Year Ended
Registration number:
A E Rodda & Son Group Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
A E Rodda & Son Group Limited
Company Information
Directors |
J W Pengelly P E Rodda A J Rodda R N Morriss N L Rodda N A Kennedy P J B O'Keeffe T M Dennett T A Bell D Saint A Carne |
Registered office |
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Auditors |
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A E Rodda & Son Group Limited
Strategic Report
Year Ended 31 March 2024
The directors present their strategic report for the year ended 31 March 2024.
Principal activity
The principal activity of the group is manufacturing and wholesale of Cornish clotted cream, liquid cream, bottled milk and other dairy products. As part of our activity we generate and sell considerable volumes of skimmed milk to various manufacturers.
Fair review of the business
The year ending the 31 March 2024 we saw a strong start to the year with the King’s Coronation celebrations followed by a variable sales performance for the rest of the budget year. We saw one new farm join the Direct Supply Group in the year and recruited three farms to join in 2024/25. As always, we are incredibly grateful and appreciative to our farmers, foodservice, regional customers and retailers and our loyal shoppers for the ongoing support,
The Board are able to report the operating profit before exceptional costs and other operating income is £2,294k, comparing to the prior year of £357k, a gross profit increase from 19.7% to 25.5% in the last year.
Cash generated from operating activities is £4,575k (2023: £2,097k absorption). The Board are pleased to confirm existing cash reserves were utlisied in the year and no additional lending was required. The two key areas for cash absorption were our continued capex investment into IT systems and the increased value of stock due to milk and energy prices.
Brand
We continued to invest into the Rodda’s brand, building, strengthening, and broadening the brand’s appeal. Our radio campaign extended to new regions and we invested in consumer price activity. We also invested in foodservice and retailer marketing activities across the year, targeting shoppers and consumers directly with our brand messaging. We have experienced excellent consumer engagement.
Commercial Insight
Our much-loved consumer brand combined with, strong commercial relationships and a ‘balanced economy’ of customers continues to give stability. King Charles III Coronation was a huge showcase success for the brand, featuring strongly across domestic and out of home celebrations.
Sustainability
We continue to work with our milk suppliers to reduce the carbon footprint of milk supplied to the Creamery. We use an IDF accredited carbon measurement tool and data is collected independently for both Rodda’s and our milk suppliers. The carbon footprint of milk supplied in the 2022/23 milk year was calculated at 1.291kg per litre of fpcm milk, a 4% reduction on the prior year. Through our Project Tevi we provide our milk suppliers with support to continue achieving a 30% reduction by 2030.
In 2023/24, we gained planning permission to install 1MWp of ground mount PV panels. Planning conditions have been executed and the installation will commence in the first quarter of 2024/25. This will remove 213T of CO2 emissions per annum compared with electricity generated using fossil fuel.
Essential ingredients
A supply of fresh Cornish milk is the essential ingredient for Rodda’s Cornish Clotted Cream, and we continue with our strategy of working with the Direct Supply Group to provide us with most of our milk requirements. Topping up with Cornish milk from other dairy businesses as and when required. We grew our direct milk supply by over 2.5% in 2023/24 and we have three additional farms scheduled to join the supply group in 2024/25 milk year.
A E Rodda & Son Group Limited
Strategic Report
Year Ended 31 March 2024
People
People are our key asset in the business, and we are committed to regularly investing in ways to enhance the performance and wellbeing of our people.
This year the group has continued its investment to support our team’s health and well-being, with voluntary health assessments in work time. Continuing our focus on health and wellbeing a staff on site gym has been provided to give greater opportunity to participate in physical fitness activities.
To promote financial wellbeing, we have provided financial awareness training, and our Pension Governance Committee has planned a structured approach to pension salary exchange, ready for implementation early 2024.
To continue our focus on training and development, we commenced an exciting leadership development, programme for all people leaders in the business, we view this as key to unlocking leadership potential within the business and enabling career progression. To enhance the culture, employees at all levels participated in positive behaviour training.
Summary
The Leadership Team are confident as we enter 2024/25, we look forward to the efficiencies from the capex projects coming to fruition. Additionally, once commissioned this will enable us to deliver against our sustainability objectives and commitments. We will drive steady and consistent progress with our sustainability objectives and goals, ensuring all stakeholders have an active role.
Approved by the
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A E Rodda & Son Group Limited
Directors' Report
Year Ended 31 March 2024
The directors present their report and the for the year ended 31 March 2024.
Directors of the group
The directors who held office during the year were as follows:
The following directors were appointed after the year end:
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
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A E Rodda & Son Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
A E Rodda & Son Group Limited
Independent Auditor's Report
Opinion
We have audited the financial statements of A E Rodda & Son Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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.
