Caseware UK (AP4) 2022.0.179 2022.0.179 2023-12-312023-12-31The principal activity of the company continued to be that of wholesale of food, mainly cheese, and drink products.false2023-01-01truefalse1313falsefalse 02038859 2023-01-01 2023-12-31 02038859 2022-01-01 2022-12-31 02038859 2023-12-31 02038859 2022-12-31 02038859 2022-01-01 02038859 1 2023-01-01 2023-12-31 02038859 1 2022-01-01 2022-12-31 02038859 5 2023-01-01 2023-12-31 02038859 5 2022-01-01 2022-12-31 02038859 d:Director1 2023-01-01 2023-12-31 02038859 d:Director2 2023-01-01 2023-12-31 02038859 d:RegisteredOffice 2023-01-01 2023-12-31 02038859 e:PlantMachinery 2023-01-01 2023-12-31 02038859 e:PlantMachinery 2023-12-31 02038859 e:PlantMachinery 2022-12-31 02038859 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02038859 e:MotorVehicles 2023-01-01 2023-12-31 02038859 e:MotorVehicles 2023-12-31 02038859 e:MotorVehicles 2022-12-31 02038859 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02038859 e:FurnitureFittings 2023-01-01 2023-12-31 02038859 e:FurnitureFittings 2023-12-31 02038859 e:FurnitureFittings 2022-12-31 02038859 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02038859 e:ComputerEquipment 2023-01-01 2023-12-31 02038859 e:ComputerEquipment 2023-12-31 02038859 e:ComputerEquipment 2022-12-31 02038859 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02038859 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02038859 e:CurrentFinancialInstruments 2023-12-31 02038859 e:CurrentFinancialInstruments 2022-12-31 02038859 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 02038859 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 02038859 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 02038859 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 02038859 e:UKTax 2023-01-01 2023-12-31 02038859 e:UKTax 2022-01-01 2022-12-31 02038859 e:ShareCapital 2023-12-31 02038859 e:ShareCapital 2022-12-31 02038859 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02038859 e:RetainedEarningsAccumulatedLosses 2023-12-31 02038859 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02038859 e:RetainedEarningsAccumulatedLosses 2022-12-31 02038859 e:RetainedEarningsAccumulatedLosses 2022-01-01 02038859 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02038859 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02038859 e:OtherDeferredTax 2023-12-31 02038859 e:OtherDeferredTax 2022-12-31 02038859 d:FRS102 2023-01-01 2023-12-31 02038859 d:Audited 2023-01-01 2023-12-31 02038859 d:FullAccounts 2023-01-01 2023-12-31 02038859 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02038859 e:WithinOneYear 2023-12-31 02038859 e:WithinOneYear 2022-12-31 02038859 e:BetweenOneFiveYears 2023-12-31 02038859 e:BetweenOneFiveYears 2022-12-31 02038859 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:pure

Registered number: 02038859
















MARATHON FOOD LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

































MARATHON FOOD LIMITED

 
COMPANY INFORMATION


DIRECTORS
Y Borgne 
J Le Bris 




REGISTERED NUMBER
02038859



REGISTERED OFFICE
27 Commercial Road

London

N18 1TP




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL






MARATHON FOOD LIMITED


CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3
Directors' responsibilities statement
 
4
Independent auditors' report
 
5 - 8
Statement of income and retained earnings
 
9
Statement of financial position
 
10
Statement of cash flows
 
11
Analysis of net debt
 
12
Notes to the financial statements
 
13 - 23



MARATHON FOOD LIMITED

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
The directors present their Strategic report and business review, which includes the principal risks and uncertainties of the business, key performance indicators and future developments.

