First Choice Fruit and Produce Ltd 04565179 false 2022-11-01 2023-10-31 2023-10-31 The principal activity of the company is wholesale of fruit and vegetables Digita Accounts Production Advanced 6.30.9574.0 true true true false true 04565179 2022-11-01 2023-10-31 04565179 2023-10-31 04565179 bus:Director1 1 2023-10-31 04565179 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-10-31 04565179 core:RetainedEarningsAccumulatedLosses 2023-10-31 04565179 core:ShareCapital 2023-10-31 04565179 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-10-31 04565179 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-10-31 04565179 core:CurrentFinancialInstruments 2023-10-31 04565179 core:CurrentFinancialInstruments core:WithinOneYear 2023-10-31 04565179 core:Non-currentFinancialInstruments 2023-10-31 04565179 core:Non-currentFinancialInstruments core:AfterOneYear 2023-10-31 04565179 core:Goodwill 2023-10-31 04565179 core:PatentsTrademarksLicencesConcessionsSimilar 2023-10-31 04565179 core:FurnitureFittings 2023-10-31 04565179 core:LandBuildings core:OwnedOrFreeholdAssets 2023-10-31 04565179 core:MotorVehicles 2023-10-31 04565179 core:OfficeEquipment 2023-10-31 04565179 core:PlantMachinery 2023-10-31 04565179 core:DeferredTaxation 2023-10-31 04565179 core:OtherRelatedParties 2023-10-31 04565179 bus:FRS102 2022-11-01 2023-10-31 04565179 bus:Audited 2022-11-01 2023-10-31 04565179 bus:FullAccounts 2022-11-01 2023-10-31 04565179 bus:RegisteredOffice 2022-11-01 2023-10-31 04565179 bus:CompanySecretary1 2022-11-01 2023-10-31 04565179 bus:Director1 2022-11-01 2023-10-31 04565179 bus:Director1 1 2022-11-01 2023-10-31 04565179 bus:OrdinaryShareClass1 2022-11-01 2023-10-31 04565179 bus:OrdinaryShareClass1 bus:CumulativeShares 2022-11-01 2023-10-31 04565179 bus:Consolidated 2022-11-01 2023-10-31 04565179 bus:PrivateLimitedCompanyLtd 2022-11-01 2023-10-31 04565179 1 2022-11-01 2023-10-31 04565179 core:RetainedEarningsAccumulatedLosses 2022-11-01 2023-10-31 04565179 core:ShareCapital 2022-11-01 2023-10-31 04565179 core:Goodwill 2022-11-01 2023-10-31 04565179 core:PlantEquipmentUnderOperatingLeases 2022-11-01 2023-10-31 04565179 core:ComputerEquipment 2022-11-01 2023-10-31 04565179 core:FurnitureFittings 2022-11-01 2023-10-31 04565179 core:LandBuildings 2022-11-01 2023-10-31 04565179 core:LandBuildings core:OwnedOrFreeholdAssets 2022-11-01 2023-10-31 04565179 core:MotorVehicles 2022-11-01 2023-10-31 04565179 core:OfficeEquipment 2022-11-01 2023-10-31 04565179 core:PlantMachinery 2022-11-01 2023-10-31 04565179 core:DeferredTaxation 2022-11-01 2023-10-31 04565179 core:OtherRelatedParties 2022-11-01 2023-10-31 04565179 core:UKTax 2022-11-01 2023-10-31 04565179 1 2022-11-01 2023-10-31 04565179 countries:UnitedKingdom 2022-11-01 2023-10-31 04565179 2022-10-31 04565179 bus:Director1 1 2022-10-31 04565179 core:RetainedEarningsAccumulatedLosses 2022-10-31 04565179 core:ShareCapital 2022-10-31 04565179 core:Goodwill 2022-10-31 04565179 core:PatentsTrademarksLicencesConcessionsSimilar 2022-10-31 04565179 core:FurnitureFittings 2022-10-31 04565179 core:LandBuildings core:OwnedOrFreeholdAssets 2022-10-31 04565179 core:MotorVehicles 2022-10-31 04565179 core:OfficeEquipment 2022-10-31 04565179 core:PlantMachinery 2022-10-31 04565179 core:DeferredTaxation 2022-10-31 04565179 core:OtherRelatedParties 2022-10-31 04565179 2021-11-01 2022-10-31 04565179 2022-10-31 04565179 bus:Director1 1 2022-10-31 04565179 bus:OrdinaryShareClass1 bus:CumulativeShares 2022-10-31 04565179 core:HirePurchaseContracts core:CurrentFinancialInstruments 2022-10-31 04565179 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2022-10-31 04565179 core:CurrentFinancialInstruments 2022-10-31 04565179 core:CurrentFinancialInstruments core:WithinOneYear 2022-10-31 04565179 core:Non-currentFinancialInstruments 2022-10-31 04565179 core:Non-currentFinancialInstruments core:AfterOneYear 2022-10-31 04565179 core:Goodwill 2022-10-31 04565179 core:PatentsTrademarksLicencesConcessionsSimilar 2022-10-31 04565179 core:FurnitureFittings 2022-10-31 04565179 core:LandBuildings core:OwnedOrFreeholdAssets 2022-10-31 04565179 core:MotorVehicles 2022-10-31 04565179 core:OfficeEquipment 2022-10-31 04565179 core:PlantMachinery 2022-10-31 04565179 core:OtherRelatedParties 2022-10-31 04565179 bus:Director1 1 2021-11-01 2022-10-31 04565179 bus:OrdinaryShareClass1 2021-11-01 2022-10-31 04565179 1 2021-11-01 2022-10-31 04565179 core:RetainedEarningsAccumulatedLosses 2021-11-01 2022-10-31 04565179 core:ShareCapital 2021-11-01 2022-10-31 04565179 core:PlantEquipmentUnderOperatingLeases 2021-11-01 2022-10-31 04565179 core:UKTax 2021-11-01 2022-10-31 04565179 2021-10-31 04565179 bus:Director1 1 2021-10-31 04565179 core:RetainedEarningsAccumulatedLosses 2021-10-31 04565179 core:ShareCapital 2021-10-31 04565179 core:OtherRelatedParties 2021-10-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 04565179

First Choice Fruit and Produce Ltd

Annual Report and Financial Statements

for the Year Ended 31 October 2023

 

First Choice Fruit and Produce Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Director's Report

4 to 5

Statement of Director's Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 27

 

First Choice Fruit and Produce Ltd

Company Information

Director

Mr Daniel McCullough

Company secretary

Siobhan McCullough

Registered office

210-214 Distribution Block,
New Covent Garden Market
London
SW8 5EN

Auditors

Mehta & Tengra
Chartered Accountants
Statutory Auditors
9 Berners Place
London
W1T 3AD

 

First Choice Fruit and Produce Ltd

Strategic Report for the Year Ended 31 October 2023

The director presents his strategic report for the year ended 31 October 2023.

Principal activity

The principal activity of the company is wholesale of fruit and vegetables

Fair review of the business

The results for the year and financial position of the company are shown in the annexed financial statements. Since the year end, the Company has continued to trade profitably.

Principal risks and uncertainties

The principal risk of uncertainties are:

Management risks

The management of the company is tightly controlled by the director. Strategic matters and future development decisions are carried out by the director.

Credit risks

The Company has a broad supplier base to ensure orderly continuity of supply of products.

Exchange risks

The company is exposed to credit given to its customers. This is managed by regular reviews and controls of outstanding amounts.

Liquidity risks

The company is exposed to credit given to its customers. This is managed by regular reviews and controls of outstanding amounts.

Supply risks

The company is exposed to credit given to its customers. This is managed by regular reviews and controls of outstanding amounts.

Regulatory risks

The marketplace is competitive, hence there is a risk of business loss. To mitigate against this risk we have established a wide portfolio of customers, and continually focus on value, service & quality to ensure we retain those customers.

Commercial risks

The Company's activities are subject to certain regulations around health and safety. The Company has detailed policies and training plans in place for employees to ensure compliance with regulations.

