Company registration number 00421255 (England and Wales)
SIMMONS (BAKERS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 2 APRIL 2023
SIMMONS (BAKERS) LIMITED
COMPANY INFORMATION
Directors
P A Matthews
I D Matthews
R J Matthews
G M Ewing
P J Williams
Company number
00421255
Registered office
2 The Parade
St Albans Road East
Hatfield
Hertfordshire
AL10 0EY
Auditor
BHP LLP
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
Bankers
National Westminster
35 Town Centre
Hatfield
Hertfordshire
AL10 0JU
SIMMONS (BAKERS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
SIMMONS (BAKERS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 2 APRIL 2023
- 1 -

The directors present the strategic report for the year ended 2 April 2023.

Review of the business

Simmons (Bakers) Limited is a family run business which has been baking bread in the Hatfield area since 1838 and has 42 shops spread across Hertfordshire and into Bedfordshire. We also supply around 12 wholesale customers across Hertfordshire and operate 1 mobile sandwich van.

Principal risks and uncertainties

The process of risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. The principal risks and uncertainties we have identified are:

Compliance with Health and Safety legislation

Compliance with Food Hygiene legislation

Compliance with Employment Law legislation

Increase in the price of raw materials

Increase in energy costs

Increased competition from coffee shop chains, supermarkets and independents.

Results and performance

The performance of the company during the year has produced encouraging results. The company achieved a turnover of £27,159,608, up 4.6% on the previous year of £25,964,989. Costs were controlled and monitored resulting in a profit on ordinary activities before taxation of £2,951,131 compared to £4,519,037 last year.

 

At the year end the group was in a good position with a strong balance sheet. During the year we invested over £2.6m in new bakery equipment, vehicles and the fitting out of our shops.

Key performance indicators (KPIs)

We have made significant progress in the year in relation to key elements of our strategy. The board monitors the progress of the company by reference to the following KPIs:

 

                        2023        2022

Increase/(Decrease) in turnover            4.6%        35.3%

Gross profit percentage                65.7%        70.6%

Wage percentage - cost of sales            11.1%        10.4%

Profit before tax percentage            10.9%        17.4%

 

Future Developments

 

The UK food to go market is expected to continue to grow during the current year. We believe that we are in a very strong position to capitalise on this growth and are actively looking for new shops as well as continuing with the rebranding of our existing shops, along with monitoring rising costs across the business in areas such as ingredients and energy costs.

On behalf of the board

R J Matthews
Director
15 November 2023
SIMMONS (BAKERS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 2 APRIL 2023
- 2 -

The directors present their annual report and financial statements for the year ended 2 April 2023.

Principal activities
The principal activity of the company during the year was that of the manufacture and sale of bakery goods and catering.
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £6,900,500. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P A Matthews
I D Matthews
R J Matthews
G M Ewing
N R Tuson
(Resigned 28 June 2022)
P J Williams
Financial instruments
Financial Risk Management Objectives and Policies

The company holds or issues financial instruments in order to achieve three main objectives, being:

 

(a) to finance its operations;

 

(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and

 

(c) for trading purposes.

 

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

 

Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.

Credit risk

The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk.

 

The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.

Disabled persons
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
SIMMONS (BAKERS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
- 3 -
Employee involvement
During the year, the policy of providing employees with information about the company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between the management and employees to allow a free flow of information and ideas. Employees participate directly in the success of the business through the company's bonus schemes.
Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
R J Matthews
Director
15 November 2023
SIMMONS (BAKERS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 2 APRIL 2023
- 4 -

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:

 

 

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.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

SIMMONS (BAKERS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMMONS (BAKERS) LIMITED
- 5 -
Opinion

We have audited the financial statements of Simmons (Bakers) Limited (the 'company') for the year ended 2 April 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

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 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.

Other information

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:

SIMMONS (BAKERS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMMONS (BAKERS) 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:

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focussed on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

SIMMONS (BAKERS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMMONS (BAKERS) LIMITED
- 7 -

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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Daniel Sowden
Senior Statutory Auditor
For and on behalf of BHP LLP
20 November 2023
Chartered Accountants
Statutory Auditor
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
SIMMONS (BAKERS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 2 APRIL 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
27,159,608
25,964,989
Cost of sales
(9,310,882)
(7,649,045)
Gross profit
17,848,726
18,315,944
Distribution costs
(7,428,115)
(6,901,257)
Administrative expenses
(7,512,804)
(6,914,315)
Other operating income
17,650
19,475
Operating profit
4
2,925,457
4,519,847
Interest receivable and similar income
8
25,674
688
Interest payable and similar expenses
9
-
0
(1,498)
Profit before taxation
2,951,131
4,519,037
Tax on profit
10
(587,393)
(769,203)
Profit for the financial year
2,363,738
3,749,834

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SIMMONS (BAKERS) LIMITED
BALANCE SHEET
AS AT 2 APRIL 2023
02 April 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
7,541,740
6,299,316
Current assets
Stocks
13
248,334
266,094
Debtors
14
1,324,752
1,087,002
Cash at bank and in hand
3,334,590
9,094,851
4,907,676
10,447,947
Creditors: amounts falling due within one year
15
(2,235,420)
(2,415,180)
Net current assets
2,672,256
8,032,767
Total assets less current liabilities
10,213,996
14,332,083
Provisions for liabilities
Deferred tax liability
16
1,202,917
784,242
(1,202,917)
(784,242)
Net assets
9,011,079
13,547,841
Capital and reserves
Called up share capital
18
3,369
3,369
Capital redemption reserve
3,358
3,358
Profit and loss reserves
9,004,352
13,541,114
Total equity
9,011,079
13,547,841
The financial statements were approved by the board of directors and authorised for issue on 15 November 2023 and are signed on its behalf by:
R J Matthews
Director
Company Registration No. 00421255
SIMMONS (BAKERS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 2 APRIL 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 5 April 2021
3,369
3,358
9,791,280
9,798,007
Year ended 3 April 2022:
Profit and total comprehensive income for the year
-
-
3,749,834
3,749,834
Balance at 3 April 2022
3,369
3,358
13,541,114
13,547,841
Year ended 2 April 2023:
Profit and total comprehensive income for the year
-
-
2,363,738
2,363,738
Dividends
11
-
-
(6,900,500)
(6,900,500)
Balance at 2 April 2023
3,369
3,358
9,004,352
9,011,079
SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 2 APRIL 2023
- 11 -
1
Accounting policies
Company information

Simmons (Bakers) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 The Parade, St Albans Road East, Hatfield, Hertfordshire, AL10 0EY.

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 on the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

The financial statements of the company are consolidated in the financial statements of Hatfield Trading Limited. These consolidated financial statements are available from its registered office, 2 The Parade, St Albans Road East, Hatfield, Hertfordshire, AL10 0EY.

 

The company operates a 4-4-5 calendar meaning that the financial year does not fall on the last day of the month. This financial year end falls on 2 April 2023 (2022: 4 April) following a 52 week year (2022: 52 week year). The comparative amounts presented in the financial statements (including the related notes) are therefore not entirely comparable.

1.2
Going concern

At 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 and therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements. true

 

The company has been able to trade in line with expectations in the period since 3 April 2023 to present and has continued to generate profits and operating cash flows. The business has remained resilient and the Directors are very confident that any further disruption can be managed. The company has no external debt and has a strong net asset and liquidity base. Even in extreme downside scenarios the Directors have options available to them in order to preserve cash flow and allow the business to settle its liabilities as they fall due. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover

Turnover represents the invoiced amounts of goods sold and services provided after the deduction of trade discounts and value added tax.

Revenue from the sale of goods is recognised as turnover on receipt of cash or card payment.

 

Wholesale sales are recognised when goods are delivered to customers.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short Leasehold Property
over a period of 10 years
Plant and machinery
10% straight line
Fixtures & fittings
10% straight line
Motor vehicles
25-35%  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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.7
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.

SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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 liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 current 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from fellow group companies 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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 fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits
The company contributes to a self-administered defined contribution pension scheme for certain directors. The company also provides pensions to employees through a defined contribution scheme and employees' private schemes. The amount charged to the profit and loss account is the contributions paid in the year.
SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

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 leases asset are consumed.

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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales of goods
27,159,608
25,964,989
2023
2022
£
£
Other significant revenue
Interest income
25,674
688
Rent receivable
17,650
19,475
2023
2022
£
£
Turnover analysed by geographical market
Sales - UK
27,159,608
25,964,989
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
1,346,248
1,238,999
Profit/(loss) on disposal of tangible fixed assets
(1,308)
12,827
Cost of stocks recognised as an expense
4,941,852
3,626,081
Operating lease charges
555,819
525,443
SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
- 16 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,750
10,800
For other services
All other non-audit services
9,000
8,200
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production staff
97
100
Selling and distribution staff
494
479
Office and management staff
28
25
Total
619
604