BUSINESS REVIEW
 
The company is engaged in the importation of Cypriot, Greek and other Mediterranean food and drinks for distribution in to the UK market.  The company has a mixed sales base including larger distributors, wholesalers as well as independent ethnic retailers and restaurants.
Following a year of great success and record results in the previous period, the year in review has seen some challenges across the market continuing from the covid pandemic and the UK cost of living crisis as well as quality of supply.  This resulted in a reduction in revenue from £22,192,814 to £12,519,296 and profit after tax of £2,235,810 to £575,072.
Despite the challenges in the market and the overall drop in financial performance the company remains resilient and with inflation cooling, the company is ready to capitalise on future opportunities.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The management team continually review, monitor and evaluate the risks the company is facing with a range of formal processes including, weekly sales reviews, monthly management reviews, quarterly forecasting and quarterly board meetings.
Cost of living crisis
Beginning in 2022 but continuing through 2023, the UK economy has been subject to significant inflationary pressures due to a combination of factors including rising food and energy costs.  The company itself has been impacted by inflationary pressures and as a result has had no option but to increase selling prices. Overall consumer demand has remained strong, but the company has seen a change in it’s sales mix as customers move towards cheaper alternatives, as they face pressure on household incomes and budgets. 
Moving forward the company continues to monitor trading forecasts on a regular basis to analyse changing demand by product and by customer. The company continues to reflect the change in consumers behaviours in its product offering holding a diverse range of products to suit customers and mitigate the impact.
Credit risk
The company’s credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new customers, and for a limited number of customers the company has protection against the default of those debts by using a credit insurer.

FINANCIAL KEY PERFORMANCE INDICATORS
 
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Page 1


MARATHON FOOD LIMITED


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


This report was approved by the board on 4 April 2024 and signed on its behalf.


Y Borgne
Director

Page 2


MARATHON FOOD LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £575,072 (2022: £2,235,810).

DIRECTORS

The directors who served during the year were:

Y Borgne 
J Le Bris 

FUTURE DEVELOPMENTS

Following quality issues with the company’s largest Halloumi supplier, the company took the decision to move to new suppliers which, like the company, have a culture focused on product quality.  Whilst the impact on the company’s financial performance may be negative in the short term, the board were aligned on this decision for the future of the company.
As such, the company has set out new plans to the board for the coming years.  These have also been used to assess the going concern of the business.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

POST BALANCE SHEET EVENTS

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

AUDITORS

The auditorsBishop Fleming LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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






Y Borgne
Director

Date: 4 April 2024

27 Commercial Road
London
N18 1TP

Page 3


MARATHON FOOD LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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

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

make judgments and accounting estimates that are reasonable and prudent; and 


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4


MARATHON FOOD LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARATHON FOOD LIMITED
OPINION


We have audited the financial statements of Marathon Food Limited (the 'Company') for the year ended 31 December 2023, which comprise, the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows, the Analysis of net debt and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


BASIS FOR OPINION


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5


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

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6


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

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:
The nature of the industry and sector, control environment and business performance;
Results of our enquiries of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and 
Any matters we identified having obtained and reviewed the Company's documentation and their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained an understanding of the legal and regulatory frameworks that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures wihtin the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance within may be fundamental for the Company's ability to operate or avoid a material penalty. These included food hygiene legislation, health and safety regulations, employment legislation and data protection laws.

Our audit procedures performed to respond to the risks identified included, but were not limited to:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reviewing board minutes; and 
Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. 

We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-complinace with laws and regulations throughout the audit. 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
Page 7


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

recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less liekly we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


USE OF OUR REPORT
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.






Craig Sullivan FCCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

5 April 2024
Page 8


MARATHON FOOD LIMITED

 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,519,296
22,192,814

Cost of sales
  
(10,533,805)
(18,513,257)

Gross profit
  
1,985,491
3,679,557

Administrative expenses
  
(1,194,488)
(931,554)

Operating profit
  
791,003
2,748,003

Interest payable and similar expenses
 7 
(8,083)
-

Profit before tax
  
782,920
2,748,003

Tax on profit
 8 
(207,848)
(512,193)

Profit after tax
  
575,072
2,235,810

  

  

Retained earnings at the beginning of the year
  
5,973,761
3,737,951

Profit for the year
  
575,072
2,235,810

Retained earnings at the end of the year
  
6,548,833
5,973,761
There was no other comprehensive income for 2023 (2022: £Nil).

The notes on pages 13 to 23 form part of these financial statements.

Page 9


MARATHON FOOD LIMITED
REGISTERED NUMBER:02038859

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 9 
75,838
88,726

  
75,838
88,726

Current assets
  

Stocks
 10 
1,659,646
2,440,420

Debtors: amounts falling due within one year
 11 
895,950
4,558,890

Cash at bank and in hand
 12 
4,307,173
1,365,726

  
6,862,769
8,365,036

Creditors: amounts falling due within one year
 13 
(370,915)
(2,457,817)

Net current assets
  
 
 
6,491,854
 
 
5,907,219

Total assets less current liabilities
  
6,567,692
5,995,945

Provisions for liabilities
  

Deferred tax
 14 
(18,857)
(22,182)

  
 
 
(18,857)
 
 
(22,182)

Net assets
  
6,548,835
5,973,763


Capital and reserves
  

Called up share capital 
  
2
2

Profit and loss account
  
6,548,833
5,973,761

  
6,548,835
5,973,763


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





Y Borgne
Director

Date: 4 April 2024

The notes on pages 13 to 23 form part of these financial statements.

Page 10


MARATHON FOOD LIMITED


STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
575,072
2,235,810

Adjustments for:

Depreciation of tangible assets
20,091
20,134

Loss on disposal of tangible assets
342
-

Interest paid
8,083
-

Taxation charge
207,848
512,193

Decrease/(increase) in stocks
780,774
(814,882)

(Increase)/decrease in debtors
(126,207)
704,756

Decrease/(increase) in amounts owed by groups
4,004,869
(3,118,563)

(Decrease)/increase in creditors
(1,481,207)
1,011,365

Corporation tax (paid)
(1,032,590)
(22,182)

Net cash generated from operating activities

2,957,075
528,631


Cash flows from investing activities

Purchase of tangible fixed assets
(7,545)
(51,162)

Net cash from investing activities

(7,545)
(51,162)

Cash flows from financing activities

Interest paid
(8,083)
-

Net cash used in financing activities
(8,083)
-

Net increase in cash and cash equivalents
2,941,447
477,469

Cash and cash equivalents at beginning of year
1,365,726
888,257

Cash and cash equivalents at the end of year
4,307,173
1,365,726


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,307,173
1,365,726

4,307,173
1,365,726


The notes on pages 13 to 23 form part of these financial statements.

Page 11


MARATHON FOOD LIMITED


ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,365,726

2,941,447

4,307,173



1,365,726
2,941,447
4,307,173

The notes on pages 13 to 23 form part of these financial statements.

Page 12


MARATHON FOOD LIMITED

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

1.


GENERAL INFORMATION

Marathon Foods Limited is a Company limited by shares incorporated in England and Wales. The registered office is 27 Commercial Road, London, United Kingdom, N18 1TP.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

  
2.2

FINANCIAL REPORTING STANDARD 102- REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 ther Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Marathon Collective Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13


MARATHON FOOD LIMITED

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

2.ACCOUNTING POLICIES (continued)

  
2.4

REVENUE

Revenue 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.

 
2.5

OPERATING LEASES: THE COMPANY AS LESSEE

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

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

 
2.6

FINANCE COSTS

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

 
2.7

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

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

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

Page 14


MARATHON FOOD LIMITED

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

2.ACCOUNTING POLICIES (continued)

 
2.8

CURRENT AND DEFERRED TAXATION

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

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

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

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

 
2.9

TANGIBLE FIXED ASSETS

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods described below.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
15%
reducing balance
Computer equipment
-
3
years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15


MARATHON FOOD LIMITED

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

2.ACCOUNTING POLICIES (continued)

 
2.10

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

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

 
2.11

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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

 
2.13

CREDITORS

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

 
2.14

PROVISIONS FOR LIABILITIES

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

 
2.15

FINANCIAL INSTRUMENTS

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

Financial instruments are recognised in the Company's Statement of financial position 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried
Page 16


MARATHON FOOD LIMITED

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

2.ACCOUNTING POLICIES (continued)


2.15
FINANCIAL INSTRUMENTS (CONTINUED)

at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

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


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of the estimation means that actual outcomes could differ from those estimates. Whilst there is a level of assumption on these judgements, the director feels these are unlikely to have a significant effect on, or cause material error to the amounts recognised in the financial statements.
The following are key areas of the accounts which require the use of management estimates and judgements:
Stock provision
Managements view is that there is no requirement for a stock provision due to the length in life of the products and use by dates and sell by dates. Whilst there is a degree of uncertainty around this estimate managment view this as a prudent approach when calculating the value of stock at the year end.
 

Page 17


MARATHON FOOD LIMITED

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

4.


TURNOVER

2023
2022
£
£

Sales
12,519,296
22,192,814

12,519,296
22,192,814


All turnover arose within the United Kingdom.


5.


AUDITORS' REMUNERATION

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


6.


EMPLOYEES

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
529,703
493,712

Social security costs
45,454
45,470

Cost of defined contribution scheme
9,603
8,665

584,760
547,847


The average monthly number of employees, including directors, during the year was 13 (2022: 13).


7.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Other interest payable
8,083
-

8,083
-

Page 18


MARATHON FOOD LIMITED

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

8.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
187,326
490,011

Adjustments in respect of previous periods
23,845
-


211,171
490,011


TOTAL CURRENT TAX
211,171
490,011

DEFERRED TAX


Origination and reversal of timing differences
(2,835)
22,182

Changes to tax rates
(488)
-

TOTAL DEFERRED TAX
(3,323)
22,182


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
207,848
512,193

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 23.52% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
782,920
2,748,003


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
184,228
522,121

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
431
114

Capital allowances for year in excess of depreciation
-
(2,916)

Adjustments to tax charge in respect of prior periods
23,357
-

Remeasurement of deferred tax for changes in tax rates
(168)
16,115

Other differences leading to an increase (decrease) in the tax charge
-
(23,241)

TOTAL TAX CHARGE FOR THE YEAR
207,848
512,193


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

Page 19


MARATHON FOOD LIMITED

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

9.


TANGIBLE FIXED ASSETS





Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



COST 


At 1 January 2023
123,564
101,537
78,074
941
304,116


Additions
4,900
-
1,650
995
7,545


Disposals
-
(398)
-
-
(398)



At 31 December 2023

128,464
101,139
79,724
1,936
311,263



DEPRECIATION


At 1 January 2023
101,071
59,053
55,089
177
215,390


Charge for the year on owned assets
4,580
10,894
3,946
671
20,091


Disposals
-
(56)
-
-
(56)



At 31 December 2023

105,651
69,891
59,035
848
235,425



NET BOOK VALUE



At 31 December 2023
22,813
31,248
20,689
1,088
75,838



At 31 December 2022
22,493
42,484
22,985
764
88,726


10.


STOCKS

2023
2022
£
£

Finished goods and goods for resale
1,659,646
2,440,420

1,659,646
2,440,420


Page 20


MARATHON FOOD LIMITED

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

11.


DEBTORS

2023
2022
£
£


Trade debtors
733,082
549,737

Amounts owed by group undertakings
-
3,849,814

Other debtors
82,849
682

Prepayments and accrued income
80,019
158,657

895,950
4,558,890



12.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
4,307,173
1,365,726

4,307,173
1,365,726



13.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
153,639
1,296,544

Amounts owed to group undertakings
155,055
-

Corporation tax
-
760,750

Other taxation and social security
20,998
31,440

Other creditors
-
9,396

Accruals and deferred income
41,223
359,687

370,915
2,457,817



14.


DEFERRED TAXATION




2023


£






At beginning of year
(22,182)


Charged to profit or loss
3,325



AT END OF YEAR
(18,857)

Page 21


MARATHON FOOD LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
14.DEFERRED TAXATION (CONTINUED)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(19,045)
(22,182)

Short term timing differences
188
-

(18,857)
(22,182)


15.


PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £9,603 (2022: £8,665). Contributions totalling £1,840 (2022: £Nil) were payable to the fund at the reporting date and are included in creditors.


16.


COMMITMENTS UNDER OPERATING LEASES

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

2023
2022
£
£


Not later than 1 year
160,000
160,000

Later than 1 year and not later than 5 years
320,000
480,000

480,000
640,000


17.


RELATED PARTY TRANSACTIONS

The company has taken advantage of the exemption included within FRS102 s33.1A not to disclose transactions with other wholly owned members of the group.

During the year the company made sales of £ 8,527,397 (2022: £16,496,048) to non-wholly owned group undertakings. At the year end the amount owed to non-wholly owned group undertakings is £ 155,055 (2022: amount owed from £ 3,843,661) which is repayable on demand.

Page 22


MARATHON FOOD LIMITED

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

18.


PARENT UNDERTAKING

The immediate parent company is Marathon Collective Limited, a company registered in England and Wales.
Marathon Collective Limited, a company incorporated in England and Wales, is the smallest and largest group of which the company is a member and for which group financial statements are prepared. Consolidated financial statements are available from 27 Commercial Road, London, United Kingdom, N18 1TP.

The ultimate controlling party is Compagnie Laita, 4 Rue Becquerel, Brest, France, 29200. A company registered in France.

 
Page 23