Financial risks

See Financial Instruments under director's report.

 

First Choice Fruit and Produce Ltd

Strategic Report for the Year Ended 31 October 2023

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Gross Profit to turnover

%

34.81

34.04

Net profit/(loss) before tax to turnover

%

6.30

5.50

Trade debtors to sales

days

60.00

57.00

Trade creditors to cos

days

61.00

103.00

Current assets: current liabilities

times

1.77

1.41

Net cash balance

£

1,075,832.00

976,193.00

Approved and authorised by the director on 30 July 2024
 

.........................................
Mr Daniel McCullough
Director

 

First Choice Fruit and Produce Ltd

Director's Report for the Year Ended 31 October 2023

The director presents his report and the financial statements for the year ended 31 October 2023.

Director of the company

The director who held office during the year was as follows:

Mr Daniel McCullough

Results and dividends

Turnover of the business for the year ended 31 October 2023 was £19,242,359 (2022: £16,898,236). Profit for the financial year after taxation amounted to £1,223,760 (2022 £633,900).

The total distribution of dividends for the year ended 31 October 2023 will be £254,000.

Financial instruments

Objectives and policies

Management regularly monitor foreign currency exchange rates.
Management also keep an eye on the interest rates.
The company’s objectives is to minimise exchange losses and reduce the debtors days in order to reduce interest costs.

Price risk, credit risk and liquidity risk

Price risk

Price variability in the supply chain caused by variable weather conditions in any year affecting levels of available supply and hence price.

Interest rate risk

The company finances its operations a mixture of retained profits, hire purchases, bank loans and inter company loans.

Credit risk

The company monitors credit risk closely and considers that its current policies of credit checks meet its objective of managing exposure to credit risk.

Future developments

The company expects to maintain its relationship with its suppliers and the loyalty of its customers and hopes to continue exploring new markets.

Related Party Transaction

The Director had no material interest at any time during the year in any contracts of significance in relation to the business of the Company other then that stated in note 23 to the financial statements.

Taxation Status

The company is a close company within the provision of the Income and Corporation Taxes Act 2010.

Post balance sheet events

No events of note has taken place since balance sheet date.

Fixed assets

Changes in fixed assets are shown in notes 12 & 13 to the financial statement.

 

First Choice Fruit and Produce Ltd

Director's Report for the Year Ended 31 October 2023

Disclosure of information to the auditors

The director has taken 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. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Mehta & Tengra as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Approved and authorised by the director on 30 July 2024
 

.........................................
Mr Daniel McCullough
Director

 

First Choice Fruit and Produce Ltd

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

 

First Choice Fruit and Produce Ltd

Independent Auditor's Report to the Members of First Choice Fruit and Produce Ltd

Opinion

We have audited the financial statements of First Choice Fruit and Produce Ltd (the 'company') for the year ended 31 October 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 auditor 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.

However, with respects to the opening balances and comparative information shown on the financial statements, we have not sought to obtain further audit evidence as the financial statements for the previous year were not audited. In forming our opinion, we have used other audit evidence to evaluate the overall adequacy of the information shown on the financial statements. We believe that the audit evidence that we have obtained, is sufficient and appropriate to provide a basis of our opinion.
 

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were authorised for issue.

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

Other information

The director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

 

First Choice Fruit and Produce Ltd

Independent Auditor's Report to the Members of First Choice Fruit and Produce Ltd

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's Report.

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 director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 6], the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 an auditor’s report 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:

 

First Choice Fruit and Produce Ltd

Independent Auditor's Report to the Members of First Choice Fruit and Produce Ltd

In identifying and assessing risks of material misstatements in respect of irregularities, including fraud and
non-compliance and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets.
- results of our enquiries of management about their own identification and assessment of the risks and
irregularities;
- any matters we identified having obtained and reviewed the company's documentation of their policies and
procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified that greatest potential for fraud is revenue recognition. In common with all
audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in,
focusing on provisions of those laws and regulations that had a direct effect on the determination of material
amounts and disclosures in the financial statements. The key laws and regulations we considered in this context
include the UK Companies Act, pension legislation and tax legislation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor’s report 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.

