REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
CASTLE DAIRIES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
CASTLE DAIRIES LIMITED |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
CASTLE DAIRIES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
(Statutory Auditor) |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The directors present their strategic report for the year ended 31 October 2023. |
REVIEW OF BUSINESS |
The principal activity of the company during the year was that of butter manufacturing, butter packing and the production of spreadable butter. |
The Directors consider that the business' key performance indicators are reflected within the financial statements which are detailed below: |
2023 | 2022 | 2021 |
£ | £ | £ |
Turnover | 54,585,180 | 53,988,615 | 36,515,800 |
Turnover Growth | 1.1% | 47.9% | 9.6% |
Gross Margin | 12.3% | 6.0% | 12.5% |
Turnover in value terms increased by 1.1% compared to the prior year. Reductions in dairy commodity prices during the year resulted in lower sales value per tonne but the impact of this was more than offset by an increase in sales volume compared to 2022. |
Sales to its major retail customers accounted for the majority of Company's turnover during the year. |
Improvements in operational performance also contributed to the turnround in profitability compared to 2022, despite the impact of significantly higher heat and power costs. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The company manages these risks by financing its operations through retained profits and an ongoing program of invoice discounting supplemented by long-term bank borrowing. |
The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements, minimise the company's exposure to fluctuating interest rates, and match the repayment schedule of any external borrowings with the future cash flows expected to arise from the company's trading activities. |
The company makes little use of financial instruments other than an operational bank account and use of its invoice discounting facility and so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company. |
ON BEHALF OF THE BOARD: |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 October 2023. |
DIVIDENDS |
During the year the Company paid interim dividends on the Ordinary shares of £25,500. Payments of £0.49 per share were paid on 29 April 2023. The Directors recommend that no final dividend be paid on these shares. |
During the year the company paid interim dividends on the Ordinary A class shares of £50,000. Payments of £0.57p per share were paid on 16 June 2023 and £0.19p per share were paid on 10 August 2023 and 18 January 2023. The Directors recommend that no final dividend be paid on these shares. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
CHARITABLE DONATIONS AND EXPENDITURE |
The Company made charitable donations of £11,300 (2022: £1,200) during the year. |
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. |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
AUDITORS |
The auditors, Xeinadin Audit Limited, 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 |
CASTLE DAIRIES LIMITED |
Opinion |
We have audited the financial statements of Castle Dairies Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of 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 October 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 |
CASTLE DAIRIES 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 three, 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. |
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: |
The audit was planned on the basis that the testing undertaken and procedures carried out would have a reasonable expectation of detecting any instances of irregularity including fraud. The plan involved assessing the risk of the financial statements containing material misstatements taking into account various factors such as the control systems in place, the standard of record keeping and an assessment of the influence and role of the stakeholders involved. The audit plan was followed and benefitted from the audit teams knowledge of the client. They considered how fraud may occur and where the financial statements may be susceptible to error. |
Suitable transaction sample testing was made on the high risk areas of the financial statements. Enquiries were made of the company directors for information and explanations as required during the course of the audit and any contentious areas appropriately challenged to ensure that sufficient audit evidence was obtained. |
The procedures and testing undertaken as a result of our risk assessments were deemed sufficient to identify material errors for which adjustment was then made in the financial statements. There is however no guarantee that all errors, including those related to fraud, would be identified as part of the audit. |
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. |
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 |
CASTLE DAIRIES 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 |
(Statutory Auditor) |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
4,905,347 | 4,661,155 |
1,842,694 | (1,401,908 | ) |
Other operating income | 4 |
OPERATING PROFIT/(LOSS) | 6 | ( | ) |
Interest receivable and similar income |
1,934,972 | (1,353,407 | ) |
Interest payable and similar expenses | 8 |
PROFIT/(LOSS) BEFORE TAXATION | ( | ) |
Tax on profit/(loss) | 9 | ( | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( | ) |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
BALANCE SHEET |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( | ) | ( | ) |
PROVISIONS FOR LIABILITIES | 21 | ( | ) | ( | ) |
ACCRUALS AND DEFERRED INCOME | 22 | ( | ) | ( | ) |
NET ASSETS | 7,967,685 | 6,581,426 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 105,000 | 105,000 |
Share premium | 24 | 50,000 | 50,000 |
Revaluation reserve | 24 | 162,679 | 200,955 |
Capital redemption reserve | 24 | 185,000 | 185,000 |
Retained earnings | 24 | 7,465,006 | 6,040,471 |
