Year Ended
Registration number:
Marston Foods Limited
Contents
Company Information |
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Directors' Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Unaudited Financial Statements |
Marston Foods Limited
Company Information
Directors |
Mr S T Collingwood Ms E Tucker |
Company secretary |
Mrs T Billing |
Registered office |
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Accountants |
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Marston Foods Limited
Directors' Report for the Year Ended 31 May 2023
The directors present their report and the financial statements for the year ended 31 May 2023.
Principal activity
The principal activity of the company is that of the production of high quality, hand finished desserts.
Business review
Profit & loss account
The successful strategy from 2021/2022, namely consolidating sales and protecting margin, continued into 2022/2023 as we faced the same economic challenges including commodity price rises, chronic labour shortages, soaring distribution costs and increased energy costs. Despite this, sales remained at similar levels to the previous year with expected benefits from the new strategy delayed until the later part of the year. Unfortunately, sales were impacted further by a severe shortage of quality chocolate in the run up to Christmas and partial compensation was received as shown in other operating income.
The other focus during the year was to stabilize our margins and to at least mitigate the increase in costs. This was achieved by the redevelopment of our products to achieve a range that was commercially viable and targeted the change in consumer demands and the introduction of a major new retail customer which strengthened the customer base. These initiatives have proved highly successful with benefits being evidenced in the second half of the year.
Despite the continuing economic challenges in the current year 2023/2024 sales for the first 6 months have increased by 17% YOY. The Labour market has started to improve, and it is expected that new customers and products will be launched, increasing sales growth in line with our business plan.
Sustainability continues to be one of our key deliverables. As part of our plans from 2021/2022 the business was delighted to achieve a 38% reduction in CO2 emissions compared to previous year.
Balance sheet
There has been a requirement for additional debt finance in the year to support the short-term working capital requirements and business investment in plant & machinery of £98k, a significant part of which has been repaid in 2023/2024. Directors supported the business throughout the year reducing pension payments and dividends to the parent company in line with the business performance. Overall shareholders funds increased by £42K.
Principal Risks & Uncertainties
Inflation in wage costs will be a key factor in 2024 following the government announcement to increase the MLW from April 24. Management will work to mitigate the impact of these oncosts by focusing on operational efficiencies and other associated benefits. Energy will continue to be the largest spend at 24% of the total administrative expenses. Priority for the business will be finding ways to offset some of these cost in a sustainable manner. Commodity prices for our sector seem to have reached their peak and settled down but market fluctuations will be monitored closely, and appropriate actions taken if required. Finally, the economic environment in the UK is still having an impact on consumer spend so it is essential to ensure that the products we are delivering are viable for the current market. Therefore, innovation remains key to the business to ensure we can deliver newness into both existing and new sectors.
Marston Foods Limited
Directors' Report for the Year Ended 31 May 2023
Directors
Directors who held office during the year and up to the date of signature of the financial statements for the year ended 31st May 2023 were as follows:
Mr S T Collingwood
Ms E Tucker
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
......................................... |
Marston Foods Limited
Profit and Loss Account
Year Ended 31 May 2023
Note |
2023 |
2022 |
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Turnover |
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|
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Cost of sales |
( |
( |
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Gross profit |
|
|
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Administrative expenses |
( |
( |
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Other operating income |
|
- |
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Operating profit |
30,960 |
424,876 |
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Other interest receivable and similar income |
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|
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Interest payable and similar expenses |
( |
( |
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(114,508) |
(56,235) |
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(Loss)/profit before tax |
( |
|
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Tax on (loss)/profit |
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|
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Profit for the financial year |
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Marston Foods Limited
Balance Sheet
31 May 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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|
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Capital and reserves |
|||
Called up share capital |
100 |
100 |
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Revaluation reserve |
50,688 |
55,296 |
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Profit and loss account |
957,899 |
911,589 |
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Shareholders' funds |
1,008,687 |
966,985 |
Marston Foods Limited
Balance Sheet
31 May 2023
For the financial year ending 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Company Registration Number: 07207619
Marston Foods Limited
Statement of Changes in Equity
Year Ended 31 May 2023
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
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At 1 June 2022 |
|
|
|
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Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Transfers |
- |
(4,608) |
4,608 |
- |
At 31 May 2023 |
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|
|
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Share capital |
Revaluation reserve |
Profit and loss account |
Total |
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At 1 June 2021 |
|
|
|
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Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Transfers |
- |
(4,608) |
4,608 |
- |
At 31 May 2022 |
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Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The directors, having made all necessary enquiries and considered the ongoing impacts of; the UK’s exit from the EU and the Covid-19 pandemic on the labour market; the current UK economic uncertainty; significant inflationary pressures on business costs and the ‘cost of living crisis’ amongst consumers; are satisfied that it remains appropriate to prepare the financial statements on a going concern basis. In making this assessment the directors have forecasted financial and cash flow performance for a period of no less than 12 months from the date of the approval of these financial statements.
Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Key judgements and sources of estimation uncertainty
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods
The key judgement that has a significant impact on the financial statements is in respect of going concern, as described above.
The key estimate that is significant to the financial statements is depreciation. Tangible fixed assets are carried at cost or valuation, less accumulated depreciation and any subsequent accumulated impairment loss. Plant and machinery is carried at deemed cost based upon a valuation carried out by external professionals as at 31 May 2018. This approach requires estimation of depreciation rates used. An assessment of the ongoing economic contribution of the assets of the company is undertaken to determine whether an indicator of impairment has occurred. The carrying amount is £966,953 (2022 - £986,518).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
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.
Government grants
Government revenue grants are accounted for under the accruals method. These are credited to the profit and loss account when the company is entitled to the income.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
6.67% / 10% / 20% on cost |
Fixtures, fittings & equipment |
6.67% / 10% / 20% on cost |
Computer equipment |
20% on cost |
Motor vehicles |
15% on cost |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. The treatment of finance leases is as set out in the accounting policy for financial instruments detailed below.
Defined contribution pension obligation
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.
Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Hire purchase and finance lease obligations;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Assets held under fire purchase and finance lease are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligations. The assets is subsequently measured as discused in the tangible fixed asset accounting policy above. Finance lease obligations are subsequently measured at amortised cost using the effective interest method.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Tangible assets |
Fixtures and fittings |
Office equipment |
Motor vehicles |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 June 2022 |
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Additions |
- |
- |
- |
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Disposals |
- |
- |
( |
( |
( |
At 31 May 2023 |
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Depreciation |
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At 1 June 2022 |
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Charge for the year |
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- |
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Eliminated on disposal |
- |
- |
( |
( |
( |
At 31 May 2023 |
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Carrying amount |
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At 31 May 2023 |
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- |
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At 31 May 2022 |
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Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Stocks |
2023 |
2022 |
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Raw materials |
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Work in progress |
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Finished goods |
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Debtors |
Note |
2023 |
2022 |
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Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Prepayments |
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Corporation tax |
- |
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Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Creditors |
Note |
2023 |
2022 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Corporation tax |
15,282 |
- |
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Taxation and social security |
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Other creditors |
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Accruals and deferred income |
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Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings due within and after one year consist of bank loans and invoice discounting facilities, as well as hire purchase creditors, which are secured.
A significant proportion of the company's bank loans and other borrowings are repaid within one year of the year end thus reducing the interest burden on the company going forward.
Loans and borrowings |
2023 |
2022 |
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Current loans and borrowings |
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Bank borrowings |
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Hire purchase contracts |
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Other borrowings |
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2023 |
2022 |
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Loans and borrowings due after one year |
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Bank borrowings |
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Hire purchase contracts |
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Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
There is a composite company unlimited multilateral guarantee given by Marston Foods Limited and S C (Holdings) Limited in respect of bank borrowings. The total value of guarantees not included in the balance sheet is £Nil (2022 - £Nil).
Related party transactions |
Transactions with directors |
2023 |
At 1 June 2022 |
Advances to director |
Repayments by director |
At 31 May 2023 |
A Director |
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Loan - interest free, due on demand |
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|
- |
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2022 |
At 1 June 2021 |
Advances to director |
Repayments by director |
At 31 May 2022 |
A Director |
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Loan - interest free, due on demand |
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- |
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Parent and ultimate parent undertaking |
The company's immediate parent is
These financial statements are available upon request from Unit 5 Marston Park, Frome, Somerset, BA11 5BS.
Marston Foods Limited
Notes to the Unaudited Financial Statements
Year Ended 31 May 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
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No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |