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COMPANY REGISTRATION NUMBER: 2704966
Pecan Deluxe Candy (Europe) Ltd
Financial Statements
30 September 2023
Pecan Deluxe Candy (Europe) Ltd
Financial Statements
Year ended 30 September 2023
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12
Pecan Deluxe Candy (Europe) Ltd
Strategic Report
Year ended 30 September 2023
Business Overview We are an innovative confectionary manufacturer, employing over 100 people, with a particular emphasis in the food inclusions industry. The company operates from premises in the heart of Yorkshire. As well as traditional confectionary (toffees & fudges) we produce innovative specialist inclusions in bakery, specialist nuts, blends & sauces and various chocolate products and shapes. Markets and Trends As global inclusion specialists our market is seen as worldwide. Our customer base is strong in Europe and we see increased demand in the UK following our exit from the EU. Emerging markets such as Turkey, the Middle East & South Africa are potential high growth areas for our products as much as new businesses across Europe. Pecan Deluxe Candy Co. based in Dallas, Texas, USA, is our parent company and has over 60 years of experience in the industry. We continue to invest in and promote E-commerce and wholesale channels in addition to the traditional B2B and Foodservice Sectors to expand our offering into the independent sector. Our business has been built on service and innovation. We continue to invest in Research & Development which has helped us mastermind some of the most famous ice cream inclusions and capture the imagination of many in the food service industry. Our customer base includes well known High Street brands and quick service restaurants which we supply with a variety of tasty and textured products. We believe that these customers will continue to search for new ideas and products as there is a growing trend for holistic foods. With our reputation as a tailor and inclusions specialist, customers come to us looking for solutions and to help differentiate and add value to new ideas they are trying to bring to the market; for today's changing nutritional and health requirements. Objectives Our objectives are simple. We will continue to continue grow our turnover, profitability and customer base to give our shareholders maximum return and place ourselves as market leaders in product quality and innovation. We aim to provide our customers with value added and affordable solutions and provide guidance and advice on ingredients, product integration and presentation. Risk Operating in a global market and in particular with Europe, there is now more certainty following 'Brexit' however this has been added to by the impact of Covid (lead times/labour) and now the wars in Ukraine (raw material costs and Gaza). The effect on the currency exchange rates may have a bearing as we price in Euros to our European customers. Commodity prices will also continue to vary (butter, flour, sugar, eggs, oil, chocolate) according to the worldwide economies and uncertainties. We have adapted to the new market conditions creating product solutions that require no health certification, and also worked to provide an effective DDP solution for European customers which will speed up the export process. Our European customers are also looking to migrate their own risks of Brexit/War by looking to alternative supply options and other EU based manufactures. Importantly labour will be our biggest barrier ro growth as the availability of suitably trained employees may impact lead times. Future We are confident that we will continue to increase our sales and profitability. In the last year we have completed a £1m investment program in additional bakery capacity and improving our production methods, and continue to try and spread our sales by developing markets in coffee chains, restaurant chains, chilled desserts and bakery products, not only in Europe but also in the expanding markets of South Africa, Middle East and Western parts of Asia. Our R&D department is constantly looking for new ways to advance the scope of our praline inclusions, creating new flavours and applications such as chocolate, bakery products and snack mixes. We also see a growing opportunity in independent dessert parlours and are now servicing these through a combination of E-commerce and wholesale over coming years. The business will also ensure the most profitable utilisation of the available workforce which will see a change in the dynamics of the business for the better.
This report was approved by the board of directors on 15 March 2024 and signed on behalf of the board by:
Mr G N Kingston
Director
Registered office:
F7 First Floor Lincoln House
Lincoln Way
Ashbrooke Park
Sherburn in Elmet
Leeds
LS25 6PJ
Pecan Deluxe Candy (Europe) Ltd
Directors' Report
Year ended 30 September 2023
The directors present their report and the financial statements of the company for the year ended 30 September 2023 .
