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REGISTERED NUMBER: 07047795 (England and Wales)














STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

FOR

MBJSC PRODUCE LIMITED

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Balance Sheet 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


MBJSC PRODUCE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2023







DIRECTORS: Mr S E Cornwell
Mrs M D Blair-Cornwell



SECRETARY: Mrs M D Blair-Cornwell



REGISTERED OFFICE: Janelle House
Hartham Lane
Hertford
Hertfordshire
SG14 1QN



REGISTERED NUMBER: 07047795 (England and Wales)



SENIOR STATUTORY AUDITOR: Gary J Cansick



AUDITORS: Gary J Cansick & Co
Chartered Accountants & Statutory Auditors
Janelle House
Janelle House
6 Hartham Lane
Hertford
Hertfordshire
SG14 1QN

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

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 principle activity of the company in the year under review was that of packaging and selling horticultural produce, this aided by in house growing of crops to help supply customers.
During the year ended 31st October 2023 MBJSC Produce Limited, had to continue to navigate high costs surrounding administration and direct costs due to inflation, energy costs did start to slowly reduce during the year which was important for continued operations.
Unfortunately, the slow decrease in inflation, along with the continued lack of produce availability in the country which continued to drive up purchase prices, and with supermarkets still making it difficult to renegotiate selling prices, made it very difficult to meet the profit margins required for the company to prosper and recover from prior year losses.

PRINCIPAL RISKS AND UNCERTAINTIES
The primary risks to the current business are sourcing produce at a price which enables the business to sell to supermarkets at the required profit margins. We have mitigated the challenges thus far to reduce the losses, however more talks have been ongoing with our customers to improve terms of contract so we can continue to supply in the future.
Now this has been reported nationwide, we hope that the supermarkets will react to what is going on in the market place, thus allowing the required margin to be made.
We strive to have solid working relationships with our suppliers, and another consideration is continuity of supply of our imports, which, again to date, has been effective. This is a positive going forward.

FINANCIAL INSTRUMENTS- FINANCIAL RISK MANAGEMENT: RISKS, OBJECTIVES AND POLICIES
The company's financial assets comprise of trade debtors and amounts owed by group undertakings. The company has assessed credit risk as low due to the level of assets held by the holding company, and with regard to its trade debtors their strong credit ratings, and the low level of loss experienced by the company over the years.
The company is exposed to price risk through both movements in market prices and due to exposure to movements in exchange rates. The company permits, but does not require, hedging instruments to be used. The company also mitigates price risk by ensuring that their suppliers are competitive and by ensuring that sales contracts, wherever possible, have flexibility allowing for increases in cost to be passed on to clients.
The company is financed through a bank loan, a new facility in the year, an invoice discount facility and working capital. The invoice discounting facility has enough headroom to ensure that the company does not have a significant cash flow or liquidity risk. The company's borrowings are based on a base plus 2.75% model for the next 2 years. Whilst there is exposure to rises in interest rates the company does not consider this to be a material risk.

KEY PERFORMANCE INDICATORS
We monitor our performance by measuring and tracking key performance indicators (KPI's) that we believe are important to our continued success. In this regard, we principally monitor throughput and margin, with separate considerations of each in connection with winter and summer business. Budgeted turnover at the margins set will generate profits essential to remain viable, provided of course costs are controlled, the most significant being labour. In busy times agency labour is essential but expensive, and it is necessary to constantly strive to set the right balance between permanently employed staff and the agency back-up. This is monitored closely and acted upon. The company prepares daily records of throughput and margin onto a weekly guide of contribution to overheads and profit, and this is invaluable in operating in a market where prices fluctuate. The KPI's will give an ongoing indication of performance in achieving our budgeted results.
The target for each year is a 6% Gross Profit Margin (GPM) based on £25,000,000 turnover. During the year the company had a 6.11% (2022 1.65%) GPM with a decrease in turnover £26m (2022 £31m). Turnover was close to the company's target and the margins were also at the company's required level, and costs continue to be reviewed on an ongoing basis.The various lines supplied are constantly reviewed for profitability, as are the suppliers, new sources constantly being sought to allow our KPI's to be met in the future.
As profits were made in they, this shows the KPIs set are those required to be met for the company to be profitable, however, due ot the previous results the company was hoping ot out perform the set KPIs to aid recovery.


MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

FUTURE DEVELOPMENTS
The immediate focus is always to concentrate on increasing margins and levels of business with our current clients, whilst remaining alive to new opportunities to serve others. We enjoy good working relationships with our customers and, essentially, with our suppliers, several of whom we have known, and worked with, for many years. Continuity of supply at the specified quality is key, and we continue to seek strong, solid working relationships with customers and suppliers alike. At such a difficult time for all, future development is as much about maintaining what we have by the quality of service, and this will open doors, and we feel well placed to continue to achieve this.

ON BEHALF OF THE BOARD:





Mrs M D Blair-Cornwell - Secretary


25 July 2024

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

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.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of packaging and selling horticultural produce, this includes the growing of crops to help supply customers.

DIVIDENDS
No dividends will be distributed for the year ended 31 October 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

Mr S E Cornwell
Mrs M D Blair-Cornwell

DISCLOSURE IN THE STRATEGIC REPORT
As permitted by Company Law certain disclosures which are required to be given in the directors' report have been disclosed in the Strategic Report. These disclosure include:

- Particulars of any important events which have occurred post balance sheet;
- An indication of likely future developments in the business; and
- In relation to financial instruments:

- The financial risk management objectives and policies of the company, and
- The exposure of the company to price risk, credit risk, liquidity risk and cash flow risk

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.

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


AUDITORS
The auditors, Gary J Cansick & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Mrs M D Blair-Cornwell - Secretary


25 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MBJSC PRODUCE LIMITED

Opinion
We have audited the financial statements of MBJSC Produce Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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.

Material uncertainty related to going concern
We draw attention to the basis of preparation note in the financial statements, which indicates that the company incurred a net profit of £247,378 during the year ended 31 October 2023 and, as of that date, the company's current liabilities exceeded its total assets by £984,785.

The directors are confident that the company will continue to be profitable over the ensuing year, and continue to reduce the deficit on the balance sheet. The current financial position of the company indicates that a material uncertainty exists, which may cast doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.

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
MBJSC PRODUCE LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with data protection and Employment laws, Health and Safety Regulation, BRC requirements and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We reviewed the documentation obtained from regulatory visits to check continued compliance, and any material improvements which may be required. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.

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
MBJSC PRODUCE 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.




Gary J Cansick (Senior Statutory Auditor)
for and on behalf of Gary J Cansick & Co
Chartered Accountants & Statutory Auditors
Janelle House
Janelle House
6 Hartham Lane
Hertford
Hertfordshire
SG14 1QN

26 July 2024

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023

31.10.23 31.10.22
Notes £    £   

TURNOVER 26,081,987 31,243,030

Cost of sales 24,488,329 30,727,286
GROSS PROFIT 1,593,658 515,744

Administrative expenses 1,245,582 1,206,033
348,076 (690,289 )

Other operating income 50,593 39,027
OPERATING PROFIT/(LOSS) 4 398,669 (651,262 )

Interest receivable and similar income - 1,081
398,669 (650,181 )

Interest payable and similar expenses 5 151,291 107,091
PROFIT/(LOSS) BEFORE TAXATION 247,378 (757,272 )

Tax on profit/(loss) 6 (156,658 ) -
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

404,036

(757,272

)

Retained earnings at beginning of year (1,506,008 ) (748,736 )

RETAINED EARNINGS AT END OF
YEAR

(1,101,972

)

(1,506,008

)

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

BALANCE SHEET
31 OCTOBER 2023

31.10.23 31.10.22
Notes £    £   
CURRENT ASSETS
Stocks 8 753,823 741,485
Debtors 9 3,725,319 4,464,932
Cash at bank and in hand 71,700 108,609
4,550,842 5,315,026
CREDITORS
Amounts falling due within one year 10 5,535,627 6,378,811
NET CURRENT LIABILITIES (984,785 ) (1,063,785 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(984,785

)

(1,063,785

)

CREDITORS
Amounts falling due after more than one
year

11

117,186

442,222
NET LIABILITIES (1,101,971 ) (1,506,007 )

