Company registration number 03731546 (England and Wales)
ALTHAMS CATERING BUTCHERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
ALTHAMS CATERING BUTCHERS LIMITED
COMPANY INFORMATION
Directors
Mrs M V Altham
Mr J C Altham
Mr R C Altham
Secretary
Mrs M V Altham
Company number
03731546
Registered office
Northgate
White Lund Industrial Estate
Morecambe
LA3 3AY
Auditor
MHA Moore and Smalley
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
Solicitors
Wright & Lord
53 Princes Crescent
Morecambe
LA4 6BY
ALTHAMS CATERING BUTCHERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of income and retained earnings
7
Group balance sheet
8
Company balance sheet
9
Group statement of cash flows
10
Notes to the financial statements
11 - 27
ALTHAMS CATERING BUTCHERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The Company's core activities remain in the middle to high class sector of the hospitality, hotel and restaurant trade, blended with a small amount of retail business.

Principal risks and uncertainties

Whilst the view of the Directors is that one of the Company's’ main strengths is excellent debtors and creditor control. This strict cash control is maintained by close contact with customers so that credit difficulties are avoided by early action.

 

Inflation pressures during FY23 have been challenging but the business has been able to adapt and manage these by high growth and maintaining service levels at an above industry average. Fixed energy contracts have provided new stability for on-going costs into FY24.

Development and performance

The Directors are running the business with a 'hands on approach' together with a smaller, but effective senior management team. Performance of the business is monitored by the gross profit margin, cash forecasts and debtor control.

Key performance indicators

The main KPI for the Company continues to be the gross profit margin and cash flow.

 

We measure our performance with analysis of our operating profit return on sales, absolute levels of overhead expenditure and cash generated from operating activities.

 

The team understands the values of our Company and being part of its future vision and success. The company will continue to monitor the performance of its employees, customers and suppliers and take action when that performance fails to meet the expected standards.

 

Key performance indicator            2023        2022

 

Turnover (£'000s)                    14,971        11,731

Gross profit margin %                35.5%        36.8%

EBITDA (£'000s)                    1,132        668

 

Future developments

The business maintains a strong, balanced customer base and the inflationary costs have now passed. In the medium term, the Company will continue to strive to improve profitability by continuous improvement.

By order of the board

Mrs M V Altham
Secretary
1 February 2024
ALTHAMS CATERING BUTCHERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the group in the year under review was that of wholesale butchers operating in the catering and hospitality industry.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £402,500. 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:

Mrs M V Altham
Mr J C Altham
Mr R C Altham
Auditor

In accordance with the company's articles, a resolution proposing that MHA Moore and Smalley be reappointed as auditor of the group will be put at a General Meeting.

Strategic report

The grouptrue has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 principal risks and uncertainties, research and development and future developments.

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 auditor of the company 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 auditor of the company 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.

By order of the board
Mrs M V Altham
Secretary
1 February 2024
ALTHAMS CATERING BUTCHERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ALTHAMS CATERING BUTCHERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALTHAMS CATERING BUTCHERS LIMITED
- 4 -
Opinion

We have audited the financial statements of Althams Catering Butchers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group 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:

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 group and parent 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 group's and parent 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.

ALTHAMS CATERING BUTCHERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALTHAMS CATERING BUTCHERS LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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:

 

ALTHAMS CATERING BUTCHERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALTHAMS CATERING BUTCHERS LIMITED
- 6 -

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:

 

Because of the industry in which the company operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and safety, food safety regulations, employment law, and compliance with the Companies Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

 

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.

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.

