IRIS Accounts Production v23.4.0.336 02579526 Board of Directors 1.7.22 30.6.23 30.6.23 true true false true true false false false true false Fair value model Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh025795262022-06-30025795262023-06-30025795262022-07-012023-06-30025795262021-06-30025795262021-07-012022-06-30025795262022-06-3002579526ns15:EnglandWales2022-07-012023-06-3002579526ns14:PoundSterling2022-07-012023-06-3002579526ns10:Director12022-07-012023-06-3002579526ns10:PrivateLimitedCompanyLtd2022-07-012023-06-3002579526ns10:FRS1022022-07-012023-06-3002579526ns10:Audited2022-07-012023-06-3002579526ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-07-012023-06-3002579526ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-07-012023-06-3002579526ns10:FullAccounts2022-07-012023-06-3002579526ns5:JointVenture12022-07-012023-06-3002579526ns10:OrdinaryShareClass12022-07-012023-06-3002579526ns10:Director22022-07-012023-06-3002579526ns10:Director32022-07-012023-06-3002579526ns10:Director42022-07-012023-06-3002579526ns10:Director52022-07-012023-06-3002579526ns10:Director62022-07-012023-06-3002579526ns10:Director72022-07-012023-06-3002579526ns10:RegisteredOffice2022-07-012023-06-3002579526ns5:CurrentFinancialInstruments2023-06-3002579526ns5:CurrentFinancialInstruments2022-06-3002579526ns5:Non-currentFinancialInstruments2023-06-3002579526ns5:Non-currentFinancialInstruments2022-06-3002579526ns5:ShareCapital2023-06-3002579526ns5:ShareCapital2022-06-3002579526ns5:CapitalRedemptionReserve2023-06-3002579526ns5:CapitalRedemptionReserve2022-06-3002579526ns5:RetainedEarningsAccumulatedLosses2023-06-3002579526ns5:RetainedEarningsAccumulatedLosses2022-06-3002579526ns5:ShareCapital2021-06-3002579526ns5:RetainedEarningsAccumulatedLosses2021-06-3002579526ns5:CapitalRedemptionReserve2021-06-3002579526ns5:RetainedEarningsAccumulatedLosses2021-07-012022-06-3002579526ns5:CapitalRedemptionReserve2021-07-012022-06-3002579526ns5:RetainedEarningsAccumulatedLosses2022-07-012023-06-3002579526ns5:CapitalRedemptionReserve2022-07-012023-06-300257952612022-07-012023-06-3002579526ns5:LeaseholdImprovements2022-07-012023-06-3002579526ns5:PlantMachinery2022-07-012023-06-3002579526ns5:FurnitureFittings2022-07-012023-06-3002579526ns5:MotorVehicles2022-07-012023-06-3002579526ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-07-012023-06-3002579526ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-07-012022-06-300257952612022-07-012023-06-300257952612021-07-012022-06-3002579526ns10:HighestPaidDirector2022-07-012023-06-3002579526ns10:HighestPaidDirector2021-07-012022-06-3002579526ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-07-012023-06-3002579526ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2021-07-012022-06-3002579526ns5:OwnedAssets2022-07-012023-06-3002579526ns5:OwnedAssets2021-07-012022-06-3002579526ns5:LeasedAssets2022-07-012023-06-3002579526ns5:LeasedAssets2021-07-012022-06-300257952652022-07-012023-06-300257952652021-07-012022-06-3002579526ns5:HirePurchaseContracts2022-07-012023-06-3002579526ns5:HirePurchaseContracts2021-07-012022-06-3002579526ns10:OrdinaryShareClass12021-07-012022-06-3002579526ns5:LeaseholdImprovements2022-06-3002579526ns5:PlantMachinery2022-06-3002579526ns5:FurnitureFittings2022-06-3002579526ns5:MotorVehicles2022-06-3002579526ns5:LeaseholdImprovements2023-06-3002579526ns5:PlantMachinery2023-06-3002579526ns5:FurnitureFittings2023-06-3002579526ns5:MotorVehicles2023-06-3002579526ns5:LeaseholdImprovements2022-06-3002579526ns5:PlantMachinery2022-06-3002579526ns5:FurnitureFittings2022-06-3002579526ns5:MotorVehicles2022-06-3002579526ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-07-012023-06-3002579526ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-06-3002579526ns5:CostValuation2022-06-3002579526ns5:Subsidiary12022-07-012023-06-3002579526ns5:Subsidiary112022-07-012023-06-3002579526ns5:JointVenture112022-07-012023-06-3002579526ns5:JointVenture12023-06-3002579526ns5:JointVenture12022-06-3002579526ns5:DisposalsRepaymentsInvestments2023-06-3002579526ns5:CostValuation2023-06-3002579526ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-06-3002579526ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-06-3002579526ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-06-3002579526ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-06-3002579526ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-06-3002579526ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-06-3002579526ns5:HirePurchaseContracts2023-06-3002579526ns5:HirePurchaseContracts2022-06-3002579526ns5:WithinOneYear2023-06-3002579526ns5:WithinOneYear2022-06-3002579526ns5:BetweenOneFiveYears2023-06-3002579526ns5:BetweenOneFiveYears2022-06-3002579526ns5:AllPeriods2023-06-3002579526ns5:AllPeriods2022-06-3002579526ns5:Secured2023-06-3002579526ns5:Secured2022-06-3002579526ns10:OrdinaryShareClass12023-06-3002579526ns5:RetainedEarningsAccumulatedLosses2022-06-3002579526ns5:CapitalRedemptionReserve2022-06-3002579526ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-07-012023-06-3002579526ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2021-07-012022-06-3002579526ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2023-06-3002579526ns5:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-06-3002579526ns5:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties2022-07-012023-06-3002579526ns5:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties2021-07-012022-06-3002579526ns5:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties2023-06-3002579526ns5:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties2022-06-30
REGISTERED NUMBER: 02579526 (England and Wales)















S.P.L. FOODS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023






S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 15


S.P.L. FOODS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023







DIRECTORS: H Simon
R A Simon
L J Winstanley
G Knight
N Buckley
C May
C Wallace


REGISTERED OFFICE: Drury Lane
Chadderton
Oldham
Lancashire
OL9 7PH


REGISTERED NUMBER: 02579526 (England and Wales)


AUDITORS: DJH Mitten Clarke Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN


BANKERS: Barclays Bank Plc
1st Floor
3 Hardman Street
Spinningfields
Manchester
M3 3HS


SOLICITORS: Kuit Steinart Levy LLP
3 St. Mary's Parsonage
Manchester
M3 2RD

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023


The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS
S.P.L. Foods is a single purpose company principally operating from one warehouse in Greater Manchester, from which food products are supplied extensively to all sectors of the food industry.

We are pleased to report that business has continued to enjoy a growth in sales, whilst maintaining a healthy gross profit margin. Together with our suppliers and strategic partners, we look forward to continuing on this path of sustainable growth next year and beyond.

All our existing long-term contracts have been renewed and new ones added, with both existing customers and new ones too.

During the financial year, the company made Charitable contributions of £32,253.

FUTURE OUTLOOK WITH PRINCIPAL RISKS AND UNCERTAINTIES
The fundamental risks and uncertainties facing the business are the fluctuations in exchange rates, extreme unforeseen increases in commodity prices, freight costs, labour rates and any economic downturn. However the directors actively monitor trading trends and make strategic decisions to mitigate any material threat to the long term stability of the company. The company has contingency plans in place for most eventualities and will review on a continuing basis.

Forecasts have been prepared for the next 12 months which indicate that, the company will have sufficient funds to meet its liabilities as they fall due. The company has also made profits since the year end. The company meets its day to day working capital requirements through invoice discounting and trade loan facilities and continues to enjoy the support of its lenders post year end. The facility providers have indicated that there are no known reasons why the facility would not be made available for at least another 12 months.

The Directors are confident that they are well placed to continue growing the business even in these difficult times.

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due, for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

FUTURE DEVELOPMENTS
The company's customer base is diverse, and continues to grow annually. With over 600 live accounts the company has no risk associated with dependence upon any major account.


S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

KEY PERFORMANCE INDICATORS
Set out below are the company's key financial performance indicators:

Gross profit increase (year on year) - 19.5% (2022:- 41%).

Net Profit before tax - £958,072 (2022: £801,078).

Revenue increase (year on year) - 21.56% (2022:- 36.57%).

Net assets increase (year on year) - £720,689 (2022: £713,677).

ON BEHALF OF THE BOARD:




N Buckley - Director


1 March 2024

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023


The directors present their report with the financial statements of the company for the year ended 30 June 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of wholesale food provision merchants.

DIVIDENDS
Interim dividends per share were paid as follows:
£   
352,000 - 30 June 2023
352,000

The directors recommend that no final dividend be paid.

The total distribution for the year ended 30 June 2023 will be £352,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

H Simon
R A Simon
L J Winstanley
G Knight
N Buckley
C May
C Wallace

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023


AUDITORS
DJH Mitten Clarke Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:





N Buckley - Director


1 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
S.P.L. FOODS LIMITED


Opinion
We have audited the financial statements of S.P.L. Foods Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
S.P.L. FOODS LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, the Food Safety Act 1990, Health & Safety at Work 1974, Employment Act 2008 and General Data Protection Regulations (GDPR).
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
S.P.L. FOODS LIMITED


The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to assessing of the provision against inventories at the year end, the recoverability of trade receivables, the categorisation of leases and the estimated useful life of the assets.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entity's ability to continue in operation.
- Testing key revenue lines, in particular cut-off and walk-through, for evidence of management bias.
- Reviewing and testing control procedures.
- Performing a physical verification of key assets.
- Obtaining third-party confirmation of material bank and loan balances.
- Documenting and verifying all significant related party balances.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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 Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Richard Bell (Senior Statutory Auditor)
for and on behalf of DJH Mitten Clarke Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

5 March 2024

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £    £   

REVENUE 3 30,731,502 25,280,058

Cost of sales (25,029,393 ) (20,509,048 )
GROSS PROFIT 5,702,109 4,771,010

Administrative expenses (4,633,150 ) (3,960,097 )
1,068,959 810,913

Other operating income 4 68,844 55,710
OPERATING PROFIT 6 1,137,803 866,623


Interest payable and similar expenses 7 (179,731 ) (65,545 )
PROFIT BEFORE TAXATION 958,072 801,078

Tax on profit 8 114,617 (83,401 )
PROFIT FOR THE FINANCIAL YEAR 1,072,689 717,677

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,072,689

717,677

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

STATEMENT OF FINANCIAL POSITION
30 JUNE 2023

2023 2022
Notes £    £   
FIXED ASSETS
Property, plant and equipment 10 584,913 508,779
Investments 11 20,086 50,086
Investment property 12 354,781 354,781
959,780 913,646

CURRENT ASSETS
Inventories 13 4,973,525 5,388,877
Debtors 14 4,865,275 4,923,014
Cash at bank 1,036,161 782,755
10,874,961 11,094,646
CREDITORS
Amounts falling due within one year 15 (8,378,230 ) (9,339,948 )
NET CURRENT ASSETS 2,496,731 1,754,698
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,456,511

2,668,344

CREDITORS
Amounts falling due after more than one
year

16

(56,989

)

-

PROVISIONS FOR LIABILITIES 21 (10,489 ) -
NET ASSETS 3,389,033 2,668,344

CAPITAL AND RESERVES
Called up share capital 22 34 34
Capital redemption reserve 23 66 66
Retained earnings 23 3,388,933 2,668,244
SHAREHOLDERS' FUNDS 3,389,033 2,668,344

The financial statements were approved by the Board of Directors and authorised for issue on 1 March 2024 and were signed on its behalf by:





N Buckley - Director


S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 July 2021 34 1,954,567 66 1,954,667

Changes in equity
Dividends - (4,000 ) - (4,000 )
Total comprehensive income - 717,677 - 717,677
Balance at 30 June 2022 34 2,668,244 66 2,668,344

Changes in equity
Dividends - (352,000 ) - (352,000 )
Total comprehensive income - 1,072,689 - 1,072,689
Balance at 30 June 2023 34 3,388,933 66 3,389,033

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,170,155 (534,280 )
Interest paid (175,526 ) (65,545 )
Interest element of hire purchase payments
paid

(4,205

)

-
Tax paid (82,270 ) 108,702
Net cash from operating activities 908,154 (491,123 )

Cash flows from investing activities
Purchase of property,plant and equipment (39,409 ) (28,445 )
Purchase of investment property - (354,781 )
Joint venture loan repayment received 30,000 14,500
Repayment of subsidiary loan - (86 )
Net cash from investing activities (9,409 ) (368,812 )

Cash flows from financing activities
New loans in year - 505,110
Loan repayments in year (1,828,057 ) -
Capital repayments in year (33,190 ) -
Amount introduced by directors 723,874 244,524
Amount withdrawn by directors (412,092 ) (241,971 )
Equity dividends paid (352,000 ) (4,000 )
Net cash from financing activities (1,901,465 ) 503,663

Decrease in cash and cash equivalents (1,002,720 ) (356,272 )
Cash and cash equivalents at beginning of
year

2

(218,235

)

138,037

Cash and cash equivalents at end of year 2 (1,220,955 ) (218,235 )

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 958,072 801,078
Depreciation charges 56,862 24,340
Finance costs 179,731 65,545
1,194,665 890,963
Decrease/(increase) in inventories 415,352 (1,621,428 )
Decrease/(increase) in trade and other debtors 57,739 (1,348,575 )
(Decrease)/increase in trade and other creditors (497,601 ) 1,544,760
Cash generated from operations 1,170,155 (534,280 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 1,036,161 782,755
Bank overdrafts (2,257,116 ) (1,000,990 )
(1,220,955 ) (218,235 )
Year ended 30 June 2022
30.6.22 1.7.21
£    £   
Cash and cash equivalents 782,755 728,705
Bank overdrafts (1,000,990 ) (590,668 )
(218,235 ) 138,037


S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.22 Cash flow At 30.6.23
£    £    £   
Net cash
Cash at bank 782,755 253,406 1,036,161
Bank overdrafts (1,000,990 ) (1,256,126 ) (2,257,116 )
(218,235 ) (1,002,720 ) (1,220,955 )
Debt
Finance leases - (60,397 ) (60,397 )
Debts falling due within 1 year (2,908,797 ) 1,828,057 (1,080,740 )
(2,908,797 ) 1,767,660 (1,141,137 )
Total (3,127,032 ) 764,940 (2,362,092 )

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023


1. STATUTORY INFORMATION

S.P.L. Foods Limited is a private company, limited by shares, registered in England and Wales. Its registered number is 02579526 and its registered office address is Drury Lane, Chadderton, Oldham, Lancashire, OL9 7PH.

2. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Forecasts have been prepared for the next 12 months which indicate that, the company will have sufficient funds to meet its liabilities as they fall due. The company has also made profits since the year end. The company meets its day to day working capital requirements through invoice discounting and trade loan facilities and continues to enjoy the support of its lenders post year end. The facility providers have indicated that there are no known reasons why the facility would not be made available for at least another 12 months.

The directors are confident that they are well placed to continue growing the business even in these difficult times.

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due, for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Preparation of consolidated financial statements
The financial statements contain information about S.P.L Foods Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as all of its subsidiary undertakings could be excluded from consolidation.

Critical accounting estimates and judgements
In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered key judgement in calculating an appropriate depreciation charge.

In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Making judgement based on historical experience on the level of provision required for impairment of inventories. Further information received after the statement of financial position date may impact on the level of provision required.

Estimating the recoverability of trade receivables is considered the key judgement in calculating the bad debt provision at the year end.

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


2. ACCOUNTING POLICIES - continued

Revenue
Revenue comprises the aggregate of the fair value of the sale of goods provided, net of value-added tax, rebates and discounts. Sale of goods are recognised when the company has delivered products to the customer, the customer has accepted the products and collectability of the related receivables is fairly stated.

Property plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 2% on cost
Plant and machinery - 33% on reducing balance and 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 33% on reducing balance

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Government grants
Grants are accounted for under the accruals model as permitted by FRS 102.

During the prior year the company benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Inventories
Inventories are valued at the lower of cost and net realisable value on a first-in, first-out basis, after making due allowance for obsolete and slow moving items. Cost is based on the invoice value of goods plus a variable charge for duty, levy and delivery costs.

Investments
Investments are stated at cost less provision for permanent diminution in value.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.


S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating leases
Rentals paid under operating leases are charged to the income statement on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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 and loans to related parties.

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 income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost.

Derivative financial instruments
The company uses forward foreign currency contracts to reduce exposure to foreign exchange rates.

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 arriving at the operating result.

Dividends
Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company.

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
UK 30,082,739 23,986,122
Europe 648,763 1,293,936
30,731,502 25,280,058

4. OTHER OPERATING INCOME
2023 2022
£    £   
Rents received 28,646 -
Sundry receipts 39,979 52,356
Corporation tax interest 219 -
Government grants - 3,354
68,844 55,710

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,055,258 1,983,183
Social security costs 297,520 256,697
2,352,778 2,239,880

The average number of employees during the year was as follows:
2023 2022

Office and management 20 19
Warehouse and distribution 25 24
45 43

2023 2022
£    £   
Directors' remuneration 1,017,196 678,162

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 275,000 183,357

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


6. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 68,339 55,428
Depreciation - owned assets 33,465 24,340
Depreciation - assets on hire purchase contracts 23,397 -
Auditors' remuneration 20,062 19,146

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 99,818 59,327
Invoice discounting charges 75,708 6,218
Hire purchase interest 4,205 -
179,731 65,545

8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - 150,251
Overprovision in prior year (126,765 ) (75,479 )
Total current tax (126,765 ) 74,772

Deferred tax 12,148 8,629
Tax on profit (114,617 ) 83,401

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


8. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 958,072 801,078
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

182,034

152,205

Effects of:
Expenses not deductible for tax purposes (35,589 ) (4,891 )
Depreciation in excess of capital allowances 5,481 11,566
Utilisation of tax losses 5,916 -
Adjustments to tax charge in respect of previous periods (126,765 ) (75,479 )


Research and development tax deduction (149,496 ) -
Tax losses carried forward (13,413 ) -
Other timing differences 2,921 -
Effect of new blended tax rate 14,294 -
Total tax (credit)/charge (114,617 ) 83,401

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 (on 24 May 2021). These included an increase in the main rate to 25% from 1 April 2023. Deferred taxes at the balance sheet date have been measured using the enacted tax rates where appropriate and reflected in these financial statements.

9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 352,000 4,000

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


10. PROPERTY, PLANT AND EQUIPMENT
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 July 2022 559,517 145,205 95,250 - 799,972
Additions - 35,556 3,853 93,587 132,996
At 30 June 2023 559,517 180,761 99,103 93,587 932,968
DEPRECIATION
At 1 July 2022 104,305 126,890 59,998 - 291,193
Charge for year 11,980 11,825 9,660 23,397 56,862
At 30 June 2023 116,285 138,715 69,658 23,397 348,055
NET BOOK VALUE
At 30 June 2023 443,232 42,046 29,445 70,190 584,913
At 30 June 2022 455,212 18,315 35,252 - 508,779

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
Additions 93,587
At 30 June 2023 93,587
DEPRECIATION
Charge for year 23,397
At 30 June 2023 23,397
NET BOOK VALUE
At 30 June 2023 70,190

11. FIXED ASSET INVESTMENTS

2023 2022
£    £   
Shares in group undertakings 86 86
Participating interests 45 45
Loans to undertakings in which the company
has a participating interest

19,955

49,955
20,086 50,086

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


11. FIXED ASSET INVESTMENTS - continued

Additional information is as follows:
Shares in Interest
group in joint
undertakings venture Totals
£    £    £   
COST
At 1 July 2022
and 30 June 2023 86 45 131
NET BOOK VALUE
At 30 June 2023 86 45 131
At 30 June 2022 86 45 131

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiary

SPL Foods Ireland Limited
Registered office: c/o CLS Chartered Secretaries, Enterprise House, O'Brien Road, Carlow.
Nature of business: Dormant
%
Class of shares: holding
Ordinary shares 100.00

Joint venture

We Can Foods Limited
Registered office: Glebe Mill Drury Lane, Chadderton, Oldham, OL9 7PH
Nature of business: Canned food manufacturer
%
Class of shares: holding
Ordinary 50.00
2023 2022
£    £   
Aggregate capital and reserves 262,402 188,630

Included within fixed asset investments is a loan to We Can Foods Limited of £19,955 (2022: £49,955). This loan is unsecured and interest free.
Loans to
joint
ventures
£   
At 1 July 2022 49,955
Repayment in year (30,000 )
At 30 June 2023 19,955

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


12. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 July 2022
and 30 June 2023 354,781
NET BOOK VALUE
At 30 June 2023 354,781
At 30 June 2022 354,781

Investment property was valued on an open market basis by the directors as at 30 June 2023. The directors are of the opinion that this represents the fair value at the statement of financial position date. Historic cost is equal to fair value.

13. INVENTORIES
2023 2022
£    £   
Finished goods 4,973,525 5,388,877

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 4,551,375 4,539,319
Amounts due from Quattro Foods Limited 66,205 56,337
Derivative asset - 110,327
Deferred tax asset - 1,659
VAT 63,582 61,322
Prepayments and accrued income 184,113 154,050
4,865,275 4,923,014

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 3,337,856 3,909,787
Hire purchase contracts (see note 18) 3,408 -
Trade creditors 2,974,436 3,275,629
Corporation tax - 183,474
Social security and other taxes 75,159 71,002
Derivative liability 38,949 -
Loan - Embleway Limited 666 666
Directors' current accounts 378,398 66,616
Accrued expenses 1,569,358 1,832,774
8,378,230 9,339,948

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 18) 56,989 -

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 2,257,116 1,000,990
Bank loans 1,080,740 2,908,797
3,337,856 3,909,787

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 3,408 -
Between one and five years 56,989 -
60,397 -

Non-cancellable operating leases
2023 2022
£    £   
Within one year 67,282 72,108
Between one and five years 106,464 127,280
173,746 199,388

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 2,257,116 1,000,990
Bank loans 1,080,740 2,908,797
Hire purchase contracts 60,397 -
3,398,253 3,909,787

Overdraft facilities and bank loans are secured by way of a fixed charge and floating charge over the assets of the company.

20. FINANCIAL INSTRUMENTS

The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency creditors.

At 30 June 2023, the outstanding contracts all mature within 3 months (2022: 6 months) of the year end. The company is committed to buy $1,250,000 and €2,650,000 (2022: $2,150,724, €1,455,400) and pay a fixed amount.

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates for GBP:USD and GBP:EUR. The fair value of the forward-foreign currency contracts is £3,272,555 (2022: £3,022,105).

21. PROVISIONS FOR LIABILITIES

Deferred tax

Deferred tax
£

Balance at 1 July 2022(1,659)
Accelerated capital allowances29,782
Losses carried forward(13,413)
Other timing differences(5,880)
Balance at 30 June 202310,489

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
34 Ordinary £1 34 34

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


23. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 July 2022 2,668,244 66 2,668,310
Profit for the year 1,072,689 1,072,689
Dividends (352,000 ) (352,000 )
At 30 June 2023 3,388,933 66 3,388,999

24. CONTINGENT LIABILITIES

There were contingent liabilities in respect of the following:

2023 2022
£ £
Guarantees to third parties 65,000 265,000

The company has also provided a cross company guarantee and debenture to Barclays Bank PLC in respect of Quattro Foods Limited, related company. At 30 June 2023 Quattro Foods Limited had a bank overdraft, loan and invoice discounting liabilities of £634,328 in total (2022 : £694,611).

25. RELATED PARTY DISCLOSURES

Entities under mutual control
2023 2022
£    £   
Sales 109,385 141,922
Purchases 698,816 549,080
Amount due from related party 66,205 56,337
Trade debtors 42,917 31,813
Trade creditors 18,715 63,674

The amount due from entities under mutual control is unsecured, interest free and repayable on demand.

Joint venture
2023 2022
£    £   
Sales 43,502 63,548
Purchases 109,385 146,724
Trade debtors 4,220 14,850
Loan to related party 19,355 49,955
Trade creditors 18,841 49,606

The amount due from, and the loan to the joint venture is unsecured, interest free and repayable on demand.

S.P.L. FOODS LIMITED (REGISTERED NUMBER: 02579526)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


25. RELATED PARTY DISCLOSURES - continued

Key management personnel of the entity
2023 2022
£    £   
Rent 363,738 353,873
Amount due to directors 28,398 66,616

The payments were in respect of rent for the business premises occupied which are jointly owed by H Simon and R A Simon, there is no formal lease in place.

The amounts due to directors are unsecured, interest free and repayable on demand.

26. ULTIMATE CONTROLLING PARTY

The company is under the control of H Simon and R A Simon who jointly own the whole of the issued share capital.