Company registration number SC222640 (Scotland)
FERGUSONS BAKERS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JULY 2023
PAGES FOR FILING WITH REGISTRAR
FERGUSONS BAKERS LIMITED
COMPANY INFORMATION
Directors
G McGhee
I C McGhee
Secretary
I C McGhee
Company number
SC222640
Registered office
10 Keppochhill Drive
M8 Food Park
Glasgow
United Kingdom
G21 1HX
Auditor
Azets Audit Services
Titanium 1
King's Inch Place
Renfrew
Renfrewshire
United Kingdom
PA4 8WF
Business address
Block 6
Glenfield Place
Glencairn Industrial Estate
Kilmarnock
United Kingdom
KA1 4AZ
FERGUSONS BAKERS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
FERGUSONS BAKERS LIMITED
BALANCE SHEET
AS AT
29 JULY 2023
29 July 2023
- 1 -
29 July 2023
30 July 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
652,060
657,164
Current assets
Stocks
110,464
99,194
Debtors
7
1,099,759
870,996
Cash at bank and in hand
240,812
363,468
1,451,035
1,333,658
Creditors: amounts falling due within one year
8
(1,161,193)
(1,067,694)
Net current assets
289,842
265,964
Total assets less current liabilities
941,902
923,128
Provisions for liabilities
(70,910)
(84,059)
Net assets
870,992
839,069
Capital and reserves
Called up share capital
250,000
250,000
Profit and loss reserves
620,992
589,069
Total equity
870,992
839,069

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
G McGhee
Director
Company Registration No. SC222640
FERGUSONS BAKERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 JULY 2023
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
250,000
696,499
946,499
Year ended 30 July 2022:
Profit and total comprehensive income for the year
-
292,570
292,570
Dividends
-
(400,000)
(400,000)
Balance at 30 July 2022
250,000
589,069
839,069
Year ended 29 July 2023:
Profit and total comprehensive income for the year
-
531,923
531,923
Dividends
-
(500,000)
(500,000)
Balance at 29 July 2023
250,000
620,992
870,992
FERGUSONS BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JULY 2023
- 3 -
1
Accounting policies
Company information

Fergusons Bakers Limited is a private company limited by shares incorporated in Scotland. The registered office is 10 Keppochhill Drive, M8 Food Park, Glasgow, United Kingdom, G21 1HX.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.2
Going concern

The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. In satisfaction of this responsibility the directors have considered the Company's ability to meet its liabilities as they fall due.true

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.

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.

1.4
Intangible fixed assets - goodwill

Goodwill, being amounts paid in connection with the acquisition of businesses in excess of the fair value of the assets and liabilities acquired, is capitalised and amortised evenly over its useful life over a period of up to ten years.

1.5
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:

Short leasehold
over the period of the lease
Plant and machinery
at varying rates of 10% to 50%
Motor vehicles
33% on cost

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.

FERGUSONS BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 4 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

1.8
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.

1.9
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.

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.

FERGUSONS BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 5 -
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.

1.10
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.

1.11
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.

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.

1.12
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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.

FERGUSONS BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
1
Accounting policies
(Continued)
- 6 -
1.13
Retirement benefits

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

1.14
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.

1.15
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.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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.

3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,500
9,000
4
Employees

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

2023
2022
Number
Number
Total
78
72
FERGUSONS BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 7 -
5
Intangible fixed assets
Goodwill
£
Cost
At 31 July 2022 and 29 July 2023
209,629
Amortisation and impairment
At 31 July 2022 and 29 July 2023
209,629
Carrying amount
At 29 July 2023
-
0
At 30 July 2022
-
0
6
Tangible fixed assets
Short leasehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 31 July 2022
589,892
1,442,828
440,723
2,473,443
Additions
11,214
99,124
97,625
207,963
Disposals
-
0
(26,636)
(65,833)
(92,469)
At 29 July 2023
601,106
1,515,316
472,515
2,588,937
Depreciation and impairment
At 31 July 2022
501,204
1,041,358
273,717
1,816,279
Depreciation charged in the year
19,085
87,257
98,597
204,939
Eliminated in respect of disposals
-
0
(25,119)
(59,222)
(84,341)
At 29 July 2023
520,289
1,103,496
313,092
1,936,877
Carrying amount
At 29 July 2023
80,817
411,820
159,423
652,060
At 30 July 2022
88,688
401,470
167,006
657,164
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
264,584
268,915
Amounts owed by group undertakings
694,715
469,632
Other debtors
40,009
26,037
Prepayments and accrued income
100,451
106,412
1,099,759
870,996
FERGUSONS BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 8 -
8
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
9
-
0
3,048
Trade creditors
494,247
393,963
Amounts owed to group undertakings
500,000
400,000
Corporation tax
-
0
70,508
Accruals and deferred income
166,946
200,175
1,161,193
1,067,694
9
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
3,048

