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REGISTERED NUMBER: 09967670 (England and Wales)















STRATEGIC REPORT, DIRECTOR'S REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

PARAGON FOODSERVICE LIMITED

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023










Page

Company Information 1

Strategic Report 2

Director's Report 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


PARAGON FOODSERVICE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTOR: M Pekin





REGISTERED OFFICE: Unit D Herons Way
Balby
Doncaster
DN4 8WA





REGISTERED NUMBER: 09967670 (England and Wales)





AUDITORS: Sedulo Audit Limited
Statutory Auditors
605 Albert House
256-260 Old Street
London
EC1V 9DD

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The director presents the strategic report together with the audited financial statements for the year ended 28 February 2023.

REVIEW OF BUSINESS
The principal activity of the company is supplying beefburgers and other meat products to foodservice and fast-food sectors. We continue to make good progress in growing sales.

The company has achieved considerable success in developing and expanding both new and existing customer relationships, alongside ongoing investments in facility upgrades.

Similar to other manufacturing businesses, we have experienced the adverse effects from substantial inflation in energy, wages, and raw material prices. However, overall, the company has sustained strong sales volumes and reasonable profit margins by timely price adjustments, various strategic initiatives, innovation, and a customer-centric approach.

PRINCIPAL RISKS AND UNCERTAINTIES
Interest Rates
Over the accounting period, interest rates rose considerably which inevitably had a negative impact on profitability. However, should further increases materialise, we anticipate that it will have minimal impact as the group has steadily decreased its debt and will continue to clear the loans over the next few years.

Economic Volatility
As the cost of living continues to rise, consumer spending is likely to fall, which could impact our sales. However, based on our experience with previous recessions, convenience food tends to be one of the last areas consumers cut back on.

Technology and Innovation
Ongoing investment in technological upgrades is essential to keep pace with advancements in food manufacturing and distribution, ensuring competitiveness. We are continuously investing in technology where possible to improve efficiencies.

Environmental Sustainability
Increasing consumer awareness and regulatory pressure on sustainability practices require continuous efforts towards environmentally friendly operations. We are liaising with both customers and suppliers and are making good progress in this area.

Conclusion
Despite inherent risks and uncertainties, the company remains agile and positioned for sustained growth. Our commitment to innovation, customer satisfaction, and adaptability to market changes solidifies our favourable position within the industry.


PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

SECTION 172(1) STATEMENT
Directors Duties
The Directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:

A director of a Company must act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:

1. The likely consequences of any decisions in the long term:

The Company's main strategic decisions in the year where those that resulted in decisions to continue to invest in automating and upgrading equipment and machinery and develop its people and processes to enable it to be competitive for the short, medium and long term

2. The interest of the Company's employees:

Investment is not only in machinery but also in its people and processes to ensure staff's training and development needs are met.

3. The need to foster the Company's business relationships with suppliers' customers and others - business relationships:

The Company continues to develop new automated packaging processes for packing goods. This will help consolidate relationships with the entire supply chain.

4. The impact of the Company's operations on the community and the environment:.

Investment in equipment, and processes will lead to increased efficiencies in the use of energy which will reduce our impact on the environment both locally and on a nationally.

5. The desirability of the Company maintaining a reputation for high standards of business conduct:

The Company prides itself on its professional reputation. We are regularly audited by external bodies to ensure compliance with all relevant food hygiene legislation.

6. The need to act fairly as between stakeholders of the Company.:

Fairness and equality are important to the company, we work with members at all levels and promote a good working relationship between all colleagues

ON BEHALF OF THE BOARD:





M Pekin - Director


2 February 2024

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The director presents his report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of distribution of deep frozen foods.

DIVIDENDS
No dividends will be distributed for the year ended 28 February 2023.

RESEARCH AND DEVELOPMENT
The company continues to perform research and development activities in the pursuit of achieving greater efficiencies in the packaging, distribution and logistical management of products.

FUTURE DEVELOPMENTS
The company anticipates that the turnover will remain consistent during the current financial year to February 2024, but profitability to improve as raw materials prices have stabilised, and prices increases were implemented during the year.

DIRECTOR
M Pekin held office during the whole of the period from 1 March 2022 to the date of this report.

ENERGY AND CARBON REPORTING
The company continues to evaluate the energy consumption and identified ways in which the environmental impact can be reduced. At the current time it is not practical for the company to report the specific consumption figures, but are identifying ways of capturing and providing greater transparency on this information in the future.

Solar panels have been installed in May 2023, and we offset our emissions to be becomes carbon natural in August 2023.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Director's 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements;
-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.

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
Sedulo Audit Limited will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M Pekin - Director


2 February 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PARAGON FOODSERVICE LIMITED


Opinion
We have audited the financial statements of Paragon Foodservice Limited (the 'company') for the year ended 28 February 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Director's Report, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PARAGON FOODSERVICE LIMITED


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 where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's 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 Statement of Director's Responsibilities set out on page four, 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 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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiring of directors and inspection of policy documentation as to the Company's high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.

- Reading Board and sub committee meeting minutes.

- Considering remuneration incentive schemes and performance targets for management, directors and sales staff.

- Using analytical procedures to identify any unusual or unexpected relationships.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PARAGON FOODSERVICE LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Diccon Thornely (Senior Statutory Auditor)
for and on behalf of Sedulo Audit Limited
Statutory Auditors
605 Albert House
256-260 Old Street
London
EC1V 9DD

2 February 2024

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

INCOME STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023

28.2.23 28.2.22
Notes £    £   

TURNOVER 3 58,043,828 46,768,589

Cost of sales 55,048,880 42,542,947
GROSS PROFIT 2,994,948 4,225,642

Administrative expenses 2,417,703 1,798,387
OPERATING PROFIT and
PROFIT BEFORE TAXATION 577,245 2,427,255

Tax on profit 6 118,730 473,649
PROFIT FOR THE FINANCIAL YEAR 458,515 1,953,606

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

28.2.23 28.2.22
Notes £    £   

PROFIT FOR THE YEAR 458,515 1,953,606


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

458,515

1,953,606

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

BALANCE SHEET
28 FEBRUARY 2023

28.2.23 28.2.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 3,632,817 3,237,759

CURRENT ASSETS
Stocks 8 4,239,472 4,072,006
Debtors 9 6,736,108 5,246,813
Cash at bank 40,925 180,514
11,016,505 9,499,333
CREDITORS
Amounts falling due within one year 10 6,240,785 4,824,786
NET CURRENT ASSETS 4,775,720 4,674,547
TOTAL ASSETS LESS CURRENT LIABILITIES 8,408,537 7,912,306

PROVISIONS FOR LIABILITIES 12 112,250 74,534
NET ASSETS 8,296,287 7,837,772

CAPITAL AND RESERVES
Called up share capital 13 1,000 1,000
Retained earnings 14 8,295,287 7,836,772
SHAREHOLDERS' FUNDS 8,296,287 7,837,772

The financial statements were approved by the director and authorised for issue on 2 February 2024 and were signed by:





M Pekin - Director


PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 March 2021 1,000 5,883,166 5,884,166

Changes in equity
Total comprehensive income - 1,953,606 1,953,606
Balance at 28 February 2022 1,000 7,836,772 7,837,772

Changes in equity
Total comprehensive income - 458,515 458,515
Balance at 28 February 2023 1,000 8,295,287 8,296,287

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. STATUTORY INFORMATION

Paragon Foodservice Limited is a private company, limited by shares, registered and domiciled in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

The company has continued to operate profitably since the year end and, having regard to the diminishing effects of the pandemic on activity, continues to forecast profitability and positive cash flow for the next year.

