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COMPANY REGISTRATION NUMBER: 03952266
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
FINANCIAL STATEMENTS
3 November 2023
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
FINANCIAL STATEMENTS
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
CONTENTS
PAGE
Officers and professional advisers
1
Strategic report
2
Directors' report
5
Independent auditor's report to the members
7
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
17
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
Mr P W Gradon
R Lesiak
Company secretary
Mr P W Gradon
Registered office
Marsh Dene Farm
Marsh Lane
Southowram
Halifax
West Yorkshire
HX3 9NR
Auditor
Spenser Wilson Ltd
Chartered accountants & statutory auditor
Equitable House
55 Pellon Lane
Halifax
West Yorkshire
HX1 5SP
Bankers
Virgin Money
7 Waterhouse Street
Halifax
West Yorkshire
HX1 1XZ
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
STRATEGIC REPORT
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
The directors have pleasure in presenting the strategic report of the company for the 53-week period from 29 October 2022 to 3 November 2023. PRINCIPAL ACTIVITIES AND BUSINESS REVIEW The principal activity of the company during the year was the processing of meat and poultry products. SALES AND PROFITABILITY Turnover has reduced this year to £11,147.795 a decrease of .69%. The soaring cost of raw chicken has proven a challenge due to increased feed and fuel costs. This has resulted in fewer birds been available giving a gross profit of 16%. which is consistent with 2022. We continue to feel the effects of increased fuel costs and other distribution expenses which increased by 6.95% from £622,754 to £666,044. The increased costs are likely to continue in 2024 as current economic climate continues to be challenging as the economy remains subdued. Administration expenses have increased due to price increases however, we have changed over to online invoicing, which is more cost effective and will improve efficiency going forward. The cost of lighting and heating are also a contributory factor. We continue to pass some of these increased costs on to our customers and the turnover in the current year is expected to remain in excess of £11,000,000, partially through price increases and partially through additional product. The investment property has seen a reduction in value from £1,895,000 to £1,630,000, due to the fall in pasture land prices and difficulty in obtaining planning permission. The pressures on the investments may ease going forward under new government changes to relax planning permissions. BALANCE SHEET AND LIQUIDITY The company has a strong balance sheet with net asset of £9,070,477. (2022 £8,887,051.) the current liquidity ratio showing a healthy 5.74%. (2022 - 6.3%) At the year- end, the company was owed £4,258,365. (2022 - £4,262,847.), by Gradon Estates Limited, a related property investment company. FUTURE DEVELOPMENTS We are pleased to report that sales are continuing to recover with projected turnover remaining in the region of £11,000,000 and gross profit margins continuing at a similar level. Unfortunately, we are expecting an increase in distribution costs due to the continuing rise in fuel, packaging, maintenance and service costs as the economy remains subdued. The company is continually monitoring the maintenance programme to ensure all property and equipment are, maintained to the highest standards and that we work efficiently to keep costs down. PRINCIPAL RISKS AND UNCERTAINTIES The Directors continually monitor the risks to the company and take action to minimise the risks as much as possible. The Directors operate strict internal controls to ensure all hygiene compliance procedures are adhered to. Costs and supply pressures are a key focus, especially in the volatility of the currency markets when trading within the EU and bringing goods into the country. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES trade debtors and trade creditors, which arise directly from its operations. The main financial risk facing the company is customer credit risk, which is managed through credit control policies and procedures. Price risk, cash flow risk and liquidity risk have also been and will continued to be managed in a controlled manner reducing the overall exposure of the company to a minimum.
This report was approved by the board of directors on 30 July 2024 and signed on behalf of the board by:
Mr P W Gradon
Director
Registered office:
Marsh Dene Farm
Marsh Lane
Southowram
Halifax
West Yorkshire
HX3 9NR
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
DIRECTORS' REPORT
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
The directors present their report and the financial statements of the company for the 53 week period ended 3 November 2023 .
