Company registration number 05169232 (England and Wales)
HECK! FOOD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
HECK! FOOD LIMITED
COMPANY INFORMATION
Directors
Mr A C Keeble
Mrs D J Keeble
Mr W M McDavid
Mr S A Campbell
Secretary
Mrs D J Keeble
Company number
05169232
Registered office
Berry Hills
Kirklington
Bedale
DL8 2NL
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
HECK! FOOD LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
HECK! FOOD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -
The directors present the strategic report for the year ended 31 July 2023.
Review of the business
The principal activity of the Company continues to be the production of food products.
The Company established the Heck brand in 2013 to produce premium, high quality food products from its Yorkshire manufacturing base, primarily distributed through the UK major supermarket retailers and also via mailorder (online).
During the period, the Company has appeared in a number of television programmes, and more recently Inside The Factory.
A large part of the Company’s marketing campaign involves sampling products nationwide at shows and events which had not been possible during the pandemic, but these are fully back on track now.
The company’s primary focus is in sausages, but the brand is gaining traction with premium burgers, mince and other sausage formats. Our recently launched Steak and Butter Burger has exceeded expectations and further cemented Heck’s position at the top of the premium market.
The financial results for the period to 31 July 2023 are set out on page 9. The 2022 financial period experienced extreme levels of rapid inflation across the board, from ingredients, energy, and labour as well as a squeeze on GDP which resulted in reduction of gross margins. This trend continued in the year under review. The business adapted quickly, streamlining production facilities, and focussed on core, higher margin products.
Our KPI's are turnover and gross margin. Turnover decreased by nearly 9.0% to £23.8m from £26.2m in the previous financial period because of the product rationalisation mentioned above. However, the gross margin increased to 26.9% from 25.1% as was intended.
R & D - Research & development is important to support the innovation in new products and recipe development, as well as ensuring quality and consistency in all products, and the business has continued to invest in this area to create more versatile products that will suit the changing consumer landscape.
Sustainability – Heck! acknowledges its role as a global citizen and is committed to doing its share to combat climate change. The company aspires to become an industry leader in sustainability and plans to achieve this goal through collaboration, innovation, and doing business ‘the Heck way’. To demonstrate its dedication to people and planet, in 2024, Heck! will hire a sustainability project leader, set science-based emission reduction targets, and implement a plan to achieve net-zero emissions.
Although it is just getting started, Heck! has already achieved the noteworthy milestones provided below.
Product emissions disclosure: In an effort to optimise transparency and assist consumers in making informed decisions, Heck! partnered with Carbon Cloud to calculate the individual carbon footprint of each product, which will be displayed on consumer packaging.
Scope emissions: This financial period, Heck! reduced scope 1 and 2 emissions by 24%, and completed its first inventory of scope 3 emissions. The company will continue to measure and reduce scope 1, 2, and 3 emissions year over year.
HECK! FOOD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
Packaging: All Heck! packaging is fully recyclable and made from 90% recycled material. The business continues to search for innovative alternatives to plastic packaging.
The directors' primary objectives are to continue to develop the brand with quality and innovative products increasing turnover and profitability, whilst maintaining the Company ethos.
The strategy to support this includes the development of personnel, consideration of additional product areas, commitment to marketing and connections with consumers through social media, web site and shows and investment in above the line Advertising.
Although there are inevitably challenges in continuing to deliver sustainable growth, the Board has managed the business through substantial change over the past few years and faces the future with confidence.
Principal risks and uncertainties
The Board of Directors regularly reviews and assesses potential risks to the Company. The Board uses risk registers to capture the likelihood and impact of risks together with any relevant mitigation.
The Company’s activities expose it to various risks including Strategic Risk, Commercial Risk, Financial Risk and Operational Risk. As an independent premium food manufacturer, the company seeks to minimise exposure to Financial and Operational Risks particularly in the areas of product quality, food safety, legal compliance, and health & safety.
Commercial Risks
Reliance on Key Customers - The company works at scale with most of the large food retailers in the UK. A loss of a major customer would be significant. We built strong partnership models with customers with specific account managers dedicated to each team. We also invest in market leading quality processes with high food integrity.
Raw Material Cost Inflation/ Margin Pressure - The company is susceptible to raw material inflation. The company continues to develop a proactive procurement process and developing commercial models with some retailers to mitigate the impact.
