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Registered number: 00875838










LAMEX FOODS EUROPE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
LAMEX FOODS EUROPE LIMITED
 

COMPANY INFORMATION


Directors
CR Dicker 
JA Gabbitus 
MS Grason 
JRD Parsons (resigned 14 January 2023)
MB Ryder 
CA Hawkes 
DW Dalzell (appointed 12 January 2023)
M Tompkins (appointed 12 January 2023)




Company secretary
K Tsavdaridou



Registered number
00875838



Registered office
2nd Floor Building B
Turnford Place

Great Cambridge Road

Broxbourne

Hertfordshire

EN10 6NH




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

2 Communications Road

Greenham Business Park

Greenham

Newbury

Berkshire

RG19 6AB




Bankers
Barclays Bank Plc
Floor 27

1 Churchill Place

London

E14 5HP





 
LAMEX FOODS EUROPE LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 5
Independent Auditor's Report
 
6 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 26

 
LAMEX FOODS EUROPE LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Business review
 
The Directors of Lamex Foods Europe Limited present the annual accounts for the financial year ended 31.3.2023. The turnover of the company increased in the year (2023: £337 million, 2022: £184 million), partly due to some of the business of Lamex Foods Europe (NI) Limited being incorporated into Lamex Foods Europe Limited and partly due to improved business levels as post-Covid trade returned to normal. Consequently, Gross Margin improved (2023: £15,960K, 2022 £12,117K). The Directors consider gross profit to be a key performance indicator. 
The company believes that because of its longstanding trading relationships with its suppliers and customers and the maintenance of reliable, accurate logistics and administration, it remains well placed to continue to safeguard and grow its profits. The directors invest too in substantial technical resource and have BRC accreditation which is part of its risk management and gives added assurance to customers and suppliers.

Principal risks and uncertainties
 
Business risk
The company has always actively managed its risks, and this has enabled it to deliver continued growth in terms of products, geography, and profitability. The keyword of the company is “balance”, and this is evident within which geographic areas it operates, the currencies it trades in, and the products sold, as well as a healthy mix of food service and retail customers.
Technical risk
There is always a risk that suppliers fail the ever-increasing technical requirements enforced by customers. The company manages this risk through the employment of highly dedicated, qualified and experienced teams of technical personnel, who ensure that all requirements are complied with prior to shipment.
Disease risk
Historically, the outbreaks of disease have occurred in zones around the world, and once discovered the governing bodies contain the disease and limit the spread by placing travel embargos on the respective products. In principle, when one market is affected, buyers and consumers turn to an alternative source of the same protein and business continues.
Problems that affect free import and export (such as diseases) are usually known to the traders long before they are made public. Intelligence comes from a variety of sources, primarily from the Traders being in constant contact with the suppliers and buyers of produce around the world, and it is this expertise that is partly responsible for damage limitation.
Currency risk
Traders minimise the currency risk by matching the buying and selling of foreign currency. Where there is a currency exposure on a certain deal, using the projected receipt dates, the traders secure the exchange value using forward contracts. As a result the board have applied hedge accounting and any gains/losses have been recognised in other comprehensive income rather than in the profit and loss.
Trade barriers
The marketplace for food is often affected by quota systems, such as licensing and tariffs. The company is actively involved in lobbying and industry representation to minimise the risk. Again, experience and knowledge is the key to managing this risk.
 
Page 1

 
LAMEX FOODS EUROPE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


Outlook
For the coming financial year 2023 2024, the Directors anticipate that the company will continue to be profitable and have confidence in the going concern of the business. The Company has maintained its profitability thus far this financial year, and believes that its balance in retail, manufacturing and wholesale will enable it to continue to do so in the latter half of 2023-2024.
Financial risk management objectives and policies
The company finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programs through bank borrowings. The management objectives are to:
-  retain sufficient liquid funds to enable it to meet its day to day objectives as they fall due whilst
          maximising returns on surplus funds.
-  minimise the company’s exposure to fluctuating interest rates when seeking new borrowings; and
-  match the repayment schedule of any external borrowings or overdraft with the expected future cash
          flows expected to arise from the group’s trading activities.

Directors' statement of compliance with duty to promote the success of the Company
 
The directors of the company take seriously The Companies Act requirements of section 172 to promote the success of the company for the long term. In compliance, the directors have regard to the interests of the shareholders and employees as well as the wider community. Initiatives such as work to ensure compliance with anti-slavery legislation, following GDPR requirements to protect the information of employees, suppliers and customers, welfare initiatives for animals and a push for recycling wherever possible, are just some examples.


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



................................................
MB Ryder
Director

Date: 16 February 2024
Page 2

 
LAMEX FOODS EUROPE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

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

Directors

The Directors who served during the year were:

CR Dicker 
JA Gabbitus 
MS Grason 
JRD Parsons (resigned 14 January 2023)
MB Ryder 
CA Hawkes 
DW Dalzell (appointed 12 January 2023)
M Tompkins (appointed 12 January 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;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The 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.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £4,413,483 (2022 - £1,799,286).

Dividends of £nil were paid during the year (2022: £nil).

Future developments

Details of future developments can be found in the strategic report.

Page 3

 
LAMEX FOODS EUROPE LIMITED
 

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

Engagement with suppliers, customers and others

It is part of our normal business practice for our trading staff to regularly visit customers and suppliers. This is followed by contact with our technical audit staff who will visit and ensure compliance with international standard such as BRC. The onset of COVID had challenged these regular visits, which are seen by us as essential to build and maintain relationship and to ensure technical standards, but during 2022 2023, these visits recommenced and we are now back to normal.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company's greenhouse gas emissions and energy consumption are as follows: 


2023
2022

Emissions resulting from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)
10.94
11.28

Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent)
9.65
8.14

Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in kWh
100,388
83,960

The energy usage information was measured by an independent third party.

The Directors continue to actively look to drive the consumption down and have during the year under review replaced all expiring leases with plug-in hybrids and fully electric vehicles.

The Directors monitor energy consumption against gross profit, and during 2023 6.29 kWh of energy was consumed per £1 thousand of gross profit generated (2022: 6.93 kWh).

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Post balance sheet events

On 20 June 2023, the Company incorporated a fully owned subsidiary in Australia, Lamex Foods Australia Pty Ltd (ACN 668 941 133).
Page 4

 
LAMEX FOODS EUROPE LIMITED
 

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


Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





................................................
MB Ryder
Director

Date: 16 February 2024
Page 5

 
LAMEX FOODS EUROPE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAMEX FOODS EUROPE LIMITED
 

Opinion


We have audited the financial statements of Lamex Foods Europe Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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 March 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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 Auditor's 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 6

 
LAMEX FOODS EUROPE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAMEX FOODS EUROPE 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 3, 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.


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.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

 
Page 7

 
LAMEX FOODS EUROPE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAMEX FOODS EUROPE LIMITED (CONTINUED)


The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
 

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 Auditor's Report.


Use of our report
 

This report is made solely to the Company's members 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 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 for our audit work, for this report, or for the opinions we have formed.





Alexander Peal BSc(Hons) FCA DChA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
2 Communications Road
Greenham Business Park
Greenham
Newbury
Berkshire
RG19 6AB

 
Date: 
19 February 2024
Page 8

 
LAMEX FOODS EUROPE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
336,743,733
184,071,342

Cost of sales
  
(320,784,144)
(171,953,999)

Gross profit
  
15,959,589
12,117,343

Distribution costs
  
(6,574,419)
(6,364,540)

Administrative expenses
  
(3,614,516)
(3,538,798)

Operating profit
 5 
5,770,654
2,214,005

Interest receivable and similar income
  
152,313
262,676

Interest payable and similar expenses
 9 
(671,145)
(212,086)

Profit before tax
  
5,251,822
2,264,595

Tax on profit
 10 
(838,339)
(465,309)

Profit for the financial year
  
4,413,483
1,799,286

Other comprehensive income for the year
  

Gain/(loss) on hedged items
  
(498,455)
947,525

Deferred tax relating to other comprehensive income
  
124,614
(180,030)

Total comprehensive income for the year
  
4,039,642
2,566,781

The notes on pages 12 to 26 form part of these financial statements.
Page 9

 
LAMEX FOODS EUROPE LIMITED
REGISTERED NUMBER: 00875838

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
1,519,635
856,248

Investments
  
2
2

  
1,519,637
856,250

Current assets
  

Stocks
 12 
28,298,519
23,364,241

Debtors: amounts falling due after more than one year
 13 
-
100,000

Debtors: amounts falling due within one year
 13 
46,195,710
37,388,290

Cash at bank and in hand
 14 
10,193,507
3,841,474

  
84,687,736
64,694,005

Creditors: amounts falling due within one year
 15 
(66,365,014)
(49,747,538)

Net current assets
  
 
 