 

First Choice Fruit and Produce Ltd

Independent Auditor's Report to the Members of First Choice Fruit and Produce Ltd

........................................................................
J J Mehta (Senior Statutory Auditor)
For and on behalf of Mehta & Tengra,
Chartered Accountants
Statutory Auditors
9 Berners Place
London
W1T 3AD

30 July 2024

 

First Choice Fruit and Produce Ltd

Profit and Loss Account for the Year Ended 31 October 2023

Note

2023
£

2022
£

Turnover

3

19,242,359

16,898,236

Cost of sales

 

(12,473,779)

(11,146,181)

Gross profit

 

6,768,580

5,752,055

Administrative expenses

 

(5,563,878)

(4,852,593)

Other operating income

4

-

820

Operating profit

5

1,204,702

900,282

Other interest receivable and similar income

6

19,134

-

Interest payable and similar expenses

7

(519)

29,267

   

18,615

29,267

Profit before tax

 

1,223,317

929,549

Tax on profit

11

(351)

(295,649)

Profit for the financial year

 

1,222,966

633,900

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

First Choice Fruit and Produce Ltd

Statement of Comprehensive Income for the Year Ended 31 October 2023

2023
£

2022
£

Profit for the year

1,222,966

633,900

Total comprehensive income for the year

1,222,966

633,900

 

First Choice Fruit and Produce Ltd

(Registration number: 04565179)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

2

2

Tangible assets

13

1,467,548

1,551,409

 

1,467,550

1,551,411

Current assets

 

Stocks

14

345,539

462,863

Debtors

15

3,776,092

3,389,627

Cash at bank and in hand

 

1,375,832

1,376,193

 

5,497,463

5,228,683

Creditors: Amounts falling due within one year

17

(3,328,082)

(3,921,278)

Net current assets

 

2,169,381

1,307,405

Total assets less current liabilities

 

3,636,931

2,858,816

Creditors: Amounts falling due after more than one year

17

(684,894)

(671,826)

Provisions for liabilities

18

(150,182)

(354,101)

Net assets

 

2,801,855

1,832,889

Capital and reserves

 

Called up share capital

1

1

Retained earnings

2,801,854

1,832,888

Shareholders' funds

 

2,801,855

1,832,889

Approved and authorised by the director on 30 July 2024
 

.........................................
Mr Daniel McCullough
Director

 

First Choice Fruit and Produce Ltd

Statement of Changes in Equity for the Year Ended 31 October 2023

Share capital
£

Retained earnings
£

Total
£

At 1 November 2022

1

1,832,888

1,832,889

Profit for the year

-

1,222,966

1,222,966

Dividends

-

(254,000)

(254,000)

At 31 October 2023

1

2,801,854

2,801,855

Share capital
£

Retained earnings
£

Total
£

At 1 November 2021

1

1,443,488

1,443,489

Profit for the year

-

633,900

633,900

Dividends

-

(244,500)

(244,500)

At 31 October 2022

1

1,832,888

1,832,889

 

First Choice Fruit and Produce Ltd

Statement of Cash Flows for the Year Ended 31 October 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

1,222,966

633,900

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

491,611

317,803

Loss on disposal of tangible assets

34,139

-

Finance income

6

(19,134)

-

Finance costs

7

51,233

26,638

Income tax expense

11

351

295,649

 

1,781,166

1,273,990

Working capital adjustments

 

Decrease in stocks

14

117,324

11,114

Increase in trade debtors

15

(386,465)

(1,071,004)

(Decrease)/increase in trade creditors

17

(774,970)

1,454,984

Cash generated from operations

 

737,055

1,669,084

Income taxes paid

11

(42,319)

(10,663)

Net cash flow from operating activities

 

694,736

1,658,421

Cash flows from investing activities

 

Interest received

6

19,134

-

Acquisitions of tangible assets

(441,888)

(1,345,456)

Proceeds from sale of tangible assets

 

(1)

-

Net cash flows from investing activities

 

(422,755)

(1,345,456)

Cash flows from financing activities

 

Interest paid

7

(51,233)

(26,638)

Proceeds from bank borrowing draw downs

 

(100,000)

(100,000)

Payments to finance lease creditors

 

135,734

98,510

Dividends paid

22

(254,000)

(244,500)

Net cash flows from financing activities

 

(269,499)

(272,628)

Net increase in cash and cash equivalents

 

2,482

40,337

Cash and cash equivalents at 1 November

 

1,373,351

1,333,012

Effect of exchange rate fluctuations on cash held

 

(1)

2

Cash and cash equivalents at 31 October

 

1,375,832

1,373,351

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
210-214 Distribution Block,
New Covent Garden Market
London
SW8 5EN
United Kingdom

These financial statements were authorised for issue by the director on 30 July 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax and returns.

The company recognises revenue when:
The amount of revenue can be reliably measured and
Goods are loaded for delivery;

Foreign currency transactions and balances

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.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

Taxation for the year 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.

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

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% on reducing balance

Fixture and fittings

25% on reducing balance

Motor vehicle

25% on reducing balance

Computer equipment

25% reducing balance

Improvement to property

25% reducing balance

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business.

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.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the
lease.
Interest on hire purchases is written off on a straight line basis over the period of the term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The Company only enters into basic financial instrument transactions that result in the recognition of financial
assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties loans to
related parties and investments in non-puttable ordinary shares.

 Recognition and measurement
Financial assets that are measured at cost and amortised cost are assessed at the at the end of each reporting
period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is
recognised in the Statement of Comprehensive Income.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an
enforceable right to set off the recognised amounts and there is in intention to settle on a net basis or to realise
the asset and settle the liability simultaneously.

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

19,242,359

16,463,841

Grants received

-

4,915

Other revenue

-

429,480

19,242,359

16,898,236

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

-

820

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

491,611

317,803

Operating lease expense - plant and machinery

29,400

52,623

Loss on disposal of property, plant and equipment

34,139

-

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

15,810

-

Other finance income

3,324

-

19,134

-

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

21,918

10,592

Interest on obligations under finance leases and hire purchase contracts

29,315

16,046

Foreign exchange gain

(50,714)

(55,905)

519

(29,267)

8

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2023
£

2022
£

Wages and salaries

2,773,406

2,393,409

Social security costs

261,306

210,900

Pension costs, defined contribution scheme

40,000

38,667

Other post-employment benefit costs

41,190

27,874

3,115,902

2,670,850

The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

8

10

Sales, marketing and distribution

6

6

Other departments

85

56

99

72

9

Director's remuneration

The director's remuneration for the year was as follows:

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

2023
£

2022
£

Remuneration

18,000

60,579

Contributions paid to money purchase schemes

40,000

38,667

58,000

99,246

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

8,000

-

Other fees to auditors

All other non-audit services

16,000

18,475


 

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

245,055

41,063

UK corporation tax adjustment to prior periods

(40,786)

-

204,269

41,063

Deferred taxation

Arising from origination and reversal of timing differences

(203,918)

254,586

Tax expense in the income statement

351

295,649

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

12

Intangible assets

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 November 2022

1

1

2

At 31 October 2023

1

1

2

Amortisation

Carrying amount

At 31 October 2023

1

1

2

At 31 October 2022

1

1

2

13

Tangible assets

Improvements to property
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Cost or valuation

At 1 November 2022

226,958

104,123

1,022,366

136,896

Additions

25,240

22,653

16,065

-

Disposals

-

(50,654)

(90,085)

(76,730)

At 31 October 2023

252,198

76,122

948,346

60,166

Depreciation

At 1 November 2022

91,951

80,637

233,250

123,494

Charge for the year

40,062

9,076

198,817

3,351

Eliminated on disposal

-

(40,843)

(80,163)

(69,434)

