IRIS Accounts Production v23.3.0.418 NI031111 Board of Directors 1.5.22 30.4.23 30.4.23 true true false true true false false false true false Ordinary 1.00000 Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureNI0311112022-04-30NI0311112023-04-30NI0311112022-05-012023-04-30NI0311112021-04-30NI0311112021-05-012022-04-30NI0311112022-04-30NI031111ns16:NorthernIreland2022-05-012023-04-30NI031111ns15:PoundSterling2022-05-012023-04-30NI031111ns11:Director12022-05-012023-04-30NI031111ns11:PrivateLimitedCompanyLtd2022-05-012023-04-30NI031111ns11:FRS1022022-05-012023-04-30NI031111ns11:Audited2022-05-012023-04-30NI031111ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-05-012023-04-30NI031111ns11:LargeMedium-sizedCompaniesRegimeForAccounts2022-05-012023-04-30NI031111ns11:FullAccounts2022-05-012023-04-30NI03111112022-05-012023-04-30NI031111ns11:OrdinaryShareClass12022-05-012023-04-30NI031111ns11:Director22022-05-012023-04-30NI031111ns11:RegisteredOffice2022-05-012023-04-30NI03111112022-05-012023-04-30NI03111112021-05-012022-04-30NI031111ns6:CurrentFinancialInstruments2023-04-30NI031111ns6:CurrentFinancialInstruments2022-04-30NI031111ns6:Non-currentFinancialInstruments2023-04-30NI031111ns6:Non-currentFinancialInstruments2022-04-30NI031111ns6:ShareCapital2023-04-30NI031111ns6:ShareCapital2022-04-30NI031111ns6:SharePremium2023-04-30NI031111ns6:SharePremium2022-04-30NI031111ns6:FurtherSpecificReserve1ComponentTotalEquity2023-04-30NI031111ns6:FurtherSpecificReserve1ComponentTotalEquity2022-04-30NI031111ns6:RetainedEarningsAccumulatedLosses2023-04-30NI031111ns6:RetainedEarningsAccumulatedLosses2022-04-30NI031111ns6:ShareCapital2021-04-30NI031111ns6:RetainedEarningsAccumulatedLosses2021-04-30NI031111ns6:SharePremium2021-04-30NI031111ns6:FurtherSpecificReserve1ComponentTotalEquity2021-04-30NI031111ns6:RetainedEarningsAccumulatedLosses2021-05-012022-04-30NI031111ns6:FurtherSpecificReserve1ComponentTotalEquity2021-05-012022-04-30NI031111ns6:RetainedEarningsAccumulatedLosses2022-05-012023-04-30NI031111ns6:FurtherSpecificReserve1ComponentTotalEquity2022-05-012023-04-30NI031111ns6:NetGoodwill2022-05-012023-04-30NI031111ns6:IntangibleAssetsOtherThanGoodwill2022-05-012023-04-30NI031111ns6:LongLeaseholdAssetsns6:LandBuildings2022-05-012023-04-30NI031111ns6:PlantMachinery2022-05-012023-04-30NI031111ns6:FurnitureFittings2022-05-012023-04-30NI031111ns6:MotorVehicles2022-05-012023-04-30NI03111112022-05-012023-04-30NI031111ns16:UnitedKingdom2022-05-012023-04-30NI031111ns16:UnitedKingdom2021-05-012022-04-30NI031111ns16:Europe2022-05-012023-04-30NI031111ns16:Europe2021-05-012022-04-30NI031111ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-05-012023-04-30NI031111ns6:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-05-012022-04-30NI031111ns11:HighestPaidDirector2022-05-012023-04-30NI031111ns11:HighestPaidDirector2021-05-012022-04-30NI031111ns6:OwnedAssets2022-05-012023-04-30NI031111ns6:OwnedAssets2021-05-012022-04-30NI031111ns6:LeasedAssets2022-05-012023-04-30NI031111ns6:LeasedAssets2021-05-012022-04-30NI031111ns6:NetGoodwill2021-05-012022-04-30NI031111ns6:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-05-012023-04-30NI031111ns6:DevelopmentCostsCapitalisedDevelopmentExpenditure2021-05-012022-04-30NI031111ns6:ComputerSoftware2022-05-012023-04-30NI031111ns6:ComputerSoftware2021-05-012022-04-30NI03111122022-05-012023-04-30NI03111122021-05-012022-04-30NI03111132022-05-012023-04-30NI03111132021-05-012022-04-30NI031111ns6:HirePurchaseContracts2022-05-012023-04-30NI031111ns6:HirePurchaseContracts2021-05-012022-04-30NI031111ns6:NetGoodwill2022-04-30NI031111ns6:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-04-30NI031111ns6:ComputerSoftware2022-04-30NI031111ns6:NetGoodwill2023-04-30NI031111ns6:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-04-30NI031111ns6:ComputerSoftware2023-04-30NI031111ns6:NetGoodwill2022-04-30NI031111ns6:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-04-30NI031111ns6:ComputerSoftware2022-04-30NI031111ns6:LongLeaseholdAssetsns6:LandBuildings2022-04-30NI031111ns6:PlantMachinery2022-04-30NI031111ns6:FurnitureFittings2022-04-30NI031111ns6:MotorVehicles2022-04-30NI031111ns6:LongLeaseholdAssetsns6:LandBuildings2023-04-30NI031111ns6:PlantMachinery2023-04-30NI031111ns6:FurnitureFittings2023-04-30NI031111ns6:MotorVehicles2023-04-30NI031111ns6:LongLeaseholdAssetsns6:LandBuildings2022-04-30NI031111ns6:PlantMachinery2022-04-30NI031111ns6:FurnitureFittings2022-04-30NI031111ns6:MotorVehicles2022-04-30NI031111ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2022-04-30NI031111ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2022-04-30NI031111ns6:LeasedAssetsHeldAsLessee2022-04-30NI031111ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2022-05-012023-04-30NI031111ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2022-05-012023-04-30NI031111ns6:LeasedAssetsHeldAsLessee2022-05-012023-04-30NI031111ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2023-04-30NI031111ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2023-04-30NI031111ns6:LeasedAssetsHeldAsLessee2023-04-30NI031111ns6:PlantMachineryns6:LeasedAssetsHeldAsLessee2022-04-30NI031111ns6:MotorVehiclesns6:LeasedAssetsHeldAsLessee2022-04-30NI031111ns6:LeasedAssetsHeldAsLessee2022-04-30NI031111ns6:CostValuation2022-04-30NI031111ns6:Subsidiary12022-05-012023-04-30NI0311111ns6:Subsidiary12022-05-012023-04-30NI031111ns6:Subsidiary12023-04-30NI031111ns6:Subsidiary12022-04-30NI031111ns6:WithinOneYearns6:CurrentFinancialInstruments2023-04-30NI031111ns6:WithinOneYearns6:CurrentFinancialInstruments2022-04-30NI031111ns6:CurrentFinancialInstruments2022-05-012023-04-30NI031111ns6:BetweenOneTwoYearsns6:Non-currentFinancialInstruments2023-04-30NI031111ns6:BetweenOneTwoYearsns6:Non-currentFinancialInstruments2022-04-30NI031111ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2023-04-30NI031111ns6:BetweenTwoFiveYearsns6:Non-currentFinancialInstruments2022-04-30NI031111ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2023-04-30NI031111ns6:WithinOneYearns6:CurrentFinancialInstrumentsns6:HirePurchaseContracts2022-04-30NI031111ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2023-04-30NI031111ns6:BetweenOneFiveYearsns6:HirePurchaseContracts2022-04-30NI031111ns6:MoreThanFiveYearsns6:HirePurchaseContracts2023-04-30NI031111ns6:MoreThanFiveYearsns6:HirePurchaseContracts2022-04-30NI031111ns6:HirePurchaseContracts2023-04-30NI031111ns6:HirePurchaseContracts2022-04-30NI031111ns6:WithinOneYear2023-04-30NI031111ns6:WithinOneYear2022-04-30NI031111ns6:BetweenOneFiveYears2023-04-30NI031111ns6:BetweenOneFiveYears2022-04-30NI031111ns6:AllPeriods2023-04-30NI031111ns6:AllPeriods2022-04-30NI031111ns6:TaxLossesCarry-forwardsDeferredTax2023-04-30NI031111ns6:TaxLossesCarry-forwardsDeferredTax2022-04-30NI031111ns6:DeferredTaxation2022-04-30NI031111ns6:DeferredTaxation2022-05-012023-04-30NI031111ns6:DeferredTaxation2023-04-30NI031111ns11:OrdinaryShareClass12023-04-30NI031111ns6:RetainedEarningsAccumulatedLosses2022-04-30NI031111ns6:SharePremium2022-04-30NI031111ns6:FurtherSpecificReserve1ComponentTotalEquity2022-04-30
REGISTERED NUMBER: NI031111 (Northern Ireland)