DIRECTORS
The directors who served the company during the 53 week period were as follows:
Mr P W Gradon
R Lesiak
DIVIDENDS
Particulars of recommended dividends are detailed in note 13 to the financial statements.
DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company has chosen to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial 53 week period. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 30 July 2024 and signed on behalf of the board by:
Mr P W Gradon
Director
Registered office:
Marsh Dene Farm
Marsh Lane
Southowram
Halifax
West Yorkshire
HX3 9NR
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PETER GRADON MEAT AND POULTRY MARKETING LIMITED
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
OPINION
We have audited the financial statements of Peter Gradon Meat and Poultry Marketing Limited (the 'company') for the 53 week period ended 3 November 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 3 November 2023 and of its profit for the 53 week period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial 53 week period for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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: " The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. " We identified the laws and regulations applicable to the company through discussions with the directors. " We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company including the Safe and Local Supplier Approval. " We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and " identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: " making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; " considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: " performed analytical procedures to identify any unusual or unexpected relationships; " tested journal entries to identify unusual transactions; " investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: " agreeing financial statement disclosures to underlying supporting documentation; " enquiring of management as to actual and potential litigation and claims; 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 directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.
Sally Shacklock BA FCA
(Senior Statutory Auditor)
For and on behalf of
Spenser Wilson Ltd
Chartered accountants & statutory auditor
Equitable House
55 Pellon Lane
Halifax
West Yorkshire
HX1 5SP
30 July 2024
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
Note
£
£
TURNOVER
4
11,147,795
11,974,908
Cost of sales
9,359,782
10,059,340
---------------
---------------
GROSS PROFIT
1,788,013
1,915,568
Distribution costs
664,275
622,754
Administrative expenses
790,256
381,346
Property rental expenses
5
11,001
7,071
-------------
-------------
OPERATING PROFIT
6
344,483
918,539
Other interest receivable and similar income
10
160,563
35,889
Interest payable and similar expenses
11
36,873
17,123
-------------
-------------
PROFIT BEFORE TAXATION
468,173
937,305
Tax on profit
12
88,475
294,101
----------
----------
PROFIT FOR THE FINANCIAL 53 WEEK PERIOD
379,698
643,204
----------
----------
Remeasurement of net defined benefit liability
185,000
125,000
----------
----------
TOTAL COMPREHENSIVE INCOME FOR THE 53 WEEK PERIOD
564,698
768,204
----------
----------
All the activities of the company are from continuing operations.
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
STATEMENT OF FINANCIAL POSITION
3 November 2023
3 Nov 23
28 Oct 22
Note
£
£
£
£
FIXED ASSETS
Tangible assets
14
254,055
147,438
Investments
15
1,630,000
1,895,000
-------------
-------------
1,884,055
2,042,438
CURRENT ASSETS
Stocks
16
78,811
100,922
Debtors
17
5,809,679
5,952,694
Cash at bank and in hand
3,452,508
3,128,248
-------------
-------------
9,340,998
9,181,864
CREDITORS: amounts falling due within one year
18
1,594,296
1,459,818
-------------
-------------
NET CURRENT ASSETS
7,746,702
7,722,046
-------------
-------------
TOTAL ASSETS LESS CURRENT LIABILITIES
9,630,757
9,764,484
CREDITORS: amounts falling due after more than one year
19
16,667
26,667
PROVISIONS
20
122,061
161,486
-------------
-------------
NET ASSETS EXCLUDING DEFINED BENEFIT PENSION PLAN LIABILITY
9,492,029
9,576,331
Defined benefit pension plan liability
22
( 581,000)
( 730,000)
-------------
-------------
NET ASSETS INCLUDING DEFINED BENEFIT PENSION PLAN LIABILITY
8,911,029
8,846,331
-------------
-------------
