Company Registration No. 05525354 (England and Wales)
Fylde Fresh And Fabulous Limited
Annual Report and Financial Statements
For the Year Ended
28 February 2023
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
COMPANY INFORMATION
Directors
Mr C Bradley
Mrs V Singleton
Mr S Butcher
Mr D Linton
Aerospace Manufacturing Consultancy Ltd
Secretary
Mr D J Linton
Company number
05525354
Registered office
Floor 1 Capital House
8 Pittman Court, Pittman Way
Fulwood
Preston
Lancashire
United Kingdom
PR2 9ZG
Auditor
Azets Audit Services
Chartered Accountants
Floor 1, Capital House
8 Pittman Court, Pittman Way
Fulwood
Preston
Lancashire
United Kingdom
PR2 9ZG
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 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 - 24
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -
The directors present the strategic report for the year ended 28 February 2023.
Fair review of the business
The principal activity of the company continued to be that of growing, processing and distributing potatoes. The company also receives income for generating energy that is input into the national grid.
The food manufacturing and chip wholesale divisions have seen changes in turnover of +2.4% and +44% respectively. This was due to the effects of competitive contract positions and a more bullish raw material market following through into sales prices. Anaerobic Digester sales were increased by 47% due to forward sales of higher electricity export prices.
The operating profit of the company has decreased from £730,853 to £173,851.
The directors monitor gross profit margins as another key performance indicator and note a decrease from 52.80% to 45.61%.
Position at the end of the year
The company has a net current assets ratio of 1.18 compared to 1.42 in the prior year.
Key financial performance indicators
The company has three trading divisions and the directors consider that the key financial performance indicators are those that monitor the performance in respect of each of these divisions:
Principal risks and uncertainties
The company faces a number of risks and uncertainties and the directors believe that the key business risks are as follows:
Economic lockdown
Closure of catering establishments and other out-of-home meal providers could reduce volume demand and also put the company’s customer’s liquidity under pressure potentially resulting in insolvency.
Mitigation: The company provides an essential and basic ingredient that is required even in the most extreme circumstances. The company’s customer base ranges between food manufacturers supplying the retail sector to food service distributors and fast-food takeway. This minimises the risk to the company from any one economic sector facing closures.
The company also closely manages its debtors to ensure that debts are kept low and within terms.
Insufficiently diverse customer portfolio
Over reliance on any one customer or sector would have a significant effect on the company’s turnover and margin if that business were to be lost.
Mitigation: The company maintains very close relationships with its largest customers and holds long-term contracts that help to secure volume. The company holds a niche position in the market given that it is a potato specialist that is also a direct grower with expert knowledge of its raw material. This unique position ensures that competitors struggle to offer the product quality and service to match.
The company has invested in new production capacity so that it can win new business and bring in new customers which is already seeing additional volume coming into the company.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Government support in the renewable energy sector
A change in government policy could have an impact on the company’s anaerobic digester division through regulatory change removing access to green energy tariffs.
Mitigation: The company works closely with industry bodies such as NFU and ADBA to keep abreast of proposed regulatory changes and also to lobby where appropriate for the company’s best interests.
Competition risk
The industry in which the company operates is highly competitive. As a result the company has to price its products competitively in order to win tenders. However, developing new products, improving existing products, internal efficiencies and other measures have enabled the company to maintain its gross margin in recent years.
Health and Safety risk
The company is in a regulated industry where the maintenance of health and safety and environmental standards are absolutely crucial. The company recognises its obligations and the risk to its reputation of any incident affecting either its customers or employees. The directors are mindful of their responsibilities and comply with all relevant legislation.
Mrs V Singleton
Director
21 August 2023
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
The directors present their annual report and financial statements for the year ended 28 February 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C Bradley
Mrs V Singleton
Mr S Butcher
Mr D Linton
Aerospace Manufacturing Consultancy Ltd
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £304,194. The directors do not recommend payment of a further dividend.
Principal financial risks and uncertainties
The company's financial assets and liabilities consist of trade debtors and creditors, bank loans and overdrafts, inventories, and hire purchase agreements. Their existence exposes the company to a number of financial risks, which the company seeks to manage and limit the potential adverse effect. The main risks are:
Liquidity risk
The company operates within an agreed overdraft with the company bankers. The liquidity risk is considered low as the company has strong cash flow generated from operations.
Credit risk
To be commercial the company must allow its customers to trade with credit terms and hence the company is exposed to the associated risks. The company mitigates these risks by carrying out credit checks on new customers and a dedicated credit control department monitors the amounts outstanding from existing customers. Exposure to credit risk is considered low.
Future developments
The directors anticipate that the business environment will remain competitive and market conditions will continue to vary with climatic conditions that affect the potato market. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on raw material procurement, sales volume growth and competitor activity, the directors are confident in the company’s ability to maintain and build on this position, albeit with cautious growth expectations.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of:
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs V Singleton
Director
21 August 2023
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FYLDE FRESH AND FABULOUS LIMITED
- 5 -
Opinion
We have audited the financial statements of Fylde Fresh and Fabulous Limited (the 'company') for the year ended 28 February 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 February 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FYLDE FRESH AND FABULOUS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FYLDE FRESH AND FABULOUS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
Julie Flintoff BA(Hons) FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
Statutory Auditor
PRESTON
29 September 2023
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
15,293,367
13,527,861
Cost of sales
(8,318,107)
(6,385,801)
Gross profit
6,975,260
7,142,060
Administrative expenses
(6,996,090)
(6,420,037)
Other operating income
194,681
8,830
Operating profit
4
173,851
730,853
Investment income
7
581
Finance costs
8
(17,842)
(4,360)
Profit before taxation
156,009
727,074
Tax on profit
9
(45,909)
(287,850)
Profit for the financial year
110,100
439,224
The income statement has been prepared on the basis that all operations are continuing operations.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2023
28 February 2023
- 9 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
11
21,600
27,000
Property, plant and equipment
12
3,542,454
3,540,234
3,564,054
3,567,234
Current assets
Inventories
13
1,065,895
860,952
Trade and other receivables
14
3,614,668
2,186,092
Cash and cash equivalents
214,047
2,019
4,894,610
3,049,063
Current liabilities
15
(4,144,322)
(2,146,461)
Net current assets
750,288
902,602
Total assets less current liabilities
4,314,342
4,469,836
Non-current liabilities
16
(496,043)
(502,274)
Provisions for liabilities
Deferred tax liability
19
730,040
685,209
(730,040)
(685,209)
Net assets
3,088,259
3,282,353
Equity
Called up share capital
21
600,150
600,150
Retained earnings
2,488,109
2,682,203
Total equity
3,088,259
3,282,353
The financial statements were approved by the board of directors and authorised for issue on 21 August 2023 and are signed on its behalf by:
Mrs V Singleton
Director
Company Registration No. 05525354
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 March 2021
600,150
2,577,844
3,177,994
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
439,224
439,224
Dividends
10
-
(334,865)
(334,865)
Balance at 28 February 2022
600,150
2,682,203
3,282,353
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
110,100
110,100
Dividends
10
-
(304,194)
(304,194)
Balance at 28 February 2023
600,150
2,488,109
3,088,259
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
494,907
1,051,699
Interest paid
(17,842)
(4,360)
Income taxes paid
(57,851)
(205,608)
Net cash inflow from operating activities
419,214
841,731
Investing activities
Purchase of property, plant and equipment
(562,894)
(803,433)
Proceeds on disposal of property, plant and equipment
6,560
69,997
Other investments and loans made
-
92,012
Interest received
581
Net cash used in investing activities
(556,334)
(640,843)
Financing activities
Proceeds from finance leases
340,035
371,653
Repayment of bank loans
(10,000)
(7,500)
Payment of finance leases obligations
(286,879)
(239,982)
Dividends paid
(304,194)
(334,865)
Net cash used in financing activities
(261,038)
(210,694)
Net decrease in cash and cash equivalents
(398,158)
(9,806)
Cash and cash equivalents at beginning of year
(78,541)
(68,735)
Cash and cash equivalents at end of year
(476,699)
(78,541)
Relating to:
Cash at bank and in hand
214,047
2,019
Bank overdrafts included in creditors payable within one year
(690,746)
(80,560)
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
1
Accounting policies
Company information
Fylde Fresh and Fabulous Limited is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Floor 1 Capital House, 8 Pittman Court, Pittman Way, Fulwood, Preston, Lancashire, United Kingdom, PR2 9ZG. The principal place of business is Stanley Villa Farm, Back Lane, Weeton, Preston, PR4 3HN. The company is tax resident in the United Kingdom.
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.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue represents amounts receivable for goods and services net of VAT and trade discounts. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product have been transferred to the customer.
Revenue also includes income from energy generated by the company that is input into the national grid. This revenue is recognised when the company is entitled to the income based on the units produced per the meter readings.
1.4
Intangible fixed assets - goodwill
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life.
Amortisation is calculated so as to write off the cost of an asset, net of anticipated disposal proceeds, over the estimated useful economic life of that asset. Goodwill is amortised at a rate of 5% straight line.
1.5
Property, plant and equipment
Property, plant and equipment 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:
Land and buildings Leasehold
- 5% Straight Line
Plant and machinery
- 4-10% Straight Line
Fixtures, fittings & equipment
- 33% Reducing Balance/33% Straight Line
Motor vehicles
- 25% Reducing Balance
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.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Inventories
Inventories 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 inventories to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company only has financial assets (debtors, cash and bank balances) and financial liabilities (creditors and accruals) of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
1.10
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 income statement 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 income statement, 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leasing and hire purchase commitments
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss on a straight line basis.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Property, plant and equipment
Tangible fixed assets are depreciated using the straight-line or reducing balance method based on the estimated useful life, taking into account any residual value. The asset’s residual value and useful life are based on company best estimates and are reviewed, and adjusted if required, at each balance sheet date.
3
Revenue
An analysis of the company's revenue is as follows:
2023
2022
£
£
Revenue analysed by class of business
Chips
2,699,630
1,870,669
Potatoes
10,344,524
10,103,748
Anaerobic Digester
2,233,988
1,514,729
Other
15,225
38,715
15,293,367
13,527,861
2023
2022
£
£
Other revenue
Interest income
-
581
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
8,250
Depreciation of owned property, plant and equipment
387,526
319,541
Depreciation of property, plant and equipment held under finance leases
166,588
188,577
Profit on disposal of property, plant and equipment
-
(13,690)
Amortisation of intangible assets
5,400
5,400
Operating lease charges
303,166
334,357
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Factory
48
48
Administration
11
11
Drivers
5
5
Yard
7
6
Anaerobic Digestor
1
2
Total
72
72
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,048,607
2,699,888
Social security costs
220,771
187,160
Pension costs
141,667
211,527
3,411,045
3,098,575
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
51,157
47,842
Company pension contributions to defined contribution schemes
85,460
173,822
136,617
221,664
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 17 -
7
Investment income
2023
2022
£
£
Interest income
Other interest income
581
8
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
17,842
4,360
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,958
60,731
Adjustments in respect of prior periods
(2,880)
Total current tax
1,078
60,731
Deferred tax
Origination and reversal of timing differences
44,831
227,119
Total tax charge
45,909
287,850
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
156,009
727,074
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
29,642
138,144
Tax effect of expenses that are not deductible in determining taxable profit
2,696
3,933
Tax effect of income not taxable in determining taxable profit
(1,067)
Effect of change in corporation tax rate
2,721
Depreciation on assets not qualifying for tax allowances
1,606
Under/(over) provided in prior years
(2,880)
Deferred tax adjustments in respect of prior years
33,491
Deferred Tax - Movement in rates
146,840
Effect of superdeduction
(21,367)
Taxation charge for the year
45,909
287,850
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 18 -
10
Dividends
2023
2022
£
£
Final paid
304,194
334,865
11
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2022 and 28 February 2023
108,000
Amortisation and impairment
At 1 March 2022
81,000
Amortisation charged for the year
5,400
At 28 February 2023
86,400
Carrying amount
At 28 February 2023
21,600
At 28 February 2022
27,000
12
Property, plant and equipment
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2022
