IRIS Accounts Productionv24.1.0.57602028054Board of Directors1.11.2231.10.2331.10.23butter manufacturing, butter packing and the production of spreads.truetruefalsetruetruefalsefalsefalsetruefalseOrdinary1.00000Ordinary A1.00000 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REGISTERED NUMBER: 02028054 (England and Wales)
















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

FOR


CASTLE DAIRIES LIMITED


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023











Page



Company Information  

1



Strategic Report  

2



Report of the Directors  

3



Report of the Independent Auditors  

5



Statement of Comprehensive Income

8



Balance Sheet  

9



Statement of Changes in Equity  

10



Cash Flow Statement  

11



Notes to the Cash Flow Statement  

12



Notes to the Financial Statements

13




CASTLE DAIRIES LIMITED


COMPANY INFORMATION

FOR THE YEAR ENDED 31 OCTOBER 2023









DIRECTORS:

N I Lloyd


J E Lloyd


Mrs L M W Morgan







REGISTERED OFFICE:

36 Sir Alfred Owen Way


Pontygwindy Industrial Estate


Caerphilly


CF83 3HU







REGISTERED NUMBER:

02028054 (England and Wales)







AUDITORS:

Xeinadin Audit Limited


(Statutory Auditor)


8th Floor Becket House


36 Old Jewry


London


EC2R 8DD


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


STRATEGIC REPORT

FOR THE YEAR ENDED 31 OCTOBER 2023



The directors present their strategic report for the year ended 31 October 2023.


REVIEW OF BUSINESS

The principal activity of the company during the year was that of butter manufacturing, butter packing and the production of spreadable butter.


The Directors consider that the business' key performance indicators are reflected within the financial statements which are detailed below:




2023


2022


2021


£   


£   


£   




Turnover


54,585,180


53,988,615


36,515,800



Turnover Growth


1.1%


47.9%


9.6%



Gross Margin


12.3%


6.0%


12.5%



Turnover in value terms increased by 1.1% compared to the prior year.  Reductions in dairy commodity prices during the year resulted in lower sales value per tonne but the impact of this was more than offset by an increase in sales volume compared to 2022.


Sales to its major retail customers accounted for the majority of Company's turnover during the year.


Improvements in operational performance also contributed to the turnround in profitability compared to 2022, despite the impact of significantly higher heat and power costs.


PRINCIPAL RISKS AND UNCERTAINTIES

The company is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The company manages these risks by financing its operations through retained profits and an ongoing program of invoice discounting supplemented by long-term bank borrowing.


The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements,  minimise  the  company's  exposure  to  fluctuating  interest  rates,  and  match  the repayment schedule of any external borrowings with the future cash flows expected to arise from the company's trading activities.


The company makes little use of financial instruments other than an operational bank account and use of its invoice discounting facility and so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company.


ON BEHALF OF THE BOARD:






N I Lloyd - Director



4 April 2024


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 OCTOBER 2023



The directors present their report with the financial statements of the company for the year ended 31 October 2023.  


DIVIDENDS

During the year the Company paid interim dividends on the Ordinary shares of £25,500.  Payments of £0.49 per share were paid on 29 April 2023. The Directors recommend that no final dividend be paid on these shares.


During the year the company paid interim dividends on the Ordinary A class shares of £50,000.  Payments of £0.57p  per share were paid on 16 June 2023 and £0.19p per share were paid on 10 August 2023 and 18 January 2023. The Directors recommend that no final dividend be paid on these shares.


DIRECTORS

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


N I Lloyd

J E Lloyd


Other changes in directors holding office are as follows:


A M Lord - resigned 13 October 2023

Mrs L M W Morgan - appointed 23 February 2023


CHARITABLE DONATIONS AND EXPENDITURE

The Company made charitable donations of £11,300 (2022: £1,200) during the year.


STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 OCTOBER 2023



AUDITORS

The auditors,  Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.


ON BEHALF OF THE BOARD:






N I Lloyd - Director



4 April 2024


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

CASTLE DAIRIES LIMITED



Opinion

We have audited the financial statements of Castle Dairies Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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


Conclusions relating to going concern

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


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


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


Other information

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


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


In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard.


Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

CASTLE DAIRIES LIMITED



Matters on which we are required to report by exception

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


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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.


Responsibilities of directors

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


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


Auditors' responsibilities for the audit of the financial statements

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


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


The audit was planned on the basis that the testing undertaken and procedures carried out would have a reasonable expectation of detecting any instances of irregularity including fraud. The plan involved assessing the risk of the financial statements containing material misstatements taking into account various factors such as the control systems in place, the standard of record keeping and an assessment of the influence and role of the stakeholders involved. The audit plan was followed and benefitted from the audit teams knowledge of the client. They considered how fraud may occur and where the financial statements may be susceptible to error.


Suitable transaction sample testing was made on the high risk areas of the financial statements. Enquiries were made of the company directors for information and explanations as required during the course of the audit and any contentious areas appropriately challenged to ensure that sufficient audit evidence was obtained.


The procedures and testing undertaken as a result of our risk assessments were deemed sufficient to identify material errors for which adjustment was then made in the financial statements. There is however no guarantee that all errors, including those related to fraud, would be identified as part of the audit.


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


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


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

CASTLE DAIRIES LIMITED



Use of our report

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





Nigel Williams BCom FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

(Statutory Auditor)

8th Floor Becket House

36 Old Jewry

London

EC2R 8DD


4 April 2024


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 OCTOBER 2023



2023

2022



Notes

£   

£   

£   

£   



TURNOVER

3

54,585,180


53,988,615




Cost of sales

47,837,139


50,729,368



GROSS PROFIT

6,748,041


3,259,247




Distribution costs

1,872,001


1,690,935



Administrative expenses

3,033,346


2,970,220



4,905,347

4,661,155

1,842,694


(1,401,908

)



Other operating income

4

91,350


48,487



OPERATING PROFIT/(LOSS)

6

1,934,044


(1,353,421

)



Interest receivable and similar income

928


14



1,934,972


(1,353,407

)



Interest payable and similar expenses

8

30,543


17,120



PROFIT/(LOSS) BEFORE TAXATION

1,904,429


(1,370,527

)



Tax on profit/(loss)

9

442,670


(225,987

)


PROFIT/(LOSS) FOR THE FINANCIAL

YEAR

1,461,759


(1,144,540

)



OTHER COMPREHENSIVE INCOME

-


-



TOTAL COMPREHENSIVE INCOME

FOR THE YEAR

1,461,759


(1,144,540

)



CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


BALANCE SHEET

31 OCTOBER 2023



2023

2022



Notes

£   

£   

£   

£   


FIXED ASSETS

Intangible assets

11

1,700


2,597



Tangible assets

12

4,034,406


3,555,619



Investments

13

100


100



4,036,206


3,558,316




CURRENT ASSETS

Stocks

14

4,750,278


5,773,301



Debtors

15

5,400,565


7,665,254



Cash at bank and in hand

8,822


144,551



10,159,665


13,583,106



CREDITORS

Amounts falling due within one year

16

4,600,740


9,525,865



NET CURRENT ASSETS

5,558,925


4,057,241



TOTAL ASSETS LESS CURRENT

LIABILITIES

9,595,131


7,615,557




CREDITORS

Amounts falling due after more than one

year

17

(641,513

)

(688,463

)



PROVISIONS FOR LIABILITIES

21

(639,399

)

(179,556

)



ACCRUALS AND DEFERRED INCOME

22

(346,534

)

(166,112

)


NET ASSETS

7,967,685


6,581,426




CAPITAL AND RESERVES

Called up share capital

23

105,000


105,000



Share premium

24

50,000


50,000



Revaluation reserve

24

162,679


200,955



Capital redemption reserve

24

185,000


185,000



Retained earnings

24

7,465,006


6,040,471



SHAREHOLDERS' FUNDS

7,967,685


6,581,426




The financial statements were approved by the Board of Directors and authorised for issue on 4 April 2024  and were signed on its behalf by:






N I Lloyd - Director



CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 OCTOBER 2023



Called up



share


Retained


Share


capital


earnings


premium

£   

£   

£   


Balance at 1 November 2021

105,000


7,226,242


50,000




Changes in equity

Dividends

-


(50,800

)

-



Total comprehensive income

-


(1,134,971

)

-



Balance at 31 October 2022

105,000


6,040,471


50,000




Changes in equity

Dividends

-


(75,500

)

-



Total comprehensive income

-


1,500,035


-



Balance at 31 October 2023

105,000


7,465,006


50,000




Capital



Revaluation


redemption


Total


reserve


reserve


equity

£   

£   

£   


Balance at 1 November 2021

210,524


185,000


7,776,766




Changes in equity

Dividends

-


-


(50,800

)


Total comprehensive income

(9,569

)

-


(1,144,540

)


Balance at 31 October 2022

200,955


185,000


6,581,426




Changes in equity

Dividends

-


-


(75,500

)


Total comprehensive income

(38,276

)

-


1,461,759



Balance at 31 October 2023

162,679


185,000


7,967,685




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 OCTOBER 2023



2023


2022


Notes

£   

£   


Cash flows from operating activities

Cash generated from operations

1

2,475,921


(1,120,629

)


Interest paid

(6,415

)

(9,007

)


Interest element of hire purchase

payments paid

(24,128

)

(8,113

)


Tax paid

18,010


243,740



Net cash from operating activities

2,463,388


(894,009

)



Cash flows from investing activities

Purchase of tangible fixed assets

(1,064,295

)

(1,256,802

)


Sale of tangible fixed assets

(6,740

)

578



Interest received

928


14



Net cash from investing activities

(1,070,107

)

(1,256,210

)



Cash flows from financing activities

New long term loan

-


508,313



New short term loan

-


1,420,729



Loan repayments in year

(1,551,970

)

(20,783

)


Increase/(Decrease)in agreements in year

98,460


109,530



Equity dividends paid

(75,500

)

(50,800

)


Net cash from financing activities

(1,529,010

)

1,966,989




Decrease in cash and cash equivalents

(135,729

)

(183,230

)


Cash and cash equivalents at

beginning of year

2

144,551


327,781




Cash and cash equivalents at end of

year

2

8,822


144,551




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 OCTOBER 2023



1.

RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM

OPERATIONS


2023


2022

£   

£   



Profit/(loss) before taxation

1,904,429


(1,370,527

)



Depreciation charges

560,784


483,001




Loss on disposal of fixed assets

25,622


17,839




Government grants

(91,350

)

(48,487

)



Finance costs

30,543


17,120




Finance income

(928

)

(14

)


2,429,100


(901,068

)



Decrease/(increase) in stocks

1,023,023


(2,026,183

)



Decrease/(increase) in trade and other debtors

2,264,038


(2,020,068

)



(Decrease)/increase in trade and other creditors

(3,240,240

)

3,826,690




Cash generated from operations

2,475,921


(1,120,629

)



2.

CASH AND CASH EQUIVALENTS



The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:



Year ended 31 October 2023


31.10.23


1.11.22

£   

£   



Cash and cash equivalents

8,822


144,551




Year ended 31 October 2022


31.10.22


1.11.21

£   

£   



Cash and cash equivalents

144,551


327,781





3.

ANALYSIS OF CHANGES IN NET DEBT



At 1.11.22

Cash flow

At 31.10.23

£   

£   

£   



Net cash



Cash at bank and in hand

144,551


(135,729

)

8,822



144,551


(135,729

)

8,822




Debt


Finance leases

(742,494

)

(98,460

)

(840,954

)



Debts falling due within 1 year

(1,740,699

)

1,529,008


(211,691

)



Debts falling due after 1 year

(121,041

)

121,041


-



(2,604,234

)

1,551,589


(1,052,645

)



Total

(2,459,683

)

1,415,860


(1,043,823

)



CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023



1.

STATUTORY INFORMATION



Castle Dairies Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


The presentation currency of the financial statements is the Pound Sterling (£).


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


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



The Directors have reviewed and considered relevant information in making their assessment of going concern. The Directors have concluded that they can continue to adopt the going concern basis in preparing the financial statements.