Directors
The directors who served the company during the year were as follows:
Mr J Brigham
Mr G N Kingston
Dividends
The directors do not recommend the payment of a dividend.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 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 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 15 March 2024 and signed on behalf of the board by:
Mr G N Kingston
Director
Registered office:
F7 First Floor Lincoln House
Lincoln Way
Ashbrooke Park
Sherburn in Elmet
Leeds
LS25 6PJ
Pecan Deluxe Candy (Europe) Ltd
Independent Auditor's Report to the Members of Pecan Deluxe Candy (Europe) Ltd
Year ended 30 September 2023
Opinion
We have audited the financial statements of Pecan Deluxe Candy (Europe) Ltd (the 'company') for the year ended 30 September 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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. 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 obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental affect on its operations. Key laws and regulations that are identified included the UK Companies Act tax legislation, food hygiene regulations and occupational health and employment legislation. - We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance. - Having gained an understanding of the controls the directors have in place we enquired about any incidences of fraud that had taken place during the accounting period. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
Mr W Milligan
(Senior Statutory Auditor)
For and on behalf of
Harrison Shipley
Chartered Certified Accountants & statutory auditor
35 Potter Street
Worksop
Notts
S80 2AE
15 March 2024
Pecan Deluxe Candy (Europe) Ltd
Statement of Income and Retained Earnings
Year ended 30 September 2023
2023
2022
Note
£
£
Turnover
4
13,844,441
12,932,613
Cost of sales
10,115,579
9,325,008
-------------
-------------
Gross profit
3,728,862
3,607,605
Distribution costs
499,886
606,589
Administrative expenses
4,079,246
3,915,923
Other operating income
( 150,796)
------------
------------
Operating loss
5
( 850,270)
( 1,065,703)
Interest payable and similar expenses
9
203,887
99,664
------------
------------
Loss before taxation
( 1,054,157)
( 1,165,367)
Tax on loss
10
( 169,127)
( 316,371)
------------
------------
Loss for the financial year and total comprehensive income
( 885,030)
( 848,996)
------------
------------
Retained earnings at the start of the year
2,187,861
3,036,857
------------
------------
Retained earnings at the end of the year
1,302,831
2,187,861
------------
------------
All the activities of the company are from continuing operations.
Pecan Deluxe Candy (Europe) Ltd
Statement of Financial Position
30 September 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
11
5,811,357
6,056,720
Current assets
Stocks
12
1,678,605
1,794,977
Debtors
13
1,845,691
1,552,186
Cash at bank and in hand
79,625
406
------------
------------
3,603,921
3,347,569
Creditors: amounts falling due within one year
15
2,719,884
2,121,564
------------
------------
Net current assets
884,037
1,226,005
------------
------------
Total assets less current liabilities
6,695,394
7,282,725
Creditors: amounts falling due after more than one year
16
2,275,394
2,037,353
Provisions
Taxation including deferred tax
17
275,164
215,506
------------
------------
Net assets
4,144,836
5,029,866
------------
------------
Capital and reserves
Called up share capital
20
2,835,000
2,835,000
Share premium account
21
7,005
7,005
Profit and loss account
21
1,302,831
2,187,861
------------
------------
Shareholders funds
4,144,836
5,029,866
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 15 March 2024 , and are signed on behalf of the board by:
Mr G N Kingston
Director
Company registration number: 2704966
Pecan Deluxe Candy (Europe) Ltd
Statement of Cash Flows
Year ended 30 September 2023
2023
2022
Note
£
£
Cash flows from operating activities
Loss for the financial year
( 885,030)
( 848,996)
Adjustments for:
Depreciation of tangible assets
560,770
562,967
Interest payable and similar expenses
203,887
99,664
Tax on loss
( 169,127)
( 316,371)
Accrued expenses/(income)
301,529
( 15,448)
Changes in:
Stocks
116,372
( 541,649)
Trade and other debtors
( 293,505)
523,891
Trade and other creditors
155,781
184,246
---------
---------
Cash generated from operations
( 9,323)
( 351,696)
Interest paid
( 203,887)
( 99,664)
Tax received
228,785
375,591
---------
---------
Net cash from/(used in) operating activities
15,575
( 75,769)
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 315,407)
( 371,254)
---------
---------
Net cash used in investing activities
( 315,407)
( 371,254)
---------
---------
Cash flows from financing activities
Proceeds from loans from group undertakings
265,637
( 177,581)
Payments of finance lease liabilities
857
---------
---------
Net cash from/(used in) financing activities
265,637
( 176,724)
---------
---------
Net decrease in cash and cash equivalents
( 34,195)
( 623,747)
Cash and cash equivalents at beginning of year
(458,249)
165,498
---------
---------
Cash and cash equivalents at end of year
14
( 492,444)
( 458,249)
---------
---------
Pecan Deluxe Candy (Europe) Ltd
Notes to the Financial Statements
Year ended 30 September 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is F7 First Floor Lincoln House, Lincoln Way, Ashbrooke Park, Sherburn in Elmet, Leeds, LS25 6PJ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no such estimates or assumptions made that would result in a material adjustment in the next years financial statements
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference .
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Buildings
-
4-10% on cost
Plant & Machinery
-
10% on cost
Equipment
-
20% on cost
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
13,844,441
12,932,613
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
4,742,486
4,740,428
Rest of World
9,101,955
8,192,185
-------------
-------------
13,844,441
12,932,613
-------------
-------------
5. Operating loss
Operating profit or loss is stated after charging:
2023
2022
£
£
Depreciation of tangible assets
560,770
562,967
Impairment of trade debtors
19,112
Operating lease rentals
73,805
77,197
Foreign exchange differences
185,597
---------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
10,800
10,800
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
93
95
Administrative staff
44
46
----
----
137
141
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
4,342,543
3,824,822
Social security costs
355,872
373,242
Other pension costs
83,805
85,937
------------
------------
4,782,220
4,284,001
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
237,845
246,980
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
237,846
246,980
---------
---------
9. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
117,948
50,455
Other interest payable and similar charges
85,939
49,209
---------
--------
203,887
99,664
---------
--------
10. Tax on loss
Major components of tax income
2023
2022
£
£
Current tax:
UK current tax income
( 228,785)
( 375,591)
Deferred tax:
Origination and reversal of timing differences
59,658
59,220
---------
---------
Tax on loss
( 169,127)
( 316,371)
---------
---------
11. Tangible assets
Land and buildings
Plant and machinery
Equipment
Total
£
£
£
£
Cost
At 1 October 2022
4,088,730
5,975,756
489,230
10,553,716
Additions
299,688
15,719
315,407
------------
------------
---------
-------------
At 30 September 2023
4,088,730
6,275,444
504,949
10,869,123
------------
------------
---------
-------------
Depreciation
At 1 October 2022
498,389
3,566,388
432,219
4,496,996
Charge for the year
107,018
430,351
23,401
560,770
------------
------------
---------
-------------
At 30 September 2023
605,407
3,996,739
455,620
5,057,766
------------
------------
---------
-------------
Carrying amount
At 30 September 2023
3,483,323
2,278,705
49,329
5,811,357
------------
------------
---------
-------------
At 30 September 2022
3,590,341
2,409,368
57,011
6,056,720
------------
------------
---------
-------------
12. Stocks
2023
2022
£
£
Raw materials and consumables
805,454
910,296
Work in progress
45,595
40,098
Finished goods and goods for resale
827,556
844,583
------------
------------
1,678,605
1,794,977
------------
------------
13. Debtors
2023
2022
£
£
Trade debtors
1,312,108
875,224
Prepayments and accrued income
243,067
197,890
Corporation tax repayable
228,065
375,591
Other debtors
62,451
103,481
------------
------------
1,845,691
1,552,186
------------
------------
14. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2023
2022
£
£
Cash at bank and in hand
79,625
406
Bank overdrafts
( 572,069)
( 458,655)
---------
---------
( 492,444)
( 458,249)
---------
---------
15. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
572,069
458,655
Trade creditors
1,042,580
886,774
Amounts owed to group undertakings
586,452
558,856
Accruals and deferred income
432,515
130,986
Social security and other taxes
85,759
85,814
Other creditors
509
479
------------
------------
2,719,884
2,121,564
------------
------------
16. Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
2,275,394
2,037,353
------------
------------
Santander have a fixed and floating charge on all assets present and future of the company .
17. Provisions
Deferred tax (note 18)
£
At 1 October 2022
215,506
Charge against provision
59,658
---------
At 30 September 2023
275,164
---------
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 17)
275,164
215,506
---------
---------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 74,526 (2022: £ 70,526 ).
20. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
1,235,000
1,235,000
1,235,000
1,235,000
Preference shares of £ 1 each
1,600,000
1,600,000
1,600,000
1,600,000
------------
------------
------------
------------
2,835,000
2,835,000
2,835,000
2,835,000
------------
------------
------------
------------
The redeemable shares carry no voting rights, are not entitled to any dividend and are redeemable at the option of the shareholder at any time after October 2023.
21. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs . Profit and loss account - This reserve records retained earnings and accumulated losses .
22. Analysis of changes in net debt
At 1 Oct 2022
Cash flows
At 30 Sep 2023
£
£
£
Cash at bank and in hand
406
79,219
79,625
Bank overdrafts
(458,655)
(113,414)
(572,069)
Debt due within one year
(558,856)
(27,596)
(586,452)
Debt due after one year
(2,037,353)
(238,041)
(2,275,394)
------------
---------
------------
( 3,054,458)
( 299,832)
( 3,354,290)
------------
---------
------------
23. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Later than 1 year and not later than 5 years
16,208
66,485
--------
--------
24. Related party transactions
The company trades with its ultimate controlling party (see Note 25) who is a supplier and is included in Creditors due within one year for £133,874 (2022 - £133,874) and as a customer included in Debtors for £2,100 (2022 - £2,100). A provision for factory insurance of £178,828 (2022 Nil) has been provided in accruals as P.D.C.C. has arranged and paid for this directly.
25. Ultimate controlling party
The ultimate controlling party of the company is Pecan Deluxe Candy Company which is incorporated in the USA and owns 100% of the company's issued share capital.
26. Deferred taxation
2023
2022
£
£
Timing Differences
2,022,989
2,005,791
Tax Losses carried forward
(772,710)
(871,548)
------------
------------
1,250,279
1,134,243
------------
------------
Provision at 25%/19% carried forward
275,164
215,506
---------
---------