Caseware UK (AP4) 2022.0.179 2022.0.179 2023-05-312023-05-31Supplying prepared fresh producetruetruetruetruetruefalse2022-06-01false179196true 04869022 2022-06-01 2023-05-31 04869022 2021-06-01 2022-05-31 04869022 2023-05-31 04869022 2022-05-31 04869022 2021-06-01 04869022 c:Director1 2022-06-01 2023-05-31 04869022 c:Director2 2022-06-01 2023-05-31 04869022 c:Director3 2022-06-01 2023-05-31 04869022 c:RegisteredOffice 2022-06-01 2023-05-31 04869022 d:Buildings 2022-06-01 2023-05-31 04869022 d:Buildings 2023-05-31 04869022 d:Buildings 2022-05-31 04869022 d:Buildings d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 04869022 d:Buildings d:LongLeaseholdAssets 2022-06-01 2023-05-31 04869022 d:Buildings d:LongLeaseholdAssets 2023-05-31 04869022 d:Buildings d:LongLeaseholdAssets 2022-05-31 04869022 d:PlantMachinery 2022-06-01 2023-05-31 04869022 d:PlantMachinery 2023-05-31 04869022 d:PlantMachinery 2022-05-31 04869022 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 04869022 d:MotorVehicles 2022-06-01 2023-05-31 04869022 d:MotorVehicles 2023-05-31 04869022 d:MotorVehicles 2022-05-31 04869022 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 04869022 d:OwnedOrFreeholdAssets 2022-06-01 2023-05-31 04869022 d:CurrentFinancialInstruments 2023-05-31 04869022 d:CurrentFinancialInstruments 2022-05-31 04869022 d:Non-currentFinancialInstruments 2023-05-31 04869022 d:Non-currentFinancialInstruments 2022-05-31 04869022 d:CurrentFinancialInstruments d:WithinOneYear 2023-05-31 04869022 d:CurrentFinancialInstruments d:WithinOneYear 2022-05-31 04869022 d:Non-currentFinancialInstruments d:AfterOneYear 2023-05-31 04869022 d:Non-currentFinancialInstruments d:AfterOneYear 2022-05-31 04869022 d:UKTax 2022-06-01 2023-05-31 04869022 d:UKTax 2021-06-01 2022-05-31 04869022 d:ShareCapital 2023-05-31 04869022 d:ShareCapital 2022-05-31 04869022 d:ShareCapital 2021-06-01 04869022 d:SharePremium 2022-06-01 2023-05-31 04869022 d:SharePremium 2023-05-31 04869022 d:SharePremium 2022-05-31 04869022 d:SharePremium 2021-06-01 04869022 d:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 04869022 d:RetainedEarningsAccumulatedLosses 2023-05-31 04869022 d:RetainedEarningsAccumulatedLosses 2021-06-01 2022-05-31 04869022 d:RetainedEarningsAccumulatedLosses 2022-05-31 04869022 d:RetainedEarningsAccumulatedLosses 2021-06-01 04869022 d:AcceleratedTaxDepreciationDeferredTax 2023-05-31 04869022 d:AcceleratedTaxDepreciationDeferredTax 2022-05-31 04869022 c:OrdinaryShareClass1 2022-06-01 2023-05-31 04869022 c:OrdinaryShareClass1 2023-05-31 04869022 c:OrdinaryShareClass1 2022-05-31 04869022 c:OrdinaryShareClass2 2022-06-01 2023-05-31 04869022 c:OrdinaryShareClass2 2023-05-31 04869022 c:OrdinaryShareClass2 2022-05-31 04869022 c:FRS102 2022-06-01 2023-05-31 04869022 c:Audited 2022-06-01 2023-05-31 04869022 c:FullAccounts 2022-06-01 2023-05-31 04869022 c:PrivateLimitedCompanyLtd 2022-06-01 2023-05-31 04869022 d:Subsidiary1 2022-06-01 2023-05-31 04869022 d:Subsidiary1 1 2022-06-01 2023-05-31 04869022 d:Subsidiary2 2022-06-01 2023-05-31 04869022 d:Subsidiary2 1 2022-06-01 2023-05-31 04869022 d:Subsidiary3 2022-06-01 2023-05-31 04869022 d:Subsidiary3 1 2022-06-01 2023-05-31 04869022 d:WithinOneYear 2023-05-31 04869022 d:WithinOneYear 2022-05-31 04869022 d:BetweenOneFiveYears 2023-05-31 04869022 d:BetweenOneFiveYears 2022-05-31 04869022 d:MoreThanFiveYears 2023-05-31 04869022 d:MoreThanFiveYears 2022-05-31 04869022 6 2022-06-01 2023-05-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: 04869022