CAPITAL AND RESERVES
Called up share capital 15 1 1
Retained earnings 16 (1,101,972 ) (1,506,008 )
SHAREHOLDERS' FUNDS (1,101,971 ) (1,506,007 )

The financial statements were approved by the Board of Directors and authorised for issue on 25 July 2024 and were signed on its behalf by:




Mrs M D Blair-Cornwell - Director



Mr S E Cornwell - Director


MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023

31.10.23 31.10.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 633,669 70,714
Interest paid (151,291 ) (107,091 )
Tax paid 88,401 (1,081 )
Net cash from operating activities 570,779 (37,458 )

Cash flows from investing activities
Interest received - 1,081
Net cash from investing activities - 1,081

Cash flows from financing activities
New loans in year - 750,000
Loan repayments in year (308,283 ) (249,496 )
Invoice finance (299,405 ) (383,647 )
Amount withdrawn by directors - (2,029 )
Net cash from financing activities (607,688 ) 114,828

(Decrease)/increase in cash and cash equivalents (36,909 ) 78,451
Cash and cash equivalents at beginning of
year

2

108,609

30,158

Cash and cash equivalents at end of year 2 71,700 108,609

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

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
31.10.23 31.10.22
£    £   
Profit/(loss) before taxation 247,378 (757,272 )
Finance costs 151,291 107,091
Finance income - (1,081 )
398,669 (651,262 )
(Increase)/decrease in stocks (12,338 ) 133,204
Decrease in trade and other debtors 807,870 395,848
(Decrease)/increase in trade and other creditors (560,532 ) 192,924
Cash generated from operations 633,669 70,714

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 71,700 108,609
Year ended 31 October 2022
31.10.22 1.11.21
£    £   
Cash and cash equivalents 108,609 30,158


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 108,609 (36,909 ) 71,700
108,609 (36,909 ) 71,700
Debt
Debts falling due within 1 year (2,212,278 ) 282,652 (1,929,626 )
Debts falling due after 1 year (442,222 ) 325,036 (117,186 )
(2,654,500 ) 607,688 (2,046,812 )
Total (2,545,891 ) 570,779 (1,975,112 )

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

1. STATUTORY INFORMATION

MBJSC Produce Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis.
Due to the current market conditions there is a material uncertainty in relation to the company's use of going concern basis.
In making this assessment the directors have considered the foreseeable future, which is a period of at least 12 months from the date of signing off the balance sheet.
The company during the financial year made profit before taxation of £247,378 (2022 loss of £757,272), had net current liabilities of £984,785 (2022 £1,063,785) and shareholders' funds in deficit to £1,101,971 (2022 £1,506,007).
The directors are committed to the future success of the company. The reasons for the previous poor results have been discussed previously and the KPI targets in strategic report support the company's return to profit int he current financial year. The company has adequate funding through the headroom in the company's invoice discounting arrangement and via bank financing and the group's financial position. The directors have also looked carefully at their supply chains and the company's sales contracts, having completed a complete review of the profitability of all lines and all depots supplied, in order to mitigate risk. In the next financial year the directors anticipate they will continue to make a profit, and reducing the deficit on the balance sheet.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions between wholly owned subsidiaries and parents within the group.

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue is recognised from the sale of goods when the company has transferred significant risks and rewards to the buyer in the UK this is upon goods changing hands either through delivery or collection, the amount of revenue can be measured reliably and it is probably the company will receive the amounts due under the transaction.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, after making allowances for obsolete or slow moving items.

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

2. ACCOUNTING POLICIES - continued

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 and 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.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit and loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset,the estimated future cash flows have been affect ed. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the assets' original effective interest rate. The impairment loss is recognized in profit and loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had th e impairment not previously been recognised. The impairment reversal is recognsied in profit and loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities
Basic financial liabilities, which include creditors and bank loans, are initially measured at transaction price including transaction costs and are subsequently carried at discounted 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not discounted.

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.


MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

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 profit or loss, 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.

Foreign currencies
Monetary 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.

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.