428,745
5,613,125
587,655
643,351
7,272,876
Additions
2,895
400,446
32,138
127,415
562,894
Disposals
(6,560)
(6,560)
At 28 February 2023
431,640
6,013,571
613,233
770,766
7,829,210
Depreciation and impairment
At 1 March 2022
107,384
2,980,437
413,864
230,957
3,732,642
Depreciation charged in the year
20,316
373,618
52,157
108,023
554,114
At 28 February 2023
127,700
3,354,055
466,021
338,980
4,286,756
Carrying amount
At 28 February 2023
303,940
2,659,516
147,212
431,786
3,542,454
At 28 February 2022
321,361
2,632,688
173,791
412,394
3,540,234
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
12
Property, plant and equipment
(Continued)
- 19 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
751,058
780,390
Motor vehicles
326,072
350,037
1,077,130
1,130,427
13
Inventories
2023
2022
£
£
Finished goods and goods for resale
1,065,895
860,952
14
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
2,642,295
1,349,296
Other receivables
376,669
365,504
Prepayments and accrued income
595,704
471,292
3,614,668
2,186,092
15
Current liabilities
2023
2022
Notes
£
£
Bank loans and overdrafts
17
700,746
90,560
Obligations under finance leases
18
302,777
253,390
Trade payables
2,373,628
1,278,239
Amounts owed to group undertakings
28,351
28,351
Corporation tax
3,958
60,731
Other taxation and social security
50,350
45,922
Other payables
29,396
82,286
Accruals and deferred income
655,116
306,982
4,144,322
2,146,461
Hire purchase creditors of £302,777 (2022: £253,390) are secured against the assets to which the agreement relates.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 20 -
16
Non-current liabilities
2023
2022
Notes
£
£
Bank loans and overdrafts
17
22,500
32,500
Obligations under finance leases
18
473,543
469,774
496,043
502,274
Hire purchase creditors of £473,543 (2022: £469,774) are secured against the assets to which the agreement relates.
17
Borrowings
2023
2022
£
£
Bank loans
32,500
42,500
Bank overdrafts
690,746
80,560
723,246
123,060
Payable within one year
700,746
90,560
Payable after one year
22,500
32,500
The bank borrowings with Clydesdale Bank is repayable over 60 instalments of £833 commencing 26 June 2021. The interest rate charged on the loans is LIBOR + 2.5%.
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 21 -
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
347,114
300,968
In two to five years
529,104
504,456
876,218
805,424
Less: future finance charges
(99,898)
(82,260)
776,320
723,164
Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. The Company has options to purchase the equipment for a nominal amount at the conclusion of the lease arrangements. The average lease term is 3 to 5 years.
The finance leases are secured by the lessors' title to the leased assets which have a carrying value of £1,077,130 (2022: £1,130,427).
The directors consider that the carrying amount of the obligations under finance leases approximate to their fair value.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
747,105
685,972
Pension contributions
(13,732)
(763)
Grant
(3,333)
-
730,040
685,209
2023
Movements in the year:
£
Liability at 1 March 2022
685,209
Charge to profit or loss
44,831
Liability at 28 February 2023
730,040
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
141,667
211,527
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
600,150
600,150
600,150
600,150
22
Financial commitments, guarantees and contingent liabilities
The company is party to an agreement for loans provided by Clydesdale Bank to Farm Generation Limited. The company has provided Clydesdale Bank with an unlimited guarantee.
The total indebtedness of Farm Generation Limited to Clydesdale Bank at 28 February 2023 was £2,612,072 (2022: £2,512,711).
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
379,783
398,884
Between two and five years
254,960
564,788
634,743
963,672
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 23 -
24
Related party transactions
| | |
Trade receivable due from related companies | | |
Trade payable due to related companies | | |
Good and services from related companies | | |
Leases from related companies | | |
Sales to related companies | | |
| | |
Loans from related companies | | |
Loans to related companies | | |
| | |
Sale of fixed assets to a director Key management personnel remuneration | | |
No bad or doubtful debts were recognised in respect of amounts due from related parties in the current or previous period.
Loans to related companies are unsecured, interest free and repayable on demand.
Details of related party transactions regarding guarantees are set out in note 22 of the financial statements.
25
Ultimate controlling party
The parent company of Fylde Fresh and Fabulous Limited is FFF Holdings Limited and its registered office is in the UK. Copies of the accounts for FFF Holdings Limited can be obtained from its registered office address: Floor 1 Capital House, 8 Pittman Court, Pittman Way, Fulwood, Preston, PR2 9ZG.
