Company registration number 01915027 (England and Wales)
RHONDA MEATS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
RHONDA MEATS LIMITED
COMPANY INFORMATION
Director
Mr T A Green
Company number
01915027
Registered office
13-15 East Market
Smithfield
London
EC1A 9PQ
Auditor
Bryden Johnson Limited
1-4 Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
Business address
13-15 East Market
Smithfield
London
EC1A 9PQ
RHONDA MEATS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of cash flows
11
Notes to the financial statements
12 - 23
RHONDA MEATS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 1 -

The director presents the strategic report for the period ended 31 March 2023.

Review of the business

Rhonda Meats Ltd has completed a successful year of trading. Notwithstanding that the current period is an extended 18 months as compared to the prior 12 month period, turnover of the Company increased from £22,505,461 to £36,036,736. Operating profit for the current period is £2,956,326 compared to an operating loss in the prior year of £197,937, noting that the current period included both exceptional income and expenses as noted in the accounts.

 

Net assets of the business at the year-end were £3,329,059 compared with £1,989,019 in the previous year.

Principal risks and uncertainties

Interest rate risk

The company has sufficient liquidity to fund its operations, therefore the company does not consider interest rate risk to be significant.

 

Liquidity risk

The Company monitors and manages its liquidity closely, and pays particular attention to its cash flow. Debtors are checked for compliance with the Company's credit policy, and monitored regularly for any other breach of credit terms.

 

Credit Risk

The Company’s credit policy is based on regular credit checks of new and existing customers, supplemented by credit agency reports, observing credit limits and visits by the Company’s sales staff. Customers are required to enter into agreements, which include clearly defined payment terms. Once trade credit has been granted, performance is monitored closely.

 

 

On behalf of the board

Mr T A Green
Director
15 February 2024
RHONDA MEATS LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -

The director presents his annual report and financial statements for the period ended 31 March 2023.

Principal activities
The principal activity of the company continued to be that of wholesale meat trading.
Results and dividends

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

Ordinary dividends were paid amounting to £117,600. The director does not recommend payment of a final dividend.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

Mr T A Green
Auditor

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr T A Green
Director
15 February 2024
RHONDA MEATS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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 them 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.

RHONDA MEATS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RHONDA MEATS LIMITED
- 4 -
Opinion

We have audited the financial statements of Rhonda Meats Limited (the 'company') for the period ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Emphasis of matter

We draw attention to notes 1.3, 4 and 25 of the financial statements, which describes the circumstances that have given rise to a material bad debt adjustment in these accounts. The matters were identified during the course of our audit and have resulted in both a prior year adjustment and the exceptional item of expenditure as detailed. We are satisfied that all the necessary transactions have now been reflected in these accounts and our opinion is not modified in this respect.

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

RHONDA MEATS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHONDA MEATS LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

RHONDA MEATS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RHONDA MEATS LIMITED
- 6 -

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included:

 

- Reviewing minutes of meetings of those charged with governance;

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias).

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

Neil Johnson
Senior Statutory Auditor
For and on behalf of Bryden Johnson Limited
15 February 2024
Chartered Accountants
Statutory Auditor
1-4 Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
RHONDA MEATS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2023
- 7 -
Period
Year
ended
ended
31 March
30 September
2023
2021
as restated
Notes
£
£
Turnover
3
36,036,736
22,505,461
Cost of sales
(34,301,607)
(21,442,342)
Gross profit
1,735,129
1,063,119
Administrative expenses
(1,895,866)
(1,382,441)
Other operating income
3,423,338
121,385
Exceptional item
4
(306,275)
-
0
Operating profit/(loss)
5
2,956,326
(197,937)
Interest receivable and similar income
8
78
279
Interest payable and similar expenses
9
(16,187)
(1,435)
Profit/(loss) before taxation
2,940,217
(199,093)
Tax on profit/(loss)
10
(275,697)
(26,581)
Profit/(loss) for the financial period
2,664,520
(225,674)

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

RHONDA MEATS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 8 -
Period
Year
ended
ended
31 March
30 September
2023
2021
as restated
£
£
Profit/(loss) for the period
2,664,520
(225,674)
Other comprehensive income
-
-
Total comprehensive income for the period
2,664,520
(225,674)
RHONDA MEATS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
31 March 2023
30 September 2021
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
25,236
1,541,882
Current assets
Stocks
14
107,786
99,278
Debtors
15
6,936,305
5,105,812
Cash at bank and in hand
680,790
471,445
7,724,881
5,676,535
Creditors: amounts falling due within one year
16
(4,403,915)
(4,937,135)
Net current assets
3,320,966
739,400
Total assets less current liabilities
3,346,202
2,281,282
Provisions for liabilities
Deferred tax liability
17
17,143
292,263
(17,143)
(292,263)
Net assets
3,329,059
1,989,019
Capital and reserves
Called up share capital
19
100,030
100,030
Revaluation reserve
-
0
1,206,880
Profit and loss reserves
3,229,029
682,109
Total equity
3,329,059
1,989,019