Kestrel Foods Limited

Strategic Report, Directors' Report and

Financial Statements

for the Year Ended 30 April 2023






Kestrel Foods Limited (Registered number: NI031111)

Contents of the Financial Statements
for the Year Ended 30 April 2023










Page

Company information 1

Strategic report 2 to 3

Directors' report 4 to 5

Report of the independent auditors 6 to 7

Statement of comprehensive income 8

Statement of financial position 9

Statement of changes in equity 10

Statement of cash flows 11

Notes to the financial statements 12 to 25


Kestrel Foods Limited

Company Information
for the Year Ended 30 April 2023







Directors: Mr M Hall
Mr M R Palmer



Registered office: Unit 8 Carn Drive
Carn Industrial Estate
Portadown
Co Armagh
BT63 5WJ



Registered number: NI031111 (Northern Ireland)



Auditors: Wylie Ruddell
Statutory Auditor
Chartered Accountants
Armagh Business Centre
2 Loughgall Road
Armagh
BT61 7NH



Solicitors: Peden & Reid
22 Callender Street
Belfast
Antrim
BT1 5BU

Kestrel Foods Limited (Registered number: NI031111)

Strategic Report
for the Year Ended 30 April 2023


The directors present their strategic report for the year ended 30 April 2023.

Review of business
The principal activities of the Company during the year were the manufacture and sale of premium snacks, primarily chocolate, nuts & dried fruit and granola under the Forest Feast, ACTI-SNACK and Just Live a Little brands as well as key private labels.

Development and performance
The Company continues to perform strongly with turnover increasing by 20.4% in the year to 30 April 2023. This growth was achieved by expanding the number of distribution points within the GB market alongside increasing the portfolio of newly developed products.

Development of the Company's portfolio of branded products has been rewarded with a 36.3% growth in branded business during the year. It remains on course to reach its future growth targets with focus on continuing geographic expansion. Fitting with the overall business strategy the Company acquired the Just Live a Little brand in December 2021, allowing growth going forwards in the breakfast category.

Key Performance Indicators
The Board monitors the progress of the Company by reference to the following KPIs

Turnover £23,166,719 (2022: £19,244,185)
Gross profit % 27.0% (2022: 25.9%)
Operating profit/(loss) £559,038 (2022: £531,674)
Net debt £2,206,288 (2022: £1,886,459)

The directors have been encouraged in the new financial year with continued year on year growth in branded sales. They are committed to long-term success and profitability of the Company through a combination of product development, building brand awareness, increasing distribution and operational efficiency.

Business environment
The snacking and breakfast sectors continue to grow but remain highly competitive, with more entrants competing for space, combined with more aggressive pricing of supermarket own brand products. This has emphasised the need for differentiated products and continued brand development to grow market share.

Strategy
The Company strategy is to continue to carve out space within the snacking market, building brand awareness, distribution, and sales of both the Forest Feast and ACTI-SNACK brands. Innovation remains central to this growth, by continuing to broaden the product range with revolutionary and on-trend products that delight consumers and add category value. The Company also continues to grow its presence in the breakfast category, following the acquisition of the Just Live a Little brand. Further growth will come from new product development, building brand awareness and distribution points. The business will also continue developing manufacturing capability through key investments in infrastructure and people.

Principal risks and uncertainties
The Board of Directors convene monthly to review the Company's financial and operational performance. Annual forecasts and formal business plans are prepared and variances against these forecasts are measured on a monthly basis to ensure their effects can be accurately estimated and reacted to.

Performance in the sector is affected by consumer buying behaviour and general economic conditions. Specific sectoral factors such as seasonal buying of dried fruit and nuts can determine sales performance. Product availability and price fluctuations are other sectoral risks and the directors counter this through forward buying commodities on contract with reliable suppliers. Global weather conditions can have an adverse effect on the commodities we buy. The directors have a policy that a minimum of two suppliers are contracted where possible per commodity. All suppliers are regularly audited, performance monitored and reviewed on a regular basis.

The Company is exposed to foreign exchange risk in the normal course of business, principally on purchase of product denominated in other currencies from the business base currency. Forward contracts are utilised to limit exposure.


Kestrel Foods Limited (Registered number: NI031111)

Strategic Report
for the Year Ended 30 April 2023

Future developments
Forest Feast and ACTI-SNACK brands have an exciting pipeline of innovation with the objective to continue to build distribution. Just Live a Little brand is being re-launched centred around a gluten free proposition.