Preparation of consolidated financial statements

The financial statements contain information about Castle Dairies Limited as an individual company and do not contain consolidated financial information as the parent of a group. Consolidated financial statements have not been prepared as the inclusion of the subsidiary company, The Softer Butter Co. Limited, is not material for the purpose of giving a true and fair view.


Significant judgements and estimates

The following significant judgements and estimates are included in the accounts:

Property revaluation. This is based on an independent valuation undertaken in 2018. The directors have considered the valuation and do not consider that there have been any significant changes resulting in a need to revalue in the current year.

Estimated useful lives of fixed assets. The directors have reviewed the estimated useful lives of each category of fixed asset, particularly in the context of those assets which were disposed of during the period, and consider the estimated useful lives to remain appropriate.

Stock provisions. The directors have reviewed the carrying value of stock to determine whether any provisions to reduce stock costs to net realisable value are required. Such provisions are reviewed in the context of post year end transactions and in particular the trends for butter prices around the year end.

Bad debt provisions. The directors have reviewed the trade debts existing at the year end in the context of the history of recovery for each individual customer, the ageing of the debt, and the actual recovery of such debts up to the date of signing of the accounts.


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



2.

ACCOUNTING POLICIES - continued



Turnover


Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax.



Turnover is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amounts can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred in respect of the transaction can be measured reliably. This is usually at the point when the goods have been dispatched.



Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Development costs are being amortised evenly over their estimated useful life of between four and twenty years depending on the project.


Tangible fixed assets

Tangible fixed assets are stated at cost or revaluation less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, plus any costs directly attributable to bringing the asset to its working condition for intended use. Revaluation for property assets used within the business is based on periodic independent valuations.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property4% straight line on cost
Motor vehicles25% straight line on cost
Operating equipment10% - 33% straight line on cost
Office equipment (including computers)25% straight line on cost

Land is not depreciated.


Investments in subsidiaries


Investments in subsidiary undertakings are recognised at cost.



Stocks


Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.



Financial instruments

A financial asset or a financial liability is recognised only when the entity 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.


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



2.

ACCOUNTING POLICIES - continued


Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

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


Research and development

Expenditure on research and development is written off in the year in which it is incurred.



Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.


Hire purchase and leasing commitments

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


Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.


Government grants


Government grants are recognised in the profit and loss account



- over the expected useful economic lives of the fixed assets to which they relate; or


- where the grants are compensation for specific costs, such as  furlough grants, in the period matching the related charge.



Cash and cash equivalents


Cash and cash equivalents comprise bank balances including cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less which are available on demand.


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



3.

TURNOVER



The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company.



An analysis of turnover by class of business is given below:



2023


2022

£   

£   



Sale of goods

54,585,180


53,988,615



54,585,180


53,988,615





An analysis of turnover by geographical market is given below:



2023


2022

£   

£   



United Kingdom

54,350,079


53,832,254




Europe

235,101


156,361



54,585,180


53,988,615




4.

OTHER OPERATING INCOME


2023


2022

£   

£   



Government grants

91,350


48,487




5.

EMPLOYEES AND DIRECTORS


2023


2022

£   

£   



Wages and salaries

3,980,309


3,525,767




Social security costs

361,751


299,872




Other pension costs

228,016


93,323



4,570,076


3,918,962





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


2023


2022



Administration

34


34




Production

77


72



111


106





2023


2022

£   

£   



Directors' remuneration

192,968


115,417




Directors' pension contributions to money purchase schemes  

143,972


4,000




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



5.

EMPLOYEES AND DIRECTORS - continued



The number of directors to whom retirement benefits were accruing was as follows:



Money purchase schemes

1


1





The remuneration of the Directors, who are the key management personnel of the company, is set out above.


6.

OPERATING PROFIT/(LOSS)



The operating profit (2022 - operating loss) is stated after charging:



2023


2022

£   

£   



Hire of plant and machinery

164,460


103,065




Depreciation - owned assets

566,626


481,517




Loss on disposal of fixed assets

25,622


17,839




Patents and licences amortisation

296


296




Development costs amortisation

601


1,188




Audit fees

17,974


9,578




Foreign exchange differences

1,150


2,287




7.

EXCEPTIONAL COSTS


2023


2022

£   

£   



Discontinued project costs

-


(443,471

)



During the prior year the company undertook a feasibility project looking at a broad spectrum of things that affect the operation of the trade, its environment, its future and location. The project considered the possibility of moving the trade to a new site and the costs involved in the construction of new premises. The project review delivered the conclusion that the project would not be viable at this time and as such the costs of the project are shown as a separate line item in the Profit and Loss account increasing the loss made by the company during the year by £443,471.

8.

INTEREST PAYABLE AND SIMILAR EXPENSES



2023


2022

£   

£   



Bank interest

6,415


9,007




Hire purchase

24,128


8,113



30,543


17,120




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



9.

TAXATION



Analysis of the tax charge/(credit)


The tax charge/(credit) on the profit for the year was as follows:


2023


2022

£   

£   



Current tax:


UK corporation tax

176


-




Prior period adjustment

(17,359

)

45,440




Total current tax

(17,183

)

45,440





Deferred tax

459,853


(271,427

)



Tax on profit/(loss)

442,670


(225,987

)




Reconciliation of total tax charge/(credit) included in profit and loss


The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:



2023


2022

£   

£   



Profit/(loss) before tax

1,904,429


(1,370,527

)



Profit/(loss) multiplied by the standard rate of corporation tax in the

UK of 19% (2022 - 19%)  

361,842


(260,400

)




Effects of:


Expenses not deductible for tax purposes

324


3,141




Capital allowances in excess of depreciation

(102,447

)

(219,117

)



Utilisation of tax losses

(264,411

)

-




Deferred tax movement  

459,853


(271,427

)




Research & development enhanced deduction  

-


(12,856

)



Loss on disposal of assets  

4,868


3,390




Under/(over) provision in previous year  

(17,359

)

45,438




Losses for the period  

-


482,578




Discontinued project costs  

-


3,266




Total tax charge/(credit)

442,670


(225,987

)



10.

DIVIDENDS


2023


2022

£   

£   



Ordinary shares of £1 each


Interim

75,500


50,800




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



11.

INTANGIBLE FIXED ASSETS


Patents



and


Development



licences


costs


Totals

£   

£   

£   



COST


At 1 November 2022


and 31 October 2023

2,915


12,034


14,949




AMORTISATION


At 1 November 2022

1,820


10,532


12,352




Amortisation for year

296


601


897




At 31 October 2023

2,116


11,133


13,249




NET BOOK VALUE


At 31 October 2023

799


901


1,700




At 31 October 2022

1,095


1,502


2,597




12.

TANGIBLE FIXED ASSETS


Fixtures



Freehold


and


Motor



property


fittings


vehicles


Totals

£   

£   

£   

£   



COST


At 1 November 2022

866,676


5,163,276


73,941


6,103,893




Additions

47,766


896,521


120,008


1,064,295




Disposals

-


(154,512

)

-


(154,512

)



At 31 October 2023

914,442


5,905,285


193,949


7,013,676




DEPRECIATION


At 1 November 2022

340,796


2,142,863


64,615


2,548,274




Charge for year

37,343


517,011


12,272


566,626




Eliminated on disposal

-


(135,630

)

-


(135,630

)



At 31 October 2023

378,139


2,524,244


76,887


2,979,270




NET BOOK VALUE


At 31 October 2023

536,303


3,381,041


117,062


4,034,406




At 31 October 2022

525,880


3,020,413


9,326


3,555,619




At 31 October 2023 the directors are not aware of any material change in value of the freehold land and buildings and therefore the valuation has not been updated. The freehold buildings were last valued on 31 October 2018 by Cooke & Arkwright Chartered Surveyors on a fair value basis. The surveyors are qualified members of the Royal Institute of Chartered Surveyors. The historical cost and the net book value of the property based on historical cost is £572,000 and £293,943 respectively.

Included in the above are assets held under finance lease agreements. The net book values of the assets was £676,566 (2022: £801,590). The depreciation charge for the year was £107,223 (2022: £101,705).


CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



13.