18,322,722
 
 
14,946,467

Total assets less current liabilities
  
19,842,359
15,802,717

  

Net assets
  
19,842,359
15,802,717


Capital and reserves
  

Called up share capital 
 17 
14,325
14,325

Share premium account
 18 
5,525
5,525

Capital redemption reserve
 18 
5,775
5,775

Cash flow hedge reserve
 18 
(2,764,424)
(2,390,583)

Other reserves
 18 
158,895
158,895

Profit and loss account
 18 
22,422,263
18,008,780

  
19,842,359
15,802,717


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
MB Ryder
Director

Date: 16 February 2024

The notes on pages 12 to 26 form part of these financial statements.
Page 10

 
LAMEX FOODS EUROPE LIMITED
 

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


Called up share capital
Share premium account
Capital redemption reserve
Cash flow hedge reserve
Other reserves
Profit and loss   account
Total equity

£
£
£
£
£
£
£

At 1 April 2022
14,325
5,525
5,775
(2,390,583)
158,895
18,008,780
15,802,717



Profit for the year
-
-
-
-
-
4,413,483
4,413,483

Gain/(loss) on hedged items
-
-
-
(498,455)
-
-
(498,455)

Deferred tax relating to other comprehensive income
-
-
-
124,614
-
-
124,614


At 31 March 2023
14,325
5,525
5,775
(2,764,424)
158,895
22,422,263
19,842,359



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022


Called up share capital
Share premium account
Capital redemption reserve
Cash flow hedge reserve
Other reserves
Profit and   loss   account
Total equity

£
£
£
£
£
£
£

At 1 April 2021
14,325
5,525
5,775
(3,158,078)
158,895
16,209,494
13,235,936



Profit for the year
-
-
-
-
-
1,799,286
1,799,286

Gain/(loss) on hedged items
-
-
-
947,525
-
-
947,525

Deferred tax relating to other comprehensive income
-
-
-
(180,030)
-
-
(180,030)


At 31 March 2022
14,325
5,525
5,775
(2,390,583)
158,895
18,008,780
15,802,717


The notes on pages 12 to 26 form part of these financial statements.
Page 11

 
LAMEX FOODS EUROPE LIMITED
 

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

1.


General information

Lamex Foods Europe Limited is a private company limited by share capital and incorporated in England and Wales.  The address of the registered office and principal place of business is 2nd Floor Building B, Turnford Place, Great Cambridge Road, Broxbourne, Hertfordshire, EN10 6NH. The principal activity of the business is that of international food trading. 

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 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Lamex Food Group Limited as at 31 March 2023 and these financial statements may be obtained from the registered office.

Page 12

 
LAMEX FOODS EUROPE LIMITED
 

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

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Sale of goods

Revenue 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;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue 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.

Revenue is recognised when the significant risks and rewards of ownership of the goods have been transferred to the customer, which is usually upon shipment or in line with the terms agreed with individual customers and when the amount of income and costs can be measured reliably.

 
2.4

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 and reducing balance method..

Depreciation is provided on the following basis:

Motor vehicles
-
10-33.3% reducing balance and straight line
Fixtures & fittings
-
15-33.3% reducing balance
Computer equipment
-
33.3% straight line

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.

 
2.5

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 13

 
LAMEX FOODS EUROPE LIMITED
 

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

2.Accounting policies (continued)

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.  

 
2.7

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 balance sheet 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.

Goods for resale represents stock held in cold-store, port or travelling for which there is no imminent sale to a customer. Goods in transit are products travelling to a known customer but where title has not yet passed due to the non fulfillment of sales terms. Inbound goods in transit are products where title has passed to the company but has not yet been received by a cold-store.

 
2.8

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.

 
2.9

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.

 
2.10

Financial instruments

The Company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Page 14

 
LAMEX FOODS EUROPE LIMITED
 

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

2.Accounting policies (continued)


2.10
Financial instruments (continued)

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in other comprehensive income. The group has applied hedge accounting for foreign exchange derivatives during the year.

 
2.11

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.

 
2.12

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'.

 
2.13

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.

Page 15

 
LAMEX FOODS EUROPE LIMITED
 

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

2.Accounting policies (continued)

 
2.14

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

 
2.15

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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.16

Borrowing costs

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

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 16

 
LAMEX FOODS EUROPE LIMITED
 

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

2.Accounting policies (continued)

 
2.18

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 balance sheet 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 balance sheet 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 balance sheet date.