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
3 November 2023
3 Nov 23
28 Oct 22
Note
£
£
£
£
CAPITAL AND RESERVES
Called up share capital
24
2,000
2,000
Revaluation reserve
25
529,656
639,464
Profit and loss account
25
8,379,373
8,204,867
-------------
-------------
SHAREHOLDERS FUNDS
8,911,029
8,846,331
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 30 July 2024 , and are signed on behalf of the board by:
Mr P W Gradon
Director
Company registration number: 03952266
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
STATEMENT OF CHANGES IN EQUITY
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
Called up share capital
Revaluation reserve
Profit and loss account
Total
£
£
£
£
AT 30 OCTOBER 2021
2,000
639,464
7,936,663
8,578,127
Profit for the 53 week period
643,204
643,204
Other comprehensive income for the 53 week period:
Remeasurement of net defined benefit liability
125,000
125,000
-------
----------
-------------
-------------
TOTAL COMPREHENSIVE INCOME FOR THE 53 WEEK PERIOD
768,204
768,204
Dividends paid and payable
13
( 500,000)
( 500,000)
-------
----------
-------------
-------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
( 500,000)
( 500,000)
AT 28 OCTOBER 2022
2,000
639,464
8,204,867
8,846,331
Profit for the 53 week period
379,698
379,698
Other comprehensive income for the 53 week period:
Reclassification from revaluation reserve to profit and loss account
( 109,808)
109,808
Remeasurement of net defined benefit liability
185,000
185,000
-------
----------
-------------
-------------
TOTAL COMPREHENSIVE INCOME FOR THE 53 WEEK PERIOD
( 109,808)
674,506
564,698
Dividends paid and payable
13
( 500,000)
( 500,000)
----
----
----------
----------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
( 500,000)
( 500,000)
-------
----------
-------------
-------------
AT 3 NOVEMBER 2023
2,000
529,656
8,379,373
8,911,029
-------
----------
-------------
-------------
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
STATEMENT OF CASH FLOWS
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
3 Nov 23
28 Oct 22
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial 53 week period
379,698
643,204
Adjustments for:
Depreciation of tangible assets
71,298
50,950
Fair value adjustment of investment property
265,000
( 100,000)
Government grant income
( 171)
( 171)
Other interest receivable and similar income
( 160,563)
( 35,889)
Interest payable and similar expenses
72,873
33,123
Gains on disposal of tangible assets
( 19,971)
Gains on disposal of investment property
( 50,000)
Tax on profit
88,475
294,101
Accrued expenses/(income)
31,808
( 5,215)
Changes in:
Stocks
22,111
27,001
Trade and other debtors
143,015
( 313,021)
Trade and other creditors
129,370
102,986
-------------
----------
Cash generated from operations
1,022,943
647,069
Interest paid
( 36,873)
( 17,123)
Interest received
160,563
35,889
Tax paid
( 154,600)
( 89,240)
-------------
----------
Net cash from operating activities
992,033
576,595
-------------
----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets
( 177,945)
( 28,555)
Proceeds from sale of tangible assets
20,001
50,000
Proceeds from sale of other investments
350,000
-------------
----------
Net cash (used in)/from investing activities
( 157,944)
371,445
-------------
----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
( 10,000)
( 10,000)
Government grant income
171
171
Dividends paid
( 500,000)
( 500,000)
-------------
----------
Net cash used in financing activities
( 509,829)
( 509,829)
-------------
----------
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
STATEMENT OF CASH FLOWS (continued)
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
3 Nov 23
28 Oct 22
Note
£
£
NET INCREASE IN CASH AND CASH EQUIVALENTS
324,260
438,211
CASH AND CASH EQUIVALENTS AT BEGINNING OF 53 WEEK PERIOD
3,128,248
2,690,037
-------------
-------------
CASH AND CASH EQUIVALENTS AT END OF 53 WEEK PERIOD
3,452,508
3,128,248
-------------
-------------
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Marsh Dene Farm, Marsh Lane, Southowram, Halifax, West Yorkshire, HX3 9NR.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on a historical cost basis as modified by the revaluation of certain financial assets and liabilities measures at fair value through profit or loss. The financial statements are prepared in sterling which is the functional currency of the entity.
Going concern
From a review of management information, the directors have a reasonable expectation that the company has sufficient resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing it financial statements.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There only judgements, accounting estimates or assumptions that have a significant impact on the financial statements is the revaluation of investment properties to fair value.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Factory improvements
-
4% straight line
Plant and machinery
-
15% straight line
Office equipment
-
25% straight line
Motor vehicles
-
25% reducing balance
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
The carrying value of tangible fixed assets are reviewed for impairment in periods where events or changes in circumstances indicate the carrying value may not be recoverable.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Defined benefit plans
The company operates a defined benefit pension scheme for employees. The assets of the scheme are held separately from those of the company. Pension scheme liabilities are recorded in the balance sheet at the present value of the defined obligation at that date. The defined obligation is calculated on an annual basis by independent actuaries. Actuarial gains and losses are recognised in full in the period in which they occur and are shown in Other Comprehensive Income. The deferred tax relating to a defined benefit asset/liability is offset against the defined benefit asset/liability and not included with other deferred tax assets or liabilities. Current and past service costs, along with settlements or curtailments, are charged to the Income Statement. Interest on pension plan liabilities are recognised within finance expense.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. TURNOVER
Turnover arises from:
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Sale of goods
11,147,795
11,974,908
---------------
---------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. PROPERTY RENTAL EXPENSES
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Rental income
11,365
8,133
Government grant income
171
171
Other operating income
( 535)
( 1,233)
---------
-------
11,001
7,071
---------
-------
6. OPERATING PROFIT
Operating profit or loss is stated after charging/crediting:
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Depreciation of tangible assets
71,298
50,950
Gains on disposal of tangible assets
( 19,971)
Gains on disposal of investment property
( 50,000)
Fair value adjustments to investment property
265,000
( 100,000)
Impairment of trade debtors
42,701
1,830
Foreign exchange differences
17
82
----------
----------
7. AUDITOR'S REMUNERATION
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Fees payable for the audit of the financial statements
3,100
2,600
-------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
3,700
5,910
-------
-------
8. STAFF COSTS
The average number of persons employed by the company during the 53 week period, including the directors, amounted to:
3 Nov 23
28 Oct 22
No.
No.
Production staff
37
36
Distribution staff
10
11
Administrative staff
6
5
Management staff
2
3
----
----
55
55
----
----
The aggregate payroll costs incurred during the 53 week period, relating to the above, were:
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Wages and salaries
1,458,896
1,361,295
Social security costs
129,839
135,851
Other pension costs
26,956
28,424
-------------
-------------
1,615,691
1,525,570
-------------
-------------
9. DIRECTORS' REMUNERATION
The directors' aggregate remuneration in respect of qualifying services was:
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Remuneration
94,321
81,980
Company contributions to defined contribution pension plans
1,982
5,330
---------
---------
96,303
87,310
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
3 Nov 23
28 Oct 22
No.
No.
Defined contribution plans
1
2
----
----
10. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Interest on loans and receivables
13,425
15,000
Interest on cash and cash equivalents
147,138
20,889
----------
---------
160,563
35,889
----------
---------
11. INTEREST PAYABLE AND SIMILAR EXPENSES
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Interest on banks loans and overdrafts
873
1,123
Net finance costs in respect of defined benefit pension plans
36,000
16,000
---------
---------
36,873
17,123
---------
---------
12. TAX ON PROFIT
Major components of tax expense
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Current tax:
UK current tax expense
127,900
164,257
Adjustments in respect of prior periods
2,664
----------
----------
Total current tax
127,900
166,921
----------
----------
Deferred tax:
Origination and reversal of timing differences
( 39,425)
127,180
---------
----------
Tax on profit
88,475
294,101
---------
----------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the 53 week period is lower than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
Period from
Period from
29 Oct 22 to
30 Oct 21 to
3 Nov 23
28 Oct 22
£
£
Profit on ordinary activities before taxation
468,173
937,305
----------
----------
Profit on ordinary activities by rate of tax
183,300
178,088
Effect of expenses not deductible for tax purposes
376
253
Effect of capital allowances and depreciation
18,074
3,959
Unused tax losses
2,664
Tax not due on fair value revaluation
( 76,350)
( 28,500)
Deferred tax movement
(36,925)
127,180
Chargeable gains
12,541
Capital losses
( 2,084)
----------
----------
Tax on profit
88,475
294,101
----------
----------
13. DIVIDENDS
3 Nov 23
28 Oct 22
£
£
Dividends paid during the 53 week period (excluding those for which a liability existed at the end of the prior 53 week period )
500,000
500,000
----------
----------
14. TANGIBLE ASSETS
Long leasehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 29 October 2022
39,925
1,019,100
31,289
418,110
1,508,424
Additions
177,945
177,945
Disposals
( 54,460)
( 96,668)
( 151,128)
---------
-------------
---------
----------
-------------
At 3 November 2023
39,925
964,640
31,289
499,387
1,535,241
---------
-------------
---------
----------
-------------
Depreciation
At 29 October 2022
17,542
991,958
31,273
320,213
1,360,986
Charge for the 53 week period
1,599
1,970
67,729
71,298
Disposals
( 54,432)
( 96,666)
( 151,098)
---------
-------------
---------
----------
-------------
At 3 November 2023
19,141
939,496
31,273
291,276
1,281,186
---------
-------------
---------
----------
-------------
Carrying amount
At 3 November 2023
20,784
25,144
16
208,111
254,055
---------
-------------
---------
----------
-------------
At 28 October 2022
22,383
27,142
16
97,897
147,438
---------
-------------
---------
----------
-------------
15. INVESTMENTS
Investment property
£
Cost
At 29 October 2022
1,895,000
Revaluations
( 265,000)
-------------
At 3 November 2023
1,630,000
-------------
Impairment
At 29 October 2022 and 3 November 2023
-------------
Carrying amount
At 3 November 2023
1,630,000
-------------
At 28 October 2022
1,895,000
-------------
All investment properties were valued as at 31 October 2023, on an open market-value-basis by the directors, at £1,630,000. The previous professional valuation was carried out on 31 October 2022 with a value of £1,895,000.
Listed investments
Investments held at valuation
In respect of investments held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Investment property
£
At 3 November 2023
Aggregate cost
1,100,344
Aggregate depreciation
-------------
Carrying value
1,100,344
-------------
At 28 October 2022
Aggregate cost
1,100,344
Aggregate depreciation
-------------
Carrying value
1,100,344
-------------
16. STOCKS
3 Nov 23
28 Oct 22
£
£
Raw materials and consumables
78,811
100,922
---------
----------
17. DEBTORS
3 Nov 23
28 Oct 22
£
£
Trade debtors
827,852
972,974
Prepayments and accrued income
56,300
55,170
Other debtors
4,925,527
4,924,550
-------------
-------------
5,809,679
5,952,694
-------------
-------------
18. CREDITORS: amounts falling due within one year
3 Nov 23
28 Oct 22
£
£
Bank loans and overdrafts
10,000
10,000
Trade creditors
743,646
885,165
Accruals and deferred income
119,365
87,728
Corporation tax
137,557
164,257
Social security and other taxes
26,605
34,035
Gradon Trusts
550,000
275,000
Other creditors
7,123
3,633
-------------
-------------
1,594,296
1,459,818
-------------
-------------
19. CREDITORS: amounts falling due after more than one year
3 Nov 23
28 Oct 22
£
£
Bank loans and overdrafts
16,667
26,667
---------
---------
20. PROVISIONS
Deferred tax (note 21)
£
At 29 October 2022
161,486
Provisions created during the year
36,925
Provisions released during the year
( 76,350)
----------
At 3 November 2023
122,061
----------
21. DEFERRED TAX
The deferred tax included in the statement of financial position is as follows:
3 Nov 23
28 Oct 22
£
£
Included in provisions (note 20)
122,061
161,486
----------
----------
The deferred tax account consists of the tax effect of timing differences in respect of:
3 Nov 23
28 Oct 22
£
£
Accelerated capital allowances
63,267
26,342
Fair value adjustment of investment property
58,794
135,144
----------
----------
122,061
161,486
----------
----------
22. EMPLOYEE BENEFITS
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 26,956 (2022: £ 28,424 ).