BARROWCLIFFE LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

 
BARROWCLIFFE LIMITED
 

COMPANY INFORMATION


Directors
E A Waugh 
T J Milne 
S McIntyre 




Registered number
04869022



Registered office
Hooton Street
Carlton Road

Nottingham

NG3 2NJ




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

The Beehive

Beehive Ring Road

London Gatwick Airport

Gatwick

RH6 0PA





 
BARROWCLIFFE LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24


 
BARROWCLIFFE LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
The Directors present the Strategic report for the financial year ended 31 May 2023.

Business review
 
Turnover remained at a similar level as 2022, however gross profit, operating profit and margins improved. However, the business continued to be impacted by higher-than-normal inflationary cost increases across its cost base.
Notwithstanding the inflationary cost pressure, the business reported a reduction in operating losses for the year by 80% with a reported loss of £158k. This has mainly been as a result of cost reduction programmes that commenced in the latter part of 2022.
The balance sheet position remains strong with net assets of £3.2m with minimal external debt. There is continued cross company support from the parent company and bankers.

Outlook

Turnover for 2023 was weighted towards the 2nd half of the year, particularly the last quarter due to successfully securing new customer business and improving volumes from existing customers. The business has also been successful in the latest round of annual tenders. The business has continued to invest in its sites to improve the customer offering and make the business more efficient and competitive in the marketplace.
Whilst trading remains challenging, indications are that 2024 will see a return to profit levels not seen since pre-pandemic trading.

Principal risks and uncertainties
 
The Company continues to be reliant on a limited number of supply agreements which are subject to periodic competitive tender. Renewal of these agreements is uncertain and is based on financial and performance criteria and we are seeing more and more competitors pricing on lower margins to gain market share.
The quality and availability of fresh produce is weather dependant. Adverse conditions can have a material effect on raw material costs.
The Company imports a significant proportion of its raw materials from out with the UK which have seen significant supply chain cost increases since Brexit and costs can also be adversely impacted by exchange rate movements.

Financial key performance indicators
 
The Company is monitored on the KPI’s of sales, gross margin, and overhead expenditure along with several departmental performance indicators on a period basis. 
There are no non-financial key performance indicators but the Company does maintain the highest levels of technical accreditations, where applicable.


This report was approved by the board on 23 January 2024 and signed on its behalf.



E A Waugh
Director

Page 1

 
BARROWCLIFFE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are 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.

Results and dividends

The loss for the year, after taxation, amounted to £180k (2022 - loss £772k).

No dividends were paid in the current or prior financial periods. 

Directors

The directors who served during the year were:

E A Waugh 
T J Milne 
S McIntyre 

Future developments

Details of future developments can be found within the 'Outlook' section of the Strategic Report and form part of this report by the directors.

Page 2

 
BARROWCLIFFE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsSumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 January 2024 and signed on its behalf.
 





E A Waugh
Director

Page 3

 
BARROWCLIFFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARROWCLIFFE LIMITED
 

Opinion


We have audited the financial statements of Barrowcliffe Limited (the 'Company') for the year ended 31 May 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 31 May 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 United Kingdom, including the Financial Reporting Council'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 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 Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 4

 
BARROWCLIFFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARROWCLIFFE LIMITED (CONTINUED)


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 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:


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
BARROWCLIFFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARROWCLIFFE LIMITED (CONTINUED)


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 an Auditors' 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditors' report.


Page 6

 
BARROWCLIFFE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARROWCLIFFE LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Douglas Rae (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants
Statutory Auditors
  
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
RH6 0PA

24 January 2024
Page 7

 
BARROWCLIFFE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
£000
£000

  

Turnover
 4 
17,068
17,191

Cost of sales
  
(11,629)
(11,842)

Gross profit
  
5,439
5,349

Distribution costs
  
(1,391)
(1,585)

Administrative expenses
  
(4,206)
(4,556)

Other operating income
 5 
-
15

Operating loss
 6 
(158)
(777)

Interest payable and similar expenses
 10 
(22)
(12)

Loss before tax
  
(180)
(789)