FIXED ASSET INVESTMENTS


Shares in


group


undertakings

£   



COST


At 1 November 2022


and 31 October 2023

100




NET BOOK VALUE


At 31 October 2023

100




At 31 October 2022

100





The company's investments at the Balance Sheet date in the share capital of companies include the following:



The Softer Butter Co. Limited


Registered office: The Softer Butter Co. Limited, Pontygwindy Road, Caerphilly, United Kingdom, CF83 3HU  


Nature of business: Dormant company


%


Class of shares:

holding



Ordinary

100.00


2023

2022


£   

£   



Aggregate capital and reserves

100


100




14.

STOCKS

2023

2022


£   

£   



Raw materials

2,477,930


3,525,398




Packaging & other consumables

437,745


277,115




Finished goods

1,834,603


1,970,788



4,750,278


5,773,301




The cost of stock recognised as an expense during the year was £41,986,955 (2022: £48,414,190).

15.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


£   

£   



Trade debtors

4,846,001


7,230,697




Other debtors

-


62,269




Tax

-


651




VAT

315,919


175,560




Prepayments

238,645


196,077



5,400,565


7,665,254




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



16.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


2023

2022


£   

£   



Bank loans and overdrafts (see note 18)

-


18,601




Other loans (see note 18)

211,691


1,722,098




Hire purchase contracts  (see note 19)

199,441


175,072




Trade creditors

2,865,517


6,856,302




Tax

176


-




Social security and other taxes

208,750


238,475




Other creditors

100


100




Accrued expenses

1,115,065


515,217



4,600,740


9,525,865




17.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE

YEAR


2023

2022


£   

£   



Bank loans (see note 18)

-


121,041




Hire purchase contracts  (see note 19)

641,513


567,422



641,513


688,463




18.

LOANS



An analysis of the maturity of loans is given below:


2023

2022


£   

£   



Amounts falling due within one year or on demand:


Bank loans

-


18,601




Other loans

211,691


1,722,098



211,691


1,740,699





Amounts falling due between one and two years:


Bank loans - 1-2 years

-


121,041




19.

LEASING AGREEMENTS



Minimum lease payments fall due as follows:



Hire purchase contracts


2023

2022


£   

£   



Net obligations repayable:


Within one year

199,441


175,072




Between one and five years

641,513


567,422



840,954


742,494




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



19.

LEASING AGREEMENTS - continued



Non-cancellable

operating leases


2023

2022


£   

£   



Within one year

9,882


14,926




Between one and five years

26,566


1,888



36,448


16,814




20.

SECURED DEBTS



The following secured debts are included within creditors:


2023

2022


£   

£   



Bank loans

-


139,642




Hire purchase contracts

840,954


742,494



840,954


882,136





Obligations under hire purchase contracts are secured on the assets to which they relate.



Other loans represent advances on trade debtors and is secured on the individual trade debts, together with a fixed and floating charge over the assets of the business.


21.

PROVISIONS FOR LIABILITIES

2023

2022


£   

£   



Deferred tax


Accelerated capital allowances

639,399


179,556





Deferred



tax


£   



Balance at 1 November 2022

179,556




Provided during year

459,843




Balance at 31 October 2023

639,399




22.

ACCRUALS AND DEFERRED INCOME

2023

2022


£   

£   



Deferred government grants

346,534


166,112




CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054)


NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 OCTOBER 2023



23.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

2023

2022



value:

£   

£   



52,500

Ordinary

£1

52,500


52,500




52,500

Ordinary A

£1

52,500


52,500



105,000


105,000




24.

RESERVES


Capital



Retained


Share


Revaluation


redemption



earnings


premium


reserve


reserve


Totals

£   

£   

£   

£   

£   




At 1 November 2022

6,040,471


50,000


200,955


185,000


6,476,426




Profit for the year

1,461,759


1,461,759




Dividends

(75,500

)

(75,500

)



Transfers

38,276


-


(38,276

)

-


-




At 31 October 2023

7,465,006


50,000


162,679


185,000


7,862,685




25.

PENSION COMMITMENTS


The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. Pension costs amounted to £228,016 (2022: £93,323).

Unpaid contributions outstanding at 31 October 2023 amounted to £17,680 (2022: £16,534).

26.

CAPITAL COMMITMENTS

2023

2022


£   

£   



Contracted but not provided for in the


financial statements

4,099,816


1,936,335