At 31 October 2023

132,013

48,870

351,904

57,411

Carrying amount

At 31 October 2023

120,185

27,252

596,442

2,755

At 31 October 2022

135,007

23,486

789,116

13,402

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

Motor vehicles
 £

Total
£

Cost or valuation

At 1 November 2022

1,040,852

2,531,195

Additions

377,930

441,888

Disposals

(25,151)

(242,620)

At 31 October 2023

1,393,631

2,730,463

Depreciation

At 1 November 2022

450,454

979,786

Charge for the year

240,305

491,611

Eliminated on disposal

(18,042)

(208,482)

At 31 October 2023

672,717

1,262,915

Carrying amount

At 31 October 2023

720,914

1,467,548

At 31 October 2022

590,398

1,551,409

14

Stocks

2023
£

2022
£

Raw materials, consumables and finished goods

345,539

462,863

15

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

3,201,705

2,661,125

Amounts owed by related parties

23

159,224

158,264

Corporation tax recoverable

 

10,663

10,662

Prepayments

 

230,783

71,745

Accrued income

 

-

217,420

Other debtors

 

41,515

41,515

Staff loans

 

3,495

3,950

Other taxation

 

128,707

191,319

Director current account

 

-

33,627

   

3,776,092

3,389,627

Part of the rent deposit is secured to the landlord by a rent deposit deed for all monies due from the company.

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

16

Cash and cash equivalents

2023
£

2022
£

Cash on hand

4,743

4,744

Cash at bank

343,730

651,533

Short-term deposits

1,027,359

719,916

1,375,832

1,376,193

Bank overdrafts

-

(2,842)

Cash and cash equivalents in statement of cash flows

1,375,832

1,373,351

17

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

21

198,615

178,791

Trade creditors

 

2,086,720

3,186,808

Social security and other taxes

 

166,291

57,059

Outstanding defined contribution pension costs

 

15,052

-

Accruals

 

430,158

457,557

Income tax liability

11

203,013

41,063

Amounts owed to related parties

23

227,130

-

Directors current account

 

1,103

-

 

3,328,082

3,921,278

Due after one year

 

Loans and borrowings

21

684,894

671,826

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 November 2022

354,101

354,101

Depreciation in excess of capital allowances

(203,919)

(203,919)

At 31 October 2023

150,182

150,182

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £40,000 (2022 - £38,667).

Contributions totalling £15,052 (2022 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

       

21

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

300,000

400,000

Hire purchase contracts

384,894

271,826

684,894

671,826

Current loans and borrowings

2023
£

2022
£

Bank overdrafts

-

2,842

Hire purchase contracts

198,615

175,949

198,615

178,791

The bank facilitates are secured by a fixed charge, floating charge covering all the property or undertaking of the company together with a charge over the cash deposit with the bank.

 

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

22

Dividends

Final dividends paid

2023
£

2022
£

Final dividend of £254,000.00 (2022 - £244,500.00) per each Ordinary

254,000

244,500

 

 

23

Related party transactions

Transactions with the director

2023

At 1 November 2022
£

Advances to director
£

Repayments by director
£

At 31 October 2023
£

Mr Daniel McCullough

33,628

141,799

(176,531)

(1,104)

2022

At 1 November 2021
£

Advances to director
£

At 31 October 2022
£

Mr Daniel McCullough

32,808

820

33,628

Interest of £3,324 has been charged.

Dividends paid to the director

2023
£

2022
£

Mr Daniel McCullough

Dividend

254,000

244,500

 

 

Summary of transactions with other related parties

Companies controlled by the director and shareholder.
 

Loans to related parties

2023

Other related parties
£

Total
£

At start of period

158,264

158,264

Advanced

960

960

At end of period

159,224

159,224

 

First Choice Fruit and Produce Ltd

Notes to the Financial Statements for the Year Ended 31 October 2023

2022

Other related parties
£

Total
£

At start of period

158,264

158,264

At end of period

158,264

158,264

Terms of loans to related parties

Due on demand

Loans from related parties

2023

Other related parties
£

Total
£

Advanced

227,130

227,130

At end of period

227,130

227,130

Terms of loans from related parties

Due on demand

24

Ultimate parent undertaking

The ultimate controlling party is Daniel McCullough.