In addition the directors note that the company has a strong net asset and net current asset position and is able to meet all its day to day operational commitments from existing resources and funds generated from its activities.

Accordingly, at the time of signing these financial statements the directors are of the opinion that the company has sufficient resources to continue in operational existence for the foreseeable future, and therefore they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates
In preparing these financial statement, the director has had to make the following judgements:

Tangible fixed assets - Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset wand whether it is component of a larger cash generating unit, the viability and expected future performance of that unit.

Sales rebate accrual - A rebate accrual has been calculated based on historic levels of customer rebates previously experienced. The director has estimated that the future levels of rebates will continue to be consistent with historic levels.

Trade debtor recoverability - Recoverability of trade debtors is regularly reviewed in light of the available economic information specific to each debtor and specific provisions are recognised for balances considered to be irrecoverable.

Turnover
Turnover comprises revenue recognised by the company in respect of goods supplied during the year, exclusive of Value Added Tax, trade discounts and volume rebates.

Revenue is recognised on despatch of goods.

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 2% on cost
Plant and machinery - 6.7% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Tangible assets are initially recognised at historic cost, which includes expenditure incurred in bringing the asset to its present location and condition.

They are assessed at each reporting date for evidence of impairment. Impairment losses are recognised for the amount by which the carrying amount exceeds recoverable amount. Assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that previously recognised impairment losses may no longer exist or be reduced, and any reversal recognised in the accounts

Residual values, useful lives and depreciation methods are reviewed annually and adjusted if considered appropriate or if there is an indication of a significant change since the last reporting date.

Gains and loses on disposals are determined by comparing the proceeds with the carrying amount and recognised in the statement of comprehensive income.

Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

The company only enters into transactions in 'basic' financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties.

Basic financial assets (other than those classified as payable within one year) are initially measured at cost, and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses. Basic financial assets classified as receivable within one year are not amortised.

Basic financial liabilities (other than those classified as payable within one year) are initially recognised at present value of future cash flows and subsequently at amortised costs using the effective interest method. Basic financial liabilities classified as payable within one year are not amortised.

Financial assets and liabilities are offset, with the net amounts reported 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.


PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

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

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company and substantially arose in the United Kingdom.

4. EMPLOYEES AND DIRECTORS
28.2.23 28.2.22
£    £   
Wages and salaries 936,429 763,454
Social security costs 99,090 72,015
Other pension costs 18,560 15,114
1,054,079 850,583

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
28.2.23 28.2.22

Warehouse employees 15 11
Office and admin employees 5 5
Sales and marketing employees 7 7
27 23

28.2.23 28.2.22
£    £   
Director's remuneration 150,000 150,000

5. OPERATING PROFIT

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

28.2.23 28.2.22
£    £   
Hire of plant and machinery 53,956 39,065
Depreciation - owned assets 213,879 213,511
Profit on disposal of fixed assets - (5,000 )
Audit of annual accounts 6,200 13,060
Foreign exchange differences (10,131 ) (2,540 )

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
28.2.23 28.2.22
£    £   
Current tax:
UK corporation tax 81,014 473,649

Deferred tax 37,716 -
Tax on profit 118,730 473,649

UK corporation tax has been charged at 19% (2022 - 19%).

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


6. TAXATION - continued

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

28.2.23 28.2.22
£    £   
Profit before tax 577,245 2,427,255
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

109,677

461,178

Effects of:
Expenses not deductible for tax purposes 520 793
Capital allowances in excess of depreciation (29,183 ) -
Depreciation in excess of capital allowances - 11,678

Deferred tax 37,716 -

Total tax charge 118,730 473,649

7. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST
At 1 March 2022 2,602,986 65,869 972,191
Additions 361,001 680 208,691
At 28 February 2023 2,963,987 66,549 1,180,882
DEPRECIATION
At 1 March 2022 147,292 5,747 308,542
Charge for year 59,591 4,408 112,722
At 28 February 2023 206,883 10,155 421,264
NET BOOK VALUE
At 28 February 2023 2,757,104 56,394 759,618
At 28 February 2022 2,455,694 60,122 663,649

