REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 July 2023 |
for |
Foodspeed Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 July 2023 |
for |
Foodspeed Limited |
Foodspeed Limited (Registered number: 03963404) |
Contents of the Financial Statements |
for the Year Ended 31 July 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Foodspeed Limited |
Company Information |
for the Year Ended 31 July 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
173 Cleveland Street |
London |
W1T 6QR |
Foodspeed Limited (Registered number: 03963404) |
Strategic Report |
for the Year Ended 31 July 2023 |
Introduction |
The directors present the strategic report for the year ended 31 July 2023. |
Business review |
The principal activity of the company continues to be wholesalers and distributors of dairy products, eggs, ingredients and fine foods including organic and free range products to the hospitality and catering industry. |
The current year has shown significant growth and recovery in trading compared to the prior two years. The directors expect the company to continue to grow revenues although the current cost-of-living and energy crisis as well as inflation and high interest rates may continue to affect hospitality venues, one of the primary sectors which the company supplies. |
The company continues to be a Certified B Corporation, certified by B Lab as meeting high standards of social and environmental impact. The company continues to invest in reducing its carbon footprint and improving its sustainability. |
Results and performance |
Year ended 31.07.2023 | Year ended 31.07.2022 |
£ | £ |
Turnover | 26,440,386 | 19,727,326 |
Gross Profit | 8,261,134 | 6,046,601 |
Profit before tax | 5,796,138 | 3,495,552 |
The financial instruments used by the company arise wholly and directly from its activities. The main financial instruments comprise debtors, cash at bank and trade creditors. The financial risks arising from these financial instruments are considered low. The mature financial stability of the business ensures we maintain excellent terms with our preferred suppliers and their credit partners. Cash reserves have remained healthy over the year and working capital will continue to be monitored on a regular basis. |
Outlook for the future |
The company is positive on the long term outlook for the hospitality industry, especially in the Greater London area where it is a leading supplier. The directors are hopeful of continuing sustained growth in the business. The company continues to expand its product range and to invest in new staff, equipment, technology and assets to further drive growth and expansion. |
The company will also invest significant sums in the renovation and refurbishments works of its owned buildings to modernise and bring them up to date, making them more efficient and sustainable as it continues to seek to acquire a new much larger distribution centre in the area. |
Financial key performance indicators |
The directors review the business performance regularly and compare this to available data for similar businesses. The directors are of the opinion that the company performs well compared to similar businesses. |
Principal risks and uncertainties |
The Companies Act 2006 requires that the strategic report includes a description of the principal risks and uncertainties facing the company. Some of the principal risks which could materially affect the company's business are noted below. Some risks are not yet known and some which are currently considered immaterial could be material later. |
Products |
The company carries a wide range of perishable products with limited shelf life. There is a small risk that some products may become expired or slow moving. The director monitors all purchasing and the product range on a regular basis, and ensures products sourced have a ready market so there is minimal obsolescence. |
Foodspeed Limited (Registered number: 03963404) |
Strategic Report |
for the Year Ended 31 July 2023 |
Principal risks and uncertainties ......cont'd |
Foreign currency rates |
The company purchases goods in sterling as well as foreign currencies. The effect of currency rates is carefully monitored and reflected in the pricing of the goods. Some currency hedging is carried out throughout the year to protect the company. |
Supply chain disruptions |
The global crisis on supply chain issues linked to Covid-19, Brexit have largely subsided but there are still risks and uncertainties in relation to the supply chain. Shortages of product or a lack of supply could impact on the company not being able to stock sufficient products in its range to continue to fulfil customer orders. Where such issues arise in supplies, the directors source alternative supplies to mitigate any disruption in trading. |
Labour |
Recruitment and retention of staff is still challenging in this current environment. There are still significant staff shortages particularly in the warehouse and distribution segment, which has led to higher salaries to attract staff in this area. Shortages of staff can still lead to a disruption in distribution and operations but we continue to recruit and retain staff at competitive salaries for the business. |
Inflationary price increases |
The current inflationary pressure on goods stocked by the company could impact on the sale prices achieved and sales generated. Our suppliers still face staff shortages and high inflationary pressures that they continue to pass on. Some of the products held by the company, e.g. dairy and eggs have seen substantial price inflation. The directors carefully monitor supply costs and selling prices. |
IT Systems |
The company is reliant on its IT systems running smoothly. Any disruption caused by system breakdown could impact on its ability to continue its operations. The company has third party IT advisers who manage the systems and keep it secure from external threats.The company continues investing significantly in new technology solutions for the future. |
ON BEHALF OF THE BOARD: |
24 January 2024 |
Foodspeed Limited (Registered number: 03963404) |
Report of the Directors |
for the Year Ended 31 July 2023 |
The directors present their report with the financial statements of the company for the year ended 31 July 2023. |
DIVIDENDS |
No dividends were declared or paid for the the year ended 31 July 2023. (2022: £2.70m). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
No political donations were made in the year. (2022: Nil) |
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. |
AUDITORS |
Shah Dodhia & Co were appointed as auditors and will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Foodspeed Limited |
Opinion |
We have audited the financial statements of Foodspeed Limited (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other 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 July 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 |
Foodspeed 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 four, 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. |
Report of the Independent Auditors to the Members of |
Foodspeed Limited |
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: |
Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We made enquires of the directors' policies and procedures to prevent and detect fraud, as well as, whether they have knowledge of any actual, suspected or alleged fraud. |
- We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates through discussion with directors and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. |
- We designed audit procedures including analytical procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion; |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK tax legislation, data protection, anti-money laundering, employment, environmental and health and safety legislation; |
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards, For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. |
The company is subject to many laws and regulations where non compliance could have a material effect in the financial statements, e.g. health and safety, employment law, anti-bribery, certain aspects of company legislation recognising the nature of the company's activities and its legal form . Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. |
In addition, as with any audit, there remained a higher risk of non-detecting of fraud, as these may involve collusion, forgery, intentional omission, misrepresentations or the override of internal controls. Our audit procedures are designed to detect material misstatement, We are not responsible for preventing non compliance or fraud and cannot be expected to detect non compliance with all laws and regulations. |
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 |
Foodspeed 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. |
for and on behalf of |
173 Cleveland Street |
London |
W1T 6QR |
Foodspeed Limited (Registered number: 03963404) |
Income Statement |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
5,540,401 | 3,354,564 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income | 6 |
5,796,138 | 3,528,752 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
Foodspeed Limited (Registered number: 03963404) |
Other Comprehensive Income |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Foodspeed Limited (Registered number: 03963404) |
Balance Sheet |
31 July 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Foodspeed Limited (Registered number: 03963404) |
Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 August 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 July 2023 |
Foodspeed Limited (Registered number: 03963404) |
Cash Flow Statement |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Other investments and loans made | ( |
) |
Other investment and loans repaid |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Amount withdrawn by directors | (2,744,260 | ) | - |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
6,090,778 |
7,558,212 |
Cash and cash equivalents at end of year |
2 |
3,936,221 |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Cash Flow Statement |
for the Year Ended 31 July 2023 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit for the financial year |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | - | 33,200 |
Finance income | (246,787 | ) | (138,453 | ) |
Taxation |
5,676,320 | 3,472,836 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 July 2023 |
31/7/23 | 1/8/22 |
£ | £ |
Cash and cash equivalents | 3,936,221 | 6,090,859 |
Bank overdrafts | ( |
) |
3,936,221 | 6,090,778 |
Year ended 31 July 2022 |
31/7/22 | 1/8/21 |
£ | £ |
Cash and cash equivalents | 6,090,859 | 7,558,212 |
Bank overdrafts | ( |
) |
6,090,778 | 7,558,212 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/8/22 | Cash flow | At 31/7/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,090,859 | (2,154,638 | ) | 3,936,221 |
Bank overdrafts | (81 | ) | 81 | - |
6,090,778 | ( |
) | 3,936,221 |
Total | 6,090,778 | (2,154,557 | ) | 3,936,221 |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements |
for the Year Ended 31 July 2023 |
1. | STATUTORY INFORMATION |
Foodspeed 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. |
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 unless otherwise specified within these accounting policies. |
The following principal accounting policies have been applied: |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measure as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sales of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of ownership to the buyer: |
- the company retains neither continuing managerial involvement to the degree usually associated with |
ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably |
- it is probable that the company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Intangible fixed assets |
Intangible assets comprising of intellectual property is initially recorded at cost and amortised on a straight line basis over 10 years. |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment loss. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis. |
Depreciation is provided on the following basis: |
Freehold property | Straight line over 50 years |
Leasehold property | 25% reducing balance |
Plant and machinery | 25% reducing balance |
Motor vehicles | 25% reducing balance |
Fixtures and fittings | 25% reducing balance |
Land included within freehold property is not depreciated. |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised in profit and loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
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. |
Going concern |
The directors have considered the continuing economic impact of the pandemic on the company. As disclosed in the strategic report, turnover has gradually increased and trading is on trend to reach pre pandemic position. Having considered post year end trading and financial reserve, cash reserves and after making enquires, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and will continue to meet its liabilities as they fall due for the foreseeable future, being a period of at lease twelve months from the date when these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Basic financial instruments |
Financial assets and liabilities |
Trade and other debtors/creditors |
Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. |
Interest-bearing loan classified as basic financial instruments |
Loans are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, borrowings are stated at amortised cost using the effective interest method, less any impairment losses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement. |
Impairment of financial assets |
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
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 and financial liabilities |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Offsetting of financial assets and financial liabilities |
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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. |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
3. | CRITICAL ACCOUNTING 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. |
The directors consider that there are no material items in the financial statements which are dependent on estimates other than depreciation which the directors consider to have been calculated on a reasonable basis. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Selling, distribution and administration |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director for the year ended 31 July 2023 is as follows: |
2023 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
The number of directors who accrued benefits under company pension plan was 3 (2022: 3). |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Intellectual Property amortisation |
Auditors' remuneration |
Taxation advisory services |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest |
Interest receivable |
from related undertakings |
Other interest receivable |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge 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 before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Accelerated capital allowance | (2,252 | ) | - |
Re-measurement of deferred tax - changed in UK tax rate | 9,023 | (11,085 | ) |
Deferred tax movement not adjusted in prior years | - | (22,759 | ) |
Capital allowance - super deduction | (14,296 | ) | - |
Total tax charge | 1,220,849 | 637,778 |
Factors that may affect future tax charges |
A UK corporation tax rate of 25% (effective from 1 April 2023) was enacted on 24 May 2021. This will increase the Company's future current tax charge accordingly. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary £1 shares of 1 each |
Final |
10. | INTANGIBLE FIXED ASSETS |
Intellectual |
Property |
£ |
COST |
At 1 August 2022 |
and 31 July 2023 |
AMORTISATION |
At 1 August 2022 |
Amortisation for year |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
11. | TANGIBLE FIXED ASSETS |
Freehold | Long | Plant and |
properties | leasehold | machinery |
£ | £ | £ |
COST |
At 1 August 2022 |
Additions |
Disposals | ( |
) |
At 31 July 2023 |
DEPRECIATION |
At 1 August 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 August 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 July 2023 |
DEPRECIATION |
At 1 August 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Provision for bad debts | (78,793 | ) | (5,163 | ) |
Amounts owed by group undertakings |
Amounts owed by related undertaking | 10,355,018 | 8,792,653 |
Other debtors |
Directors' current accounts | 2,744,260 | - |
Prepayments |
Debtors include amounts owed by a related undertaking of £10,355,018 (2022: £8,792,653) due after more than one year. The existing loan agreement was amended from 1 August 2022 and the loan is now available for two years to 31 July 2024 at a fixed interest rate of 2.25% per annum, compounded annually.. |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
Pensions | 2,922 | 127 |
VAT | 945 | 989 |
Other creditors |
Net wages | 407 | 177 |
Accrued expenses |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | ( |
) |
At beginning of the year | 45,498 | 91,685 |
87,983 | 45,498 |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
16. | PROVISIONS FOR LIABILITIES - continued |
Deferred tax |
£ |
Balance at 1 August 2022 |
Charge to Income Statement during year |
Balance at 31 July 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary £1 | 1 | 500,001 | 500,001 |
There were no movements in number of shares during the year. There is a single class of ordinary shares and each share carries one vote. All the issued shares have equal rights to dividends, voting and capital participation in a winding up. |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 August 2022 |
Profit for the year |
At 31 July 2023 |
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 July 2023 and 31 July 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Foodspeed Limited (Registered number: 03963404) |
Notes to the Financial Statements - continued |
for the Year Ended 31 July 2023 |
20. | RELATED PARTY DISCLOSURES |
Included within other debtors is £10,355,018 (2022: £8,792,653) due from a company under common control. |
The existing loan agreement was amended from 1 August 2022 and the loan is now available for 2 years from 1 August 2022 at a fixed interest rate of 2.25% per annum. Included within other interest income is £201,747 (2022: £134,294) earned on the loan. |
During the year the company paid rent of £48,459 (2022: £99,893) under a licence on premises owned by two directors of the company. |
The company purchased two freehold properties at a market value of £2,600,000 from two directors during the year. |
The company has advanced loans of £1,369,260 to Manpreet Singh Bawa and £1,375,000 to Mrs Gurmit Kaur Bawa. The loans are unsecured, interest free and repayable on demand. |
21. | CONTROLLING PARTY |
The company is a wholly owned subsidiary of Gazelle UK Holdings Ltd, a company registered in England and Wales. Its ultimate controlling party is Manpreet Singh Bawa. |