REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Period 1 November 2022 to 28 October 2023 |
for |
Fosters Bakery (Staincross) Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Period 1 November 2022 to 28 October 2023 |
for |
Fosters Bakery (Staincross) Limited |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Contents of the Financial Statements |
for the period 1 November 2022 to 28 October 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Fosters Bakery (Staincross) Limited |
Company Information |
for the period 1 November 2022 to 28 October 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
42 Pitt Street |
Barnsley |
South Yorkshire |
S70 1BB |
BANKERS: |
1A Peel Square |
Barnsley |
South Yorkshire |
S70 2PL |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Strategic Report |
for the period 1 November 2022 to 28 October 2023 |
The directors present their strategic report for the period 1 November 2022 to 28 October 2023. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties that we face. |
The company continues to have a broad customer base in several baked good sectors in the UK, Europe, the Middle East and Far East. |
We consider that our key performance indicators are those that communicate the financial performance and strength of the company, those being turnover, gross margin and profit before taxation. |
Turnover increased by 7.5% to £10,451k (2022: £9,717k), gross profit margin percentage has fallen slightly to 29.0% (2022: 29.3%) and the company generated a pre-tax profit before revaluation of assets of £529k (2022: £530k). In these accounts we have changed the allocation of energy costs between prime cost and overhead costs to more accurately reflect the absorption rates. The comparative figures have been changed in this regard. |
A healthy balance sheet has been retained with shareholders' funds of £7,360k (2022 £7,130k) after the payment of a dividend. |
During the year the company continued significant renovations of the Towngate bakery site with yard resurfacing and renewing drainage systems incorporating environmental improvements. We have replaced much of the electrical installation to facilitate power generation and better understand energy use along with other environmental improvements. Investment in Solar and CHP energy saving projects continued from the previous year. |
The company has maintained a good food safety system 'AA+' BRC Global Food Standard Issue 9. |
Health and safety is of great importance to the company. It continues to look after the health, safety and welfare of its staff and other stakeholders with involvement from employee representatives. |
The company endeavours to be respectful and fair in all dealings with business partners, staff and other stakeholders - representing the Company Vision "to be your favourite baker". The Company and its people support several charitable activities. |
In the current year the business turnover to date is approximately 5% higher year on year although the pressure of higher energy and wage costs has reduced profits. The comprehensive renovation of the Towngate site is now nearing completion. The company remains in a strong position moving forward with significant cash reserves. |
ON BEHALF OF THE BOARD: |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Report of the Directors |
for the period 1 November 2022 to 28 October 2023 |
The directors present their report with the financial statements of the company for the period 1 November 2022 to 28 October 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of bakers and confectioners. |
DIVIDENDS |
An interim dividend of |
The total distribution of dividends for the period ended 28 October 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by S414c(11) of the Companies Act 2006 certain information to be contained in the directors' report as required by Schedule 7 to SI 2008/410 is included in the company's strategic report. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Report of the Directors |
for the period 1 November 2022 to 28 October 2023 |
AUDITORS |
The auditors, Paul Howley & Co Ltd, 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 |
Fosters Bakery (Staincross) Limited |
Opinion |
We have audited the financial statements of Fosters Bakery (Staincross) Limited (the 'company') for the period ended 28 October 2023 which comprise the Income Statement, Other 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, except for the possible effects on the corresponding figures of the matter described in the basis for qualified opinion section of our report, 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 qualified opinion |
We were not appointed as auditor of the company until after 31 October 2021 and thus did not observe the counting of physical inventories at the end of the that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £342,175 held at 31 October 2021 by using other audit procedures, Consequently we were unable to determine whether any adjustment to this amount at 31 October 2021 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 October 2022. |
Our audit opinion on the financial statements for the year ended 31 October 2022 was modified accordingly. Our opinion on the current years financial statements is also modified because of the possible effect of this matter on the comparability of the current years figures and the corresponding figures. |
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 qualified 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. |
Report of the Independent Auditors to the Members of |
Fosters Bakery (Staincross) Limited |
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 |
Notwithstanding our adverse opinion on the financial statements, 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. |
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. |
Report of the Independent Auditors to the Members of |
Fosters Bakery (Staincross) Limited |
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. 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 2006 Companies Act, relevant tax legislation, environmental and consumer rights regulation and anti-bribery and corruption legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls), and determined the principal risks. Audit procedures performed by the engagement team included: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to recognize non compliance with applicable laws and regulations; |
- Enquiries of the directors and management to identify any instances of non-compliance including consideration of known or suspected instances of fraud; |
- Evaluation of management's internal controls designed to prevent and detect irregularities; |
- Review of meeting minutes, and where applicable, correspondence with relevant regulatory authorities; |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Performed physical verification of tangible fixed assets to confirm existence and ownership; |
- Investigated the rationale behind significant or unusual transactions; |
- Detailed testing of journal entries and assumptions made. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected it the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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 |
Fosters Bakery (Staincross) 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 |
Chartered Certified Accountants |
Statutory Auditors |
42 Pitt Street |
Barnsley |
South Yorkshire |
S70 1BB |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Income Statement |
for the period 1 November 2022 to 28 October 2023 |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
357,607 | 479,361 |
Other operating income |
Gain/loss on revaluation of assets | 39,624 | (54,956 | ) |
OPERATING PROFIT | 5 |
Interest receivable and similar income | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL PERIOD |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Other Comprehensive Income |