SHAREHOLDERS' FUNDS | 7,967,685 | 6,581,426 |
The financial statements were approved by the Board of Directors and authorised for issue on |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 November 2021 | 105,000 | 7,226,242 | 50,000 |
Changes in equity |
Dividends | - | (50,800 | ) | - |
Total comprehensive income | - | (1,134,971 | ) | - |
Balance at 31 October 2022 | 105,000 | 6,040,471 | 50,000 |
Changes in equity |
Dividends | - | (75,500 | ) | - |
Total comprehensive income | - | 1,500,035 | - |
Balance at 31 October 2023 | 105,000 | 7,465,006 | 50,000 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 November 2021 | 210,524 | 185,000 | 7,776,766 |
Changes in equity |
Dividends | - | - | (50,800 | ) |
Total comprehensive income | (9,569 | ) | - | (1,144,540 | ) |
Balance at 31 October 2022 | 200,955 | 185,000 | 6,581,426 |
Changes in equity |
Dividends | - | - | (75,500 | ) |
Total comprehensive income | (38,276 | ) | - | 1,461,759 |
Balance at 31 October 2023 | 162,679 | 185,000 | 7,967,685 |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( | ) |
Interest paid | ( | ) | ( | ) |
Interest element of hire purchase payments paid | ( | ) | ( | ) |
Tax paid |
Net cash from operating activities | ( | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( | ) | ( | ) |
Sale of tangible fixed assets | ( | ) |
Interest received |
Net cash from investing activities | ( | ) | ( | ) |
Cash flows from financing activities |
New long term loan |
New short term loan |
Loan repayments in year | (1,551,970 | ) | (20,783 | ) |
Increase/(Decrease)in agreements in year |
Equity dividends paid | ( | ) | ( | ) |
Net cash from financing activities | ( | ) |
Decrease in cash and cash equivalents | ( | ) | ( | ) |
Cash and cash equivalents at beginning of year | 2 | 327,781 |
Cash and cash equivalents at end of year | 2 | 8,822 | 144,551 |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit/(loss) before taxation | ( | ) |
Depreciation charges |
Loss on disposal of fixed assets |
Government grants | ( | ) | ( | ) |
Finance costs | 30,543 | 17,120 |
Finance income | (928 | ) | (14 | ) |
2,429,100 | (901,068 | ) |
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 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 8,822 | 144,551 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 144,551 | 327,781 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 144,551 | (135,729 | ) | 8,822 |
144,551 | ( | ) | 8,822 |
Debt |
Finance leases | (742,494 | ) | (98,460 | ) | (840,954 | ) |
Debts falling due within 1 year | (1,740,699 | ) | 1,529,008 | (211,691 | ) |
Debts falling due after 1 year | (121,041 | ) | 121,041 | - |
(2,604,234 | ) | 1,551,589 | (1,052,645 | ) |
Total | (2,459,683 | ) | 1,415,860 | (1,043,823 | ) |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | STATUTORY INFORMATION |
Castle Dairies Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The Directors have reviewed and considered relevant information in making their assessment of going concern. The Directors have concluded that they can continue to adopt the going concern basis in preparing the financial statements. |
Preparation of consolidated financial statements |
The financial statements contain information about Castle Dairies Limited as an individual company and do not contain consolidated financial information as the parent of a group. Consolidated financial statements have not been prepared as the inclusion of the subsidiary company, The Softer Butter Co. Limited, is not material for the purpose of giving a true and fair view. |
Significant judgements and estimates |
The following significant judgements and estimates are included in the accounts: |
Property revaluation. This is based on an independent valuation undertaken in 2018. The directors have considered the valuation and do not consider that there have been any significant changes resulting in a need to revalue in the current year. |
Estimated useful lives of fixed assets. The directors have reviewed the estimated useful lives of each category of fixed asset, particularly in the context of those assets which were disposed of during the period, and consider the estimated useful lives to remain appropriate. |
Stock provisions. The directors have reviewed the carrying value of stock to determine whether any provisions to reduce stock costs to net realisable value are required. Such provisions are reviewed in the context of post year end transactions and in particular the trends for butter prices around the year end. |
Bad debt provisions. The directors have reviewed the trade debts existing at the year end in the context of the history of recovery for each individual customer, the ageing of the debt, and the actual recovery of such debts up to the date of signing of the accounts. |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. |
Turnover is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amounts can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred in respect of the transaction can be measured reliably. This is usually at the point when the goods have been dispatched. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised evenly over their estimated useful life of ten years. |
Development costs are being amortised evenly over their estimated useful life of between four and twenty years depending on the project. |
Tangible fixed assets |
Tangible fixed assets are stated at cost or revaluation less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, plus any costs directly attributable to bringing the asset to its working condition for intended use. Revaluation for property assets used within the business is based on periodic independent valuations. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | 4% straight line on cost |
Motor vehicles | 25% straight line on cost |
Operating equipment | 10% - 33% straight line on cost |
Office equipment (including computers) | 25% straight line on cost |
Land is not depreciated. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Government grants |
Government grants are recognised in the profit and loss account |
- over the expected useful economic lives of the fixed assets to which they relate; or |
- where the grants are compensation for specific costs, such as furlough grants, in the period matching the related charge. |
Cash and cash equivalents |
Cash and cash equivalents comprise bank balances including cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less which are available on demand. |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | TURNOVER |
The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Government grants |
5. | 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 |
Administration | 34 | 34 |
Production | 77 | 72 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
The remuneration of the Directors, who are the key management personnel of the company, is set out above. |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Patents and licences amortisation |
Development costs amortisation |
Audit fees |
Foreign exchange differences |
7. | EXCEPTIONAL COSTS |
2023 | 2022 |
£ | £ |
Discontinued project costs | - | (443,471 | ) |
During the prior year the company undertook a feasibility project looking at a broad spectrum of things that affect the operation of the trade, its environment, its future and location. The project considered the possibility of moving the trade to a new site and the costs involved in the construction of new premises. The project review delivered the conclusion that the project would not be viable at this time and as such the costs of the project are shown as a separate line item in the Profit and Loss account increasing the loss made by the company during the year by £443,471. |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Hire purchase |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Prior period adjustment | (17,359 | ) | 45,440 |
Total current tax | ( | ) |
Deferred tax | ( | ) |
Tax on profit/(loss) | ( | ) |
Reconciliation of total tax charge/(credit) 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/(loss) before tax | ( | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of | ( | ) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( | ) | ( | ) |
Utilisation of tax losses | ( | ) |
Deferred tax movement | 459,853 | (271,427 | ) |
Research & development enhanced deduction | - | (12,856 | ) |
Loss on disposal of assets | 4,868 | 3,390 |
Under/(over) provision in previous year | (17,359 | ) | 45,438 |
Losses for the period | - | 482,578 |
Discontinued project costs | - | 3,266 |
Total tax charge/(credit) | 442,670 | (225,987 | ) |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
11. | INTANGIBLE FIXED ASSETS |
Patents |
and | Development |
licences | costs | Totals |
£ | £ | £ |
COST |
At 1 November 2022 |
and 31 October 2023 |
AMORTISATION |
At 1 November 2022 |
Amortisation for year |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor |
property | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 |
Additions |
Disposals | ( | ) | ( | ) |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
Eliminated on disposal | ( | ) | ( | ) |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
At 31 October 2023 the directors are not aware of any material change in value of the freehold land and buildings and therefore the valuation has not been updated. The freehold buildings were last valued on 31 October 2018 by Cooke & Arkwright Chartered Surveyors on a fair value basis. The surveyors are qualified members of the Royal Institute of Chartered Surveyors. The historical cost and the net book value of the property based on historical cost is £572,000 and £293,943 respectively. |
Included in the above are assets held under finance lease agreements. The net book values of the assets was £676,566 (2022: £801,590). The depreciation charge for the year was £107,223 (2022: £101,705). |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
13. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: The Softer Butter Co. Limited, Pontygwindy Road, Caerphilly, United Kingdom, CF83 3HU |
Nature of business: |
% |
Class of shares: | holding |
100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
14. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials |
Packaging & other consumables | 437,745 | 277,115 |
Finished goods |
The cost of stock recognised as an expense during the year was £41,986,955 (2022: £48,414,190). |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
VAT |
Prepayments |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Other loans (see note 18) |
Hire purchase contracts (see note 19) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 18) |
Hire purchase contracts (see note 19) |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
19. | LEASING AGREEMENTS - continued |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | 840,954 | 742,494 |
Obligations under hire purchase contracts are secured on the assets to which they relate. |
Other loans represent advances on trade debtors and is secured on the individual trade debts, together with a fixed and floating charge over the assets of the business. |
21. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Provided during year |
Balance at 31 October 2023 |
22. | ACCRUALS AND DEFERRED INCOME |
2023 | 2022 |
£ | £ |
Deferred government grants | 346,534 | 166,112 |
CASTLE DAIRIES LIMITED (REGISTERED NUMBER: 02028054) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
52,500 | Ordinary | £1 | 52,500 | 52,500 |
52,500 | Ordinary A | £1 | 52,500 | 52,500 |
105,000 | 105,000 |
24. | RESERVES |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 November 2022 | 50,000 | 200,955 | 185,000 |
Profit for the year |
Dividends | ( | ) | ( | ) |
Transfers | 38,276 | - | (38,276 | ) | - | - |
At 31 October 2023 | 50,000 | 162,679 | 185,000 | 7,862,685 |
25. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. Pension costs amounted to £228,016 (2022: £93,323). |
Unpaid contributions outstanding at 31 October 2023 amounted to £17,680 (2022: £16,534). |
26. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |