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COMPANY REGISTRATION NUMBER: 03924765
Hillcrest Food Limited
Filleted Financial Statements
31 March 2023
Hillcrest Food Limited
Statement of Financial Position
31 March 2023
2023
2022
(restated)
Note
£
£
£
Fixed assets
Intangible assets
5
1,400
Tangible assets
6
55,647
26,397
Investments
7
13,514
13,514
--------
--------
69,161
41,311
Current assets
Stocks
1,225,037
971,556
Debtors
8
3,024,942
2,091,927
Cash at bank and in hand
573,658
1,104,992
------------
------------
4,823,637
4,168,475
Creditors: amounts falling due within one year
9
( 3,986,014)
( 3,281,168)
------------
------------
Net current assets
837,623
887,307
---------
---------
Total assets less current liabilities
906,784
928,618
Creditors: amounts falling due after more than one year
10
( 34,558)
( 83,333)
Provisions
Taxation including deferred tax
( 5,287)
( 5,342)
---------
---------
Net assets
866,939
839,943
---------
---------
Capital and reserves
Called up share capital
50
50
Capital redemption reserve
50
50
Profit and loss account
866,839
839,843
---------
---------
Shareholders funds
866,939
839,943
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
Hillcrest Food Limited
Statement of Financial Position (continued)
31 March 2023
These financial statements were approved by the board of directors and authorised for issue on 9 February 2024 , and are signed on behalf of the board by:
M Toussaint
Director
Company registration number: 03924765
Hillcrest Food Limited
Notes to the Financial Statements
Year ended 31 March 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 5 Godalming Business Centre, Woolsack Way, Godalming, Surrey, United Kingdom, GU1 1XW. The principal place of business is Hillcrest Farm, Scotts Hill, Outwood, Redhill, Surrey, RH1 5PR.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have made appropriate enquiries and and having reviewed the company's forecasts and projections, the directors believe that the company has adequate resources to continue in operational existence for the foreseeable future and to meet its obligations and settle its liabilities as they fall due for payment (at least 12 months from the date the accounts are approved and signed). The company therefore continues to adopt the going concern basis in preparing the company financial statements.
Revenue recognition
The turnover shown in the profit and loss account represents amounts receivable for goods sold during the year in the normal course of business, net of trade discounts, VAT and other sales related taxes. Turnover is recognised when responsibility for the goods has passed.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
20% straight line
Website
-
33% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures & Fittings & Equipment
-
25% reducing balance
Motor Vehicles
-
20% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are valued at lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Derivative financial instruments The company uses foreign currency forward contracts to hedge its risks associated with currency fluctuation risk. Such derivative financial instruments are always stated at their fair value. Any associated gains or losses are charged to the profit and loss account.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
Invoice discounting
Separate presentation has been adopted for debts financed through invoice financing arrangements. The gross amount of the debt is shown within assets and a corresponding liability for amounts received from the factor is recorded as a bank loan. The interest element of the factor's charges and other factoring costs are recognised as they accrue and are included within the profit and loss account with other interest charges.
Trade and other debtors
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment for bad and doubtful debts.
Trade and other creditors
Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 9 (2022: 10 ).
5. Intangible assets
Goodwill
Website
Total
£
£
£
Cost
At 1 April 2022 (as restated) and 31 March 2023
27,332
4,200
31,532
--------
-------
--------
Amortisation
At 1 April 2022
27,332
2,800
30,132
Charge for the year
1,400
1,400
--------
-------
--------
At 31 March 2023
27,332
4,200
31,532
--------
-------
--------
Carrying amount
At 31 March 2023
--------
-------
--------
At 31 March 2022
1,400
1,400
--------
-------
--------
6. Tangible assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2022 (as restated)
94,039
54,227
148,266
Additions
45,820
45,820
Disposals
( 4,125)
( 4,125)
---------
--------
---------
At 31 March 2023
139,859
50,102
189,961
---------
--------
---------
Depreciation
At 1 April 2022
83,472
38,397
121,869
Charge for the year
4,173
10,020
14,193
Disposals
( 1,748)
( 1,748)
---------
--------
---------
At 31 March 2023
87,645
46,669
134,314
---------
--------
---------
Carrying amount
At 31 March 2023
52,214
3,433
55,647
---------
--------
---------
At 31 March 2022
10,567
15,830
26,397
---------
--------
---------
7. Investments
Shares in participating interests
£
Cost
At 1 April 2022 as restated and 31 March 2023
13,514
--------
Impairment
At 1 April 2022 as restated and 31 March 2023
--------
Carrying amount
At 31 March 2023
13,514
--------
At 31 March 2022
13,514
--------
8. Debtors
2023
2022
(restated)
£
£
Trade debtors
2,468,960
1,749,079
Other debtors
555,982
342,848
------------
------------
3,024,942
2,091,927
------------
------------
9. Creditors: amounts falling due within one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
2,309,049
1,878,116
Trade creditors
1,574,002
1,149,276
Corporation tax
35,962
107,651
Social security and other taxes
22,798
53,838
Other creditors
44,203
92,287
------------
------------
3,986,014
3,281,168
------------
------------
HSBC Bank have a fixed and floating charge over the assets of the company. The following liabilities disclosed under creditors falling due within one year and more than one year are secured:
2023 2022
£ £
Bank loans and overdrafts 2,348,747 1,952,883
10. Creditors: amounts falling due after more than one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
16,667
83,333
Other creditors
17,891
--------
--------
34,558
83,333
--------
--------
11. Prior period adjustment
A prior period adjustment of £13,412 has been reflected to adjust the bank balances as at the period end 31 March 2022. The adjustment has resulted in cash at bank balance decreasing by £13,412 and the profit before tax decreasing by the same amount.
12. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
(restated)
£
£
Not later than 1 year
868
868
Later than 1 year and not later than 5 years
1,931
2,799
-------
-------
2,799
3,667
-------
-------
13. Summary audit opinion
The auditor's report for the year dated 9 February 2024 was unqualified .
The senior statutory auditor was Stephen Foster , for and on behalf of Shipleys LLP .
14. Director's advances, credits and guarantees
The director has provided a personal guarantee of £375,000 (2022: £375,000) in respect of bank borrowings, supported by Second Legal Mortgages over his personal freehold property. During the year the company loaned £26,025 (2022: £27,647) to the director. At the year end the director owed the company £217,092 (2022: £205,467). No interest is charged on this loan which is repayable on demand.
15. Related party transactions
During the year, Hillcrest Food Limited purchased goods from a company which is owned by a close family member of the director. The amounts purchased totalled £107,989 (2022: £31,538). As at the year end, Hillcrest Food Limited owed £46,899 (2022: £3,515) to the company. During the year, Hillcrest Food Limited was repaid £nil (2022: £nil) by a company fully owned by the director. At the year end, Hillcrest Food Limited was owed £3,327 (2022: £3,327) by the company. No interest is charged on this loan which is repayable on demand. During the year, Hillcrest Food Limited purchased goods on behalf of a company which is majority owned by the director. The amounts totalled £84,279 (2022: £86,884). As at the year end, Hillcrest Food Limited was owed £19,979 (2022: £19,979) by the company.
16. Controlling party
The director M Toussaint is the controlling party of the company.