Company registration number 02285114 (England and Wales)
GEORGE BOLAM (FOODS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
GEORGE BOLAM (FOODS) LIMITED
COMPANY INFORMATION
Director
Mr George Bolam
Company number
02285114
Registered office
Sedgefield Industrial Estate
Salters Lane
Sedgefield
Stockton
TS21 3EE
Auditor
Mullen Stoker Limited
Mullen Stoker House
Mandale Business Park
Belmont Industrial Estate
Durham
DH1 1TH
Business address
Sedgefield Industrial Estate
Salters Lane
Sedgefield
Stockton
TS21 3EE
GEORGE BOLAM (FOODS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
GEORGE BOLAM (FOODS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -
The director presents the strategic report for the year ended 28 February 2023.
Fair review of the business
The director is seeking to sustain positive results in the current year. The principal risks which the company faces are increased competition in the area and significant increases in product costs. There is no immediate threat of more local competition but general competition continues to increase. Despite this however turnover levels have been sustained.
Key performance indicators
2023 2022
Sales £10,815,345 £10,198,635
Gross Profit 13.78% 17.74%
Pre-tax and contribution profit £ 354,736 £ 633,402
The above figures demonstrate that the company has been able to sustain its trading position but with a reduction in gross profit. As in previous years a high degree of emphasis is placed on the quality of product and providing a competitive range of public needs. All major sectors of the company's business have remained stable. Positive results have continued into the post balance sheet period. Management are continually looking at ways in which the company can maintain its market share and profitability. Efforts are being made to suppress rising supplier costs.
There is a loyal and committed workforce with low turnover of key personnel. Savings on overheads are continually being looked for.
The company's financial position at the balance sheet date is considered to be satisfactory and this has been maintained during the post balance sheet period.
Policies and Procedures
The company ensures full compliance with all governing legislation through fully documented policies and procedures in all relevant areas including the following:
Food Safety and Quality
Food Hygiene
Coronavirus
Health and Safety
Customer Care
Factory Regulations
Data Protection
Cash Handling
Quality Assurance
Environmental
Supplier Assessment
Waste Disposal
Manual Handling
Procedures for New Employees
Protective Clothing and Footwear
Timekeeping and First Aid
Fire Drill
Cleaning
Sexual Harassment and Bullying
GEORGE BOLAM (FOODS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Other information and explanations
There is no external borrowing and therefore interest rates are not a critical risk factor.
The company's equipment base is up to date and enables it to maintain its competitive edge.
The company complies with all relevant environmental regulations and employment legislation.
Suppliers are paid promptly.
There are no legal claims outstanding.
Mr George Bolam
Director
14 November 2023
GEORGE BOLAM (FOODS) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -
The director presents his annual report and financial statements for the year ended 28 February 2023.
Principal activities
The principal activity of the company continued to be that of wholesale and retail butchers outlet and bakery
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £24,400. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr George Bolam
Auditor
In accordance with section 485 of the Companies Act 2006, a resolution proposing that Mullen Stoker Limited be re-appointed will be put at a General Meeting.
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 director has taken all the necessary steps that he ought to have taken as director in order to make himself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr George Bolam
Director
14 November 2023
GEORGE BOLAM (FOODS) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
GEORGE BOLAM (FOODS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GEORGE BOLAM (FOODS) LIMITED
- 5 -
Opinion
We have audited the financial statements of George Bolam (Foods) Limited (the 'company') for the year ended 28 February 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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 loss 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
GEORGE BOLAM (FOODS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEORGE BOLAM (FOODS) 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 director's 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
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.
GEORGE BOLAM (FOODS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEORGE BOLAM (FOODS) LIMITED
- 7 -
Mr Neil Mullen
Senior Statutory Auditor
For and on behalf of Mullen Stoker Limited
14 November 2023
Chartered Accountants
Statutory Auditor
Mullen Stoker House
Mandale Business Park
Belmont Industrial Estate
Durham
DH1 1TH
GEORGE BOLAM (FOODS) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
10,815,345
10,198,635
Cost of sales
(9,324,636)
(8,389,377)
Gross profit
1,490,709
1,809,258
Administrative expenses
(1,493,882)
(1,596,070)
Other operating income
14,511
15,893
Operating profit
4
11,338
229,081
Interest receivable and similar income
7
1,240
166
Interest payable and similar expenses
8
(845)
Profit before taxation
12,578
228,402
Tax on profit
9
(65,997)
(150,512)
(Loss)/profit for the financial year
(53,419)
77,890
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GEORGE BOLAM (FOODS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
2023
2022
£
£
(Loss)/profit for the year
(53,419)
77,890
Other comprehensive income
-
-
Total comprehensive income for the year
(53,419)
77,890
GEORGE BOLAM (FOODS) LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,297,586
2,981,414
Current assets
Stocks
12
164,435
200,692
Debtors
13
688,627
742,102
Cash at bank and in hand
429,799
466,982
1,282,861
1,409,776
Creditors: amounts falling due within one year
14
(884,718)
(687,465)
Net current assets
398,143
722,311
Total assets less current liabilities
3,695,729
3,703,725
Provisions for liabilities
Deferred tax liability
16
160,082
90,259
(160,082)
(90,259)
Net assets
3,535,647
3,613,466
Capital and reserves
Called up share capital
18
130,000
130,000
Revaluation reserve
1,183,792
1,196,218
Profit and loss reserves
2,221,855
2,287,248
Total equity
3,535,647
3,613,466
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved and signed by the director and authorised for issue on 14 November 2023
Mr George Bolam
Director
Company registration number 02285114 (England and Wales)
GEORGE BOLAM (FOODS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2021
130,000
1,208,644
2,220,932
3,559,576
Year ended 28 February 2022:
Profit and total comprehensive income
-
-
77,890
77,890
Dividends
10
-
-
(24,000)
(24,000)
Transfers
-
(12,426)
12,426
-
Balance at 28 February 2022
130,000
1,196,218
2,287,248
3,613,466
Year ended 28 February 2023:
Loss and total comprehensive income
-
-
(53,419)
(53,419)
Dividends
10
-
-
(24,400)
(24,400)
Transfers
-
(12,426)
12,426
-
Balance at 28 February 2023
130,000
1,183,792
2,221,855
3,535,647
GEORGE BOLAM (FOODS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
324,365
169,757
Interest paid
(845)
Income taxes paid
(97,632)
(181,404)
Net cash inflow/(outflow) from operating activities
226,733
(12,492)
Investing activities
Purchase of tangible fixed assets
(468,768)
(67,124)
Proceeds from disposal of tangible fixed assets
4,099
Repayment of loans
228,010
(58,135)
Interest received
1,240
166
Net cash used in investing activities
(239,518)
(120,994)
Financing activities
Dividends paid
(24,400)
(24,000)
Net cash used in financing activities
(24,400)
(24,000)
Net decrease in cash and cash equivalents
(37,185)
(157,486)
Cash and cash equivalents at beginning of year
466,982
624,468
Cash and cash equivalents at end of year
429,796
466,982
Relating to:
Cash at bank and in hand
429,799
466,982
Bank overdrafts included in creditors payable within one year
(3)
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 13 -
1
Accounting policies
Company information
George Bolam (Foods) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sedgefield Industrial Estate, Salters Lane, Sedgefield, Stockton, TS21 3EE.
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, modified to include the revaluation of freehold properties . The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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:
Freehold buildings
2% straight line basis
Plant and equipment
10% reducing balance basis
Fixtures and fittings
20% reducing balance basis
Motor vehicles
25% reducing balance basis
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.
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 14 -
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.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
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.
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.
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 15 -
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
Basic financial liabilities, including creditors 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 16 -
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.
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.
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 17 -
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
10,815,345
10,198,635
2023
2022
£
£
Other revenue
Interest income
1,240
166
Grants received
-
1,062
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(1,062)
Fees payable to the company's auditor for the audit of the company's financial statements
5,700
5,700
Depreciation of owned tangible fixed assets
152,596
113,008
(Profit)/loss on disposal of tangible fixed assets
-
1,254
During the year the company made contributions totalling £342,159 (2022 : £405,000) to a Remuneration Trust.
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
1
1
Shop and support staff
78
68
Total
79
69
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,517,825
1,458,815
Social security costs
126,736
118,885
Pension costs
136,005
136,281
1,780,566
1,713,981
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
10,000
10,000
Company pension contributions to defined contribution schemes
202
1,212
10,202
11,212
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
758
166
Other interest income
482
Total income
1,240
166
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
758
166
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 19 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
537
Other finance costs:
Other interest
308
845
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
121,440
Adjustments in respect of prior periods
(3,826)
Total current tax
(3,826)
121,440
Deferred tax
Origination and reversal of timing differences
69,823
29,072
Total tax charge
65,997
150,512
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
12,578
228,402
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
2,390
43,396
Effect of change in corporation tax rate
16,758
21,662
Prior period adjustments
(3,826)
Ineligible expenditure
73,362
85,454
Capital Allowances SuperDeductions
(22,687)
Taxation charge for the year
65,997
150,512
10
Dividends
2023
2022
£
£
Interim paid
24,400
24,000
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 20 -
11
Tangible fixed assets
Freehold buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2022
2,515,000
1,113,958
246,369
100,685
3,976,012
Additions
467,083
1,685
468,768
Disposals
(40,217)
(40,217)
At 28 February 2023
2,515,000
1,540,824
248,054
100,685
4,404,563
Depreciation and impairment
At 1 March 2022
87,400
614,580
212,586
80,032
994,598
Depreciation charged in the year
43,700
96,639
7,094
5,163
152,596
Eliminated in respect of disposals
(40,217)
(40,217)
At 28 February 2023
131,100
671,002
219,680
85,195
1,106,977
Carrying amount
At 28 February 2023
2,383,900
869,822
28,374
15,490
3,297,586
At 28 February 2022
2,427,600
499,378
33,783
20,653
2,981,414
The property was valued by an independent valuer, Sanderson Weatherall LLP, as at 29 February 2020. On an historic cost basis the property would be stated at £1,200,108 (2022 : £1,231,382). In the Directors opinion there was no material movement in the property valuation to 28 February 2023 based on similar businesses operating within a close region.
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
164,435
200,692
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
118,764
138,579
Corporation tax recoverable
118
Other debtors
540,654
582,852
Prepayments and accrued income
29,091
20,671
688,627
742,102
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
3
Trade creditors
792,500
515,886
Corporation tax
101,341
Other taxation and social security
27,093
23,466
Other creditors
37,161
18,547
Accruals and deferred income
27,961
28,225
884,718
687,465
15
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
3
Payable within one year
3
16
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
189,180
90,259
Tax losses
(28,650)
-
Other timing differences
(448)
-
160,082
90,259
2023
Movements in the year:
£
Liability at 1 March 2022
90,259
Charge to profit or loss
69,823
Liability at 28 February 2023
160,082
The deferred tax asset set out above is expected to reverse within 12 months.
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 22 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
136,005
136,281
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.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
130,000
130,000
130,000
130,000
19
Financial commitments, guarantees and contingent liabilities
The company is subject to a long ongoing enquiry by HM Revenue & Customs regarding the tax position of contributions into a Remuneration Trust and payments made out of that Trust . Many other businesses in the UK are subject to similar enquiries for which there is yet no definitive case law as the outcome of Upper Tribunal appeals is awaited . The company with its legal advisors has strongly defended its position and will continue to do so . As yet there is no firm indication of which direction HMRC’s enquiry will take or which form of tax could be relevant and therefore it is not possible at this stage to quantify the potential liability .
20
Operating lease commitments
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
767
767
Between two and five years
3,067
3,834
767
21
Directors' transactions
Dividends totalling £24,400 (2022 - £24,000) were paid in the year in respect of shares held by the company's directors.
GEORGE BOLAM (FOODS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
21
Directors' transactions
(Continued)
- 23 -
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr George Bolam -
-
228,010
(228,010)
-
228,010
(228,010)
-
22
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(53,419)
77,890
Adjustments for:
Taxation charged
65,997
150,512
Finance costs
845
Investment income
(1,240)
(166)
(Gain)/loss on disposal of tangible fixed assets
-
1,254
Depreciation and impairment of tangible fixed assets
152,596
113,008
Movements in working capital:
Decrease/(increase) in stocks
36,257
(30,639)
Increase in debtors
(174,417)
(114,087)
Increase/(decrease) in creditors
298,591
(28,860)
Cash generated from operations
324,365
169,757
23
Analysis of changes in net funds
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
466,982
(37,183)
429,799
Bank overdrafts
(3)
(3)
466,982
(37,186)
429,796
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