3. EMPLOYEES AND DIRECTORS
31.10.23 31.10.22
£    £   
Wages and salaries 1,631,155 1,754,737
Social security costs 147,964 171,958
Other pension costs 30,892 31,213
1,810,011 1,957,908

The average number of employees during the year was as follows:
31.10.23 31.10.22

Office Staff 10 10
Packhouse and Nursery Staff 56 56
Directors 2 2
68 68

31.10.23 31.10.22
£    £   
Directors' remuneration 13,358 14,213

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

4. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging:

31.10.23 31.10.22
£    £   
Hire of plant and machinery 10,119 5,557
Auditors' remuneration 7,000 7,000
Foreign exchange differences 4,782 22,531
Operating lease charge 182,418 179,295

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.10.23 31.10.22
£    £   
Bank interest 119,400 62,320
Bank loan interest 31,891 44,743
Other interest - 28
151,291 107,091

6. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
31.10.23 31.10.22
£    £   
Current tax:
Adjustment relating to prior years (42 ) -

Deferred tax (156,616 ) -
Tax on profit/(loss) (156,658 ) -

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.10.23 31.10.22
£    £   
Profit/(loss) before tax 247,378 (757,272 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

61,845

(143,882

)

Effects of:
Expenses not deductible for tax purposes 3,045 1,481
Utilisation of tax losses (73,221 ) -
Adjustments to tax charge in respect of previous periods (148,456 ) -
Leased expenses cars add back 129 98
Losses not recognised - 142,303
Total tax credit (156,658 ) -

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

6. TAXATION - continued

The losses which have not been recoginsed are available to offset against future profits as and when they arrive, the have not been surrendered during the year.

7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 November 2022
and 31 October 2023 152,911
AMORTISATION
At 1 November 2022
and 31 October 2023 152,911
NET BOOK VALUE
At 31 October 2023 -
At 31 October 2022 -

8. STOCKS
31.10.23 31.10.22
£    £   
Stock & growing crops 753,823 741,485

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.23 31.10.22
£    £   
Trade debtors 2,345,362 2,678,652
Amounts owed by group undertakings 792,025 808,122
Other debtors 79,305 249,446
Tax - 88,359
VAT 90,858 132,090
Deferred tax asset
Tax losses carried forward 265,527 108,911
Deposits 34,753 34,753
Prepayments 117,489 364,599
3,725,319 4,464,932

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.23 31.10.22
£    £   
Bank loans and overdrafts (see note 12) 325,036 308,283
Other loans (see note 12) 1,604,590 1,903,995
Trade creditors 3,184,865 3,861,216
Social security and other taxes 29,029 33,787
Other creditors 229,119 115,055
Pensions 9,708 9,734
Accrued expenses 153,280 146,741
5,535,627 6,378,811

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.10.23 31.10.22
£    £   
Bank loans (see note 12) 117,186 442,222

12. LOANS

An analysis of the maturity of loans is given below:

31.10.23 31.10.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 325,036 308,283
Invoice financing 1,604,590 1,903,995
1,929,626 2,212,278

Amounts falling due between one and two years:
Bank loans - 1-2 years 111,506 325,036

Amounts falling due between two and five years:
Bank loans - 2-5 years 5,680 117,186

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.10.23 31.10.22
£    £   
Within one year 2,984 -
Between one and five years 39,750 74,554
In more than five years 621,500 734,500
664,234 809,054

14. SECURED DEBTS

The following secured debts are included within creditors:

31.10.23 31.10.22
£    £   
Invoice financing 1,604,590 1,903,995

Investec Capital Solutions No.1 Limited have a fixed and floating charge over the assets of the company.

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.10.23 31.10.22
value: £    £   
1 Ordinary shares £1 1 1

MBJSC PRODUCE LIMITED (REGISTERED NUMBER: 07047795)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023

16. RESERVES
Retained
earnings
£   

At 1 November 2022 (1,506,008 )
Profit for the year 404,036
At 31 October 2023 (1,101,972 )

17. ULTIMATE PARENT COMPANY

The company's immediate and ultimate parent company is MBJSC (Holdings) Limited, a company incorporated in England.

The parent company produces consolidated accounts which can be requested from the Registered office for the parent company, Janelle House, Hartham Lane, Hertford, SG14 1QN.

18. RELATED PARTY DISCLOSURES

MBJSC Properties Limited
A company under common control

At the balance sheet date the amount owed to the company from the related party was £12,412 (2022 £3,769).