Company Registration No. 08331000 (England and Wales)
MIDLAND FOOD BAKERY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
MIDLAND FOOD BAKERY LIMITED
COMPANY INFORMATION
Director
Mr R Heptinstall
Company number
08331000
Registered office
4 & 6 Harris Business Park
Hanbury Road
Stoke Prior
Bromsgrove
Worcestershire
B60 4FG
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
HSBC Bank Plc
47 High Street
Bromsgrove
Worcestershire
B61 8AW
MIDLAND FOOD BAKERY LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
MIDLAND FOOD BAKERY LIMITED
ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF MIDLAND FOOD BAKERY LIMITED FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Midland Food Bakery Limited for the year ended 31 March 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.
This report is made solely to the Board of Directors of Midland Food Bakery Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Midland Food Bakery Limited and state those matters that we have agreed to state to the Board of Directors of Midland Food Bakery Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Midland Food Bakery Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Midland Food Bakery Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Midland Food Bakery Limited. You consider that Midland Food Bakery Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Midland Food Bakery Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Ormerod Rutter Limited
24 October 2023
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
MIDLAND FOOD BAKERY LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
24,554
49,104
Tangible assets
4
185,166
107,974
209,720
157,078
Current assets
Stocks
7,550
8,859
Debtors
5
287,865
362,145
Cash at bank and in hand
133,813
90,886
429,228
461,890
Creditors: amounts falling due within one year
6
(477,937)
(419,653)
Net current (liabilities)/assets
(48,709)
42,237
Total assets less current liabilities
161,011
199,315
Creditors: amounts falling due after more than one year
7
(54,693)
(31,446)
Provisions for liabilities
8
(33,823)
(18,639)
Net assets
72,495
149,230
Capital and reserves
Called up share capital
10
75
75
Profit and loss reserves
72,420
149,155
Total equity
72,495
149,230
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MIDLAND FOOD BAKERY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 3 -
The financial statements were approved and signed by the director and authorised for issue on 24 October 2023.
Mr R Heptinstall
Director
Company Registration No. 08331000
MIDLAND FOOD BAKERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
Midland Food Bakery Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 & 6 Harris Business Park, Hanbury Road, Stoke Prior, Bromsgrove, Worcestershire, B60 4FG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.5
Intangible fixed assets other than goodwill
Other intangible assets comprise patents and licence fees, and development costs which are considered to have an indefinite useful life.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Improvements to property
10% on cost
Plant and equipment
15% on reducing balance
Computer equipment
33% on cost
Motor vehicles
25% on reducing balance
MIDLAND FOOD BAKERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
MIDLAND FOOD BAKERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 28 (2022 - 27).
3
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
245,500
4
245,504
Amortisation and impairment
At 1 April 2022
196,400
196,400
Amortisation charged for the year
24,550
24,550
At 31 March 2023
220,950
220,950
Carrying amount
At 31 March 2023
24,550
4
24,554
At 31 March 2022
49,100
4
49,104
MIDLAND FOOD BAKERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
4
Tangible fixed assets
Improvements to property
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
28,872
227,109
10,100
35,000
301,081
Additions
9,384
2,248
127,277
138,909
Disposals
(35,000)
(35,000)
At 31 March 2023
28,872
236,493
12,348
127,277
404,990
Depreciation and impairment
At 1 April 2022
18,081
142,328
8,772
23,926
193,107
Depreciation charged in the year
2,889
14,128
1,808
31,818
50,643
Eliminated in respect of disposals
(23,926)
(23,926)
At 31 March 2023
20,970
156,456
10,580
31,818
219,824
Carrying amount
At 31 March 2023
7,902
80,037
1,768
95,459
185,166
At 31 March 2022
10,791
84,781
1,328
11,074
107,974
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,187
1,676
Amounts owed by group undertakings
265,423
336,187
Other debtors
20,255
24,282
287,865
362,145
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
8,728
10,648
Trade creditors
25,206
31,519
Amounts owed to group undertakings
312,925
Taxation and social security
17,520
37,152
Other creditors
426,483
27,409
477,937
419,653
MIDLAND FOOD BAKERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
20,526
31,446
Other creditors
34,167
54,693
31,446
8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
33,823
18,639
9
Secured debts
The following secured debts are included within creditors:
2023
2022
£
£
Hire purchase contracts
44,167
-
Bank loans
29,254
42,094
73,421
42,094
Hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured by way of a government-backed guarantee.
10
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
75 Ordinary A of £1 each
75
75
75
75
11
Ultimate controlling party
Ultimate parent company
The ultimate parent company is Wedges Bakery Limited, a company registered in England and Wales.
Ultimate controlling party
The ultimate controlling party is Mr R Heptinstall and Mrs E Heptinstall, by virtue of their controlling interest in Wedges Bakery Limited,
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