Jenny McCabe
Senior Statutory Auditor
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
1 February 2024
ALTHAMS CATERING BUTCHERS LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
14,971,201
11,731,408
Cost of sales
(9,651,286)
(7,417,257)
Gross profit
5,319,915
4,314,151
Distribution costs
(545,408)
(588,629)
Administrative expenses
(3,857,553)
(3,362,796)
Other operating income
-
105,532
Operating profit
4
916,954
468,258
Interest payable and similar expenses
8
(62,621)
(27,024)
Profit before taxation
854,333
441,234
Tax on profit
9
(183,805)
(116,115)
Profit for the financial year
670,528
325,119
Retained earnings brought forward
3,147,172
2,822,053
Dividends
(402,500)
-
0
Retained earnings carried forward
3,415,200
3,147,172
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

ALTHAMS CATERING BUTCHERS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,692,783
2,832,562
Current assets
Stocks
14
627,866
556,728
Debtors
15
3,400,211
3,110,551
Cash at bank and in hand
1,101,173
675,904
5,129,250
4,343,183
Creditors: amounts falling due within one year
16
(3,371,160)
(2,761,966)
Net current assets
1,758,090
1,581,217
Total assets less current liabilities
4,450,873
4,413,779
Creditors: amounts falling due after more than one year
17
(809,544)
(1,081,683)
Provisions for liabilities
Deferred tax liability
20
226,029
184,824
(226,029)
(184,824)
Net assets
3,415,300
3,147,272
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
3,415,200
3,147,172
Total equity
3,415,300
3,147,272

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 1 February 2024 and are signed on its behalf by:
01 February 2024
Mrs M V Altham
Mr R C Altham
Director
Director
Company registration number 03731546 (England and Wales)
ALTHAMS CATERING BUTCHERS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
603,884
603,884
Investments
12
250,000
250,000
853,884
853,884
Current assets
Debtors
15
163
163
Creditors: amounts falling due within one year
16
(728,884)
(728,884)
Net current liabilities
(728,721)
(728,721)
Net assets
125,163
125,163
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
125,063
125,063
Total equity
125,163
125,163

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £402,500 (2022 - £0 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 1 February 2024 and are signed on its behalf by:
01 February 2024
Mrs M V Altham
Mr R C Altham
Director
Director
Company registration number 03731546 (England and Wales)
ALTHAMS CATERING BUTCHERS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,229,804
1,032,623
Interest paid
(62,621)
(27,024)
Income taxes refunded/(paid)
27,211
(29)
Net cash inflow from operating activities
1,194,394
1,005,570
Investing activities
Purchase of tangible fixed assets
(75,533)
(249,173)
Net cash used in investing activities
(75,533)
(249,173)
Financing activities
Repayment of bank loans
(203,794)
(445,209)
Payment of finance leases obligations
(87,298)
(87,298)
Dividends paid to equity shareholders
(402,500)
-
0
Net cash used in financing activities
(693,592)
(532,507)
Net increase in cash and cash equivalents
425,269
223,890
Cash and cash equivalents at beginning of year
675,904
452,014
Cash and cash equivalents at end of year
1,101,173
675,904
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information

Althams Catering Butchers Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Northgate, White Lund Industrial Estate, Morecambe, LA3 3AY.

 

The group consists of Althams Catering Butchers Limited and its subsidiary.

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.

The company, as an individual entity, is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements 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, as an individual entity, has taken advantage of exemptions from the following disclosure requirements for parent company information presented within these consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of Althams Catering Butchers Limited and its subsidiary (an entity that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -

Mrs. J. C. Altham & Sons (Morecambe) Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Mrs. J. C. Altham & Sons (Morecambe) Limited for the year.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover represents amounts receivable for the provision of wholesale meat to customers net and trade discounts. Turnover is recognised on delivery of the goods provided to the extent that the company has a right to consideration arising from the performance of its contractual obligations. Turnover is substantially within one class of business and is within the United Kingdom.

1.6
Tangible fixed assets

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

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 land and buildings
50 years straight line
Plant and machinery
5 to 20 years straight line
Motor vehicles
5 years straight line

Freehold land and assets in the course of construction are not depreciated.

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 recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Stocks

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. In determining the cost of raw materials, consumables and goods purchased for resale, the weighted average is used. For work in progress and finished goods cost is taken as production cost, which includes an appropriate proportion of attributable overheads.

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.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans 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.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 group’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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. 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.

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.17
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.