26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
110,100
439,224
Adjustments for:
Taxation charged
45,909
287,850
Finance costs
17,842
4,360
Investment income
(581)
Gain on disposal of property, plant and equipment
-
(13,690)
Amortisation and impairment of intangible assets
5,400
5,400
Depreciation and impairment of property, plant and equipment
554,114
508,118
Movements in working capital:
(Increase)/decrease in inventories
(204,943)
74,683
Increase in trade and other receivables
(1,428,576)
(349,341)
Increase in trade and other payables
1,395,061
95,676
Cash generated from operations
494,907
1,051,699
FYLDE FRESH AND FABULOUS LIMITED
Fylde Fresh And Fabulous Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 24 -
27
Analysis of changes in net debt
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
2,019
212,028
214,047
Bank overdrafts
(80,560)
(610,186)
(690,746)
(78,541)
(398,158)
(476,699)
Borrowings excluding overdrafts
(42,500)
10,000
(32,500)
Obligations under finance leases
(723,164)
(53,156)
(776,320)
(844,205)
(441,314)
(1,285,519)
2023-02-282022-03-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr C BradleyMrs V SingletonMr S ButcherAerospace Manufacturing Consultancy LtdAerospace Manufacturing Consultancy LtdMr D J Lintonfalse055253542022-03-012023-02-2805525354bus:Director12022-03-012023-02-2805525354bus:Director22022-03-012023-02-2805525354bus:Director32022-03-012023-02-2805525354bus:CompanySecretaryDirector12022-03-012023-02-2805525354bus:Director42022-03-012023-02-2805525354bus:CompanySecretary12022-03-012023-02-2805525354bus:Director52022-03-012023-02-2805525354bus:RegisteredOffice2022-03-012023-02-28055253542023-02-28055253542021-03-012022-02-2805525354core:RetainedEarningsAccumulatedLosses2021-03-012022-02-2805525354core:RetainedEarningsAccumulatedLosses2022-03-012023-02-2805525354core:Goodwill2023-02-2805525354core:Goodwill2022-02-28055253542022-02-2805525354core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-2805525354core:PlantMachinery2023-02-2805525354core:FurnitureFittings2023-02-2805525354core:MotorVehicles2023-02-2805525354core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-02-2805525354core:PlantMachinery2022-02-2805525354core:FurnitureFittings2022-02-2805525354core:MotorVehicles2022-02-2805525354core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2805525354core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2805525354core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-2805525354core:Non-currentFinancialInstrumentscore:AfterOneYear2022-02-2805525354core:CurrentFinancialInstruments2023-02-2805525354core:CurrentFinancialInstruments2022-02-2805525354core:Non-currentFinancialInstruments2023-02-2805525354core:Non-currentFinancialInstruments2022-02-2805525354core:ShareCapital2023-02-2805525354core:ShareCapital2022-02-2805525354core:RetainedEarningsAccumulatedLosses2023-02-2805525354core:RetainedEarningsAccumulatedLosses2022-02-2805525354core:ShareCapital2021-02-2805525354core:RetainedEarningsAccumulatedLosses2021-02-28055253542021-02-280552535412022-03-012023-02-280552535412021-03-012022-02-28055253542022-02-2805525354core:WithinOneYear2023-02-2805525354core:WithinOneYear2022-02-2805525354core:Goodwill2022-03-012023-02-2805525354core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-03-012023-02-2805525354core:PlantMachinery2022-03-012023-02-2805525354core:FurnitureFittings2022-03-012023-02-2805525354core:MotorVehicles2022-03-012023-02-2805525354core:OwnedAssets2022-03-012023-02-2805525354core:OwnedAssets2021-03-012022-02-2805525354core:LeasedAssets2022-03-012023-02-2805525354core:LeasedAssets2021-03-012022-02-2805525354core:UKTax2022-03-012023-02-2805525354core:UKTax2021-03-012022-02-280552535422022-03-012023-02-280552535422021-03-012022-02-280552535432022-03-012023-02-280552535432021-03-012022-02-280552535442022-03-012023-02-280552535442021-03-012022-02-2805525354core:Goodwill2022-02-2805525354core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-02-2805525354core:PlantMachinery2022-02-2805525354core:FurnitureFittings2022-02-2805525354core:MotorVehicles2022-02-2805525354core:BetweenTwoFiveYears2023-02-2805525354core:BetweenTwoFiveYears2022-02-2805525354bus:PrivateLimitedCompanyLtd2022-03-012023-02-2805525354bus:FRS1022022-03-012023-02-2805525354bus:Audited2022-03-012023-02-2805525354bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP