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Registered number: 07627748









ORIENTAL FOOD EXPRESS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
COMPANY INFORMATION


Directors
Yi Dai 
Ke Pang 
Dakun Wang 




Registered number
07627748



Registered office
Unit 9, Shropshire Food Centre
Vanguard Way Battlefield Enterprise Park

Shrewsbury

Shropshire

SY1 3TG




Independent auditors
Accendo Consulting Ltd
Chartered Certified Accountants & Statutory Auditors

160 City Road

London

EC1V 2NX





 
ORIENTAL FOOD EXPRESS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 6
Independent Auditors' Report
 
 
7 - 12
Consolidated Statement of Comprehensive Income
 
 
13
Consolidated Statement of Financial Position
 
 
14
Company Statement of Financial Position
 
 
15 - 16
Consolidated Statement of Changes in Equity
 
 
17 - 18
Company Statement of Changes in Equity
 
 
19 - 20
Consolidated Statement of Cash Flows
 
 
21 - 22
Consolidated Analysis of Net Debt
 
 
23
Notes to the Financial Statements
 
 
24 - 42


 
ORIENTAL FOOD EXPRESS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the financial year ended 31 December 2023. This provides a comprehensive overview of our Group's performance, market position, and future outlook. As the UK's premier manufacturer and distributor of traditional Chinese cuisine, including a wide range of dumplings, hot-pot meat slices, Siu Loong Buns, and Dim Sum, our commitment remains steadfast in championing high-quality Chinese food. This report reflects on our achievements, financial health, and strategic initiatives undertaken in the year 2023, setting the course for continued growth and innovation.

Business review
 
The financial year 2023 has been a period of notable growth and improvement for the Group, as demonstrated by our enhanced financial metrics. The Group has successfully increased its turnover, profitability, and overall financial health.
Turnover: Our turnover experienced a healthy growth, increasing from £10.7 million in 2022 to £11.2 million in 2023. This growth reflects our successful market strategies and the increasing demand for our products in the UK and European markets.
Operating Profit: The operating profit has shown a significant improvement, rising to £483k in 2023 from £282k in the previous year. This substantial increase is a testament to our efficient operational management and cost-control measures.
Profit Before Tax: In line with our increased operating profit, our profit before tax has also seen a remarkable increase, rising from £274k in 2022 to £482k this year. This indicates not only improved operational performance but also effective financial stewardship.
Current Assets and Liabilities: Our current assets have seen a modest increase from £5.7 million to £5.9 million. Concurrently, there has been a significant reduction in our current liabilities, which have declined from £1.2 million in 2022 to £0.97 million this year. This improvement in current assets, along with the reduction in liabilities, has positively impacted our net current assets, which are now at £4.9 million, compared to £4.6 million in the previous year.
Cash Position: The Group's cash position has strengthened, with £3.1 million in the bank at the end of 2023, up from £2.5 million in 2022. This robust liquidity is crucial for our ongoing operations and future growth plans.
Reserves: Reflecting our overall financial growth, the Group's reserves have increased from £2.4 million in 2022 to £2.7 million this year. This increase in reserves underlines the Group's healthy financial position and its ability to invest in future growth opportunities.
In summary, the Group's financial performance in 2023 has been highly positive, with increases in turnover, profit, and reserves, alongside a strengthened balance sheet. These results demonstrate our commitment to financial excellence and position us well for continued success and expansion in the future.

Page 1

 
ORIENTAL FOOD EXPRESS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
In 2023, the Group navigated a complex landscape of risks and uncertainties, many of which were continuations or evolutions of challenges faced in the previous year.
Global Pandemic: The disruptions due to global pandemic continued to present operational and supply chain challenges. While we have adapted to the evolving situation, the unpredictability of pandemic-related disruptions remains a significant risk.
Geo-Political Tensions: The persisting war between Russia and Ukraine has had a cascading effect on global markets, including ours. These tensions contribute to uncertainties in international trade, affecting both procurement and distribution.
Currency Fluctuation and Inflation: As a Group operating in multiple markets and dealing with international transactions, currency fluctuation remains a key risk. Coupled with this, the prevailing high inflation rates have further compounded financial planning challenges, impacting cost management and pricing strategies.
Supply Chain and Logistics: Our reliance on imports for sourcing food products, coupled with our extensive distribution network across the UK and Europe, exposes us to risks associated with high internal shipment costs. These costs are subject to fluctuations due to fuel prices, logistical bottlenecks, and regulatory changes in cross-border trade.
Market Competition and Consumer Trends: The competitive landscape in the food industry, especially in traditional Chinese cuisine, is dynamic. Staying ahead requires constant innovation and adaptation to changing consumer preferences. Our ability to anticipate and respond to these trends is crucial for maintaining market position.
Regulatory Changes: Post-Brexit regulatory environments in the UK and Europe continue to evolve, presenting uncertainties in compliance and operational procedures. Navigating these changing regulations requires agility and proactive engagement with legal and market developments.
In addressing these risks, the Group continues to implement robust risk management strategies, including diversifying supply chains, hedging against currency fluctuations, and closely monitoring market and geopolitical developments. Our focus remains on building resilience and flexibility into our operations to navigate these uncertainties effectively.

Page 2

 
ORIENTAL FOOD EXPRESS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
We monitor several Key Performance Indicators (KPIs) to evaluate our business performance and guide strategic decisions. These KPIs reflect our financial health, operational efficiency, and market position.

Turnover Growth: We achieved a turnover growth of 5%, increasing from £10.7 million in 2022 to £11.2 million in 2023. This growth is indicative of the effective market penetration and the increasing demand for our products.
Current Ratio: Our current ratio saw a significant improvement, rising to 6.1 from 4.9 in 2022. This demonstrates a stronger liquidity position, highlighting our enhanced capability to meet short-term obligations.
Debtors Days: The debtors days increased to 43 in 2023, up from 35 in the previous year. This metric suggests a longer time frame in collecting receivables, a point we aim to address to improve cash flow efficiency.
Gross Profit Margin: There was a notable improvement in our gross profit margin, which increased to 25% in 2023 from 23% in 2022. This improvement reflects our ability to control costs effectively and maintain a strong pricing strategy.
The KPIs for 2023 showcase the Group's robust performance in a challenging market environment. The growth in turnover, coupled with improvements in liquidity, and gross profit margin, underscores our strategic success. However, the increase in debtors’ days is an area we are focusing on for improvement. Overall, these indicators are crucial in guiding our business strategies and ensuring sustained growth and profitability.


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



Dakun Wang
Director

Date: 29 February 2024

Page 3

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group 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 £355,012 (2022 - £169,027).



Directors

The directors who served during the year were:

Yi Dai 
Ke Pang 
Dakun Wang 

Principal risks and uncertainties

Page 4

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

As we look forward to 2024 and beyond, the Group is poised to embark on several exciting developments that will steer the company towards greater success and market leadership.
Expansion: Our primary objective will be to expand our market share in the existing markets. This will be achieved through targeted marketing strategies, strengthening relationships with key retailers and distributors, and exploring untapped segments within these markets. This expansion will be strategically targeted, focusing on regions with a growing appetite for traditional Chinese cuisine.
Product Innovation and Diversification: We will continue to innovate and diversify our product range to meet the evolving needs of our consumers. This includes the introduction of new flavours and varieties, as well as adapting to dietary trends and preferences, ensuring we remain at the forefront of the traditional Chinese cuisine market.
Sustainability Initiatives: Sustainability will remain a key focus area. We will endeavour to implement more sustainable practices in sourcing, production, and packaging, reinforcing our commitment to environmental responsibility and ethical business practices.
Supply Chain Optimisation: We plan to further optimise our supply chain to improve operational efficiency and reduce costs. This includes refining logistics, exploring cost-effective sourcing options, and utilising advanced supply chain management technologies.
Investment in People and Culture: Recognising the value of our workforce, we will continue to invest in our people through training, development, and creating a culture that fosters innovation and inclusivity. This will enable us to maintain a high level of service and quality in our offerings.
By focusing on these key areas, the Group aims to strengthen its position in the current markets, ensuring long-term growth and sustainability. These initiatives are aligned with our commitment to delivering exceptional quality and service, maintaining our status as a leading provider of traditional Chinese cuisine in our operational markets.

Qualifying third party indemnity provisions

During the year, the Group maintained indemnity provisions to protect its directors and officers against liability incurred by them in the performance of their duties. These indemnity provisions are a standard practice intended to safeguard our directors and officers from personal financial exposure for actions taken in good faith while managing the Group.

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

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

Page 5

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

The auditorsAccendo Consulting Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





Dakun Wang
Director

Date: 29 February 2024

Page 6

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED
 

Opinion


We have audited the financial statements of Oriental Food Express Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's 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 Group 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 Group's or the parent 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.


Page 7

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)


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.


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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Page 8

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector, control environment and business performance including the design of the Group’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• results of our enquiries of management about their own identification and assessment of the risks of irregularities and any matters we identified having reviewed the Group’s policies and procedures;
• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in and focused on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and local tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material fine or penalty. 
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
 
Page 10

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)



• enquiring of management, concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• reading minutes of meetings of those charged with governance;
• obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of tax provisions; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.


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.


Other matters 
 

The financial statements for the year ended 31 December 2022, were audited by another auditor, Cartwrights, who expressed an unmodified opinion on those statements on 19 April 2023.


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.


Page 11

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ORIENTAL FOOD EXPRESS LIMITED (CONTINUED)





R M Asif Rafique (Senior Statutory Auditor)
  
for and on behalf of
Accendo Consulting Ltd
 
Chartered Certified Accountants & Statutory Auditors
  

29 February 2024
Page 12

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,238,597
10,690,927

Cost of sales
  
(8,394,930)
(8,276,283)

Gross profit
  
2,843,667
2,414,644

Administrative expenses
  
(2,362,627)
(2,140,100)

Other operating income
 5 
2,348
7,557

Operating profit
 6 
483,388
282,101

Interest receivable and similar income
 10 
23,580
4,496

Interest payable and similar expenses
 11 
(25,076)
(12,861)

Profit before tax
  
481,892
273,736

Tax on profit
 12 
(126,880)
(104,709)

Profit for the financial year
  
355,012
169,027

Profit for the year attributable to:
  

Owners of the parent company
  
(355,012)
(169,027)

  
(355,012)
(169,027)

Total comprehensive income attributable to:
  

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

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

The notes on pages 24 to 42 form part of these financial statements.

Page 13

 
ORIENTAL FOOD EXPRESS LIMITED
REGISTERED NUMBER: 07627748

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
667,926
803,245

  
667,926
803,245

Current assets
  

Stocks
  
1,160,990
1,737,566

Debtors: amounts falling due within one year
 16 
1,634,782
1,501,235

Cash at bank and in hand
 17 
3,076,504
2,507,439

  
5,872,276
5,746,240

Creditors: amounts falling due within one year
  
(969,654)
(1,184,778)

Net current assets
  
 
 
4,902,622
 
 
4,561,462

Total assets less current liabilities
  
5,570,548
5,364,707

Creditors: amounts falling due after more than one year
  
(162,000)
(282,276)

Provisions for liabilities
  

Deferred tax
  
(166,981)
(195,876)

  
 
 
(166,981)
 
 
(195,876)

Net assets
  
5,241,567
4,886,555


Capital and reserves
  

Called up share capital 
 23 
1,416
1,416

Share premium account
  
2,499,584
2,499,584

Profit and loss account
  
2,740,567
2,385,555

  
5,241,567
4,886,555


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




Dakun Wang
Director

Date: 29 February 2024

The notes on pages 24 to 42 form part of these financial statements.

Page 14

 
ORIENTAL FOOD EXPRESS LIMITED
REGISTERED NUMBER: 07627748

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
667,926
803,245

Investments
 14 
1,859
1,859

  
669,785
805,104

Current assets
  

Stocks
  
1,151,243
1,675,324

Debtors: amounts falling due within one year
 16 
1,717,520
1,600,590

Cash at bank and in hand
 17 
3,044,281
2,467,343

  
5,913,044
5,743,257

Creditors: amounts falling due within one year
  
(949,880)
(1,176,692)

Net current assets
  
 
 
4,963,164
 
 
4,566,565

Total assets less current liabilities
  
5,632,949
5,371,669

  

Creditors: amounts falling due after more than one year
  
(162,000)
(282,276)

Provisions for liabilities
  

Deferred taxation
 22 
(166,981)
(195,876)

  
 
 
(166,981)
 
 
(195,876)

Net assets excluding pension asset
  
5,303,968
4,893,517

Net assets
  
5,303,968
4,893,517


Capital and reserves
  

Called up share capital 
 23 
1,416
1,416

Share premium account
  
2,499,584
2,499,584

Profit and loss account brought forward
  
2,392,517
2,220,760

Profit for the year
  
410,451
171,757

Profit and loss account carried forward
  
2,802,968
2,392,517

  
5,303,968
4,893,517


Page 15

 
ORIENTAL FOOD EXPRESS LIMITED
REGISTERED NUMBER: 07627748
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

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


Dakun Wang
Director

Date: 29 February 2024

The notes on pages 24 to 42 form part of these financial statements.

Page 16

 
ORIENTAL FOOD EXPRESS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2023
1,416
2,499,584
2,385,555
4,886,555
4,886,555


Comprehensive income for the year

Profit for the year

-
-
355,012
355,012
355,012


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
355,012
355,012
355,012


Total transactions with owners
-
-
-
-
-


At 31 December 2023
1,416
2,499,584
2,740,567
5,241,567
5,241,567


The notes on pages 24 to 42 form part of these financial statements.

Page 17

 
ORIENTAL FOOD EXPRESS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2022
1,416
2,499,584
2,216,528
4,717,528
4,717,528


Comprehensive income for the year

Profit for the year

-
-
169,027
169,027
169,027


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
169,027
169,027
169,027


Total transactions with owners
-
-
-
-
-


At 31 December 2022
1,416
2,499,584
2,385,555
4,886,555
4,886,555


The notes on pages 24 to 42 form part of these financial statements.

Page 18

 
ORIENTAL FOOD EXPRESS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


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

£
£
£
£

At 1 January 2023
1,416
2,499,584
2,392,517
4,893,517


Comprehensive income for the year

Profit for the year

-
-
410,451
410,451


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
410,451
410,451


Total transactions with owners
-
-
-
-


At 31 December 2023
1,416
2,499,584
2,802,968
5,303,968


The notes on pages 24 to 42 form part of these financial statements.

Page 19

 
ORIENTAL FOOD EXPRESS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


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

£
£
£
£

At 1 January 2022
1,416
2,499,584
2,220,760
4,721,760


Comprehensive income for the year

Profit for the year

-
-
171,757
171,757


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
171,757
171,757


Total transactions with owners
-
-
-
-


At 31 December 2022
1,416
2,499,584
2,392,517
4,893,517


The notes on pages 24 to 42 form part of these financial statements.

Page 20

 
ORIENTAL FOOD EXPRESS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
481,892
273,736

Adjustments for:

Depreciation of tangible assets
196,785
152,229

Loss on disposal of tangible assets
-
(6,465)

Interest paid
30,843
12,863

Interest received
(23,580)
(4,496)

Decrease/(increase) in stocks
576,576
(25,744)

(Increase) in debtors
(166,668)
(183,375)

(Decrease)/increase in creditors
(321,516)
307,899

Corporation tax (paid)
(5,235)
(52,045)

Net cash generated from operating activities

769,097
474,602


Cash flows from investing activities

Purchase of tangible fixed assets
(61,466)
(523,414)

Sale of tangible fixed assets
-
58,792

Interest received
23,580
4,496

Net cash from investing activities

(37,886)
(460,126)

Cash flows from financing activities

Repayment of loans
(108,000)
(108,000)

Repayment of/new finance leases
(25,181)
(71,338)

Interest paid
(30,843)
(12,863)

Net cash used in financing activities
(164,024)
(192,201)

Net increase/(decrease) in cash and cash equivalents
567,187
(177,725)

Cash and cash equivalents at beginning of year
2,507,439
2,685,164

Cash and cash equivalents at the end of year
3,074,626
2,507,439


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,076,504
2,507,439

Bank overdrafts
(1,878)
-

3,074,626
2,507,439


Page 21

 
ORIENTAL FOOD EXPRESS LIMITED
 
The notes on pages 24 to 42 form part of these financial statements.

Page 22

 
ORIENTAL FOOD EXPRESS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,507,439

569,065

3,076,504

Bank overdrafts

-

(1,878)

(1,878)

Debt due after 1 year

(270,000)

108,000

(162,000)

Debt due within 1 year

(459,856)

351,856

(108,000)

Finance leases

(37,457)

25,181

(12,276)


1,740,126
1,052,224
2,792,350

The notes on pages 24 to 42 form part of these financial statements.

Page 23

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Oriental Food Express Ltd is a private company limited by shares, registered in England and Wales under the company registration number 07627748. Our registered office, which also serves as our principal place of business, is located at Unit 9 Shropshire Food Centre, Vanguard Way Battlefield Enterprise Park, Shrewsbury, Shropshire, SY1 3TG. This location serves as the central hub for our operations and administrative activities.
The company's principal activity is centred around the production of meat and poultry meat products. Oriental Food Express Ltd specialises in the creation of high-quality, traditional Chinese cuisine, with a particular focus on a range of meat and poultry-based products. Our offerings include an array of items that cater to diverse tastes and dietary preferences, reflecting our commitment to culinary excellence and innovation.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 24

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

In preparing the financial statements, the Directors have considered the ability of the Group to continue in operational existence for the foreseeable future. After a thorough review of the Group's financial position and prospects, the Directors are satisfied that the Group has the necessary resources to continue in operational existence for the foreseeable future. This assessment encompasses the following considerations:
Financial Performance and Position: The Group's financial statements for the year show a positive trend in profitability and liquidity. With a notable increase in turnover, improved operating profits, and a strengthened cash position, the Group demonstrates robust financial health.
Cash Flow Projections: The Directors have reviewed the Group's cash flow projections for the next 12 months. These projections indicate that for the foreseeable future the Group is expected to maintain sufficient liquidity to meet its obligations as they fall due.
Market Stability and Growth Prospects: Despite facing external challenges such as market fluctuations and global economic uncertainties, the Group has maintained a stable market position. The focus on expanding market share in existing markets and continued product innovation supports the Group's growth prospects.
Risk Management: The Directors have also considered the principal risks and uncertainties facing the Group, including the impact of global economic factors. Appropriate risk management strategies are in place to address these challenges and safeguard the Group's future operations.
Based on these considerations, the Directors believe that it is appropriate to prepare the financial statements on a going concern basis. This assessment assumes that the Group will continue to realise its assets and discharge its liabilities in the normal course of business. The Directors will continue to monitor the Group's financial position and performance, adapting their strategies as necessary to ensure the ongoing viability of the Group.

Page 25

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group as lessee

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

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

 
2.6

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 26

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

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

 
2.9

Borrowing costs

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

 
2.10

Pensions

Defined contribution pension plan

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

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

Page 27

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

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

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

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

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

 
2.12

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Plant and machinery
-
10%
Motor vehicles
-
25%
Fixtures and fittings
-
20%
Office equipment
-
33%

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.

Page 28

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.14

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. Work in progress and finished goods include labour and attributable overheads.

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

 
2.15

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.

 
2.16

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 Consolidated 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 Group's cash management.

 
2.17

Creditors

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

 
2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

Page 29

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
Page 30

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Page 31

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the preparation of the financial statements the Group’s application of accounting policies involved certain judgments and estimates, which are essential for presenting the statements in accordance with applicable accounting standards. The most significant of these relates to the determination of the useful economic lives of tangible fixed assets.
Useful Economic Lives of Tangible Fixed Assets: The estimation of the useful economic lives of tangible fixed assets is a critical judgment area. This estimation affects the calculation of depreciation and, consequently, the carrying amount of the assets. The determination of these useful lives is based on historical experience with similar assets, as well as expectations about future use and technological advancements that may influence their economic utility. The estimated useful life of each asset category is reviewed annually and adjusted if necessary, considering factors such as usage, maintenance practices, technological advancements, and changes in market conditions.
Depreciation Methods and Residual Values: The chosen methods of depreciation and the estimation of residual values at the end of the useful lives of assets are also significant judgments. These estimates are based on experience and knowledge of the assets, considering the nature of the operations and the practices in our industry.
Impairment of Assets: Judgements and estimates are also made in assessing whether there are any indications that an asset may be impaired. This involves considering changes in market conditions, technological advancements, or underperformance of the asset against expectations. Where indicators of impairment are identified, the recoverable amount of the asset is estimated, which requires significant judgement and estimation.
It is important to note that while these judgments and estimates are based on management's best knowledge of current events and actions, actual results may differ from these estimates. Any changes in key assumptions about the economic lives of tangible fixed assets and their residual values could impact the depreciation charge and the carrying amount of the assets. The Directors regularly review and update these estimates and judgments based on the latest available information and historical experience.

Page 32

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

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


2023
2022
£
£

Meat and poultry meat products
11,238,597
10,690,927

11,238,597
10,690,927


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
8,595,888
8,368,231

Rest of Europe
1,113,712
91,678

Rest of the world
1,528,996
2,231,018

11,238,596
10,690,927



5.


Other operating income

2023
2022
£
£

Other operating income
2,348
1,092

Sundry income
-
6,465

2,348
7,557



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
113,948
115,853

Page 33

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
8,900
15,000


8.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
1,692,542
1,471,024
1,671,291
1,455,361

Social security costs
162,875
142,323
161,635
141,653

Cost of defined contribution scheme
32,090
26,281
32,090
26,281

1,887,507
1,639,628
1,865,016
1,623,295


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Direct
44
31
44
31



Admin
27
27
27
27

71
58
71
58

Page 34

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
40,000
46,667

Group contributions to defined contribution pension schemes
1,013
-

41,013
46,667


During the year retirement benefits were accruing to 1 director (2022 - NIL) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
23,580
4,496

23,580
4,496


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
20,286
12,861

Finance leases and hire purchase contracts
4,790
-

25,076
12,861

Page 35

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
117,420
(91,167)

Adjustments in respect of previous periods
38,355
-


155,775
(91,167)


Total current tax
155,775
(91,167)

Deferred tax


Origination and reversal of timing differences
(28,895)
195,876

Total deferred tax
(28,895)
195,876


Tax on profit
126,880
104,709

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 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
481,892
273,736


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
113,341
52,010

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,269
527

Capital allowances for year in excess of depreciation
31,827
(86,175)

Utilisation of tax losses
(42,056)
(33,120)

Adjustments to tax charge in respect of prior periods
38,355
(24,926)

Short-term timing difference leading to an increase (decrease) in taxation
(28,895)
195,875

Unrelieved loss on foreign subsidiaries
13,039
518

Total tax charge for the year
126,880
104,709

Page 36

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors that may affect future tax charges

The standard rate of tax applied to reported profit on ordinary activities is 25% (2022: 19%). In the Finance
Bill 2021, the Government announced that from 1 April 2023 the corporation tax rate would increase to
25%. The Finance Bill 2021 and the new 25% rate were substantially enacted on 24th May 2021, this
means that the 25% main rate of corporation tax and marginal relief will be relevant for any timing
differences expected to reverse on or after 1 April 2023.


13.


Tangible fixed assets

Group and Company






Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
585,534
521,174
148,130
18,054
1,272,892


Additions
44,798
-
2,559
14,109
61,466



At 31 December 2023

630,332
521,174
150,689
32,163
1,334,358



Depreciation


At 1 January 2023
198,088
218,331
44,209
9,019
469,647


Charge for the year on owned assets
48,654
116,356
25,185
6,590
196,785



At 31 December 2023

246,742
334,687
69,394
15,609
666,432



Net book value



At 31 December 2023
383,590
186,487
81,295
16,554
667,926



At 31 December 2022
387,446
302,843
103,921
9,035
803,245

Page 37

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.Tangible fixed assets (continued)


14.


Fixed asset investments

Company





Unlisted investments

£



Cost or valuation


At 1 January 2023
1,859



At 31 December 2023
1,859





15.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Finished goods and goods for resale
1,160,990
1,737,566
1,151,243
1,675,324

1,160,990
1,737,566
1,151,243
1,675,324


The difference between purchase price or production cost of stocks and their replacement cost is not material.


16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,384,017
1,013,725
1,384,055
1,115,748

Amounts owed by group undertakings
-
15,175
89,442
15,175

Other debtors
164,992
182,631
158,250
179,963

Prepayments and accrued income
85,773
289,704
85,773
289,704

1,634,782
1,501,235
1,717,520
1,600,590


Page 38

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
3,076,504
2,507,439
3,044,281
2,467,343

Less: bank overdrafts
(1,878)
-
-
-

3,074,626
2,507,439
3,044,281
2,467,343



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
1,878
-
-
-

Bank loans
108,000
108,000
108,000
108,000

Trade creditors
479,710
459,704
469,780
454,712

Corporation tax
117,420
-
117,420
-

Other taxation and social security
43,471
38,555
38,025
38,555

Obligations under finance lease and hire purchase contracts
12,276
25,181
12,276
25,181

Other creditors
141,858
475,649
141,858
472,555

Accruals and deferred income
65,041
77,689
62,521
77,689

969,654
1,184,778
949,880
1,176,692



19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
162,000
270,000
162,000
270,000

Net obligations under finance leases and hire purchase contracts
-
12,276
-
12,276

162,000
282,276
162,000
282,276


Please provide details of the terms of payment or repayment and the rates of any interest payable on the amounts repayable more than five years after the reporting date.

Page 39

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
12,276
25,181

Between 1-5 years
-
12,276

12,276
37,457


21.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
3,076,504
2,507,439
3,044,043
2,467,343




22.


Deferred taxation


Group





2023


£






At beginning of year
(195,876)


Charged to profit or loss
28,895



At end of year
(166,981)

Page 40

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
22.Deferred taxation (continued)

Company




2023


£






At beginning of year
(195,876)


Charged to profit or loss
28,895



At end of year
(166,981)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(166,981)
(195,876)
(166,981)
(195,876)

(166,981)
(195,876)
(166,981)
(195,876)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,416 (2022 - 1,416) Ordinary shares of £1.00 each
1,416
1,416



24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £32,090 (2022: £26,281). Contributions totalling £6,223 (2022: £5,976) were payable to the fund at the reporting date and are included in creditors.

Page 41

 
ORIENTAL FOOD EXPRESS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Commitments under operating leases

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
55,888
86,040
55,888
86,040

Later than 1 year and not later than 5 years
-
47,555
-
47,555

55,888
133,595
55,888
133,595


26.


Transactions with directors

As at the year end the company owed its directors £Nil (2022: 350,000).


27.


Controlling party and parent company

The controlling party is Anjoy Foods Group Co., Ltd.
The company is a subsidiary of Anjoy Foods Group Co., Ltd. The accounts of the company are included in the consolidated accounts of its parent company, Anjoy Foods Group Co., Ltd. The parent company’s registered office is: 2508, Xinyang Road, Haicang District, Xiamen, Fujian, China.

Page 42