 

Government grants receivable include income under the Coronavirus Job Retention Scheme (CJRS) to reimburse the company of costs incurred in retaining staff who were furloughed due to the impact of closure due to COVID-19. CJRS grants are recognised to match the costs incurred by the company for the period claims are made.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
14,971,201
11,731,408
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,971,201
11,731,408
2023
2022
£
£
Other revenue
Grants received
-
105,532
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(105,532)
Depreciation of owned tangible fixed assets
165,025
149,338
Depreciation of tangible fixed assets held under finance leases
50,287
50,287
Operating lease charges
127,625
110,451
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 group and company
12,000
10,865
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
6
Employees

The average monthly number of persons employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production and sales
38
38
-
-
Office and management
27
25
-
-
Directors
3
3
-
-
Total
68
66
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,924,500
1,708,770
-
0
-
0
Social security costs
185,893
163,468
-
-
Pension costs
230,356
218,255
-
0
-
0
2,340,749
2,090,493
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
92,058
80,291
Company pension contributions to defined contribution schemes
194,143
184,800
286,201
265,091
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
33,185
51,462
Interest on finance leases and hire purchase contracts
19,927
(24,438)
Other interest
9,509
-
Total finance costs
62,621
27,024
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
142,756
-
0
Deferred tax
Origination and reversal of timing differences
30,799
71,758
Changes in tax rates
10,250
44,357
Total deferred tax
41,049
116,115
Total tax charge
183,805
116,115

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
854,333
441,234
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
162,323
83,834
Tax effect of expenses that are not deductible in determining taxable profit
15,939
1,097
Tax effect of income not taxable in determining taxable profit
(4,286)
(13,173)
Adjustments in respect of prior years
553
-
0
Effect of change in rate
9,276
44,357
Taxation charge
183,805
116,115
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
402,500
-
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
1,936,832
3,608,051
100,509
5,645,392
Additions
-
0
75,533
-
0
75,533
Disposals
-
0
(6,949)
-
0
(6,949)
At 31 March 2023
1,936,832
3,676,635
100,509
5,713,976
Depreciation and impairment
At 1 April 2022
398,506
2,331,449
82,875
2,812,830
Depreciation charged in the year
27,716
183,096
4,500
215,312
Eliminated in respect of disposals
-
0
(6,949)
-
0
(6,949)
At 31 March 2023
426,222
2,507,596
87,375
3,021,193
Carrying amount
At 31 March 2023
1,510,610
1,169,039
13,134
2,692,783
At 31 March 2022
1,538,326
1,276,602
17,634
2,832,562
Company
Freehold land and buildings
£
Cost
At 1 April 2022 and 31 March 2023
603,884
Depreciation and impairment
At 1 April 2022 and 31 March 2023
-
0
Carrying amount
At 31 March 2023
603,884
At 31 March 2022
603,884

The carrying value of land included within freehold land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
121,288
121,288
-
0
-
0
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
420,079
470,367
-
0
-
0

Freehold land and buildings with a carrying amount of £906,726 (2022: £934,442) have been pledged to secure borrowings of the group. The group is not allowed to pledge these assets as security for other borrowings or to sell them to another entity without the prior consent of the lender.

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
250,000
250,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
250,000
Carrying amount
At 31 March 2023
250,000
At 31 March 2022
250,000
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Mrs J.C. Altham & Sons (Morecambe) Limited
England
Ordinary
100.00
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
23,190
20,841
-
-
Finished goods and goods for resale
604,676
535,887
-
0
-
0
627,866
556,728
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,483,953
1,301,496
-
0
-
0
Corporation tax recoverable
-
0
27,056
-
0
-
0
Other debtors
186,382
216,797
163
163
Prepayments and accrued income
137,727
82,078
-
0
-
0
1,808,062
1,627,427
163
163
Amounts falling due after more than one year:
Amount owed by related parties
1,592,149
1,483,124
-
0
-
0
Total debtors
3,400,211
3,110,551
163
163
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
220,412
227,719
-
0
-
0
Obligations under finance leases
19
79,198
90,844
-
0
-
0
Other borrowings
18
125,000
125,000
125,000
125,000
Trade creditors
1,371,914
1,082,389
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
603,884
603,884
Corporation tax payable
142,755
-
0
-
0
-
0
Other taxation and social security
56,200
46,300
-
-
Other creditors
1,123,351
997,325
-
0
-
0
Accruals and deferred income
252,330
192,389
-
0
-
0
3,371,160
2,761,966
728,884
728,884
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
792,227
988,714
-
0
-
0
Obligations under finance leases
19
17,317
92,969
-
0
-
0
809,544
1,081,683
-
-
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,012,639
1,216,433
-
0
-
0
Preference shares
125,000
125,000
125,000
125,000
1,137,639
1,341,433
125,000
125,000
Payable within one year
345,412
352,719
125,000
125,000
Payable after one year
792,227
988,714
-
0
-
0

Loans totalling £479,454 (2022: £523,420) are secured by way of National Westminster Bank Plc holding a legal charge over the land and buildings of the company and a debenture over all the assets of the company with the exception of the invoice financed trade receivables.

These loans are due to end in between two and five years. Interest is being charged on loans at 1.75% above the base rate per annum.

 

Included within bank loans are two CBIL loans totalling £500,000 (2022: £650,000). These are due to end within five years. Interest is being charged on loans at 3.96% above the base rate per annum.

 

Other creditors of £1,009,019 (2022: £989,400) relate to the invoice financing arrangement with Royal Bank of Scotland. This is secured by way of debenture over all the assets of the company.

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
79,198
90,844
-
0
-
0
In two to five years
-
0
92,969
-
0
-
0
79,198
183,813
-
-
Less: future finance charges
17,317
-
0
-
0
-
0
96,515
183,813
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

The leases are secured against the leased plant and machinery items.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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
Group
£
£
Accelerated capital allowances
227,479
184,824
Tax losses
(1,450)
-
226,029
184,824
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
184,824
-
Charge to profit or loss
41,205
-
Liability at 31 March 2023
226,029
-
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Deferred taxation
(Continued)
- 24 -

The directors do not expect the net reversal of the deferred tax liability in the year beginning after the reporting period to be materially different from the movement shown in the current year.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
230,356
218,255

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Included within other creditors at 31 March 2023 is £9,343 (2022: £7,822) in relation to pension contributions outstanding at the year end.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
23
Financial commitments, guarantees and contingent liabilities

The subsidiary has provided a cross company guarantee to a financer of Althams Fine Foods Limited.

 

At 31 March 2023 the indebtedness of Althams Fine Foods Limited to this financer amounted to £26,310 (2022: £79,308).

 

Other than the above there were no contingent liabilities at 31 March 2023 or 31 March 2022.

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
24
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for motor vehicles. Leases of motor vehicles are negotiated for an average term of 3 years and rentals are fixed for the period.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
78,132
78,645
-
-
Between two and five years
32,555
110,687
-
-
110,687
189,332
-
-
25
Related party transactions
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the entity or its directors have control, joint control or significant influence
136,534
282,805
406,867
348,564
Payments
Receipts
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the entity or its directors have control, joint control or significant influence
781,457
833,161
278,843
505,484

No remuneration was paid to close family members of the directors of the company and its parent company.

ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
25
Related party transactions
(Continued)
- 26 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities over which the entity or its directors have control, joint control or significant influence
8,711
78,232
Key management personnel
104,989
104

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the entity or its directors have control, joint control or significant influence
1,830,285
1,650,094
Other information

In accordance with section 33.1A the parent company, Althams Catering Butchers Limited, is not required to disclose transactions with its subsidiary.

26
Controlling party

There was no single ultimate controlling party of Althams Catering Butchers Limited during the current or prior year.

27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
670,528
325,119
Adjustments for:
Taxation charged
183,805
116,115
Finance costs
62,621
27,024
Depreciation and impairment of tangible fixed assets
215,312
199,625
Movements in working capital:
Increase in stocks
(71,138)
(188,939)
Increase in debtors
(316,716)
(1,271,361)
Increase in creditors
485,392
1,825,040
Cash generated from operations
1,229,804
1,032,623
ALTHAMS CATERING BUTCHERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
28
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
675,904
425,269
1,101,173
Borrowings excluding overdrafts
(1,341,433)
203,794
(1,137,639)
Obligations under finance leases
(183,813)
87,298
(96,515)
(849,342)
716,361
(132,981)
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