Company registration number NI049805 (Northern Ireland)
ARDBOE COLDSTORE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
ARDBOE COLDSTORE LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 27
ARDBOE COLDSTORE LTD
COMPANY INFORMATION
Directors
Mr E Carson
Mrs F Carson
Company number
NI049805
Registered office
Kilmascally Road
Dungannon
Co. Tyrone
Northern Ireland
BT71 5BJ
Auditor
FPM Accountants Limited
Howard House
30 Northland Row
Dungannon
Co. Tyrone
Northern Ireland
BT71 6AP
Bankers
Santander UK plc
Bridle Road
Bootle
Merseyside
L30 4GB
Solicitors
DWF Solicitors
42 Queen Street
Belfast
Northern Ireland
BT1 6HL
ARDBOE COLDSTORE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

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

Fair review of the business

The principal activity of the company is the provision of cold storage.

 

There has been no significant change in these activities during the year ended 31 July 2023.

 

Net sales have increased by 47.8% to £10.8m for the year ended 31 July 2023 relative to net sales of £7.3m for the year ended 31 July 2022.

 

Gross margin for the year was 50% (2022: 41%) and the profit before tax was £1.2m (2022: loss before tax of £124k).

 

The directors are satisfied with the company's performance for the year.

Principal risks and uncertainties

The company uses financial instruments throughout its business. The core risks associated with the company's financial instruments (i.e. its cash and finance leases, and on the operational level trade receivables and payables) are currency risk, interest rate risk, credit risk and liquidity risk. The board reviews and agrees policies for the prudent management of these risks as follows:

 

Currency risk - The company's activities in the UK are conducted primarily in sterling and the company's activities in the rest of Europe are conducted primarily in Euro, this results in low levels of currency transaction risk, variances affecting operational activities in this regard are reflected in distribution costs in the profit and loss account in the years in which they arise.

 

Finance and Interest rate risk - The company has interest bearing liabilities that relate to term loans, bank overdrafts and advances on debtors. Interest chargeable on the overdrafts and advances on debtors is subject to the movements in the relevant variable rates whilst the hire purchase rates are fixed. The company's objective in relation to interest rate management is to minimise the impact of interest rate volatility on interest costs in order to protect recorded profitability. Loan rates of interest are fixed relative to the Bank of England base rate.

 

Liquidity and cash flow risk - The company's objective is to maintain a balance between the continuity of funding and flexibility through the use of borrowings with a range of maturities. The company's policy is to ensure that sufficient resources are available either from cash balances and cash flows to ensure all obligations can be met when they fall due. To achieve this the company ensures that its liquid investments are in highly rated counterparties; when relevant it limits the maturity of cash balances and borrows the majority of its debt needs under term financing.

 

Credit risk - The company has no significant concentrations of credit risk. Customers who wish to trade on credit terms are subject to strict verification procedures in advance of credit being awarded and are continually being monitored.

 

Inflation risk - As a result of the rising rate of inflation, the company has seen the impact of this through rising costs. The company have a policy in place to continually review costs and to minimise the impact of these rising costs where possible.

ARDBOE COLDSTORE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
Development and performance

It is noted that the company's sales performance has improved on prior year and continues to improve post year end.

Key performance indicators

The financial key performance indicators used by the company are turnover level and gross profit margins on sales.

 

The directors anticipate that turnover will increase and gross margins will improve for year end 31 July 2024.

 

Financial Key Performance Indicators

 

The company's key performance indicators are as follows:

 

2023     2022

Increase in net sales 47.8% 7.3%

Gross profit margin 49.7% 40.8%

Shareholders equity £1,926,628 £3,928,465

On behalf of the board

Mr E Carson
Director
4 March 2024
ARDBOE COLDSTORE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the provision of cold storage.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £2,984,728. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr E Carson
Mrs F Carson

Windmill Holdings Limited is 100% shareholder of Ardboe Coldstore Ltd.

 

There were no changes in shareholdings between 31 July 2023 and the date of signing the financial statements.

Future developments

The company plans to continue its present activities and current trading levels. Employees are kept as fully informed as practicable about developments within the business.

Auditor

The auditor, FPM Accountants Limited is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ARDBOE COLDSTORE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr E Carson
Director
4 March 2024
ARDBOE COLDSTORE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARDBOE COLDSTORE LTD
- 5 -
Opinion

We have audited the financial statements of Ardboe Coldstore Ltd (the 'company') for the year ended 31 July 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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.

ARDBOE COLDSTORE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARDBOE COLDSTORE LTD
- 6 -

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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:

 

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.

ARDBOE COLDSTORE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARDBOE COLDSTORE LTD
- 7 -
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 designed 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 the legal and regulatory framework applicable to the company through enquiry of management, industry research and the application of cumulative audit knowledge. We identified the following principal laws and regulations relevant to the company – Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

 

We developed an understanding of the key fraud risks to the entity (including how fraud might occur), the controls in place to help mitigate those risks, and the accounts, balances and disclosures within the financial statements which may be susceptible to management bias. Our understanding was obtained through review of the financial statements for significant accounting estimates, analysis of journal entries, walkthrough of the key controls cycles in place and enquiry of management.

 

Our procedures to respond to those risks identified included, but were not limited to:

 

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ARDBOE COLDSTORE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARDBOE COLDSTORE LTD
- 8 -

The purpose of our audit work and to whom we owe our responsibilities

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.

Teresa Campbell (Senior Statutory Auditor)
For and on behalf of FPM Accountants Limited
Chartered Accountants
Statutory Auditors
Howard House
30 Northland Row
Dungannon
Co. Tyrone
Northern Ireland
BT71 6AP
4 March 2024
ARDBOE COLDSTORE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
10,783,470
7,298,124
Cost of sales
(5,421,185)
(4,323,891)
Gross profit
5,362,285
2,974,233
Administrative expenses
(3,937,148)
(2,965,262)
Other operating income
34,038
41,682
Operating profit
4
1,459,175
50,653
Interest payable and similar expenses
7
(274,557)
(175,130)
Profit/(loss) before taxation
1,184,618
(124,477)
Tax on profit/(loss)
8
(201,727)
(102,891)
Profit/(loss) for the financial year
982,891
(227,368)
Other comprehensive income
Tax relating to other comprehensive income
22,771
19,127
Total comprehensive income for the year
1,005,662
(208,241)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ARDBOE COLDSTORE LTD
BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,342,504
6,579,637
Current assets
Debtors
11
2,935,393
5,496,958
Cash at bank and in hand
493,609
1,943
3,429,002
5,498,901
Creditors: amounts falling due within one year
12
(3,312,146)
(3,259,554)
Net current assets
116,856
2,239,347
Total assets less current liabilities
6,459,360
8,818,984
Creditors: amounts falling due after more than one year
13
(3,295,844)
(3,832,267)
Provisions for liabilities
Deferred tax liability
16
1,236,888
1,058,252
(1,236,888)
(1,058,252)
Net assets
1,926,628
3,928,465
Capital and reserves
Called up share capital
18
120,000
120,000
Share premium account
30,000
30,000
Revaluation reserve
980,377
1,098,797
Profit and loss reserves
796,251
2,679,668
Total equity
1,926,628
3,928,465
The financial statements were approved by the board of directors and authorised for issue on 4 March 2024 and are signed on its behalf by:
Mr E Carson
Director
Company Registration No. NI049805
ARDBOE COLDSTORE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 August 2021
120,000
30,000
1,193,156
2,812,677
4,155,833
Year ended 31 July 2022:
Loss for the year
-
-
-
(227,368)
(227,368)
Other comprehensive income:
Tax relating to other comprehensive income
-
-
19,127
-
0
19,127
Total comprehensive income for the year
-
0
-
0
19,127
(227,368)
(208,241)
Other movements
-
-
(113,486)
94,359
(19,127)
Balance at 31 July 2022
120,000
30,000
1,098,797
2,679,668
3,928,465
Year ended 31 July 2023:
Profit for the year
-
-
-
982,891
982,891
Other comprehensive income:
Tax relating to other comprehensive income
-
-
22,771
-
0
22,771
Total comprehensive income for the year
-
-
22,771
982,891
1,005,662
Dividends
9
-
-
-
(2,984,728)
(2,984,728)
Other movements
-
-
(141,191)
118,420
(22,771)
Balance at 31 July 2023
120,000
30,000
980,377
796,251
1,926,628
ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
1
Accounting policies
Company information

Ardboe Coldstore Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is Kilmascally Road, Dungannon, Co. Tyrone, Northern Ireland, BT71 5BJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Windmill Holdings Limited.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 13 -

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% Straight Line
Plant and equipment
20% Reducing Balance
Motor vehicles
25% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 14 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 9 for carrying amount of the property, plant and equipment and note 1.4 for the useful economic lives for each class of assets.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 19 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Cold Storage
8,017,407
5,527,382
Rental
21,850
19,192
Haulage
2,744,213
1,751,550
10,783,470
7,298,124
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
430
(810)
Fees payable to the company's auditor for the audit of the company's financial statements
12,900
11,550
Depreciation of owned tangible fixed assets
459,276
432,712
Profit on disposal of tangible fixed assets
(7,472)
(9,413)
Operating lease charges
760,396
669,232
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Admin
18
16
Direct
74
72
Directors
2
2
Total
94
90
ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,148,664
2,471,016
Pension costs
42,276
41,806
3,190,940
2,512,822
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
549,447
145,476
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
257,077
-
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
241,882
150,540
Interest on finance leases and hire purchase contracts
32,675
24,590
274,557
175,130
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
23,091
-
0
ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
8
Taxation
2023
2022
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
178,636
102,891
Total tax charge
201,727
102,891

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
1,184,618
(124,477)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 21.00% (2022: 19.00%)
248,770
(23,651)
Tax effect of expenses that are not deductible in determining taxable profit
512
1,383
Tax effect of utilisation of tax losses not previously recognised
(142,769)
-
0
Unutilised tax losses carried forward
-
0
27,882
Group relief
(112,298)
-
0
Permanent capital allowances in excess of depreciation
32,863
(9,384)
Amortisation on assets not qualifying for tax allowances
(3,987)
(3,606)
Loss for UK property business
-
0
7,376
Deferred Tax
178,636
102,891
Taxation charge for the year
201,727
102,891

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
(22,771)
(19,127)
ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
9
Dividends
2023
2022
£
£
Final paid
2,984,728
-
0
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2022
6,200,000
2,798,938
368,662
9,367,600
Additions
-
0
172,814
94,155
266,969
Disposals
-
0
-
0
(108,514)
(108,514)
At 31 July 2023
6,200,000
2,971,752
354,303
9,526,055
Depreciation and impairment
At 1 August 2022
925,573
1,753,698
108,692
2,787,963
Depreciation charged in the year
124,000
259,867
75,409
459,276
Eliminated in respect of disposals
-
0
-
0
(63,688)
(63,688)
At 31 July 2023
1,049,573
2,013,565
120,413
3,183,551
Carrying amount
At 31 July 2023
5,150,427
958,187
233,890
6,342,504
At 31 July 2022
5,274,427
1,045,240
259,970
6,579,637

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and equipment
358,315
442,668
Motor vehicles
222,133
244,293
580,448
686,961
ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
10
Tangible fixed assets
(Continued)
- 23 -

Included in land and buildings is a valuation as carried out in January 2022. The valuation was carried out by Santander. The property was valued using open market value of £5,512,000. The difference between depreciation on the historic cost of land and buildings and depreciation on the revalued land and buildings is transferred from retained earrings to the revaluation reserve.