Defined benefit plans
The company has agreed to fund a defined benefit pension scheme in respect of key employees. The most recent actuarial valuation of the obligation of £581,000 (2022 - £730,000) was on 31 October 2023. During the year the expense incurred was £36,000 (2022 - £16,000). The principal assumptions used are: Discount rate 5.6% Inflation rate RPI 3.2% Inflation rate CPI 2.1% Pre and Post Retirement mortality - S3PMA tables with improvements in the CMI 2022 model, with w2020/w2021/w2022 weightings of 10%/10%/100% and a long term rate of improvement of 1.25%.
2023 2022
£ £
Present value of defined benefit obligations 581,000 730,000
Liability recognised in the balance sheet 581,000 730,000
The statement of financial position net defined benefit liability is determined as follows:
3 Nov 23
28 Oct 22
£
£
Present value of defined benefit obligations
( 581,000)
( 730,000)
----------
----------
581,000
730,000
----------
----------
Changes in the present value of the defined benefit obligations are as follows:
3 Nov 23
£
At 29 October 2022
730,000
Interest expense
36,000
Remeasurements:
Actuarial gains and losses
( 185,000)
----------
At 3 November 2023
581,000
----------
23. GOVERNMENT GRANTS
The amounts recognised in the financial statements for government grants are as follows:
3 Nov 23
28 Oct 22
£
£
Recognised in creditors:
Deferred government grants due within one year
512
683
----
----
Recognised in other operating income:
Government grants released to profit or loss
171
171
----
----
24. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
3 Nov 23
28 Oct 22
No.
£
No.
£
Ordinary shares of £ 1 each
2,000
2,000
2,000
2,000
-------
-------
-------
-------
25. RESERVES
Profit and loss account - This reserve records retained earnings and accumulated losses. Revaluation reserve - This reserve balance is the increase in the investment property value above its cost, less associated deferred tax.
26. ANALYSIS OF CHANGES IN NET DEBT
At 29 October 2022
Cash flows
At 3 November 2023
£
£
£
Cash at bank and in hand
3,128,248
324,260
3,452,508
Debt due within one year
(10,000)
(10,000)
Debt due after one year
(26,667)
10,000
(16,667)
-------------
----------
-------------
3,091,581
334,260
3,425,841
-------------
----------
-------------
27. CAPITAL COMMITMENTS
Capital expenditure contracted for but not provided for in the financial statements is as follows:
3 Nov 23
28 Oct 22
£
£
Tangible assets
98,121
---------
----
28. OPERATING LEASES
The total future minimum lease payments under non-cancellable operating leases are as follows:
3 Nov 23
28 Oct 22
£
£
Not later than 1 year
12,578
Later than 1 year and not later than 5 years
11,275
25,189
---------
---------
23,853
25,189
---------
---------
PETER GRADON MEAT AND POULTRY MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
53 WEEK PERIOD FROM 29 OCTOBER 2022 TO 3 NOVEMBER 2023
29. RELATED PARTY TRANSACTIONS
The company operates rent free from premises owned by Mr P W Gradon . Mr P Gradon and Mr D Gradon, son of Peter Gradon, are directors and controlling shareholders of Gradon Estates Limited. Gradon Estates Limited has a loan amounting of £4,258,365 (2022 - £4,262,847) from Peter Gradon Meat and Poultry Marketing Limited. The loan is interest free and repayable on demand. There are balances totalling £550,000 (2022 - £275,000) due to three trusts of which family members of one of the directors are beneficiaries, in relation to dividends payable. There is also a loan to a family member of one of the directors of £215,000 which was still outstanding at 3 November 2023.