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


7. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 March 2022 174,125 59,971 3,875,142
Additions - 38,565 608,937
At 28 February 2023 174,125 98,536 4,484,079
DEPRECIATION
At 1 March 2022 122,307 53,495 637,383
Charge for year 22,751 14,407 213,879
At 28 February 2023 145,058 67,902 851,262
NET BOOK VALUE
At 28 February 2023 29,067 30,634 3,632,817
At 28 February 2022 51,818 6,476 3,237,759

8. STOCKS
28.2.23 28.2.22
£    £   
Finished goods 4,239,472 4,072,006

Stock recognised in cost of sales during the year as an expense was £53,930,920 (2022: £41,629,127)

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
£    £   
Trade debtors 5,889,523 5,063,190
Amounts owed by group undertakings 460,000 -
Tax 205,204 -
VAT 96,271 110,409
Prepayments and accrued income 85,110 73,214
6,736,108 5,246,813

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
£    £   
Trade creditors 539,157 343,327
Amounts owed to group undertakings 1,718,308 2,934,990
Tax 242,368 242,368
Social security and other taxes 25,947 22,348
Other creditors 2,417,188 16,776
Accruals and deferred income 1,297,817 1,264,977
6,240,785 4,824,786

11. SECURED DEBTS

The company operates an invoice discounting facility which is secured against the trade debtors of the company. As at the year end the balance of £2,399,491 (2022 : £Nil) is shown within other creditors at note 10 to these accounts.

12. PROVISIONS FOR LIABILITIES
28.2.23 28.2.22
£    £   
Deferred tax 112,250 74,534

Deferred
tax
£   
Balance at 1 March 2022 74,534
Charge to Income Statement during year 37,716
Balance at 28 February 2023 112,250

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 28.2.23 28.2.22
value: £    £   
400 A Ordinary £1 400 400
600 B Ordinary £1 600 600
1,000 1,000

A and B shares rank pari passu in the event of a winding up and with regard to dividends. In respect of voting rights A ordinary shares carry 3 votes per share and B ordinary shares 1 vote per share.

PARAGON FOODSERVICE LIMITED (REGISTERED NUMBER: 09967670)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


14. RESERVES
Retained
earnings
£   

At 1 March 2022 7,836,772
Profit for the year 458,515
At 28 February 2023 8,295,287

15. ULTIMATE PARENT COMPANY

Paragon Property Investments Limited (incorporated in England and Wales ) is regarded by the director as being the company's ultimate parent company.

The parent undertaking of the largest and smallest group for which consolidated accounts are prepared is Paragon Property Investments Limited, whose registered office is 3 Yorkshire Way, West More Park, Doncaster, South Yorkshire, DN3 3FD. Consolidated accounts are available from Companies House, Crown Way, Cardiff CF14 3UZ.

16. CONTINGENT LIABILITIES

The company has provided security for the bank borrowings of its parent company, Paragon Property Investments Limited, which are secured on the company's freehold land and buildings. As at the year end the borrowings amount covered by this security £3,182,935 (2022 - £3,967,526).

17. OTHER FINANCIAL COMMITMENTS

The company has annual lease commitments in respect of plant and equipment of approximately £35,000 (2022 -: £35,000) due to expire in approximately 1 year.

18. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption conferred by FRS 102 not to disclose transactions with other wholly owned subsidiaries within the group headed by Paragon Property Investments Limited.

During the year the company made sales of £535,686 (2022: £41,991) to Urban Burgers Group Limited, a company of which M Pekin is a minority shareholder and his daughter is a director. As at the year end the company was owed £43,615 (2022: £15,264).

19. ULTIMATE CONTROLLING PARTY

The Group and parent Company are controlled by M Pekin by virtue of his majority shareholding.