Tax on loss
 11 
-
17

Loss for the financial year
  
(180)
(772)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
BARROWCLIFFE LIMITED
REGISTERED NUMBER: 04869022

STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2023

2023
2022
£000
£000

Fixed assets
  

Tangible assets
 12 
693
862

Investments
 13 
225
225

  
918
1,087

Current assets
  

Stocks
 14 
209
196

Debtors Within One Year
 15 
4,896
3,979

Cash at bank and in hand
  
251
327

  
5,356
4,502

Creditors: amounts falling due within one year
 16 
(2,870)
(2,005)

Net current assets
  
 
 
2,486
 
 
2,497

Total assets less current liabilities
  
3,404
3,584

Creditors: amounts falling due after more than one year
 17 
(200)
(200)

Provisions for liabilities
  

Deferred tax
 18 
(29)
(29)

  
 
 
29
 
 
29

Net assets
  
3,233
3,413


Capital and reserves
  

Called up share capital 
 19 
173
173

Share premium account
 20 
204
204

Profit and loss account
 20 
2,856
3,036

  
3,233
3,413


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 January 2024.




E A Waugh
Director

The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
BARROWCLIFFE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 June 2021
173
204
3,808
4,185


Comprehensive income for the year

Loss for the year
-
-
(772)
(772)



At 1 June 2022
173
204
3,036
3,413


Comprehensive income for the year

Loss for the year
-
-
(180)
(180)


At 31 May 2023
173
204
2,856
3,233


The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

Barrowcliffe Limited is a private company limited by shares, registered in England with company number  04869022. The address of the registered office is Hooton Street, Carlton Road, Nottingham, NG3 2NJ. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Kettle Produce Limited as at 31 May 2023 and these financial statements may be obtained from Companies House.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.4

Going concern

The financial statements have been prepared on a going concern basis. The directors have assessed
the Company's ability to continue as a going concern and have a reasonable expectation that the
Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing these financial statements.

Page 11

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.6

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer (usually on despatch of goods);
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 12

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.8

Leased assets: the Company as lessee

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

 
2.9

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

In the previous financial period, the business was in receipt of the following revenue grants in relation to the COVID-19 pandemic:
Coronavirus Job Retention Scheme (CJRS) which is recognised when receivable.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Freehold property
-
5-20 years
Long-term leasehold property
-
5-10 years
Plant and machinery
-
3-7 years
Motor vehicles
-
4 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 14

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.16

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.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

 
2.21

Dividends

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Page 15

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Accounting estimates and assumptions are made concerning the future, and by their nature, will rarely equal the related actual outcome. They key judgements and estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in their estimated useful economic lives and the residual values of the assets. Asset lives are reviewed on a periodic basis and are amended where necessary. These amendments reflect current estimates and are based upon technological advancement, future investments, economic utilisation and the physical condition of the assets.
Stock valuations
The directors review the valuation method on a regular basis to ensure that the carrying value of stock remains appropriate. Due consideration is given to amounts realised following the year end in relating to stock included in the financial statements at the year end.

Page 16

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

4.


Turnover

The whole of the turnover is attributable to the principal activity of the Company wholly undertaken in the United Kingdom.


5.


Other operating income

2023
2022
£000
£000

Government grants receivable
-
15



6.


Operating loss

The operating loss is stated after charging:

2023
2022
£000
£000

Exchange differences
-
1

Government grants
-
(15)

Depreciation of tangible fixed assets
212
246

Operating lease rentals
206
205


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£000
£000

Fees payable to the Company's auditors for the audit of the Company's financial statements
16
15

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 17

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

8.


Employees

Staff costs were as follows:


2023
2022
£000
£000

Wages and salaries
4,670
5,119

Cost of defined contribution scheme
157
161

4,827
5,280


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production
133
145



Distribution
17
23



Administration
29
28

179
196


9.


Directors' remuneration



No directors received any remuneration from the company during the current or previous financial period. All directors are remunerated by the ultimate parent company Kettle Produce Limited.


10.


Interest payable and similar expenses

2023
2022
£000
£000


Bank interest payable
10
-

Preference share dividends
12
12

22
12

Page 18

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

11.


