Company registration number 14501044 (England and Wales)
UNDERWOOD MEAT (TOPCO) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
UNDERWOOD MEAT (TOPCO) LIMITED
COMPANY INFORMATION
Directors
Mr C Beardshall
(Appointed 6 April 2023)
Mr Tobias Bennett
(Appointed 23 November 2022)
Mr K Jones
(Appointed 6 April 2023)
Secretary
C Bennett
Company number
14501044
Registered office
15 Ashley Business Court
Rawmarsh Rd
Rotherham
S60 1RU
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Solicitors
Shoosmiths LLP
The XYZ Building
2 Hardman Boulevard
Spinningfields
Manchester
M3 3AZ
UNDERWOOD MEAT (TOPCO) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
UNDERWOOD MEAT (TOPCO) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the period ended 31 October 2023.

Review of the business

Our objective is to present a balanced view of the groups performance and development during the year and at the year end. The review will seek to address any risks and uncertainties we face.

 

The group is predominantly a catering butcher, processing and supplying portion control and bespoke meat to the food service industry while continuing to develop its range of retail outlets.

 

The review is based upon known information available to the directors as at the review date.

Principal risks and uncertainties

The group continues to face competitive pressures and operates in the wider difficult economic climate.

 

The economy continued to be impacted heavily by inflationary pressures, impacting directly on consumer discretionary income, hitting the foodservice sector and its supply chain.

 

Whilst labour availability improved from 12 months prior, an almost 10% increase to national minimum wage in April 2023 impacted significantly across all areas (6 month impact c£200k), with a similar trend continuing into April 2024 and possibly beyond.

 

Bank of England base rate increased by 3% across the year, negatively impacting directly on the business PBT and cashflow (c-£100k). However, at the date of writing, we have seen interest rates remain stable with forecasts indicating small reductions by the end of 2024.

 

The Board of Directors continue to be mindful of these risks and uncertainties but remains confident that the overall business strategy will continue to provide a solid platform for the future.

Development and performance

During the year, the business undertook an ownership and financing restructure due to the formal retirement of key shareholders, introducing this new ultimate parent company Underwood Meat Topco Limited. Being the first year of Underwood Meat Topco, reported income is a half year running May to October with sales of £33m and operating loss of £274k and loss before tax of £761k.

 

This involved significant one-off costs, impacting on the current year profits in the region of £227k (note 4).

 

With continued investment in efficiency improvements and 2023 H2 cost saving initiatives, the business managed to mitigate the severity of the in-year impact and turn a corner as it moved into the new financial year.

 

Overall, the directors of the business are clearly disappointed with the result and with the loss after tax of £735k but are confident that the initiatives now in place will continue to drive profitability forward through 2024 and beyond.

Key performance indicators

The main key performance indicators remain profitability and cash flow. PBT moved to a loss making position vs the prior year profit, whilst cash flow was managed accordingly in line with non-funded capex and strategic stock purchase requirements.

UNDERWOOD MEAT (TOPCO) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 2 -
S172 statement

The group considers the views and needs of its stakeholders in all long-term decision making as well as the consequences of these decisions across the entire group.

 

 

The directors of the group operate a fluid, fast acting business model where scenarios are mapped out and decision made quickly. This ensures that long term growth and security is maintained, such as the fast turnaround on capex investment and achievement of respective payback periods.

 

 

The group values its employees as its best asset and encourages employee participation wherever possible. We have a track record of promoting from within and actively offer training opportunities in specialist areas as well as apprenticeship development.

 

 

The group engages with all external stakeholders through supply chain audits and ensuring both Underwood Meat and its partners adhere to CSR policies. This helps to strengthen long term business relationships in addition to enhancing the long-term decision-making process.

 

 

The group tries where possible to employ from the local community. To minimise its environmental impact, the group has introduced a number of initiatives to encourage the reduction of waste and recycle where possible.

 

 

The group strives to maintain its reputation for high standards by adhering to its Conflicts of Interest policy and actively promoting anonymous whistleblowing via a dedicated line and feedback boxes. This ensures conduct, governance, integrity and ethics are maintained throughout.

 

 

As a privately owned group, the primary shareholder ensures all decisions are agreed accordingly at board level with the group Managing Director and Finance Director to ensure fair balance, integrity and a strong level of corporate governance.

On behalf of the board

Mr K Jones
Director
31 July 2024
UNDERWOOD MEAT (TOPCO) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 3 -

The directors present their annual report and financial statements for the period ended 31 October 2023.

Principal activities

The company was incorporated on 22 November 2022 and on 5 May 2023 acquired a 100% of the issued share capital of Underwood Meat (Holdings) Limited. The principal activity of the group is that of catering butchers and meat distributors.

Results and dividends

The results for the period are set out on page 9.

Ordinary dividends were paid amounting to £564,089. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr C Beardshall
(Appointed 6 April 2023)
Mr Tobias Bennett
(Appointed 23 November 2022)
Mr K Jones
(Appointed 6 April 2023)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

BHP LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, and are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

This Streamlined Energy Carbon Report ("SECR") relates to the activities of the group for the year ended 31 October 2023.

UNDERWOOD MEAT (TOPCO) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 4 -
2023
Energy consumption
kWh
Aggregate of energy consumption in the year
- Gas combustion
3,134,126
- Electricity purchased
3,235,963
- Fuel consumed for transport
20,987
6,391,076
2023
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
48.00
- Fuel consumed for owned transport
687.00
735.00
Scope 2 - indirect emissions
- Electricity purchased
670.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
5.00
Total gross emissions
1,410.00
Intensity ratio
Tonnes CO2e per £m turnover
22.1
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

The group continues to look into energy efficiency where there is a direct contribution to bottom line profitability. This includes the replacement of fluorescent tube lighting with LED equivalent and assessing the viability of electric vehicles as part of the fleet, whilst working with its key customers to minimise deliveries and mileage.

UNDERWOOD MEAT (TOPCO) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of engagement with suppliers and customers.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr K Jones
Director
31 July 2024
UNDERWOOD MEAT (TOPCO) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNDERWOOD MEAT (TOPCO) LIMITED
- 6 -
Opinion

We have audited the financial statements of Underwood Meat (Topco) Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 October 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

UNDERWOOD MEAT (TOPCO) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNDERWOOD MEAT (TOPCO) LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

UNDERWOOD MEAT (TOPCO) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNDERWOOD MEAT (TOPCO) LIMITED
- 8 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

 

 

To address the risks of fraud through management bias and override controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Terri Pierpoint (Senior Statutory Auditor)
For and on behalf of BHP LLP
31 July 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
UNDERWOOD MEAT (TOPCO) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 9 -
Period
ended
31 October
2023
Notes
£
Turnover
3
33,032,263
Cost of sales
(28,436,594)
Gross profit
4,595,669
Distribution costs
(2,456,023)
Administrative expenses
(2,414,052)
Operating loss
5
(274,406)
Interest receivable and similar income
9
16,255
Interest payable and similar expenses
10
(275,838)
Exceptional item
4
(226,803)
Loss before taxation
(760,792)
Tax on loss
11
26,250
Loss for the financial period
(734,542)
(Loss)/profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
UNDERWOOD MEAT (TOPCO) LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 10 -
2023
Notes
£
£
Fixed assets
Goodwill
13
5,383,008
Tangible assets
14
3,016,932
8,399,940
Current assets
Stocks
17
3,609,570
Debtors
18
7,071,107
Cash at bank and in hand
505,505
11,186,182
Creditors: amounts falling due within one year
19
(12,642,013)
Net current liabilities
(1,455,831)
Total assets less current liabilities
6,944,109
Creditors: amounts falling due after more than one year
20
(3,849,821)
Provisions for liabilities
Deferred tax liability
23
192,000
(192,000)
Net assets
2,902,288
Capital and reserves
Called up share capital
25
42
Other reserves
4,200,877
Profit and loss reserves
(1,298,631)
Total equity
2,902,288
The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
Mr K Jones
Director
Company registration number 14501044 (England and Wales)
UNDERWOOD MEAT (TOPCO) LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 11 -
2023
Notes
£
£
Fixed assets
Investments
15
3,489,652
Current assets
Debtors
18
43,870
Creditors: amounts falling due within one year
19
(180,646)
Net current liabilities
(136,776)
Total assets less current liabilities
3,352,876
Creditors: amounts falling due after more than one year
20
(3,340,391)
Net assets
12,485
Capital and reserves
Called up share capital
25
42
Profit and loss reserves
12,443
Total equity
12,485

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £576,532.

