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Company registration number: 04095454







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2023


ASCO FOODS LIMITED






































img4e0f.png                        

 


ASCO FOODS LIMITED
 


 
COMPANY INFORMATION


Directors
S S Chadha 
R S Chadha 
A S Chadha 




Company secretary
S S Chadha



Registered number
04095454



Registered office
Units 7 & 8, Amersham Commercial Park Raans Road

Amersham

United Kingdom

HP6 6JY




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


ASCO FOODS LIMITED
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Analysis of net debt
13
Notes to the financial statements
14 - 25


 


ASCO FOODS LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Principal activity
 
The company's principal activities continued to be those of importer and wholesale distributors of Oriental foods and drinks.

Business review and financial key performance indicators
 
Asco Foods is in the import and distribution of Filipino, Thai, Vietnamese, Cambodian, and other South East and Far East Asian ambient and frozen foods.
The Directors of Asco Foods consider turnover and profit to be the key KPI's for the company. Turnover for the year increased to £42,161,450 (2022: £20,369,986), whilst the profit before tax was £6,867,743 (2022: £1,134,550).
A review of the year has shown that turnover has increased as result of prior years’ efforts to grow the customer base, along with marketing activity promoting the company and its brands. As the sole distributor of a number of recognised brands in the UK, we intend to capitalise on the popularity of these products and have ensured that we have sufficient stock to meet the needs of our growing customer base. Overall, our profitability has increased due to cost control and greater level of trading activity.
Towards the end of year under review, and in recognition of consumers behaviour, management took the opportunity to ensure the company’s strategy focused on growth, particularly for the drinks segment.  
The Directors of Asco Foods consider increased turnover and profitability the key KPI’s for the company.  For profitability, profit before tax is reported in the income statement and is used. 
To sustain this growth and manage increased costs effectively, it's essential to continually assess our business strategy, monitor financial performance, and adjust our operations as necessary. This may involve optimising our cost structure, ensuring that our marketing efforts continue to yield results, and maintaining a close watch on market trends to stay competitive and ahead of the competition. 

1.Growing Customer Profile: In the current period, the business secured new accounts from several national                                                           operators across retail, hospitality and wholesale.  These have been key drivers to growth in turnover.
2.Marketing Initiatives: Securing new sales via marketing initiatives and exhibitions contributed to our growth. Our  marketing efforts were successful in attracting new customers and increasing sales.
3.Increased Costs: It's not uncommon for businesses to incur increased costs as they scale and adapt to new market conditions. These costs are closely monitored to ensure the business continues to meet it goals in terms of growth and profitability.
4.Increased Employee Headcount: The growth the business has experienced in the current financial year has precipitated the need to increase the size of the team. Strategic appointments in finance, marketing, sales and operations have allowed the business to realise the growth plan set out.

Principal risks and uncertainties
 
The directors of the business and the execution of the company’s strategy is subject to a number of risks.

There are several contracts and key agency agreements for the supply of key products and brands which the company is a party, and these are managed to ensure that actions can be taken to mitigate any risks that arise.

During the year under review, the business is optimistic of the opportunities and is also mindful of the economic conditions that our customers operate under. The company is also exposed to the challenging market conditions due to foreign exchange rate volatility, commodity price increases, continued disruption in supply chains and fluctuating energy prices. Coupled with the financial turbulence arising from political events in the UK, the overall effect has been to create an uncertain macro-economic outlook. How this uncertainty will manifest itself in future consumer spending has yet to be fully understood.



 
Page 1

 


ASCO FOODS LIMITED
 



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

The company operates in the wholesale market where there are constant new entrants and strong competition. The directors maintain a proactive sourcing, sales and marketing process to ensure that its products and brands receive the attention that they require to support the growth of the business.

The Directors of the company continue with plans for future growth and development of the business.


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



S S Chadha
Director

Date: 23 February 2024
Page 2

 


ASCO FOODS LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

The directors present their report and the financial statements for the year ended 31 October 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 judgements 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 profit for the year, after taxation, amounted to £5,302,341 (2022 -£895,616).

The directors approved and paid £387,000 in dividends (2022 - £294,000). The directors are proposing to pay an amount of £57,120 post year end.

Directors

The directors who served during the year were:

S S Chadha 
R S Chadha 
A S Chadha 

Future developments

The external commercial environment is expected to remain competitive in 2024. The directors remain confident that the company will be able to maintain and improve on its current level of performance in the future.
The company will face challenges arising primarily from continued disruption in the global supply chains and higher cost inflation, which are expected to continue for the foreseeable future. The directors will maintain policies to adapt to these changing conditions and to ensure the companies long term future.
We continue to invest in the development of our major brands and in the development of new products for our operations.  The directors regard the investment in new product development as integral to the continuing success of the business and ensuring that we are able to continue to meet the needs of our customers. 
The directors do not foresee any changes to the principal activity of the company.

Page 3

 


ASCO FOODS LIMITED
 


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

Financial instruments

Financial risk management is disclosed within principle risks are uncertainties within the Strategic Report.
 
Engagement with employees

The Directors are committed to recruiting and retaining engaged and motivated employees who are willing and able to contribute to the success of the business. The company continually review salary benchmarks to ensure the salaries are competitive and reflective of the local conditions.

Engagement with suppliers, customers and others

Suppliers
The Directors with many years of experience have developed a network of suppliers who are able to supply the range and quality of product our customers require. 
Customers
Most customer trade with us on a regular basis to make their purchases, so engaging them with our sales representatives has developed strong bonds between them and staff.

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

The directors do not consider there are any important events affecting the company after balance sheet date.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





S S Chadha
Director

Date: 23 February 2024

Page 4

 


ASCO FOODS LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS LIMITED

Opinion


We have audited the financial statements of Asco Foods Limited (the 'Company') for the year ended 31 October 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, 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 October 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 5

 


ASCO FOODS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS 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.


Page 6

 


ASCO FOODS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS 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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
 
Companies Act 2006
UK Tax Legislation
Financial Reporting Standard 102; and
UK employment legislation


We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. No issues were identified in this area.
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 
Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and
Challenging assumptions and judgements made by management in the application of accounting estimates.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation
for fraud and identified the greatest potential for fraud in the following areas:

Posting of unusual journals and complex transactions.
Deficiencies in record keeping and account reconciliations leading to unexplained variances.



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.


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 7

 


ASCO FOODS LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ASCO FOODS 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.





Sarah Hallam FCCA (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

23 February 2024
Page 8

 


ASCO FOODS LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
42,161,450
20,369,986

Cost of sales
  
(29,272,388)
(15,681,774)

Gross profit
  
12,889,062
4,688,212

Distribution costs
  
(908,980)
(257,325)

Administrative expenses
  
(4,894,960)
(3,147,059)

Operating profit
 5 
7,085,122
1,283,828

Interest payable and similar expenses
 9 
(217,379)
(149,278)

Profit before tax
  
6,867,743
1,134,550

Tax on profit
 10 
(1,565,402)
(238,934)

Profit for the financial year
  
5,302,341
895,616

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

The notes on pages 14 to 25 form part of these financial statements.

Page 9

 


ASCO FOODS LIMITED
REGISTERED NUMBER:04095454



BALANCE SHEET
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
2,132,857
1,933,820

  
2,132,857
1,933,820

Current assets
  

Stocks
 12 
10,690,582
4,839,253

Debtors: amounts falling due within one year
 13 
5,143,679
2,771,278

Cash at bank and in hand
  
1,007,577
816,249

  
16,841,838
8,426,780

Creditors: amounts falling due within one year
 14 
(9,684,987)
(6,212,327)

Net current assets
  
 
 
7,156,851
 
 
2,214,453

Total assets less current liabilities
  
9,289,708
4,148,273

Creditors: amounts falling due after more than one year
 15 
(611,770)
(451,215)

Provisions for liabilities
  

Deferred tax
 18 
(123,550)
(58,011)

  
 
 
(123,550)
 
 
(58,011)

Net assets
  
8,554,388
3,639,047


Capital and reserves
  

Called up share capital 
 19 
102
102

Profit and loss account
 20 
8,554,286
3,638,945

  
8,554,388
3,639,047


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




S S Chadha
Director

Date: 23 February 2024

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 


ASCO FOODS LIMITED
 



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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 November 2021
102
3,037,329
3,037,431


Comprehensive income for the year

Profit for the year
-
895,616
895,616
Total comprehensive income for the year
-
895,616
895,616


Contributions by and distributions to owners

Dividends: Equity capital
-
(294,000)
(294,000)


Total transactions with owners
-
(294,000)
(294,000)



At 1 November 2022
102
3,638,945
3,639,047


Comprehensive income for the year

Profit for the year
-
5,302,341
5,302,341
Total comprehensive income for the year
-
5,302,341
5,302,341


Contributions by and distributions to owners

Dividends: Equity capital
-
(387,000)
(387,000)


Total transactions with owners
-
(387,000)
(387,000)


At 31 October 2023
102
8,554,286
8,554,388


The notes on pages 14 to 25 form part of these financial statements.
Page 11

 


ASCO FOODS LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
5,302,341
895,616

Adjustments for:

Depreciation of tangible assets
156,321
123,523

Interest paid
217,379
149,278

Taxation charge
1,565,402
238,934

(Increase) in stocks
(5,851,329)
(1,956,136)

(Increase) in debtors
(2,372,401)
(848,630)

Increase in creditors
1,173,869
1,159,292

Corporation tax (paid)
(449,245)
(139,057)

Net cash generated from operating activities

(257,663)
(377,180)


Cash flows from investing activities

Purchase of tangible fixed assets
(355,358)
(67,085)

Net cash from investing activities

(355,358)
(67,085)

Cash flows from financing activities

New secured loans
1,312,726
8,269,707

Repayment of loans
(561,690)
(8,019,002)

Repayment of/new finance leases
241,155
120,503

Dividends paid
(387,000)
(294,000)

Interest paid
(217,379)
(116,393)

Net cash used in financing activities
387,812
(39,185)

Net (decrease) in cash and cash equivalents
(225,209)
(483,450)

Cash and cash equivalents at beginning of year
753,707
1,237,157

Cash and cash equivalents at the end of year
528,498
753,707


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,007,577
816,249

Bank overdrafts
(479,079)
(62,542)

528,498
753,707


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 


ASCO FOODS LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2023





At 1 November 2022
Cash flows
New finance leases
At 31 October 2023
£

£

£

£

Cash at bank and in hand

816,249

191,328

-

1,007,577

Bank overdrafts

(62,542)

(416,537)

-

(479,079)

Debt due after 1 year

(364,323)

37,559

-

(326,764)

Debt due within 1 year

(3,484,769)

(788,595)

-

(4,273,364)

Finance leases

(120,503)

47,266

(288,421)

(361,658)


(3,215,888)
(928,979)
(288,421)
(4,433,288)

The notes on pages 14 to 25 form part of these financial statements.

Page 13

 


ASCO FOODS LIMITED
 


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

1.


General information

ASCO Foods Limited is a private limited company incorporated and domiciled in England & Wales.  The registered address is Units 7 & 8, Amersham Commercial Park Raans Road, Amersham, Buckinghamshire, HP6 6JY.
The principal activity of the company during the year was the distribution of food and drink products with a variety of speciality products.

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 judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The company meets its day to day working capital requirements through its cash reserves and borrowings.  The company retains net assets £ 8,554,388 (2022 - £ 3,639,047) at the balance sheet date. After making enquires, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 
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.

 
2.4

Borrowing costs

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

Page 14

 


ASCO FOODS LIMITED
 


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

2.Accounting policies (continued)

 
2.5

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.

 
2.6

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.

 
2.7

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.

Page 15

 


ASCO FOODS LIMITED
 


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

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

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.

Depreciation is provided on the following basis:

Freehold property
-
25 Years
Plant and machinery
-
5 Years
Motor vehicles
-
5 Years
Fixtures and fittings
-
5 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.

 
2.8

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 weighted average basis.

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.

 
2.9

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.

 
2.10

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
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.

Page 16

 


ASCO FOODS LIMITED
 


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

2.Accounting policies (continued)

 
2.12

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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make consistent 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.
There are no significant judgements or estimates to be disclosed in the current year.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
42,161,450
20,369,986

42,161,450
20,369,986


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
42,011,182
20,222,922

European
150,268
147,064

42,161,450
20,369,986

Page 17

 


ASCO FOODS LIMITED
 


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

4.Turnover (continued)



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(495,501)
(88,687)


6.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
31,650
32,500

7.


Employees

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


2023
2022
£
£

Wages and salaries
1,780,453
1,380,988

Social security costs
144,787
106,761

Cost of defined contribution scheme
28,020
20,517

1,953,260
1,508,266


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


        2023
        2022
            No.
            No.







Direct staff
25
18



Administrators
3
3



Sales
7
7

35
28

Page 18

 


ASCO FOODS LIMITED
 


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

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
282,219
269,233

Company contributions to defined contribution pension schemes
3,963
3,963

286,182
273,196


During the year retirement benefits were accruing to no directors (2022 -NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £80,000 (2022 -£80,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2022 -£1,231).


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
162,028
64,373

Other loan interest payable
37,083
35,104

Mortgage interest payable
18,268
16,916

Other interest payable
-
32,885

217,379
149,278


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,499,863
227,785

Adjustments in respect of previous periods
-
(10,187)


1,499,863
217,598


Total current tax
1,499,863
217,598

Deferred tax


Origination and reversal of timing differences
65,539
21,336

Total deferred tax
65,539
21,336


Taxation on profit on ordinary activities
1,565,402
238,934
Page 19

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
 
10.Taxation (continued)


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 22.52% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
6,867,743
1,134,550


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22.52% (2022 -19%)
1,546,465
215,565

Effects of:


Expenses not deductible for tax purposes
1,656
37,075

Adjusting deferred tax to closing rate
5,431
(3,539)

Fixed asset differences
11,850
(6,035)

Other permanent differences
-
6,055

Adjustments to tax charge in respect of prior periods
-
(10,187)

Total tax charge for the year
1,565,402
238,934


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 


ASCO FOODS LIMITED
 


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

11.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 November 2022
2,282,267
380,751
-
230,509
2,893,527


Additions
-
10,049
332,946
12,363
355,358



At 31 October 2023

2,282,267
390,800
332,946
242,872
3,248,885



Depreciation


At 1 November 2022
557,422
205,740
-
196,545
959,707


Charge for the year
71,423
50,118
24,223
10,557
156,321



At 31 October 2023

628,845
255,858
24,223
207,102
1,116,028



Net book value



At 31 October 2023
1,653,422
134,942
308,723
35,770
2,132,857



At 31 October 2022
1,724,845
175,011
-
33,964
1,933,820

Finance leases

The net book value of assets in relation to finance leases is £361,658 (2022: £135,001)


12.


Stocks

2023
2022
£
£

Finished goods
10,690,582
4,839,253

10,690,582
4,839,253



13.


Debtors

2023
2022
£
£


Trade debtors
4,464,202
2,570,695

Other debtors
451,482
81,629

Prepayments and accrued income
227,995
118,954

5,143,679
2,771,278


Page 21

 


ASCO FOODS LIMITED
 


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

14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
479,079
62,542

Bank loans
3,823,184
3,034,589

Other loans
450,180
450,180

Trade creditors
2,650,843
1,430,529

Corporation tax
1,479,961
429,343

Other taxation and social security
46,580
38,128

Obligations under finance leases
76,652
33,611

Other creditors
156,191
18,893

Accruals and deferred income
522,317
714,512

9,684,987
6,212,327


The following liabilities were secured:

2023
2022
£
£



Bank overdrafts and bank loans
4,277,955
3,097,131

Obligations under finance leases
76,652
33,611

4,354,607
3,130,742

Details of security provided:

The finance leases are secured on the assets to which they relate. Bank loans and overdrafts are secured on a fixed and floating charge over the assets of the company, where bank loans include a commercial mortgage, the mortgage is secured over the freehold property. 

Page 22

 


ASCO FOODS LIMITED
 


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

15.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
326,764
364,323

Obligations under finance leases
285,006
86,892

611,770
451,215


The following liabilities were secured:

2023
2022
£
£



Bank loans
326,764
364,323

Obligations under finance leases
285,006
86,892

611,770
451,215

Details of security provided:

The finance leases are secured on the assets to which they relate to. Bank loans and overdrafts are secured on a fixed and floating charge over the assets of the company, where bank loans include a commercial mortgage. The mortgage is secured over the freehold property. 

The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:

2023
2022
£
£


Repayable by instalments
30,488
27,981

30,488
27,981



Page 23

 


ASCO FOODS LIMITED
 


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

16.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
3,823,184
3,034,589

Other loans
450,180
450,180


4,273,364
3,484,769


Amounts falling due after more than one year

Bank loans
296,276
336,342


296,276
336,342

Amounts falling due after more than 5 years

Bank loans
30,488
27,981

30,488
27,981

4,600,128
3,849,092



17.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
76,652
33,611

Between 1-5 years
287,826
86,892

364,478
120,503


18.


Deferred taxation




2023


£






At beginning of year
(58,011)


Charged to profit or loss
(65,539)



At end of year
(123,550)

Page 24

 


ASCO FOODS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
 
18.Deferred taxation (continued)

2023
2022
£
£


Accelerated capital allowances
(123,550)
(58,011)

(123,550)
(58,011)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



102 (2022 -102) Ordinary shares shares of £1.00 each
102
102



20.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated Profit/Losses.


21.


Pension commitments

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme is £7,563 (2022: £10,476). 


22.


Related party transactions

A family member of the directors has provided the company with a loan which had a current year value of £450,180 (2022: £450,180). The loan is repayable on request and the interest charged is on a simple basis across the total facility amount at 3% over the bank base. The interest paid thus far amounts to  37,083 (2022:  35,104).  

 
Page 25