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
9,861,035
9,624,021
Social security costs
760,152
769,345
Pension costs
318,806
360,049
10,939,993
10,753,415
SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
- 17 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
819,166
1,257,205
Company pension contributions to defined contribution schemes
52,485
107,603
871,651
1,364,808

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
184,345
296,261
Company pension contributions to defined contribution schemes
15,244
46,272
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
20,973
688
Other interest income
4,701
-
0
Total income
25,674
688

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
20,973
688
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
-
0
1,498
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
179,084
464,780
Adjustments in respect of prior periods
(10,366)
-
0
Total current tax
168,718
464,780
SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
10
Taxation
2023
2022
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
418,675
304,423
Total tax charge
587,393
769,203

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
2,951,131
4,519,037
Expected tax charge based on the standard rate of corporation tax in the UK of 19.03% (2022: 19.00%)
561,688
858,617
Tax effect of expenses that are not deductible in determining taxable profit
3,696
1,575
Tax effect of income not taxable in determining taxable profit
(624)
(623)
Change in unrecognised deferred tax assets
659
-
0
Adjustments in respect of prior years
(10,367)
-
0
Group relief
-
0
(293,074)
Permanent capital allowances in excess of depreciation
(67,432)
14,490
Remeasurement of deferred tax for changes in tax rates
99,773
188,218
Taxation charge for the year
587,393
769,203
11
Dividends
2023
2022
£
£
Final paid
6,900,500
-
0
SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
- 19 -
12
Tangible fixed assets
Short Leasehold Property
Plant and machinery
Fixtures & fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 4 April 2022
4,933,517
3,464,020
8,073,329
802,347
17,273,213
Additions
323,518
1,236,693
744,866
313,037
2,618,114
Disposals
-
0
(39,783)
(20,341)
(139,431)
(199,555)
Transfers
-
0
7,587
(7,587)
-
0
-
0
At 2 April 2023
5,257,035
4,668,517
8,790,267
975,953
19,691,772
Depreciation and impairment
At 4 April 2022
3,094,446
2,608,263
4,837,723
433,465
10,973,897
Depreciation charged in the year
349,333
230,742
602,968
163,205
1,346,248
Eliminated in respect of disposals
-
0
(39,783)
(20,341)
(109,989)
(170,113)
Transfers
-
0
3,121
(3,121)
-
0
-
0
At 2 April 2023
3,443,779
2,802,343
5,417,229
486,681
12,150,032
Carrying amount
At 2 April 2023
1,813,256
1,866,174
3,373,038
489,272
7,541,740
At 3 April 2022
1,839,071
855,757
3,235,606
368,882
6,299,316
13
Stocks
2023
2022
£
£
Raw materials and consumables
248,334
266,094
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
60,461
33,973
Corporation tax recoverable
212,113
-
0
Amounts owed by group undertakings
832,669
581,011
Other debtors
4,861
17,993
Prepayments and accrued income
214,648
454,025
1,324,752
1,087,002
SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
- 20 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,012,455
793,225
Amounts owed to group undertakings
10,717
10,717
Corporation tax
-
0
40,443
Other taxation and social security
598,829
447,187
Other creditors
264,634
263,824
Accruals and deferred income
348,785
859,784
2,235,420
2,415,180
16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,202,917
784,242
2023
Movements in the year:
£
Liability at 4 April 2022
784,242
Charge to profit or loss
418,675
Liability at 2 April 2023
1,202,917

The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature in future years.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
318,806
360,049

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. At 2 April 2023 there were outstanding contributions payable of £51,109 (2022 - £102,384).

SIMMONS (BAKERS) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 2 APRIL 2023
- 21 -
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
336,931
336,931
3,369
3,369
19
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
410,180
402,788
Between two and five years
1,313,283
1,145,546
In over five years
986,458
707,792
2,709,921
2,256,126
20
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
2,220
339,492
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The company was provided services of £71,755 (2022: £53,135) by a close family member of a director. The outstanding creditor amount at the year end was £39,045 (2022: £10,000).

The company has taken the exemption set out in FRS 102 from disclosing transactions with other wholly owned members of the group.

22
Ultimate controlling party

The company is a 100% subsidiary of Hatfield Trading Limited. Hatfield Trading Limited is under the joint control of Mr I D and Mrs P A Matthews, directors of the company and the holding company, and a member of their close family. Mr I D and Mrs P A Matthews are personally interested in 90% (2022: 90%) of the company's share capital. In addition one of their children controls in aggregate a further 10% (2022: 10%) of the company's issued share capital.

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