Changing Consumer Demand - Changes in consumer attitudes to health and evolving market trends could create a risk to sales growth. We invest in our market research and continue to develop vegan and plant-based options.
Financial Risks
Data Security & Cyber Crime - The company is reliant on integrated IT systems to support the business, hence susceptible to potential cyber risks and data security breaches. With emergence of Covid-19 this risk has increased. We collaborated with our IT Support to improve and develop our IT security as well as constantly increasing awareness staff awareness on both cyber crime and data security.
Financial Control & Liquidity - Failure of business to generate cash as expected could damage the company. We monitor cashflow every day.
Operational Risks
Food Safety & Integrity - The company is subject to rigorous and changing food safety regulations and legislation. Compliance failure could lead to significant reputational, financial, or legal risk. We have invested in robust, capable technical functions and adhere to the highest food safety standards. Stringent policies and controls are implemented with all staff trained in our procedures.
Reliance on Key Equipment - There is a manufacturing capability risk if there were a significant breakdown of specific plant & machinery. Specific mitigation is in place and monitored by the engineering manager. Contingency spares are held onsite.
Catastrophic Events (Fire or Flood) - There is a risk of disruption to manufacturing operations should the company suffer a fire, flood, or other disaster. The company employs competent management teams and maintains an operational contingency plan.
Health & Safety - The company is at risk to any hazard that can result in harm, injury or death to employees or people we engage to provide services. We maintain a strong Health & Safety culture. The Health & Safety function has been very instrumental in leading our Covid-19 risk mitigation activity.
HECK! FOOD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
Impact of Cost of living and inflation
High inflation continues to put pressure on the company in particular and the industry in general relating to food prices and volatility of costs.
Mitigation
On the onset of the inflationary pressures in financial year 2022, the board’s first goal was to stabilise the business. This was successfully achieved in financial year 2023. The second goal, currently in progress, is to rebuild our profitability and returns. Final goal is to reinvigorate our growth trajectory.
Mrs D J Keeble
Director
26 March 2024
HECK! FOOD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 July 2023.
Principal activities
The principal activity of the company continued to be that of the production of food products.
Results and dividends
The results for the year are set out on page 9.
The directors do not recommend payment of a dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A C Keeble
Mrs D J Keeble
Mr W M McDavid
Mr S A Campbell
Auditor
The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs D J Keeble
Director
26 March 2024
HECK! FOOD LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2023
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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.
HECK! FOOD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HECK! FOOD LIMITED
- 6 -
Opinion
We have audited the financial statements of Heck! Food Limited (the 'company') for the year ended 31 July 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 31 July 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
HECK! FOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HECK! FOOD LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
HECK! FOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HECK! FOOD LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Chris Woodroffe
Senior Statutory Auditor
For and on behalf of Azets Audit Services Limited
26 March 2024
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
HECK! FOOD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
23,831,920
26,186,793
Cost of sales
(17,411,394)
(19,628,036)
Gross profit
6,420,526
6,558,757
Distribution costs
(941,108)
(1,176,576)
Administrative expenses
(5,240,665)
(5,709,825)
Operating profit/(loss)
4
238,753
(327,644)
Interest payable and similar expenses
6
(307,166)
(190,522)
Loss before taxation
(68,413)
(518,166)
Tax on loss
7
121,239
356,167
Profit/(loss) for the financial year
52,826
(161,999)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
HECK! FOOD LIMITED
BALANCE SHEET
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
8
73,296
83,900
Tangible assets
9
6,018,204
6,851,074
Investments
10
2
1
6,091,502
6,934,975
Current assets
Stocks
11
625,691
810,537
Debtors
12
1,710,342
1,363,129
Cash at bank and in hand
886,641
461
3,222,674
2,174,127
Creditors: amounts falling due within one year
15
(3,140,645)
(3,488,687)
Net current assets/(liabilities)
82,029
(1,314,560)
Total assets less current liabilities
6,173,531
5,620,415
Creditors: amounts falling due after more than one year
16
(3,342,832)
(2,913,958)
Provisions for liabilities
Deferred tax liability
17
178,216
194,455
(178,216)
(194,455)
Net assets
2,652,483
2,512,002
Capital and reserves
Called up share capital
20
50,667
50,667
Profit and loss reserves
2,601,816
2,461,335
Total equity
2,652,483
2,512,002
The financial statements were approved by the board of directors and authorised for issue on 26 March 2024 and are signed on its behalf by:
Mrs D J Keeble
Director
Company Registration No. 05169232
HECK! FOOD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
50,667
2,535,679
2,586,346
Year ended 31 July 2022:
Loss and total comprehensive income for the year
-
(161,999)
(161,999)
Credit to equity for equity settled share-based payments
19
-
87,655
87,655
Balance at 31 July 2022
50,667
2,461,335
2,512,002
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
52,826
52,826
Credit to equity for equity settled share-based payments
19
-
87,655
87,655
Balance at 31 July 2023
50,667
2,601,816
2,652,483
HECK! FOOD LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
568,850
542,456
Interest paid
(307,166)
(190,522)
Income taxes refunded
260,179
296,031
Net cash inflow from operating activities
521,863
647,965
Investing activities
Purchase of intangible assets
(73,399)
Purchase of tangible fixed assets
(214,575)
(616,086)
Proceeds from disposal of tangible fixed assets
149,417
119,743
Net cash used in investing activities
(65,158)
(569,742)
Financing activities
Proceeds from new bank loans
2,800,000
Repayment of bank loans
(2,061,477)
(470,828)
Payment of finance leases obligations
(214,560)
(443,816)
Dividends paid
(40,534)
Net cash generated from/(used in) financing activities
483,429
(914,644)
Net increase/(decrease) in cash and cash equivalents
940,134
(836,421)
Cash and cash equivalents at beginning of year
(53,493)
782,928
Cash and cash equivalents at end of year
886,641
(53,493)
Relating to:
Cash at bank and in hand
886,641
461
Bank overdrafts included in creditors payable within one year
(53,954)
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
1
Accounting policies
Company information
Heck! Food Limited is a private company limited by shares incorporated in England and Wales. The registered office is Berry Hills, Kirklington, Bedale, DL8 2NL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of Companies Act 2006 section 402, exempting the company from being required to prepare group accounts, on the basis that no subsidiary undertaking needs to be included in the consolidation. Under Companies Act 2006 section 405, the company's subsidiary undertakings Veg With Edge Limited and The Great Heck Brewing Company Limited, are excluded from being consolidated on the grounds of materiality.
1.2
Going concern
The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the company, the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Intangible asset
Straight line over 3 to 10 years
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Straight line over 5 to 25 years
Plant and equipment
Straight line over 3 to 10 years
Fixtures and fittings
Straight line over 3 to 10 years
Office Equipment
Straight line over 3 to 10 years
Motor vehicles
Straight line over 3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 15 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.18
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation and amortisation
The depreciation and amortisation polices have been set according to managements experience of the useful lives of a typical asset in each category, something which is reviewed annually. The depreciation and amortisation charged during the year was £868,960 (2022 - £948,211) which the directors feel is a fair reflection of the benefits derived from the consumption of the intangible and tangible fixed assets in use during the period.
Stock Provisions
At each reporting date an assessment is made for provisions required to properly recognise wastage, damaged and obselete goods. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss and provided for in the balance sheet. Reversals of impairment losses are also recognised in profit or loss where these arise.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Food products
23,831,920
26,186,793
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
23,831,920
26,186,793
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(19,232)
(6,030)
Fees payable to the company's auditor for the audit of the company's financial statements
15,995
14,520
Depreciation of owned tangible fixed assets
735,746
803,254
Depreciation of tangible fixed assets held under finance leases
122,610
136,443
Loss on disposal of tangible fixed assets
70,500
85,263
Amortisation of intangible assets
10,604
8,514
Share-based payments
87,655
87,655
Operating lease charges
60,366
155,789
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 20 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
14
14
Production and Distribution
86
119
Sales and Marketing
18
16
Total
118
149
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,437,892
4,019,769
Social security costs
342,234
385,834
Pension costs
67,002
76,769
3,847,128
4,482,372
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
165,762
84,781
Interest on invoice finance arrangements
128,236
96,544
293,998
181,325
Other finance costs:
Interest on finance leases and hire purchase contracts
13,168
9,197
307,166
190,522
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(105,000)
(260,179)
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
7
Taxation
2023
2022
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
(16,239)
(141,733)
Changes in tax rates
45,745
Total deferred tax
(16,239)
(95,988)
Total tax credit
(121,239)
(356,167)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(68,413)
(518,166)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(12,998)
(98,452)
Tax effect of expenses that are not deductible in determining taxable profit
1,354
25,831
Effect of change in corporation tax rate
45,745
Depreciation on assets not qualifying for tax allowances
21,779
23,840
Research and development tax credit
(105,000)
(260,179)
Deferred tax on EMI scheme
(21,914)
(21,512)
Other
(4,460)
(71,440)
Taxation credit for the year
(121,239)
(356,167)
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
8
Intangible fixed assets
Intangible asset
£
Cost
At 1 August 2022 and 31 July 2023
93,747
Amortisation and impairment
At 1 August 2022
9,847
Amortisation charged for the year
10,604
At 31 July 2023
20,451
Carrying amount
At 31 July 2023
73,296
At 31 July 2022
83,900
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Office Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 August 2022
4,180,267
5,924,934
264,793
252,611
212,859
10,835,464
Additions
13,662
161,199
12,428
11,819
46,295
245,403
Disposals
(318,692)
(86,653)
(405,345)
At 31 July 2023
4,193,929
5,767,441
277,221
264,430
172,501
10,675,522
Depreciation and impairment
At 1 August 2022
733,327
2,687,828
149,117
224,667
189,451
3,984,390
Depreciation charged in the year
165,134
619,745
40,018
16,804
16,655
858,356
Eliminated in respect of disposals
(99,261)
(86,167)
(185,428)
At 31 July 2023
898,461
3,208,312
189,135
241,471
119,939
4,657,318
Carrying amount
At 31 July 2023
3,295,468
2,559,129
88,086
22,959
52,562
6,018,204
At 31 July 2022
3,446,940
3,237,106
115,676
27,944
23,408
6,851,074
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
799,387
973,370
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 23 -
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
25
2
1
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022
1
Additions
1
At 31 July 2023
2
Carrying amount
At 31 July 2023
2
At 31 July 2022
1
11
Stocks
2023
2022
£
£
Raw materials and consumables
492,758
684,067
Work in progress
28,288
14,671
Finished goods and goods for resale
104,645
111,799
625,691
810,537
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,295,186
704,873
Corporation tax recoverable
105,000
260,179
Other debtors
105,181
125,332
Prepayments and accrued income
204,975
272,745
1,710,342
1,363,129
Trade debtors are financed by way of an invoice discounting facility, the facility is secured by a debenture over the assets of the company.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
13
Loans and overdrafts
2023
2022
£
£
Bank loans
3,147,738
2,409,214
Bank overdrafts
53,954
3,147,738
2,463,168
Payable within one year
440,443
348,582
Payable after one year
2,707,295
2,114,586
During the year the company repaid the previous years bank loan balances in full and took out a new loan totalling £2.8m repayable over a period of 240 months. Interest is charged at a fixed rate of 6.84%. The loan is secured with an unlimited debenture over the assets of the company and a first legal charge over commercial freehold property known as land at Leeming Lane Farm.
Also included within loans is an invoice financing facility, the balance at the year end was £369,780 (2022 - £nil).
14
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
143,967
228,707
In two to five years
106,542
182,055
250,509
410,762
Less: future finance charges
(39,621)
(16,142)
210,888
394,620
Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Amounts advanced under hire purchase agreements are secured against the assets to which they relate.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
13
440,443
348,582
Obligations under finance leases
14
134,549
220,857
Trade creditors
1,760,888
2,077,914
Taxation and social security
79,060
77,781
Dividends payable
116,534
157,068
Other creditors
39,831
47,521
Accruals and deferred income
569,340
558,964
3,140,645
3,488,687
Bank loans and overdrafts are secured as detailed in note 13.
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
13
2,707,295
2,114,586
Obligations under finance leases
14
76,339
173,763
Accruals and deferred income
559,198
625,609
3,342,832
2,913,958
Bank loans and overdrafts are secured as detailed in note 13.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
531,600
635,537
Tax losses
(303,165)
(412,777)
EMI scheme
(50,219)
(28,305)
178,216
194,455
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
17
Deferred taxation
(Continued)
- 26 -
2023
Movements in the year:
£
Liability at 1 August 2022
194,455
Credit to profit or loss
(16,239)
Liability at 31 July 2023
178,216
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,002
76,769
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share-based payment transactions
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 August 2022 and 31 July 2023
7,716
7,716
2.98
2.98
The options outstanding at 31 July 2023 all had an exercise price of £2.98 per share, and a remaining contractual life of up to 2.7 years.
The weighted average fair value of options granted in the year was determined using the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the “vesting date”).
Inputs were as follows:
2023
2022
Weighted average share price
37.80
37.80
Weighted average exercise price
2.98
2.98
Expected volatility
18.08
18.08
Expected life
3.00
3.00
Risk free rate
0.39
0.39
Expected dividends yields
0.69
0.69
Liabilities and expenses
During the year, the company recognised total share-based payment expenses of £87,655 (2022 - £87,655) which related to equity settled share based payment transactions.
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 10p each
380,002
380,002
38,000
38,000
A of 10p each
126,668
126,668
12,667
12,667
506,670
506,670
50,667
50,667
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
65,660
114,445
Between two and five years
70,009
106,361
In over five years
4,800
14,400
140,469
235,206
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
-
31,798
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
513,379
572,539
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
23
Related party transactions
(Continued)
- 28 -
Other information
D S Robinson & Son, a partnership owned by the family of a director, charged the Company £13,138 (2022 - £19,898) for rent and rates. The year end trade creditor balance was £7,223 (2022 - £nil).
During the year, the Company paid £50,700 loan guarntee payments to D S Robinson & Son, a partnership owned by the family of a director.
During the year Panoramic Growth Equity LLP, a partnership in which a director of the Company has an interest, charged fees to the Company amounting to £10,000 (2022 - £15,600).
24
Ultimate controlling party
The Company has no ultimate controlling party.
25
Subsidiaries
Details of the company's subsidiaries at 31 July 2023 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
The Great Heck Brewing Company Limited
England and Wales
Dormant company
Ordinary Shares
0
100.00
Veg With Edge Limited
England and Wales
Dormant company
Ordinary Shares
100.00
-
The Yorkshire Sausage Co. Limited
England and Wales
Dormant Company
Ordinary Shares
100.00
-
The registered office of the above company's subsidiaries is Berry Hills, Kirklington, Bedale, DL8 2NL
26
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
243,821
225,138
Company pension contributions to defined contribution schemes
2,642
2,614
246,463
227,752
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
26
Directors' remuneration
(Continued)
- 29 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
104,892
121,183
Company pension contributions to defined contribution schemes
1,321
1,101
27
Cash generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
87,826
(161,999)
Adjustments for:
Taxation credited
(121,239)
(356,167)
Finance costs
307,166
190,522
Loss on disposal of tangible fixed assets
70,500
85,263
Amortisation and impairment of intangible assets
10,604
8,514
Depreciation and impairment of tangible fixed assets
858,356
939,697
Equity settled share based payment expense
87,655
87,655
Government grants
(79,544)
(79,905)
Movements in working capital:
Decrease in stocks
184,846
125,538
(Increase)/decrease in debtors
(502,392)
575,518
Decrease in creditors
(299,928)
(872,180)
Cash generated from operations
603,850
542,456
Difference
(35,000)
-
Per cash flow statement page
568,850
542,456
HECK! FOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 30 -
28
Analysis of changes in net debt
1 August 2022
Cash flows
New finance leases
31 July 2023
£
£
£
£
Cash at bank and in hand
461
886,180
-
886,641
Bank overdrafts
(53,954)
53,954
-
(53,493)
940,134
-
886,641
Borrowings excluding overdrafts
(2,409,214)
(738,524)
-
(3,147,738)
Obligations under finance leases
(394,620)
214,560
(30,828)
(210,888)
(2,857,327)
416,170
(30,828)
(2,471,985)