To support the Company's growth plans an additional site which included both a factory facility and warehouse is now fully operational, and an extensive capital investment program has been completed to enhance manufacturing capability and to increase output capacities. With inflationary pressures driving costs upwards the Company is focused on improving operational efficiencies. The Company has embarked on a Lean Manufacturing program with key objectives of continuous improvement, cost reduction, production agility and elimination of waste. Integral to the Company's ethos is to strive to use the business as a force for good by sourcing sustainably, reducing environmental footprint and giving back to the community.

The Company's vision, purpose and values are set out below.

Our Vision
To become a leading powerhouse of better snacks for all occasions.

Our Purpose
To make innovative and award-winning premium snacks & granola that delight our consumers and customers in our world class manufacturing environment, with an ongoing commitment to ethical trading and sustainable sourcing.

Our Values
Trailblazing. We have an entrepreneurial spirit. We are curious about the world, trends and consumers. We look ahead always searching for the new, the better, the brave and the bold, acting quickly to adapt to changing markets.

Excellence. We do business the right way. We source sustainably. We treat suppliers, customers & each other with respect and we give back to the community. We put the safety of our team and products first. We are passionate about our brands and products, and we are encouraged to improve our products, our processes and to deliver better performance and superior quality.

Ownership. We treat the business as if it is our own. We embrace every challenge and opportunity. We are empowered to take initiative; we own it and get on with it.

Teamplay. We value and respect each other, and wholeheartedly believe in working together to achieve a common goal.

On behalf of the board:





Mr M Hall - Director


14 September 2023

Kestrel Foods Limited (Registered number: NI031111)

Directors' Report
for the Year Ended 30 April 2023


The directors present their report with the financial statements of the company for the year ended 30 April 2023.

Principal activity
The principal activity of the company in the year under review was that of the manufacture and sale of premium snacks primarily chocolate, nuts & dried fruit and granola.

Dividends
The profit for the year after providing for depreciation and taxation amounted to £318,966 (2022: £450,222). The directors have not paid an interim dividend and do not recommend payment of a final dividend (2022: £nil).

Directors
The directors shown below have held office during the whole of the period from 1 May 2022 to the date of this report.

Mr M Hall
Mr M R Palmer

Mr M R Palmer is a Non-Executive Director.

Political donations and expenditure
The company did not make any disclosable political donations in the current year.

Post events
There have been no significant events affecting the company since the year-end.

Financial risk management
The company is exposed to financial risk in the normal course of business, however the directors have implemented effective risk management systems within the business with the implementation of credit limits on customers, virtual cash-free environment, effective insurance, signature policy on all financial transactions and bank reconciliation procedures.

Price risk
The company is exposed to commodity price risk as a result of its operations. This is countered through forward buying contracts with approved suppliers.

Foreign exchange risk
The company has its principal operations in the United Kingdom and Ireland and therefore fluctuations in currency exchange rates may affect reported operating results and financial position. The company is exposed to some foreign exchange risk in the normal course of business, principally on purchases of product denominated in other currencies from the business units' base currency. Forward contracts are utilised to limit exposure.

Credit risk
Policies and procedures exist to ensure that customers have an appropriate credit history. All customers are allocated a credit limit which is regularly monitored. Accounts that exceed their credit limit or have debts exceeding agreed terms are put on automatic stop until the directors are satisfied that the account has been brought up to date and payment made.

Liquidity risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.

Interest rate cash flow risk
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at variable rates. The company has a policy of maintaining debt at variable rates. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Disclosures required under schedule 7
Likely future developments in the business of the company are discussed in the strategic report.


Kestrel Foods Limited (Registered number: NI031111)

Directors' Report
for the Year Ended 30 April 2023

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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;
- 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.

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.

Auditors
The auditors, Wylie Ruddell, (Statutory Auditors), have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

On behalf of the board:





Mr M Hall - Director


14 September 2023

Report of the Independent Auditors to the Members of
Kestrel Foods Limited


Opinion
We have audited the financial statements of Kestrel Foods Limited (the 'company') for the year ended 30 April 2023 which comprise the Statement of comprehensive income, Statement of financial position, Statement of changes in equity, Statement of cash flows and Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 April 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 Directors' report, 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters 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
Kestrel Foods Limited


Responsibilities of directors
As explained more fully in the Statement of directors' responsibilities set out on page five, 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:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to failure to comply with tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting journal entries to manipulate the financial statements, inappropriate revenue recognition and management bias in determining accounting estimates. Audit procedures performed by the engagement team included:

- Discussions with management, including consideration of known or suspected instances of non-compliance
with laws and regulation (including data protection legislation) and fraud;
- Identification and testing of significant journal entries; and
- Evaluation and, where appropriate, challenging assumptions and judgements made by management in
determining significant accounting estimates.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

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.