11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,329,252
1,980,622
Corporation tax recoverable
21,600
41,805
Amounts owed by group undertakings
-
0
2,984,727
Amounts owed by related parties
304,800
304,800
Other debtors
185,695
121,695
Prepayments and accrued income
94,046
63,309
2,935,393
5,496,958

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

 

Included in other debtors is an amount of £185,695 (2022: £121,695) owed by a director at 31 July 2023.

12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
14
1,966,867
1,763,946
Obligations under finance leases
15
174,285
255,579
Other borrowings
14
10,000
10,000
Trade creditors
409,348
747,486
Corporation tax
42,640
39,754
Other taxation and social security
353,384
258,977
Government grants
18,984
-
0
Accruals and deferred income
336,638
183,812
3,312,146
3,259,554
ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
14
2,898,000
3,290,000
Obligations under finance leases
15
356,076
452,531
Other borrowings
14
24,167
34,167
Government grants
17,601
55,569
3,295,844
3,832,267
14
Loans and overdrafts
2023
2022
£
£
Bank loans
3,138,000
3,530,000
Bank overdrafts
1,726,867
1,523,946
Other loans
34,167
44,167
4,899,034
5,098,113
Payable within one year
1,976,867
1,773,946
Payable after one year
2,922,167
3,324,167

 

Santander currently hold the following securities:

 

-fixed charge over the freehold property known as Ardboe Business Park, Kilmascally Road, Ardboe

-fixed and floating charge over all freehold and leasehold property (including fixtures and fittings) owned by the company

-fixed charge over all plant, machinery and equipment

-fixed charge over all debts

-fixed charge over all the goodwill and uncalled capital of the company

-fixed charge over all stocks, shares, bonds and securities of any kind present and future or beneficially owned by the company and all dividends and other rights relating thereto

-fixed charge over all benefits relating to all present and future contracts and policies of insurance

-fixed charge over the leasehold property known as 1 Fruit of The Loom Drive, Campsie, Campsie Industrial Estate, Eglinton, Londonderry

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
174,285
255,579
In two to five years
356,076
452,531
530,361
708,110

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances and losses
1,236,888
1,058,252
2023
Movements in the year:
£
Liability at 1 August 2022
1,058,252
Charge to profit or loss
178,636
Liability at 31 July 2023
1,236,888

The deferred tax liability set out above is expected to reverse within 2 - 5 years and relates to accelerated capital allowances and tax losses that are expected to mature within the same period.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 26 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,276
41,806

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
120,000
120,000
120,000
120,000
19
Share Premium Reserve

The amount carried forward is the premium that arose from the issue of shares in 2010.

20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
453,842
475,852
Between two and five years
1,091,145
1,279,812
In over five years
204,000
375,725
1,748,987
2,131,389
21
Capital commitments

The company had no material capital commitments at the year ended 31 July 2023.

22
Liability Limitation Agreement

The directors, on behalf of the company have entered into a Limited Liability Agreement with their auditors. The auditor's liability is limited to an amount which is considered fair and reasonable. This has been disclosed in line with company's legislation.

ARDBOE COLDSTORE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
23
Related party transactions

The company has taken the exemption in FRS 102 not to disclose transactions with any companies that are wholly owed within the group.

 

At the year ended a related company due to a common shareholder and director, owed the company £304,800 (2022: £304,800).

 

Amounts due from related parties are unsecured, interest free and repayable on demand.

 

Included in other debtors is an amount of £185,695 (2022: £121,695) owed by a director at 31 July 2023.

 

Amounts due from the director are unsecured, interest free and repayable on demand.

24
Ultimate controlling party

The company's parent undertaking is Windmill Holdings Limited as it holds 100% of the total issued shares in Ardboe Coldstore Limited.

 

The ultimate controlling parties are Mr Eugene Carson and Mrs Fiona Carson by virtue of their shareholding in Windmill Holdings Limited.

The parent of the largest group in which the results are consolidated is Windmill Holdings Limited. Windmill Holdings Limited is registered in Northern Ireland.

25
Contingent Liabilites

There is a contingent liability to repay government grants should the conditions under which they were awarded cease to be met. The directors do not anticipate that a liability will arise.

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