Company Registration No. 07628116 (England and Wales)
Philip Dennis Foodservice (Holmsleigh) Limited
Unaudited financial statements
for the year ended 31 May 2023
Pages for filing with the registrar
Philip Dennis Foodservice (Holmsleigh) Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
Philip Dennis Foodservice (Holmsleigh) Limited
Statement of financial position
As at 31 May 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,847,368
5,369,596
Investment property
5
811,898
811,898
Investments
6
5,786,622
5,786,622
11,445,888
11,968,116
Current assets
Debtors
7
282,560
290,895
Cash at bank and in hand
198,146
211,457
480,706
502,352
Creditors: amounts falling due within one year
8
(2,292,855)
(1,266,710)
Net current liabilities
(1,812,149)
(764,358)
Total assets less current liabilities
9,633,739
11,203,758
Creditors: amounts falling due after more than one year
9
(2,902,459)
(4,269,011)
Provisions for liabilities
(1,014,866)
(1,119,232)
Net assets
5,716,414
5,815,515
Capital and reserves
Called up share capital
1,000
1,000
Revaluation reserve
1,395,211
1,768,550
Profit and loss reserves
4,320,203
4,045,965
Total equity
5,716,414
5,815,515

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Philip Dennis Foodservice (Holmsleigh) Limited
Statement of financial position (continued)
As at 31 May 2023
2
The financial statements were approved by the board of directors and authorised for issue on 21 September 2023 and are signed on its behalf by:
John Dennis
Director
Company Registration No. 07628116
Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements
For the year ended 31 May 2023
3
1
Accounting policies
Company information

Philip Dennis Foodservice (Holmsleigh) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mullacott Industrial Estate, Ilfracombe, N Devon, EX34 8PL.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 the wind turbine to fair value. The principal accounting policies adopted are set out below.

1.2
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

The company recognises revenue when the energy has been supplied to the customer.

 

Rental income is recognised on a straight line basis over the term of the lease.

1.3
Tangible fixed assets

Tangible fixed assets (except for the wind turbine) are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and impairment losses. The wind turbine is held at the fair value at the statement of financial position date with movements in fair value recorded in other comprehensive income and reflected in the revaluation reserve within equity.

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
0%
Battery storage and solar panels
5%
Wind turbine
5%
Motor vehicles
33%

Land is not depreciated in accordance with usual practice.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.4
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies (continued)
4
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.6
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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors, 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.

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.

Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies (continued)
5
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
1
Accounting policies (continued)
6
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
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

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

2023
2022
Number
Number
Total
4
4
Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
7
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 June 2022
128,000
7,571,087
7,699,087
Additions
-
0
71,635
71,635
At 31 May 2023
128,000
7,642,722
7,770,722
Depreciation and impairment
At 1 June 2022
-
0
2,329,491
2,329,491
Depreciation charged in the year
-
0
593,863
593,863
At 31 May 2023
-
0
2,923,354
2,923,354
Carrying amount
At 31 May 2023
128,000
4,719,368
4,847,368
At 31 May 2022
128,000
5,241,596
5,369,596

The wind turbine is carried at fair value at the statement of financial position date.

The company's wind turbine was revalued by the directors on 31 May 2019. The directors have assessed the market value of the wind turbine at the year ended 31 May 2023 and are satisfied that the market value of the asset has not materially changed since the time of this valuation.

 

The wind turbine is carried at valuation. If the wind turbine were measured using the cost model, the carrying amounts would have been approximately £701,500 (2022 - £779,854), being cost £1,566,911 (2022 - £1,566,911) and depreciation £865,411 (2022 - £787,057).

5
Investment property
2023
£
Fair value
At 1 June 2022 and 31 May 2023
811,898

Fair value is determined annually by the directors based on local market values for similar properties.

 

There has been no valuation of investment property by an independent valuer.

6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
5,786,622
5,786,622
Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
8
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
80,963
120,254
Other debtors
201,597
170,641
282,560
290,895
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
435,796
483,380
Trade creditors
86,361
71,157
Amounts owed to group undertakings
857,418
240,550
Corporation tax
53,525
163,442
Other taxation and social security
-
0
20,836
Other creditors
859,755
287,345
2,292,855
1,266,710
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
34,623
2,535,534
Other creditors
2,867,836
1,733,477
2,902,459
4,269,011
10
Loans and overdrafts
2023
2022
£
£
Bank loans
470,419
3,018,914
Other loans
3,616,526
1,960,446
4,086,945
4,979,360
Payable within one year
1,184,486
710,349
Payable after one year
2,902,459
4,269,011
Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
10
Loans and overdrafts (continued)
9

Bank borrowings consist of two separate loans totalling £429,916 (2022: £2,972,538) and £40,503 (2022: £46,376).

 

The first loan attracts interest at the 3 month Libor rate plus a margin of 4.35%. This loan is secured against assets of the company and the reserve account held with the bank. It has been fully repaid following the year end.

 

The second loan is being repaid in 60 monthly instalments beginning on 13 May 2021. Interest is charged at a rate of 2.5%. This loan is secured against assets of the company.

Philip Dennis Foodservice (Holmsleigh) Limited
Notes to the financial statements (continued)
For the year ended 31 May 2023
10
11
Related party transactions
Transactions with related parties

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

At the balance sheet date, the amount due to the directors, close family members and associated companies was £2,924,519 (2022: £1,797,816). Interest of £147,416 (2022: £48,368) was paid on these balances during the year.

 

During the year, the company made sales of £123,657 (2022: £130,392) and purchases of £79,208 (2022: £59,975) to companies under common control. At the balance sheet date the net amount due to these companies under common control was £647,581 (2022: £166,156). Interest had accrued in the period of £22,535 (2022: £9,443).

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