David Ruddell (Senior Statutory Auditor)
for and on behalf of Wylie Ruddell
Statutory Auditor
Chartered Accountants
Armagh Business Centre
2 Loughgall Road
Armagh
BT61 7NH

14 September 2023

Kestrel Foods Limited (Registered number: NI031111)

Statement of Comprehensive Income
for the Year Ended 30 April 2023

2023 2022
Notes £ £

Revenue 4 23,166,719 19,244,185

Cost of sales (16,913,660 ) (14,256,928 )
Gross profit 6,253,059 4,987,257

Distribution costs (1,014,674 ) (796,396 )
Administrative expenses (4,763,926 ) (3,844,755 )
474,459 346,106

Other operating income 84,579 185,568
Operating profit 6 559,038 531,674

Interest receivable and similar income - 1,183
559,038 532,857

Interest payable and similar expenses 7 (178,337 ) (102,833 )
Profit before taxation 380,701 430,024

Tax on profit 8 (61,735 ) 20,198
Profit for the financial year 318,966 450,222

Other comprehensive income
Share option reserve 36,526 19,026
Income tax relating to other comprehensive
income

25,864

-
Other comprehensive income for the year,
net of income tax

62,390

19,026
Total comprehensive income for the year 381,356 469,248

Kestrel Foods Limited (Registered number: NI031111)

Statement of Financial Position
30 April 2023

2023 2022
Notes £ £
Fixed assets
Intangible assets 9 109,746 134,766
Property, plant and equipment 10 5,220,497 5,114,017
Investments 11 87 87
5,330,330 5,248,870

Current assets
Inventories 12 4,254,361 3,781,563
Receivables 13 4,225,159 3,466,361
Cash at bank 14 464,933 631,903
8,944,453 7,879,827
Payables
Amounts falling due within one year 15 (4,345,117 ) (3,891,526 )
Net current assets 4,599,336 3,988,301
Total assets less current liabilities 9,929,666 9,237,171

Payables
Amounts falling due after more than one
year

16

(1,008,219

)

(893,481

)

Provisions for liabilities 19 (246,477 ) (210,606 )

Accruals and deferred income 20 (429,512 ) (268,982 )
Net assets 8,245,458 7,864,102

Capital and reserves
Called up share capital 21 55,556 55,556
Share premium 22 994,444 994,444
Share option reserve 22 129,318 66,928
Retained earnings 22 7,066,140 6,747,174
Shareholders' funds 8,245,458 7,864,102

The financial statements were approved by the Board of Directors and authorised for issue on 14 September 2023 and were signed on its behalf by:





Mr M Hall - Director


Kestrel Foods Limited (Registered number: NI031111)

Statement of Changes in Equity
for the Year Ended 30 April 2023

Called up Share
share Retained Share option Total
capital earnings premium reserve equity
£ £ £ £ £

Balance at 1 May 2021 55,556 6,296,952 994,444 47,902 7,394,854

Changes in equity
Total comprehensive income - 450,222 - 19,026 469,248
Balance at 30 April 2022 55,556 6,747,174 994,444 66,928 7,864,102

Changes in equity
Total comprehensive income - 318,966 - 62,390 381,356
Balance at 30 April 2023 55,556 7,066,140 994,444 129,318 8,245,458

Kestrel Foods Limited (Registered number: NI031111)

Statement of Cash Flows
for the Year Ended 30 April 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 26 417,555 427,434
Interest paid (161,590 ) (91,769 )
Interest element of hire purchase payments
paid

(16,747

)

(11,064

)
Tax paid - 129,054
Net cash from operating activities 239,218 453,655

Cash flows from investing activities
Purchase of intangible fixed assets (4,500 ) (143,100 )
Purchase of tangible fixed assets (778,537 ) (2,039,099 )
Sale of tangible fixed assets - 3,333
Interest received - 1,183
Net cash from investing activities (783,037 ) (2,177,683 )

Cash flows from financing activities
New stockline loan 93,206 -
Movement in commercial finance (121,314 ) 583,821
Capital repayments on term loans (297,985 ) (149,429 )
New HP agreements 546,400 25,500
Capital repayments on HP contracts (67,449 ) (67,564 )
New capital grants 223,991 102,215
Net cash from financing activities 376,849 494,543

Decrease in cash and cash equivalents (166,970 ) (1,229,485 )
Cash and cash equivalents at beginning
of year

27

631,903

1,861,388

Cash and cash equivalents at end of year 27 464,933 631,903

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements
for the Year Ended 30 April 2023


1. Statutory information

Kestrel Foods Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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 on a going concern basis and under the historical cost convention.

Preparation of consolidated financial statements
The company has claimed exemption from preparing consolidated accounts on the basis that the subsidiary company Kestrel Foods (Ireland) Limited is dormant and is not material for the purpose of giving a true and fair view.

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a brand in 2021, is being amortised evenly over its estimated useful life of five years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Other intangibles and website development costs are being amortised evenly over their estimated useful life of 5 years.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Long leasehold property - 10% on cost and 2% on cost
Plant and machinery - 50% on cost and 10% on cost
Office equipment - 20% on cost and 10% on cost
Motor vehicles - 25% on cost

Government grants
Grants that relate to a specific capital expenditure are treated as deferred income and credited to the Income Statement over the related asset's useful economic life, until all performance conditions are met at which point the grant in total is credited to reserves. Grants that relate to revenue expenditure are credited to the Income Statement over the period that the revenue expenditure relates to.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


2. Accounting policies - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 year 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


2. Accounting policies - continued

Share option scheme
The fair value of the share options granted by the company is determined using the market valuation approach. This fair value is measured at the date of the grant and charged to the profit and loss over the vesting period.

Deferred tax during the vesting period is calculated to indicate the potential tax deduction the company will receive on the exercise of the share options.

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments:

(i) Financial assets
Basic financial assets, including trade and other receivables, cash and and bank balances and amounts owed by related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

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

Receivables
Short term receivables 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.

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


2. Accounting policies - continued

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

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

Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

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 Statement of Financial Position 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 Statement of Financial Position.

3. Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are required when applying accounting policies. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Useful economic lives of intangible and tangible assets
The annual depreciation and amortisation charges for intangible and tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the assets, and note 2 for the useful economic lives for each class of assets.

Inventories
The inventory figure on the statement of financial position is subject to judgement and estimate around the overhead absorption applied to the year end stock figure as well as an estimate for any provision for impairment. The company utilises a consistent and reasonable basis in estimating this absorption rate and provision amount, with suitable logical calculations applied to arrive at a total stock figure after impairment for the year end. See note 12 for the split by category and stated after any provision for impairment.

Promotions and rebates
Included within accruals are provisions for sales promotions and rebates. The provisions have been calculated based on agreements entered into with customers and based on the expectations of the sales team.

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


4. Revenue

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

An analysis of revenue by geographical market is given below:

2023 2022
£ £
United Kingdom 16,781,638 12,539,326
Europe 6,243,833 6,666,945
Rest of the world 141,248 37,914
23,166,719 19,244,185

5. Employees and directors
2023 2022
£ £
Wages and salaries 3,331,073 2,853,662
Social security costs 305,861 250,790
Other pension costs 51,009 46,566
3,687,943 3,151,018

The average number of employees during the year was as follows:
2023 2022

Production (including management) 85 80
Administration 32 28
117 108

2023 2022
£ £
Directors' remuneration 238,826 216,888
Directors' pension contributions to money purchase schemes 1,313 1,063

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director is as follows:
2023 2022
£ £
Emoluments etc 188,826 175,221

The directors are deemed to be the key management of the company.

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


6. Operating profit

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

2023 2022
£ £
Share options provision 36,526 19,026
Depreciation - owned assets 563,101 504,675
Depreciation - assets on hire purchase contracts 108,956 101,821
Profit on disposal of fixed assets - (3,333 )
Goodwill amortisation 10,000 4,167
Other intangibles amortisation 10,000 4,167
Website development costs amortisation 9,520 -
Auditor's remuneration - audit 16,775 14,317
Auditor's remuneration - taxation service 1,600 1,525

7. Interest payable and similar expenses
2023 2022
£ £
Bank interest and fees 75,842 56,027
Factoring interest 85,560 32,026
Other interest 188 3,716
Hire purchase 16,747 11,064
178,337 102,833

8. Taxation

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£ £
Current tax:
Over provision in prior year (24,745 ) (5,691 )

Deferred tax 86,480 (14,507 )
Tax on profit 61,735 (20,198 )

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


8. Taxation - continued

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 380,701 430,024
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

72,333

81,705

Effects of:
Expenses not deductible for tax purposes 54,210 20,229
Income not taxable for tax purposes (12,058 ) (8,959 )
Adjustments to tax charge in respect of previous periods (24,745 ) (5,691 )

Adjustment in relation to R&D tax credits (60,436 ) (35,691 )
Increase in tax losses carried forward due to super deduction claim (32,931 ) (71,791 )
Effect of change in tax rate on deferred tax 152,938 -
Effect of change in tax rate on losses carried forward (87,576 ) -
Total tax charge/(credit) 61,735 (20,198 )

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£ £ £
Share option reserve 36,526 25,864 62,390

2022
Gross Tax Net
£ £ £
Share option reserve 19,026 - 19,026

9. Intangible fixed assets
Website
Other development
Goodwill intangibles costs Totals
£ £ £ £
Cost
At 1 May 2022 50,000 50,000 43,100 143,100
Additions - - 4,500 4,500
At 30 April 2023 50,000 50,000 47,600 147,600
Amortisation
At 1 May 2022 4,167 4,167 - 8,334
Amortisation for year 10,000 10,000 9,520 29,520
At 30 April 2023 14,167 14,167 9,520 37,854
Net book value
At 30 April 2023 35,833 35,833 38,080 109,746
At 30 April 2022 45,833 45,833 43,100 134,766

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


10. Property, plant and equipment
Long
leasehold Plant and Office Motor
property machinery equipment vehicles Totals
£ £ £ £ £
Cost
At 1 May 2022 2,776,274 5,476,814 542,650 216,477 9,012,215
Additions 101,684 658,226 18,627 - 778,537
At 30 April 2023 2,877,958 6,135,040 561,277 216,477 9,790,752
Depreciation
At 1 May 2022 477,166 2,832,825 426,001 162,206 3,898,198
Charge for year 102,264 502,261 40,211 27,321 672,057
At 30 April 2023 579,430 3,335,086 466,212 189,527 4,570,255
Net book value
At 30 April 2023 2,298,528 2,799,954 95,065 26,950 5,220,497
At 30 April 2022 2,299,108 2,643,989 116,649 54,271 5,114,017

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£ £ £
Cost
At 1 May 2022 302,725 52,100 354,825
Additions 203,188 - 203,188
Reclassification/transfer 150,679 - 150,679
At 30 April 2023 656,592 52,100 708,692
Depreciation
At 1 May 2022 211,908 19,400 231,308
Charge for year 95,931 13,025 108,956
Reclassification/transfer (151,499 ) - (151,499 )
At 30 April 2023 156,340 32,425 188,765
Net book value
At 30 April 2023 500,252 19,675 519,927
At 30 April 2022 90,817 32,700 123,517

11. Investments in subsidiaries
Shares in
group
undertakings
£
Cost
At 1 May 2022
and 30 April 2023 87
Net book value
At 30 April 2023 87
At 30 April 2022 87

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


11. Investments in subsidiaries - continued

The company's investments at the Statement of financial position date in the share capital of companies include the following:

Kestrel Foods (Ireland) Limited
Registered office: 3rd Floor Quayside Business Park, Mill Street, Dundalk, Co Louth
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2023 2022
£ £
Aggregate capital and reserves 87 87

12. Inventories
2023 2022
£ £
Raw materials 3,605,126 3,231,317
Finished goods 649,235 550,246
4,254,361 3,781,563

13. Receivables: amounts falling due within one year
2023 2022
£ £
Trade receivables 3,668,089 2,854,563
Other receivables 98,551 117,451
VAT - 156,121
Prepayments and accrued income 458,519 338,226
4,225,159 3,466,361

14. Cash at bank
2023 2022
£ £
Cash and bank balances 464,933 631,903

15. Payables: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts (see note 17) 393,567 302,608
Commercial finance (see note 17) 1,178,843 1,300,157
Hire purchase contracts (see note 18) 90,592 22,116
Trade payables 1,708,812 1,620,542
PAYE / NI 76,399 84,472
VAT 117,074 -
Other creditors 258,400 142,793
Accruals 521,430 418,838
4,345,117 3,891,526

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


15. Payables: amounts falling due within one year - continued

The bank loans and commercial finance liabilities are secure by the following:-
a) A First Legal Mortgage/Charge over the factory and warehouse at 7 Diviny Drive, Carn Industrial Estate, Portadown.
b) A Debenture over the assets and undertakings of Kestrel Foods Limited.
c) A First Ranking Chattels Mortgage in favour of the Bank over Martini 3 Bagger.
d) A commercial finance agreement executed between the parties together with a debenture both dated 5 November 1999.

16. Payables: amounts falling due after more than one year
2023 2022
£ £
Bank loans (see note 17) 572,638 868,375
Hire purchase contracts (see note 18) 435,581 25,106
1,008,219 893,481

17. Loans

An analysis of the maturity of loans is given below:

2023 2022
£ £
Amounts falling due within one year or on demand:
Bank loans 393,567 302,608
Commercial finance 1,178,843 1,300,157
1,572,410 1,602,765

Amounts falling due between one and two years:
Bank loans - 1-2 years 222,638 293,832

Amounts falling due between two and five years:
Bank loans - 2-5 years 350,000 574,543

18. Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£ £
Net obligations repayable:
Within one year 90,592 22,116
Between one and five years 324,800 25,106
In more than five years 110,781 -
526,173 47,222

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


18. Leasing agreements - continued

Non-cancellable
operating leases
2023 2022
£ £
Within one year 163,236 180,735
Between one and five years 436,532 544,206
599,768 724,941

19. Provisions for liabilities
2023 2022
£ £
Deferred tax
Tax losses carried forward (364,900 ) (259,794 )
Share options (25,864 ) -
Accelerated capital allowances 637,241 470,400
246,477 210,606

Deferred tax
£
Balance at 1 May 2022 210,606
Charge to Statement of comprehensive income during year 35,871
Balance at 30 April 2023 246,477

20. Accruals and deferred income
2023 2022
£ £
Deferred government grants 429,512 268,982

21. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
55,556 Ordinary 1 55,556 55,556

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


21. Called up share capital - continued

Share based payment

During the year ended 30 April 2023, the company had one share based payment arrangement which is described below.

Date of grant26 November 2019, 9 September 2021 and 11 November 2021

Number of share options granted3,546

Contractual life10 years

Vesting conditionsFifth anniversary of grant date


The exercise price of the options were set at £57.48 and £44.76 per share which was formally agreed with HMRC.

2023202320222022



Number of
options
Weighted
average
exercise price

Number of
options
Weighted
average
exerciseprice
£   £   
Outstanding at 1 May3,54654.652,75857.48
Granted0-78844.76
Forfeited0-0-
Exercised0-0-
Expired0-0-
Outstanding at 30 April3,54654.653,54654.65
Exercisable at 30 April0-0-

The company is unable to directly measure the fair value of employee services received. Instead the fair value of the share options granted is determined using the market valuation approach.

The expense arising from share-based payment transactions in the year is £36,526 (2022: £19,026).

22. Reserves
Share
Retained Share option
earnings premium reserve Totals
£ £ £ £

At 1 May 2022 6,747,174 994,444 66,928 7,808,546
Profit for the year 318,966 318,966
Cash share issue - - 36,526 36,526
Deferred tax on share options - - 25,864 25,864
At 30 April 2023 7,066,140 994,444 129,318 8,189,902

Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


23. Capital commitments
2023 2022
£ £
Contracted but not provided for in the
financial statements - 38,853

There is a capital commitment of £nil at year-end in relation to the acquisition of tangible fixed assets (2022: £38,853).

24. Related party transactions

The Kestrel Foods Special Pension Fund is considered to be a related party by virtue of Mr M Hall (director) being trustee of the pension fund. Transactions with the pension fund during the year include £127,500 (2022: £105,500) rent payable.

25. Ultimate controlling party

Mr Michael Hall is the ultimate controlling party by virtue of his shareholding in the company.

26. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
£ £
Profit for the financial year 318,966 450,222
Depreciation charges 701,577 614,830
Profit on disposal of fixed assets - (3,333 )
Share option reserve 36,526 19,026
Release of capital grants (63,461 ) (47,150 )
Finance costs 178,337 102,833
Finance income - (1,183 )
Taxation 61,735 (20,198 )
1,233,680 1,115,047
Increase in inventories (472,798 ) (819,937 )
Increase in trade and other debtors (758,798 ) (402,684 )
Increase in trade and other creditors 415,471 535,008
Cash generated from operations 417,555 427,434

27. Cash and cash equivalents

The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts:

Year ended 30 April 2023
30.4.23 1.5.22
£ £
Cash and cash equivalents 464,933 631,903
Year ended 30 April 2022
30.4.22 1.5.21
£ £
Cash and cash equivalents 631,903 1,861,388


Kestrel Foods Limited (Registered number: NI031111)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2023


28. Analysis of changes in net debt

At 1.5.22 Cash flow At 30.4.23
£ £ £
Net cash
Cash at bank 631,903 (166,970 ) 464,933
631,903 (166,970 ) 464,933
Debt
Finance leases (47,222 ) (478,951 ) (526,173 )
Debts falling due within 1 year (1,602,765 ) 30,355 (1,572,410 )
Debts falling due after 1 year (868,375 ) 295,737 (572,638 )
(2,518,362 ) (152,859 ) (2,671,221 )
Total (1,886,459 ) (319,829 ) (2,206,288 )