Taxation


2023
2022
£000
£000

Corporation tax


Current tax on profits for the year
-
(10)

Adjustments in respect of previous periods
-
(7)


Total current tax
-
(17)

Deferred tax

Total deferred tax
-
-


Taxation on profit/(loss) on ordinary activities
-
(17)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Loss on ordinary activities before tax
(180)
(789)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(34)
(150)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(12)
3

Capital allowances for year in excess of depreciation
12
(11)

Adjustments to tax charge in respect of prior periods
-
(7)

Unrelieved tax losses carried forward
20
148

Group relief
14
-

Total tax charge for the year
-
(17)


Factors that may affect future tax charges

From 1 April 2023 the main rate of corporation tax increased to 25%.

Page 19

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

12.


Tangible fixed assets





Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Total

£000
£000
£000
£000
£000



Cost or valuation


At 1 June 2022
600
269
1,803
271
2,943


Additions
-
-
35
8
43



At 31 May 2023

600
269
1,838
279
2,986



Depreciation


At 1 June 2022
125
261
1,428
267
2,081


Charge for the year on owned assets
52
7
149
4
212



At 31 May 2023

177
268
1,577
271
2,293



Net book value



At 31 May 2023
423
1
261
8
693



At 31 May 2022
475
8
375
4
862

There were no assets held under finance lease or hire purchase contracts at the 2023 or 2022 year end dates.

Page 20

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

13.


Fixed asset investments





Investments in subsidiary companies

£000



Cost or valuation


At 1 June 2022
225



At 31 May 2023
225





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Barrowcliffe Cooking Limited
Ordinary
100%
Barrowcliffe Food Solutions Limited
Ordinary
100%
WM Barrowcliffe & Sons Limited
Ordinary
100%

All subsidiaries are registered at the same address as the Company. The registered address is Hooton Street, Carlton Road, Nottingham, NG3 2NJ. 


14.


Stocks

2023
2022
£000
£000

Finished goods and goods for resale
209
196

209
196



15.


Debtors

2023
2022
£000
£000


Trade debtors
4,137
3,181

Amounts owed by group undertakings
518
567

Other debtors
74
105

Prepayments and accrued income
167
126

4,896
3,979


Page 21

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Bank overdrafts
40
-

Trade creditors
1,655
1,282

Amounts owed to group undertakings
763
376

Other taxation and social security
70
74

Other creditors
171
132

Accruals and deferred income
171
141

2,870
2,005



17.


Creditors: Amounts falling due after more than one year

2023
2022
£000
£000

Preference shares
200
200

200
200


The irredeemable preference shares are entitled to a fixed cumulative preferential dividend of 6% per annum payable on 31 January each year. At the balance sheet date, the value of dividends unpaid and due for payment amounted to £nil (2022 : £nil).

Page 22

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

18.


Deferred taxation




2023


£000






At beginning of year
29



At end of year
29

The deferred tax balance is made up as follows:

2023
2022
£000
£000


Asset
29
29

Comprising:

Accelerated capital allowances
29
29



19.


Share capital

2023
2022
£000
£000
Shares classified as equity

Allotted, called up and fully paid



152,800 (2022 - 152,800) Ordinary B shares of £1.00 each
153
153
44,361 (2022 - 44,361) Ordinary A shares of £0.46 each
20
20

173

173

The 'A' ordinary and 'B' ordinary shares have no special rights attached and they rank alongside each other for voting and capital distributions. 



20.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares issued, less transaction costs.

Profit and loss account

This reserve records retained earnings and accumulated losses.

Page 23

 
BARROWCLIFFE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

21.


Security and guarantees

The company has granted security over its assets by way of a fixed and floating charge.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £157k (2022 - £161k). Contributions totalling £14k (2022 - £7k) were payable to the fund at the balance sheet date.


23.


Commitments under operating leases

At 31 May 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£000
£000


Not later than 1 year
234
253

Later than 1 year and not later than 5 years
456
593

Later than 5 years
-
97

690
943


24.


Related party transactions

The company has taken advantage of the exemption available within FRS 102 from disclosing related party transactions with other companies that are wholly owned by the group headed by Kettle Produce Limited.


25.


Controlling party

The immediate and ultimate parent undertaking is Kettle Produce Limited, a private company registered in Scotland with registration number SC097725.
Kettle Produce Limited is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements at 31 May 2023. The consolidated financial statements are available from Balmalcolm Farm, Cupar, Fife, KY15 7TJ. The consolidated financial statements are also publicly available from Companies House.
The ultimate controlling party is S J McIntyre, a director of the Company. 


Page 24