The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
Mr K Jones
Director
Company registration number 14501044 (England and Wales)
UNDERWOOD MEAT (TOPCO) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 22 November 2022
-
0
-
-
0
-
Period ended 31 October 2023:
Loss and total comprehensive income
-
-
(734,542)
(734,542)
Issue of share capital
25
42
-
-
42
Dividends
12
-
-
(564,089)
(564,089)
Business combinations
-
4,200,877
-
4,200,877
Balance at 31 October 2023
42
4,200,877
(1,298,631)
2,902,288
UNDERWOOD MEAT (TOPCO) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 22 November 2022
-
0
-
0
-
Period ended 31 October 2023:
Profit and total comprehensive income
-
576,532
576,532
Issue of share capital
25
42
-
42
Dividends
12
-
(564,089)
(564,089)
Balance at 31 October 2023
42
12,443
12,485
UNDERWOOD MEAT (TOPCO) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 14 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
889,513
Interest paid
(275,838)
Income taxes paid
(38,300)
Net cash inflow/(outflow) from operating activities
575,375
Investing activities
Purchase of business
(1,364,582)
Purchase of tangible fixed assets
(113,190)
Proceeds from disposal of tangible fixed assets
1,206
Repayment of loans
1,034,474
Interest received
16,255
Net cash used in investing activities
(425,837)
Financing activities
Repayment of borrowings
(171,580)
Proceeds from new bank loans
1,300,000
Repayment of bank loans
(87,915)
Payment of finance leases obligations
(120,449)
Dividends paid to equity shareholders
(564,089)
Net cash generated from/(used in) financing activities
355,967
Net increase in cash and cash equivalents
505,505
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
505,505
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 15 -
1
Accounting policies
Company information

Underwood Meat (Topco) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 15 Ashley Business Court, Rawmarsh Rd, Rotherham, S60 1RU.

 

The group consists of Underwood Meat (Topco) Limited and all of its subsidiaries as detailed in note 16.

1.1
Reporting period

The company was incorporated on 22 November 2022 and the financial year end was shortened to 31 October 2023 in order to be co terminus with the existing subsidiaries.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Underwood Meat (Topco) Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2-5% straight line
Leasehold land and buildings
over the term of the lease
Plant and equipment
10% - 25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group 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 group's balance sheet when the group 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.

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.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation, useful lives and residual values of property, plant and equipment

The group estimates the useful lives and residual values of property, plant and equipment in order to calculate depreciation charges. Changes in these estimates could result in changes being required to annual depreciation charges in the statement of comprehensive income and the carrying values of property, plant and equipment.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

Stocks are stated at the lower of cost and net realisable value. The directors will assess the requirement for any provision for obsolete stock, stock utilisation patterns, regular inspection and counting of physical items.

Recoverability of trade debtors

Bad debt provisions are stated based upon known situations, such as persistent late payments, credit reference agency monitoring and regular credit control reviews.

3
Turnover and other revenue
2023
£
Turnover analysed by class of business
Catering butchers and meat distributors
33,032,263
2023
£
Turnover analysed by geographical market
United Kingdom
32,948,795
Europe
83,468
33,032,263
2023
£
Other revenue
Interest income
16,255
4
Exceptional item
2023
£
Expenditure
Write off of a related party loan account
80,457
Costs associated with a group refinance
124,160
Employee settlement
22,186
226,803
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
4
Exceptional item
(Continued)
- 21 -

The first exceptional item is in relation to the write off of a related party loan with R Bennett the father of T M S Bennett a director and shareholder of the company.

 

The second exceptional item is in relation to costs associated with a group refinance and restructure.

 

The third exceptional item is in relation to costs associated with an employee settlement.

 

 

 

5
Operating loss
2023
£
Operating loss for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
188,479
Depreciation of tangible fixed assets held under finance leases
68,102
Profit on disposal of tangible fixed assets
(1,206)
Amortisation of intangible assets
283,316
Operating lease charges
167,296
6
Auditor's remuneration
2023
Fees payable to the company's auditor:
£
For audit services
Audit of the financial statements of the group and company
-
Audit of the financial statements of the company's subsidiaries
29,500
For other services
Taxation compliance services
2,600
All other non-audit services
3,350
5,950
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 22 -
7
Employees

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

Group
Company
2023
2023
Number
Number
Production
149
-
Selling and distribution
89
-
Administration
32
-
Total
270
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
4,362,452
-
0
Social security costs
278,560
-
Pension costs
83,556
-
0
4,724,568
-
0
8
Directors' remuneration
2023
£
Remuneration for qualifying services
140,443
Company pension contributions to defined contribution schemes
19,850
160,293

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2.

9
Interest receivable and similar income
2023
£
Interest income
Other interest income
16,255
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 23 -
10
Interest payable and similar expenses
2023
£
Interest on bank overdrafts and loans
181,971
Other interest on financial liabilities
6,388
Interest on finance leases and hire purchase contracts
19,208
Other interest
68,271
Total finance costs
275,838
11
Taxation
2023
£
Current tax
Adjustments in respect of prior periods
(75,950)
Deferred tax
Origination and reversal of timing differences
49,700
Total tax credit
(26,250)

The actual (credit)/charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Loss before taxation
(760,792)
Expected tax credit based on the standard rate of corporation tax in the UK of 22.52%
(171,330)
Tax effect of expenses that are not deductible in determining taxable profit
101,474
Adjustments in respect of prior years
(75,950)
Other permanent differences
24,486
Effect of change in deferred tax rates
7,297
Losses carried back
87,773
Taxation credit
(26,250)
12
Dividends
2023
Recognised as distributions to equity holders:
£
Interim paid
564,089
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 24 -
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 22 November 2022
-
0
Additions
5,666,324
At 31 October 2023
5,666,324
Amortisation and impairment
At 22 November 2022
-
0
Amortisation charged for the period
283,316
At 31 October 2023
283,316
Carrying amount
At 31 October 2023
5,383,008
The company had no intangible fixed assets at 31 October 2023.
14
Tangible fixed assets
Group
Freehold buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 22 November 2022
-
0
-
0
-
0
-
0
-
0
Additions
-
0
-
0
326,614
32,887
359,501
Business combinations
937,543
667,000
1,089,147
220,322
2,914,012
At 31 October 2023
937,543
667,000
1,415,761
253,209
3,273,513
Depreciation and impairment
At 22 November 2022
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
22,851
21,750
158,788
53,192
256,581
At 31 October 2023
22,851
21,750
158,788
53,192
256,581
Carrying amount
At 31 October 2023
914,692
645,250
1,256,973
200,017
3,016,932
The company had no tangible fixed assets at 31 October 2023.
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
14
Tangible fixed assets
(Continued)
- 25 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2023
£
£
Plant and equipment
1,015,771
-
0
15
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
16
-
0
3,489,652
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 22 November 2022
-
Additions
3,489,652
At 31 October 2023
3,489,652
Carrying amount
At 31 October 2023
3,489,652
16
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Underwood Meat Company Limited
15 Ashley Business Court, Rawmarsh Road, Rotherham, South Yorkshire, United Kngdom, S60 1RU
Catering butchers and meat distributors
Ordinary
-
100.00
Manor Farm Sausage Co Limited
As above
Dormant
Ordinary
-
100.00
Northern Catering Butchers Limited
As above
Dormant
Ordinary
-
100.00
Underwood Meat Holdings Limited
As above
Ordinary
100.00
-
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 26 -
17
Stocks
Group
Company
2023
2023
£
£
Finished goods and goods for resale
3,609,570
-
0
18
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
6,140,199
-
0
Amounts owed by group undertakings
-
43,870
Other debtors
467,392
-
0
Prepayments and accrued income
463,516
-
0
7,071,107
43,870
19
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans
21
99,803
99,803
Obligations under finance leases
22
243,891
-
0
Trade creditors
6,959,847
-
0
Corporation tax payable
50,962
-
0
Other taxation and social security
145,564
-
Other creditors
4,352,779
80,843
Accruals and deferred income
789,167
-
0
12,642,013
180,646

Included in other creditors is £4,271,936 in respect of Invoice factoring. The Invoice factoring is secured by way of fixed and floating charge against the assets of the group.

Bank loan - see note 21 for security details.

 

Finance lease - see note 22 for security details.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 27 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
21
1,163,832
1,163,832
Obligations under finance leases
22
509,430
-
0
Other creditors
2,176,559
2,176,559
3,849,821
3,340,391

Bank loan - see note 21 for security details.

 

Finance lease - see note 22 for security details.

21
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank loans
1,263,635
1,263,635
Payable within one year
99,803
99,803
Payable after one year
1,163,832
1,163,832

The loans are secured by way of a legal charge over the group's freehold property

During the period the group obtained the following loans:

 

Bullet loan

 

The loan amount was £866,665 and interest is charged at base rate plus 1.75%. A bullet loan is a loan where payment of the entire principal is due at the end of the loan term. The loan term is 5 years.

 

Term loan

 

The loan amount was £433,335 and interest is charged at base rate plus 1.75%. The loan term is 5 years and the monthly repayments are £8,317.

 

 

22
Finance lease obligations
Group
Company
2023
2023
£
£
Future minimum lease payments due under finance leases:
Within one year
243,891
-
0
In two to five years
509,430
-
0
753,321
-
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
22
Finance lease obligations
(Continued)
- 28 -

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The lease terms range from 3-10 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The leases are secured over the assets to which they relate.

23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2023
Group
£
Accelerated capital allowances
196,000
Short term timing differences
(4,000)
192,000
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 22 November 2022
-
-
Charge to profit or loss
49,700
-
Transfer on acquisition
142,300
-
Liability at 31 October 2023
192,000
-

The deferred tax liability set out relates to accelerated capital allowances and other timing differences that are expected to mature in future accounting periods.

24
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
83,556

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Accrued pension contributions at the year end in respect of defined contribution schemes amounted to £14,003.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 29 -
25
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary A shares of £0.001
20,834
21
Ordinary B shares of £0.001
20,833
21
41,667
42

Both the Ordinary A and B shares have attached to them full voting, dividend and capital distribution (on winding up) rights. They do not confer any rights of redemption.

26
Other reserves
2023
Group
£
At the beginning of the period
-
Additions
4,200,877
At the end of the period
4,200,877
2023
Company
£
At the beginning and end of the period
-

The other reserve is created on consolidation to show the nominal value of shares issued at fair value.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 30 -
27
Acquisition of a business

On 5 May 2023 the group acquired 100 percent of the issued capital of Underwood Meat (Holdings) Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
2,914,012
-
2,914,012
Inventories
3,497,781
-
3,497,781
Trade and other receivables
4,323,411
-
4,323,411
Cash and cash equivalents
(64,103)
-
(64,103)
Borrowings
(4,495,066)
-
(4,495,066)
Obligations under finance leases
(627,459)
-
(627,459)
Trade and other payables
(3,216,859)
-
(3,216,859)
Tax liabilities
(165,212)
-
(165,212)
Deferred tax
(142,300)
-
(142,300)
Total identifiable net assets
2,024,205
-
2,024,205
Goodwill
5,666,324
Total consideration
7,690,529
The consideration was satisfied by:
£
Cash
1,300,479
Issue of shares
4,200,919
Deferred consideration
2,189,131
7,690,529
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
37,937,427
Loss after tax
(372,116)
UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 31 -
28
Operating lease commitments
Lessee

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

Group
Company
2023
2023
£
£
Within one year
199,639
-
Between two and five years
351,815
-
In over five years
40,950
-
592,404
-
29
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2023
£
£
Acquisition of tangible fixed assets
38,936
-
30
Related party transactions

During the period a loan totalling £80,457 to R Bennett, the father of T M S Bennett was written off and included in exceptional items in the statement of comprehensive income.

 

Included in trade creditors is an amount of £868,718 due to Foundry Food Group Ltd, a company in which Mr T M S Bennett is a director. During the year the company made sales of £877,648 and made purchases from Foundry Food Group Ltd of £11,472,056. At the year end a balance of £2,645 is included in trade debtors.

 

J D Heeley resigned as a director from the subsidiary company Underwood Meat (Holdings) Limited on 5 May 2023, at that date previous loans made to J D Heeley totalling £528,080 were repaid. During the year interest of £5,224 was charged on the loan and at the year end £13,190 remained outstanding and is included within other debtors.

 

On 5 May 2023 Underwood Meat (TopCo) Limited acquired 100% of the issued share capital of Underwood Meat (Holdings) Limited. Following the acquisition deferred consideration amounting to £2,257,402 is due to J Heeley a former director and shareholder of Underwood Meat (Holdings) Limited and is included in other creditors due under and over one year.

UNDERWOOD MEAT (TOPCO) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 32 -
31
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
2.12
643,302
324,282
9,787
(644,546)
332,825
643,302
324,282
9,787
(644,546)
332,825
32
Cash generated from/(absorbed by) group operations
2023
£
Loss for the period after tax
(734,542)
Adjustments for:
Taxation credited
(26,250)
Finance costs
275,838
Investment income
(16,255)
Gain on disposal of tangible fixed assets
(1,206)
Amortisation and impairment of intangible assets
283,316
Depreciation and impairment of tangible fixed assets
256,581
Movements in working capital:
Increase in stocks
(111,789)
Increase in debtors
(3,782,170)
Increase in creditors
4,745,990
Cash generated from/(absorbed by) operations
889,513
33
Analysis of changes in net debt - group
22 November 2022
Cash flows
Acquisitions and disposals
New finance leases
31 October 2023
£
£
£
£
£
Cash at bank and in hand
-
569,608
(64,103)
-
505,505
Borrowings excluding overdrafts
-
(1,040,505)
(4,495,066)
-
(5,535,571)
Obligations under finance leases
-
120,449
(627,459)
(246,311)
(753,321)
-
(350,448)
(5,186,628)
(246,311)
(5,783,387)
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