Page 17

 
LAMEX FOODS EUROPE LIMITED
 

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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition
The key judgment made by management in respect of revenue is the point at which that revenue should be recognised. Management consider the underlying contract terms and conclude upon the most appropriate point of the cycle at which to recognise revenue based upon these terms and in particular where the risks and rewards of ownership transfer.
Taxation
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience with previous tax submissions. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. 
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. 
Operating lease commitments
The company has entered into commercial lease contracts and as a lessee it obtains use of property, plant and equipment. The classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the Balance Sheet.
Profit recognition on open contracts at year end
When a contract has been delivered to the customer at the year end but not yet closed management make an estimate of the future costs that will be incurred on those contracts on  a contract by contract basis. These costs are estimated with reference to the expected profit that will be made on those contracts. Traders estimate profits based upon their experience of the products and customers to which the contact relates. Where management estimate that any contract is going to be in a loss making position that loss is recognised in full as soon as it becomes probable.
Stock provisions
Management review stock at periodic intervals and consider the requirement for a provision to ensure stock is held at the lower of cost and net realisable value. Management estimate these provisions based upon their experience of the net realisable value of different products and of market conditions that are prevailing at the point of review, which, for the purposes of these financial statements, is the balance sheet date.

Page 18

 
LAMEX FOODS EUROPE LIMITED
 

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

4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.
The directors consider that it would be commercially prejudicial to disclose the analysis of turnover by geographical location and profit before tax of the different classes of business. 


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
255,314
213,415

Exchange differences
(544,435)
1,062,174

Defined contribution pension cost
179,322
101,778


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor and its associates:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's annual financial statements
24,400
22,700

Taxation compliance services
5,350
5,150


7.


Employees

Staff costs, including Directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
3,800,936
5,038,609

Social security costs
935,913
809,256

Cost of defined contribution scheme
179,322
101,778

4,916,171
5,949,643


Page 19

 
LAMEX FOODS EUROPE LIMITED
 

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

7.Employees (continued)

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


        2023
        2022
            No.
            No.







Trading and sales
9
10



Distribution
10
10



Administrative
23
20



Technical
8
8

50
48


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
4,443,539
3,150,039

Company contributions to defined contribution pension schemes
22,104
18,527

4,465,643
3,168,566


During the year retirement benefits were accruing to 5 Directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £2,038,928 (2022 - £1,338,080).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £3,234 (2022 - £4,995).


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
658,983
198,018

Finance leases and hire purchase contracts
12,162
14,068

671,145
212,086

Page 20

 
LAMEX FOODS EUROPE LIMITED
 

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

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
836,240
230,999

Adjustments in respect of previous periods
144,234
843


Total current tax
980,474
231,842

Deferred tax


Origination and reversal of timing differences
(142,135)
233,467

Total deferred tax
(142,135)
233,467


Taxation on profit on ordinary activities
838,339
465,309

Factors affecting tax charge for the year

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

2023
2022
£
£


Profit on ordinary activities before tax
5,251,822
2,264,595


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
997,846
430,273

Effects of:


Expenses not deductible for tax purposes
31,192
384,334

Adjustments to tax charge in respect of prior periods
144,234
843

Short term timing difference leading to an increase (decrease) in taxation
(40,819)
(25,776)

Non-taxable income
(94,706)
(300)

Deferred tax relating to other comprehensive income
124,614
(324,065)

Remeasurement of deferred tax for changes in tax rates
(179,787)
-

Movement in deferred tax not recognised
(144,235)
-

Total tax charge for the year
838,339
465,309


Factors that may affect future tax charges

The main rate of corporation tax will rise from 19% to 25% from 1 April 2023. On this basis deferred tax is provided at the future rate of 25%.

Page 21

 
LAMEX FOODS EUROPE LIMITED
 

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

11.


Tangible fixed assets





Motor vehicles
Fixtures & fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 April 2022
507,840
263,909
1,873,075
2,644,824


Additions
-
189,524
729,177
918,701


Disposals
(4,060)
-
-
(4,060)



At 31 March 2023

503,780
453,433
2,602,252
3,559,465



Depreciation


At 1 April 2022
324,621
167,453
1,296,502
1,788,576


Charge for the year
148,798
58,140
48,376
255,314


Disposals
(4,060)
-
-
(4,060)



At 31 March 2023

469,359
225,593
1,344,878
2,039,830



Net book value



At 31 March 2023
34,421
227,840
1,257,374
1,519,635



At 31 March 2022
183,219
96,456
576,573
856,248


12.


Stocks

2023
2022
£
£

Goods in transit
5,313,339
9,900,971

Finished goods and goods for resale
22,985,180
13,463,270

28,298,519
23,364,241


Stocks recognised as an expense in the period were £277,016,315 (2022: £148,556,394).

Page 22

 
LAMEX FOODS EUROPE LIMITED
 

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

13.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
-
100,000


2023
2022
£
£

Due within one year

Trade debtors
18,643,509
10,706,298

Amounts owed by group undertakings
24,990,982
22,161,487

Other debtors
881,591
710,789

Prepayments and accrued income
930,514
3,327,351

Deferred taxation
749,114
482,365

46,195,710
37,388,290


Amounts owed by Group are non-interest bearing and repayable on demand.


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
10,193,507
3,841,474

Less: bank overdrafts
(2,409,146)
(1,590,279)

7,784,361
2,251,195


Page 23

 
LAMEX FOODS EUROPE LIMITED
 

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

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
2,409,146
1,590,279

Bank loans
6,087,603
3,807,288

Trade creditors
11,111,000
11,062,909

Amounts owed to group undertakings
38,665,996
25,263,878

Corporation tax
297,388
98,344

Other taxation and social security
118,417
110,731

Obligations under finance lease and hire purchase contracts
26,286
88,550

Other creditors
84,080
-

Accruals and deferred income
6,239,292
6,664,741

Financial instruments
1,325,806
1,060,818

66,365,014
49,747,538


An invoice discounting facility is included in bank loans of £4,121,791 (2022: £3,807,288).  Interest is paid at 1.75% above the Bank of England base rate. In addition there is an overdraft facility of £2,409,146 (2022: £1,590,279).
The above facilities are secured by way of a fixed and floating charge over the company's assets. The facilities are also secured by way of a fixed and floating charge over the assets of Lamex Foods Europe (NI) Limited and Lamex Agrifoods Limited.
Amounts owed to group undertakings are non-interest bearing and repayable on demand.


16.


Deferred taxation




2023
2022


£

£






At beginning of year
482,365
1,039,897


Charged to profit or loss
142,135
(233,467)


Charged to other comprehensive income
124,614
(324,065)



At end of year
749,114
482,365

The deferred tax asset is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(211,272)
65,646

Deferred tax relating to other comprehensive income
960,386
416,719

749,114
482,365

Page 24

 
LAMEX FOODS EUROPE LIMITED
 

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

17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



14,325 (2022 - 14,325) Ordinary B shares of £1.00 each
14,325
14,325



18.


Reserves

Share premium account

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

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company. 

Cash flow hedge reserve

This reserve represents the cumulative gains/losses on hedged items, less allowance for deferred tax.

Other reserves

This reserve represents the cumulative expense in respect of share-based payments. 

Profit & loss account

The profit and loss account represents cumulative profits available for distribution.


19.


Share-based payments

Employees of the company participate in the Lamex Food Group Limited Share Option Plan. All share options are issued over shares in the parent company, Lamex Food Group Limited, and vest on occurrence of an exit event. Further details of share options can be found in the parent company consolidated financial statements.


20.


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 £179,322 (2022: £101,778). No contributions were payable to the fund at the balance sheet date for either 2023 or 2022.

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LAMEX FOODS EUROPE LIMITED
 

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

21.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
164,831
176,734

Later than 1 year and not later than 5 years
66,574
181,450

231,405
358,184


22.


Related party transactions

The company is exempt from disclosing related party transactions with other 100% owned members of the group headed by Lamex Food Group Limited by virtue of  FRS102 section 33.5.
Newby Foods Limited is related to the company by common directors. During the year the company made purchases from Newby Foods Limited of £5,364,981 (2022: £4,150,409), the amount outstanding at the year end was £201,678 (2022: £448,161) as a result of these purchases. The company also made sales to Newby Foods Limited of £3,905,347 (2022: £2,447,015), the amount due at the year end was £463,777 (2022: £275,025) as a result of these sales.
During the year the company paid £390,718 (2021: £327,143) in sponsorship to Stevenage Football Club Limited. Stevenage Football Club Limited is related to the company because it is controlled by a director.


23.


Controlling party

The ultimate parent company at the balance sheet date was Lamex Food Group Limited.
The parent of both the smallest and largest group for which group accounts including Lamex Foods Europe Limited are drawn up is Lamex Food Group Limited. Copies of these accounts may be obtained from the registered office.

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