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

The financial statements were approved and signed by the director and authorised for issue on 15 February 2024
Mr T A  Green
Director
Company registration number 01915027 (England and Wales)
RHONDA MEATS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 30 September 2021:
Balance at 1 October 2020
100,030
1,206,880
1,052,783
2,359,693
Year ended 30 September 2021:
Loss and total comprehensive income
-
-
(225,674)
(225,674)
Dividends
11
-
-
(145,000)
(145,000)
Balance at 30 September 2021
100,030
1,206,880
682,109
1,989,019
Period ended 31 March 2023:
Profit and total comprehensive income
-
-
2,664,520
2,664,520
Dividends
11
-
-
(117,600)
(117,600)
Other movements
-
(1,206,880)
-
(1,206,880)
Balance at 31 March 2023
100,030
-
0
3,229,029
3,329,059
RHONDA MEATS LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 11 -
2023
2021
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
23
(1,166,606)
(48,990)
Interest paid
(16,187)
(1,435)
Income taxes refunded/(paid)
10,350
(68,817)
Net cash outflow from operating activities
(1,172,443)
(119,242)
Investing activities
Purchase of tangible fixed assets
(690)
(690)
Proceeds from disposal of tangible fixed assets
1,500,000
-
0
Interest received
78
279
Net cash generated from/(used in) investing activities
1,499,388
(411)
Financing activities
Dividends paid
(117,600)
(145,000)
Net cash used in financing activities
(117,600)
(145,000)
Net increase/(decrease) in cash and cash equivalents
209,345
(264,653)
Cash and cash equivalents at beginning of period
471,445
736,098
Cash and cash equivalents at end of period
680,790
471,445
RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information

Rhonda Meats Limited is a private company limited by shares incorporated in England and Wales. The registered office is 13-15 East Market, Smithfield, London, EC1A 9PQ.

1.1
Reporting period

During the year, the company has extended its accounting period to 31 March 2023.

1.2
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.

1.3
Prior period error

The prior year cost of sales has been restated to reflect the correction of an error.

 

The error, which was identified during the course of the current year audit amounted to £313,263 and affected the cost of sales relating to one supplier.

 

During the course of the audit and testing of purchase walk throughs it was identified that the purchase invoices for one supplier was missing for the current and prior year. This matter has been corrected in both years and subsequently has given rise to the material bad debt write off in the current year, noted as an item of exceptional expenditure.

 

Measures have been implemented to mitigate the risk of such errors occurring again.

1.4
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for wholesale meat provided in the normal course of business, and is shown net of VAT.

1.6
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.

1.7
Tangible fixed assets

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

RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -

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

Short leasehold
Nil
Plant and machinery
15% - Straight line
Fixtures, fittings & equipment
25% - Straight line
Motor vehicles
25% Reducing Balance

The company does not depreciate the leasehold because as the director consider the residual value and given the estimate useful life, any depreciation charge would be insignificant.

1.8
Impairment of fixed assets

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

 

1.9
Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving meats.

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, 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.

1.11
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.

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.

RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

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.

 

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.

1.12
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.

1.13
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 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.

RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.14
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.

1.15
Retirement benefits

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

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

2
Judgements and key sources of estimation uncertainty

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

 

Such estimates are generally in relation to the application of depreciation policies and provisions in respect of bad debt, whereby the estimate is based on managements knowledge of the business and current environment.

 

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

3
Turnover and other revenue
2023
2021
£
£
Turnover analysed by class of business
Wholesale meat
36,036,736
22,505,461
RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2021
£
£
Turnover analysed by geographical market
UK
36,036,736
22,505,461
2023
2021
£
£
Other revenue
Interest income
78
279
Grants received
-
121,385
4
Exceptional items
2023
2021
£
£
Income
Surrender of lease at 13 / 15 East Market
3,423,338
-
Expenditure
Material bad debt write off
306,275
-

Surrender of lease

 

The gain under the surrender of lease arose on the disposal of the lease at 13/15 East Market, Smithfield, London, EC1A 9PQ. The whole market is being moved to a different area and Corporation of London is buying back the lease.

 

Material bad debt write off

The above loss arose on account of a significant customer, also being a supplier informing the director that they are unable to pay the amount due. The director has agreed to net off the liabilities that they are due to pay against the trade debtor balance due to them and to write off the net amount as bad debts.

5
Operating profit/(loss)
2023
2021
Operating profit/(loss) for the period is stated after charging/(crediting):
£
£
Government grants
-
(121,385)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
14,000
Depreciation of owned tangible fixed assets
17,336
22,907
Operating lease charges
245,391
123,623
RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 17 -
6
Employees

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

2023
2021
Number
Number
Employees
19
19

Their aggregate remuneration comprised:

2023
2021
£
£
Wages and salaries
976,608
703,313
Social security costs
109,135
71,279
Pension costs
19,950
14,971
1,105,693
789,563
7
Director's remuneration
2023
2021
£
£
Remuneration for qualifying services
18,231
12,231
8
Interest receivable and similar income
2023
2021
£
£
Interest income
Interest on bank deposits
78
279
2023
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
78
279
9
Interest payable and similar expenses
2023
2021
£
£
Other finance costs:
Other interest
16,187
1,435
RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 18 -
10
Taxation
2023
2021
£
£
Current tax
UK corporation tax on profits for the current period
550,817
26,581
Deferred tax
Origination and reversal of timing differences
(275,120)
-
0
Total tax charge
275,697
26,581

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
2021
£
£
Profit/(loss) before taxation
2,940,217
(199,093)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
558,641
(37,828)
Tax effect of expenses that are not deductible in determining taxable profit
13,471
575
Adjustments in respect of prior years
(59,520)
59,520
Permanent capital allowances in excess of depreciation
3,319
4,314
Other permanent differences
(207)
-
0
Deferred tax adjustments in respect of prior years
(275,120)
-
0
Indexation allowance
34,002
-
0
Pension movement
1,111
-
0
Taxation charge for the period
275,697
26,581
11
Dividends
2023
2021
£
£
Interim paid
117,600
145,000
RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 19 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2021
22,824
Disposals
(22,824)
At 31 March 2023
-
0
Amortisation and impairment
At 1 October 2021
22,824
Disposals
(22,824)
At 31 March 2023
-
0
Carrying amount
At 31 March 2023
-
0
At 30 September 2021
-
0
13
Tangible fixed assets
Short leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2021
1,500,000
143,655
134,670
128,950
1,907,275
Additions
-
0
-
0
690
-
0
690
Disposals
(1,500,000)
-
0
-
0
-
0
(1,500,000)
At 31 March 2023
-
0
143,655
135,360
128,950
407,965
Depreciation and impairment
At 1 October 2021
-
0
133,903
130,445
101,045
365,393
Depreciation charged in the period
-
0
7,016
3,345
6,975
17,336
At 31 March 2023
-
0
140,919
133,790
108,020
382,729
Carrying amount
At 31 March 2023
-
0
2,736
1,570
20,930
25,236
At 30 September 2021
1,500,000
9,752
4,225
27,905
1,541,882
14
Stocks
2023
2021
£
£
Raw materials and consumables
107,786
99,278
RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 20 -
15
Debtors
2023
2021
Amounts falling due within one year:
£
£
Trade debtors
4,068,704
4,912,050
Other debtors
243,788
174,583
Prepayments and accrued income
2,623,813
19,179
6,936,305
5,105,812
16
Creditors: amounts falling due within one year
2023
2021
£
£
Trade creditors
3,403,449
4,357,875
Corporation tax
668,385
107,218
Other taxation and social security
272,421
104,992
Other creditors
35,048
213,566
Accruals and deferred income
24,612
153,484
4,403,915
4,937,135
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2021
Balances:
£
£
Accelerated capital allowances
17,143
292,263
2023
Movements in the period:
£
Liability at 1 October 2021
292,263
Credit to profit or loss
(275,120)
Liability at 31 March 2023
17,143

 

RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 21 -
18
Retirement benefit schemes
2023
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
19,950
14,971

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2021
2023
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
Ordinary A shares of £1 each
10
10
10
10
Ordinary B shares of £1 each
10
10
10
10
Ordinary C shares of £1 each
10
10
10
10
100,030
100,030
100,030
100,030
20
Operating lease commitments
Lessee

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

2023
2021
£
£
Within one year
130,537
127,157
Between two and five years
512,290
508,628
In over five years
63,578
190,735
706,405
826,520
21
Directors' transactions

At the year end, included in other creditors is an amount of £32,825 (2021: £203,940) due to the director of the company.

22
Ultimate controlling party

The ultimate controlling party is the director Mr T A Green, by virtue of his majority shareholding in the company.

RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 22 -
23
Cash absorbed by operations
2023
2021
£
£
Profit/(loss) for the period after tax
2,664,520
(225,674)
Adjustments for:
Taxation charged
275,697
26,581
Finance costs
16,187
1,435
Investment income
(78)
(279)
Depreciation and impairment of tangible fixed assets
17,336
22,907
Decrease in provisions
(1,206,880)
-
Movements in working capital:
(Increase)/decrease in stocks
(8,508)
20,772
Increase in debtors
(1,830,493)
(1,169,696)
(Decrease)/increase in creditors
(1,094,387)
1,274,964
Cash absorbed by operations
(1,166,606)
(48,990)
24
Analysis of changes in net funds
1 October 2021
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
471,445
209,345
680,790
25
Prior period adjustment
Reconciliation of changes in equity
1 October
30 September
2020
2021
£
£
Adjustments to prior period
Cost Amendment
-
(313,263)
Equity as previously reported
2,359,693
2,302,282
Equity as adjusted
2,359,693
1,989,019
Analysis of the effect upon equity
Profit and loss reserves
-
(313,263)
RHONDA MEATS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
25
Prior period adjustment
(Continued)
- 23 -
Reconciliation of changes in profit/(loss) for the previous financial period
2021
£
Adjustments to prior period
Cost Amendment
(313,263)
Profit as previously reported
87,589
Loss as adjusted
(225,674)
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