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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Michael Walker
Statutory Auditor:
Azets Audit Services
11
Operating lease commitments

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

2023
2022
£
£
203,051
356,891
FERGUSONS BAKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JULY 2023
- 9 -
12
Financial commitments, guarantees and contingent liabilities

The company has cross guaranteed the following borrowings of D McGhee & Sons Limited and Kerr's Bakery Limited:

 

a) The bank overdraft facility, which amounted to £1,832,304 at 31 July 2023 (2022: £1,005,797).

 

b) Loans due amounts to £981,699 at 31 July 2023 (2022: £nil).

13
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
82,080
-
14
Parent company

The parent company of Fergusons Bakers Limited is D McGhee & Sons Limited, a company registered in the UK.

The ultimate controlling party is McGhee Group Limited.

The smallest group the company is consolidated in to is D McGhee & Sons Limited. The largest group the company is consolidated in to is McGhee Group Limited.

2023-07-292022-07-31false29 February 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedG McGheeI C McGheeI C McGheefalse2024-02-29SC2226402022-07-312023-07-29SC222640bus:Director12022-07-312023-07-29SC222640bus:CompanySecretaryDirector12022-07-312023-07-29SC222640bus:Director22022-07-312023-07-29SC222640bus:CompanySecretary12022-07-312023-07-29SC222640bus:RegisteredOffice2022-07-312023-07-29SC2226402023-07-29SC2226402022-07-30SC222640core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-07-29SC222640core:PlantMachinery2023-07-29SC222640core:MotorVehicles2023-07-29SC222640core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-07-30SC222640core:PlantMachinery2022-07-30SC222640core:MotorVehicles2022-07-30SC222640core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-29SC222640core:CurrentFinancialInstrumentscore:WithinOneYear2022-07-30SC222640core:CurrentFinancialInstruments2023-07-29SC222640core:CurrentFinancialInstruments2022-07-30SC222640core:ShareCapital2023-07-29SC222640core:ShareCapital2022-07-30SC222640core:RetainedEarningsAccumulatedLosses2023-07-29SC222640core:RetainedEarningsAccumulatedLosses2022-07-30SC222640core:ShareCapital2021-07-31SC222640core:RetainedEarningsAccumulatedLosses2021-07-31SC222640core:RetainedEarningsAccumulatedLosses2021-08-012022-07-30SC2226402021-08-012022-07-30SC222640core:RetainedEarningsAccumulatedLosses2022-07-312023-07-29SC222640core:Goodwill2022-07-312023-07-29SC222640core:LandBuildingscore:LongLeaseholdAssets2022-07-312023-07-29SC222640core:PlantMachinery2022-07-312023-07-29SC222640core:MotorVehicles2022-07-312023-07-29SC222640core:NetGoodwill2022-07-30SC222640core:NetGoodwill2023-07-29SC222640core:NetGoodwill2022-07-30SC222640core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-07-30SC222640core:PlantMachinery2022-07-30SC222640core:MotorVehicles2022-07-30SC2226402022-07-30SC222640core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-07-312023-07-29SC222640core:WithinOneYear2023-07-29SC222640core:WithinOneYear2022-07-30SC222640bus:PrivateLimitedCompanyLtd2022-07-312023-07-29SC222640bus:SmallCompaniesRegimeForAccounts2022-07-312023-07-29SC222640bus:FRS1022022-07-312023-07-29SC222640bus:Audited2022-07-312023-07-29SC222640bus:FullAccounts2022-07-312023-07-29xbrli:purexbrli:sharesiso4217:GBP