2023-07-312022-08-01falseCCH SoftwareCCH Accounts Production 2023.300Mr A C KeebleMr W M McDavidMr S A CampbellMr S A CampbellMrs D J Keeblefalse051692322022-08-012023-07-3105169232bus:Director12022-08-012023-07-3105169232bus:CompanySecretaryDirector12022-08-012023-07-3105169232bus:Director22022-08-012023-07-3105169232bus:Director32022-08-012023-07-3105169232bus:CompanySecretary12022-08-012023-07-3105169232bus:Director42022-08-012023-07-3105169232bus:RegisteredOffice2022-08-012023-07-31051692322023-07-31051692322021-08-012022-07-3105169232core:RetainedEarningsAccumulatedLosses2021-08-012022-07-3105169232core:RetainedEarningsAccumulatedLosses2022-08-012023-07-3105169232core:OtherResidualIntangibleAssets2023-07-3105169232core:OtherResidualIntangibleAssets2022-07-3105169232core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-07-3105169232core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-07-31051692322022-07-3105169232core:LandBuildingscore:OwnedOrFreeholdAssets2023-07-3105169232core:PlantMachinery2023-07-3105169232core:FurnitureFittings2023-07-3105169232core:ComputerEquipment2023-07-3105169232core:MotorVehicles2023-07-3105169232core:LandBuildingscore:OwnedOrFreeholdAssets2022-07-3105169232core:PlantMachinery2022-07-3105169232core:FurnitureFittings2022-07-3105169232core:ComputerEquipment2022-07-3105169232core:MotorVehicles2022-07-3105169232core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-3105169232core:CurrentFinancialInstrumentscore:WithinOneYear2022-07-3105169232core:Non-currentFinancialInstrumentscore:AfterOneYear2023-07-3105169232core:Non-currentFinancialInstrumentscore:AfterOneYear2022-07-3105169232core:CurrentFinancialInstruments2023-07-3105169232core:CurrentFinancialInstruments2022-07-3105169232core:Non-currentFinancialInstruments2023-07-3105169232core:Non-currentFinancialInstruments2022-07-3105169232core:ShareCapital2023-07-3105169232core:ShareCapital2022-07-3105169232core:RetainedEarningsAccumulatedLosses2023-07-3105169232core:RetainedEarningsAccumulatedLosses2022-07-3105169232core:ShareCapital2021-07-3105169232core:RetainedEarningsAccumulatedLosses2021-07-3105169232core:ShareCapitalOrdinaryShares2023-07-3105169232core:ShareCapitalOrdinaryShares2022-07-310516923212021-08-012022-07-310516923222021-08-012022-07-31051692322022-07-31051692322021-07-3105169232core:WithinOneYear2023-07-3105169232core:WithinOneYear2022-07-3105169232core:IntangibleAssetsOtherThanGoodwill2022-08-012023-07-3105169232core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-08-012023-07-3105169232core:LandBuildingscore:OwnedOrFreeholdAssets2022-08-012023-07-3105169232core:PlantMachinery2022-08-012023-07-3105169232core:FurnitureFittings2022-08-012023-07-3105169232core:ComputerEquipment2022-08-012023-07-3105169232core:MotorVehicles2022-08-012023-07-3105169232dpl:Item12022-08-012023-07-3105169232dpl:Item12021-08-012022-07-3105169232dpl:Item22022-08-012023-07-3105169232dpl:Item22021-08-012022-07-3105169232core:UKTax2022-08-012023-07-3105169232core:UKTax2021-08-012022-07-310516923212022-08-012023-07-310516923222022-08-012023-07-310516923232022-08-012023-07-310516923232021-08-012022-07-3105169232core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-07-3105169232core:LandBuildingscore:OwnedOrFreeholdAssets2022-07-3105169232core:PlantMachinery2022-07-3105169232core:FurnitureFittings2022-07-3105169232core:ComputerEquipment2022-07-3105169232core:MotorVehicles2022-07-3105169232core:BetweenTwoFiveYears2023-07-3105169232core:BetweenTwoFiveYears2022-07-3105169232core:MoreThanFiveYears2023-07-3105169232core:MoreThanFiveYears2022-07-3105169232core:Subsidiary12022-08-012023-07-3105169232core:Subsidiary22022-08-012023-07-3105169232core:Subsidiary32022-08-012023-07-3105169232core:Subsidiary112022-08-012023-07-3105169232core:Subsidiary222022-08-012023-07-3105169232core:Subsidiary322022-08-012023-07-3105169232bus:PrivateLimitedCompanyLtd2022-08-012023-07-3105169232bus:FRS1022022-08-012023-07-3105169232bus:Audited2022-08-012023-07-3105169232bus:FullAccounts2022-08-012023-07-31xbrli:purexbrli:sharesiso4217:GBP