for the period 1 November 2022 to 28 October 2023 |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
Notes | £ | £ |
PROFIT FOR THE PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Balance Sheet |
28 October 2023 |
28.10.23 | 31.10.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Investments | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 | 1,971 | 1,971 |
Capital redemption reserve | 20 | 29 | 29 |
Retained earnings | 20 | 7,357,859 | 7,127,560 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Statement of Changes in Equity |
for the period 1 November 2022 to 28 October 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 November 2021 | 6,970,908 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 | 7,129,560 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 28 October 2023 | 7,359,859 |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Cash Flow Statement |
for the period 1 November 2022 to 28 October 2023 |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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 |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
3,937,730 |
Cash and cash equivalents at end of period | 2 | 4,151,747 | 3,732,329 |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Cash Flow Statement |
for the period 1 November 2022 to 28 October 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
(Gain)/loss on revaluation of fixed assets | (39,624 | ) | 54,956 |
Finance income | (158,258 | ) | (31,258 | ) |
720,004 | 752,516 |
Decrease/(increase) in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
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: |
Period ended 28 October 2023 |
28.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 4,151,747 | 3,732,329 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 3,732,329 | 3,937,730 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.11.22 | Cash flow | At 28.10.23 |
£ | £ | £ |
Net cash |
Cash at bank | 3,732,329 | 419,418 | 4,151,747 |
3,732,329 | 4,151,747 |
Total | 3,732,329 | 419,418 | 4,151,747 |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements |
for the period 1 November 2022 to 28 October 2023 |
1. | STATUTORY INFORMATION |
Fosters Bakery (Staincross) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Significant judgements and estimates |
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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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, and 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. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. |
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
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 or 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 affected. 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 asset’s original effective interest rate. The impairment loss is recognised in profit or 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 the impairment not previously been recognised. The impairment reversal is recognised in profit or 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. |
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. |
Basic financial liabilities |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Other financial liabilities |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled. |
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. |
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
2. | ACCOUNTING POLICIES - continued |
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 period 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 |
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. |
Cash at bank and in hand |
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. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
United Kingdom |
Rest of the world | 644,327 | 645,520 |
All turnover is generated from the sale of goods. |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
Production | 107 | 109 |
Distribution | 9 | 12 |
Office and management | 14 | 14 |
Engineering and cleaners | 12 | 9 |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Other operating leases |
Operating lease income | ( |
) | ( |
) |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Foreign exchange differences |
Government grants | ( |
) |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Deposit account interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year adjustment | 334 | 443 |
Total current tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 22.50% (2022 - 19%). |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods |
Effects of tax incentives | (646 | ) | (24,990 | ) |
Others including change in tax rates | 16,254 | 39,867 |
Total tax charge | 138,229 | 116,943 |
The above tax rates have been used as these are the rates applicable taking into account the company's taxable profits. On 3 March 2021, the Government announced legislation would be introduced in Finance Bill 2021 to increase the main rate of Corporation Tax to 25% for the financial year 2023. This change was substantively enacted on 24 May 2021. |
8. | DIVIDENDS |
Period |
1.11.22 |
to | Year ended |
28.10.23 | 31.10.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 28 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 28 October 2023 |
NET BOOK VALUE |
At 28 October 2023 |
At 31 October 2022 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 28 October 2023 |
NET BOOK VALUE |
At 28 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: England |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 November 2022 |
Revaluations | 30,000 |
At 28 October 2023 |
NET BOOK VALUE |
At 28 October 2023 |
At 31 October 2022 |
Investment property relates to land and buildings gifted to the company in 1967 at negligible cost which are now rented to third party tenants. |
Fair value at 28 October 2023 is represented by: |
£ |
Valuation in 2021 | 100,000 |
Valuation in 2023 | 30,000 |
130,000 |
Investment property was valued on an open market value basis on 31 October 2023 by the directors . |
12. | STOCKS |
28.10.23 | 31.10.22 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
28.10.23 | 31.10.22 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
14. | CURRENT ASSET INVESTMENTS |
28.10.23 | 31.10.22 |
£ | £ |
Listed investments | 597,752 | 588,128 |
Market value of listed investments at 28 October 2023 - £ 597,752 (2022 - £ 588,128 ). |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
28.10.23 | 31.10.22 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
Included within other creditors is £200,057 (£2022 - £0) in respect of unpaid dividends. |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
28.10.23 | 31.10.22 |
£ | £ |
Accruals and deferred income |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
28.10.23 | 31.10.22 |
£ | £ |
Within one year |
Between one and five years |
18. | PROVISIONS FOR LIABILITIES |
28.10.23 | 31.10.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | 31,100 | 25,000 |
322,600 | 291,500 |
Fosters Bakery (Staincross) Limited (Registered number: 00637941) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 28 October 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Provided during period |
Balance at 28 October 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 28.10.23 | 31.10.22 |
value: | £ | £ |
Ordinary | £1 | 1,971 | 1,971 |
Called up share capital represents the nominal value of shares that have been issued. |
All ordinary shares rank pari passu. |
20. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 November 2022 | 7,127,560 | 29 | 7,127,589 |
Profit for the period |
Dividends | ( |
) | ( |
) |
At 28 October 2023 | 7,357,859 | 29 | 7,357,888 |
Retained earnings includes all current and prior period retained profits and losses. |
21. | RELATED PARTY DISCLOSURES |