

TAXATION - continued



Reconciliation of total tax charge included in profit and loss


The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:



Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Profit before tax

5,641,276


1,339,115




Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 -

19%)  

1,071,842


254,432





Effects of:


Expenses not deductible for tax purposes

33,233


36,110




Capital allowances in excess of depreciation

(179,899

)

(194,554

)



Group Tax relief  

(945,686

)

(95,988

)



Deferred tax arising from timing differences  

190,246


241,458




Change of tax rate  

-


53,370




Payment for group loss relief  

800,000


-




Total tax charge

969,736


294,828




The UK Government have confirmed that the main rate of corporation tax will increase to 25% from April 2023. At the balance sheet date deferred tax has been calculated at the enhanced rate of 25%.

8.

DIVIDENDS


Period


Period


30.1.22


31.1.21


to


to


28.1.23


29.1.22

£   

£   



Ordinary shares of £1 each


Final

100,000


200,000




9.

INTANGIBLE FIXED ASSETS


Computer



Goodwill


software


Totals

£   

£   

£   



COST


At 30 January 2022

936,633


606,566


1,543,199




Additions

-


19,625


19,625




At 28 January 2023

936,633


626,191


1,562,824




AMORTISATION


At 30 January 2022

405,960


528,385


934,345




Amortisation for period

93,407


27,117


120,524




At 28 January 2023

499,367


555,502


1,054,869




NET BOOK VALUE


At 28 January 2023

437,266


70,689


507,955




At 29 January 2022

530,673


78,181


608,854




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


10.

TANGIBLE FIXED ASSETS


Freehold



property


Plant and



& land


machinery


Totals

£   

£   

£   



COST


At 30 January 2022

4,834,055


5,977,556


10,811,611




Additions

957,596


2,508,003


3,465,599




Disposals

-


(115,826

)

(115,826

)



At 28 January 2023

5,791,651


8,369,733


14,161,384




DEPRECIATION


At 30 January 2022

1,474,542


3,045,559


4,520,101




Charge for period

98,613


720,916


819,529




Eliminated on disposal

-


(87,006

)

(87,006

)



At 28 January 2023

1,573,155


3,679,469


5,252,624




NET BOOK VALUE


At 28 January 2023

4,218,496


4,690,264


8,908,760




At 29 January 2022

3,359,513


2,931,997


6,291,510





Included in cost of land and buildings is freehold land of £ 1,442,636 (2022 - £ 1,030,210 ) which is not depreciated.


The net book value of tangible fixed assets includes £1,330,080 (2022 - £580,794) in respect of assets held under hire purchase contracts.

11.

INVESTMENT PROPERTY


Total

£   



FAIR VALUE


At 30 January 2022


and 28 January 2023

240,000




NET BOOK VALUE


At 28 January 2023

240,000




At 29 January 2022

240,000




12.

STOCKS

2023

2022


£   

£   



Raw Materials and Consumables

304,743


236,347




13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


£   

£   



Trade debtors

21,785,173


19,779,821




Amounts owed by group undertakings

2,135,306


10,950,444




Amounts owed by participating interests

6,779,124


-




Other debtors

7,110


141,393




Taxation

-


6,067




Prepayments and accrued income

1,252,555


1,439,830



31,959,268


32,317,555




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


£   

£   



Bank loans and overdrafts (see note 16)

8,285,122


9,615,358




Hire purchase contracts  (see note 17)

389,358


184,395




Trade creditors

12,018,830


13,135,947




Amounts owed to group undertakings

163,832


1,221,616




Other taxes and social security

1,848,465


1,572,937




Other creditors

1,505,806


1,012,291




Accrued expenses

3,210,544


4,026,456



27,421,957


30,769,000




15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR


2023

2022


£   

£   



Hire purchase contracts  (see note 17)

749,205


304,642




16.

LOANS



An analysis of the maturity of loans is given below:


2023

2022


£   

£   



Amounts falling due within one year or on demand:


Bank overdrafts

8,285,122


9,615,358




The bank loans are secured by fixed and floating charges over all the assets of the company.

17.

LEASING AGREEMENTS



Minimum lease payments fall due as follows:



Hire purchase contracts


2023

2022


£   

£   



Net obligations repayable:


Within one year

389,358


184,395




Between one and five years

749,205


304,642



1,138,563


489,037





Non-cancellable operating

leases


2023

2022


£   

£   



Within one year

10,290,627


10,539,897




Between one and five years

14,800,097


12,436,729




In more than five years

76,294


74,143



25,167,018


23,050,769




FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


18.

SECURED DEBTS



The following secured debts are included within creditors:


2023

2022


£   

£   



Bank overdrafts

8,285,122


9,615,358




Hire purchase contracts

1,138,563


489,037



9,423,685


10,104,395





Obligations under hire purchase are secured against the assets to which they relate.



There is an unlimited multilateral guarantee given by Freshlinc Group Limited, Freshlinc Limited, Keepstem Limited, Directlinc Limited and Lincolnshire Field Products Limited to HSBC Bank.


19.

PROVISIONS FOR LIABILITIES

2023

2022


£   

£   



Deferred tax


Accelerated capital allowances

738,591


548,345




Insurance provision

571,805


238,050



1,310,396


786,395





Deferred




tax


Insurance


£   

£   



Balance at 30 January 2022

548,345


238,050




Provided during period

190,246


333,755




Balance at 28 January 2023

738,591


571,805




Other provisions are an insurance provision included in relation to potential third party insurance claims.

The rate of deferred taxation provisions on gains within UK subsidiaries has been modified to 25% (2022: 23% apportioned) in line with government legislation on future corporation tax rates that was enacted at 31 December 2021.

20.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

2023

2022



value:

£   

£   



1,000

Ordinary

£1

1,000


1,000




21.

RESERVES


Retained


earnings

£   




At 30 January 2022

7,880,425




Profit for the period

4,671,540




Dividends

(100,000

)



At 28 January 2023

12,451,965




a) Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

FRESHLINC LIMITED (REGISTERED NUMBER: 04100636)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE PERIOD 30 JANUARY 2022 TO 28 JANUARY 2023


22.

PENSION COMMITMENTS


The company participates in the Lincolnshire Field Products Limited Pension and Life Assurance Scheme. This is a defined benefit scheme but the company is unable to identify its share of the underlying assets and liabilities and as such will account for the scheme as a defined contribution scheme. The Scheme was closed to future accrual on 31 August 2010.

Contributions to the defined contribution pension scheme in the period totalled £411,748 (2022 - £265,231).

23.

CAPITAL COMMITMENTS

2023

2022


£   

£   



Contracted but not provided for in the


financial statements

975,981


15,365




24.

RELATED PARTY DISCLOSURES



As a wholly owned subsidiary of Fidelis Holdings Limited, the company is exempt from the requirements of FRS 102 to disclose transactions with other member of the group of companies headed by Freshlinc Group Limited on the grounds that consolidated accounts are publicly available from Companies House.



LFP Investments Limited is a private limited company which is related by having directors in common with the company.


25.

ULTIMATE CONTROLLING PARTY



The ultimate parent undertaking of this company is Fidelis Holdings Limited.



Fidelis Holdings Limited is the company's controlling related party by virtue of its 100% shareholding in Freshlinc Group Limited, which in turn owns 100% of the share capital in Freshlinc Limited. The Board of Directors of Fidelis Holdings Limited are considered to be the company's ultimate controlling related party by virtue of of their directorships of and shareholdings in Fidelis Holdings Limited, the ultimate parent undertaking.