A E Rodda & Son Group Limited
Independent Auditor's Report
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group’s and 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 group or 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.
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:
A E Rodda & Son Group Limited
Independent Auditor's Report
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company at the planning stage of the audit. Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related company legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company’s ability to operate. In making this assessment we determined that the most significant elements of legislation include food standards, employment laws and regulations, GDPR and health and safety legislation.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• |
Enquires of management regarding their knowledge of any non compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none; |
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Considering the filings made at Companies House, and any omissions thereon of which there were none identified; |
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Reviewing BRC Global Standard for Food Safety ratings in the year to 31 March 2024 with no issues to note; |
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Discussing with management compliance with health and safety legislation, and Environment Agency rules and regulations; |
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Review of the company's GDPR policy and enquiries to the Data Protection Officer as to the occurence and outcome of any reportable breaches; |
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Reviewed company expenditure for any evidence of dispute or litigation with regulators, and there was none; |
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Reviewed Board minutes; |
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Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business, of which there were none; and |
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Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
A E Rodda & Son Group Limited
Independent 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.
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Lowin House
Tregolls Road
Cornwall
TR1 2NA
A E Rodda & Son Group Limited
Consolidated Profit and Loss Account
Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
2,294 |
357 |
||
Other operating income |
- |
|
|
Operating profit |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The above results were derived from continuing operations.
The group has no recognised gains or losses for the year other than the results above.
A E Rodda & Son Group Limited
Consolidated Balance Sheet
31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
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Intangible assets |
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Tangible assets |
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|
|
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||
Current assets |
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Stocks |
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|
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Debtors |
|
|
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Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
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Profit and loss account |
|
|
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Equity attributable to owners of the company |
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|
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Total equity |
|
|
Approved and authorised by the
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Company Registration Number: 08330491
A E Rodda & Son Group Limited
Balance Sheet
31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
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Investments |
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|
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Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
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|
|
Capital redemption reserve |
|
|
|
Profit and loss account |
|
|
|
Shareholders' funds |
|
|
The company made a profit after tax for the financial year of £416,000 (2023 - profit of £116,000).
Approved and authorised by the
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Company Registration Number: 08330491
A E Rodda & Son Group Limited
Consolidated Statement of Changes in Equity
Year Ended 31 March 2024
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 March 2024 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 March 2023 |
|
|
|
|
A E Rodda & Son Group Limited
Statement of Changes in Equity
Year Ended 31 March 2024
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 March 2024 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 31 March 2023 |
|
|
|
|
A E Rodda & Son Group Limited
Consolidated Statement of Cash Flows
Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
|
|
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Loss on disposal of tangible assets |
|
- |
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Finance costs |
|
|
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Taxation |
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|
|
|
|
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Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in debtors |
|
( |
|
(Decrease)/increase in creditors |
( |
|
|
Cash generated from operations |
|
( |
|
Corporation tax paid |
- |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
(196) |
(189) |
|
Payments to finance lease creditors |
( |
( |
|
Proceeds from issue / (Repayment) of debenture loans |
- |
200 |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
3,823 |
870 |
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The functional currency of the group is considered to be pounds sterling because this is the currency of the primary economic environment in which the company operates.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2024.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Summary of disclosure exemptions
FRS102 allows a qualifying entity certain disclosure exemptions subject to certain conditions which the company has complied with. This includes the notification of, and no objection to, the use of such exemptions by the company’s shareholders.
On this basis the company has taken advantage of the following exemptions:
• From preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows included in these financial statements includes the company’s cash flows;
• From the financial instrument disclosures, required under FRS102 paragraphs 11.39 to 11.48A as the information is provided in the consolidated financial statement disclosures; and
• The group and company have also taken advantage of the exemption under FRS102 paragraph 33.1A in respect of transactions between members of the group, on the basis that the group companies are 100% owned.
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience and include the following: |
Stock valuation – Management is required to estimate the cost of milk used in the production of various stock lines over a period of time. As the price of milk constantly varies on the commodity market management must make an assessment as to the price used when calculating the stock value at year end; and |
Depreciation and useful economic lives of tangible assets - Management have carefully considered the depreciation estimates applied on the tangible assets held by the group. This assessment is performed on an annual basis and would be amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of each asset. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the group's activities.
Foreign currency transactions and balances
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Other intangibles are stated in the financial statement of financial position at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Computer software |
Over 5 to 10 years straight line basis |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction, less any estimated residual value, over their estimated useful lives as follows:
Asset class |
Depreciation method and rate |
Leasehold improvements |
Over 25 years straight line basis |
Plant and machinery |
Between 5 to 25 years straight line basis |
Motor vehicles |
Over 10 years straight line basis |
Assets under construction |
Not depreciated |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress 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, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Financial instruments
Classification
All financial instruments are classified as basic.
Recognition and measurement
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. Where the arrangement constitutes a financing transaction the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Basic financial liabilities, including trade and other payables are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. Where the item constitutes a financing transaction the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Turnover |
The analysis of the group's turnover by geographical location is given below:
2024 |
2023 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Miscellaneous other operating income |
- |
|
Operating profit |
Arrived at after charging
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Auditor's remuneration |
13 |
12 |
Loss on disposal of property, plant and equipment |
|
- |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
672 |
795 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
101 |
120 |
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Finance charges |
|
|
Other interest payable |
|
|
|
|
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Taxation |
Tax charged/(credited) in the profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
- |
UK corporation tax adjustment to prior periods |
( |
- |
42 |
- |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax expense relating to changes in tax rates or laws |
- |
|
Decrease from effect of tax incentives |
- |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
- |
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Liability |
Difference between accumulated depreciation and amortisation and capital allowances |
|
Other timing differences |
( |
|
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
2023 |
Liability |
Difference between accumulated depreciation and amortisation and capital allowances |
|
Trading loss carried forward |
( |
Other timing differences |
( |
|
Intangible assets |
Group
Computer software |
|
Cost or valuation |
|
At 1 April 2023 |
|
Additions acquired separately |
|
Disposals |
( |
At 31 March 2024 |
|
Amortisation |
|
At 1 April 2023 |
|
Amortisation charge |
|
Amortisation eliminated on disposals |
( |
At 31 March 2024 |
|
Carrying amount |
|
At 31 March 2024 |
|
At 31 March 2023 |
|
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Tangible assets |
Group
Short leasehold land and buildings |
Plant and machinery |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 April 2023 |
|
|
|
|
Additions |
- |
|
- |
|
Disposals |
- |
( |
- |
( |
At 31 March 2024 |
|
|
|
|
Depreciation |
||||
At 1 April 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
At 31 March 2024 |
|
|
|
|
Carrying amount |
||||
At 31 March 2024 |
|
|
- |
|
At 31 March 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £719,000 (2023 - £789,000) in respect of short leasehold land and buildings.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2024 |
2023 |
|
Plant and machinery |
361 |
227 |
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Investments |
Company
2024 |
2023 |
|
Investment in subsidiary |
|
|
Subsidiary |
£ 000 |
Cost or valuation |
|
At 1 April 2023 |
|
At 31 March 2024 |
|
Carrying amount |
|
At 31 March 2024 |
|
At 31 March 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
The Creamery
|
Ordinary shares |
|
|
England & Wales |
The principal activity of A E Rodda & Son Ltd is |
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Raw materials |
|
|
- |
- |
Packaging |
|
|
- |
- |
Finished goods |
|
|
- |
- |
Other inventories |
|
|
- |
- |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by group companies |
- |
- |
|
|
|
Amounts owed by other related parties |
- |
203 |
166 |
166 |
|
Other debtors |
|
|
- |
- |
|
Prepayments and accrued income |
|
|
- |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Amounts owed to other related parties |
231 |
- |
- |
- |
|
Corporation tax liability |
43 |
1 |
43 |
- |
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other creditors |
|
|
- |
- |
|
Accrued expenses |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
|
Debentures |
900 |
900 |
- |
- |
|
1,471 |
1,626 |
344 |
546 |
The various debenture loans carry interest at a rate of 2% over the bank base rate per annum or 5%. They carry no fixed repayment terms and are secured by a mortgage over leasehold property and by a floating charge over the company's other assets and undertakings.
The debentures were issued on 31 March 2001 and 22 March 2023 to relatives of some Directors and the Directors consider the debentures to be part of the long term funding of the company.
Loans and borrowings |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
|
|
|
|
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
|
|
|
|
Group and Company
Bank borrowings
Bank borrowings are secured by way of debenture, fixed and floating charges over all assets both present and future. There is also an unlimited multilateral guarantee given by the Group companies.
|
Analysis of changes in net debt |
At 1 |
Non-cash changes - |
At 31 |
||
April |
New finance |
March |
||
2023 |
Cash flow |
leases |
2024 |
|
£ 000 |
£ 000 |
£ 000 |
£ 000 |
|
Cash at bank and on hand |
870 |
2,953 |
- |
3,823 |
Bank overdrafts |
- |
- |
- |
- |
Cash and cash equivalents |
870 |
2,953 |
- |
3,823 |
Bank loans |
(739) |
196 |
- |
(543) |
Hire purchase contracts |
(222) |
107 |
(178) |
(294) |
Debentures |
(900) |
- |
- |
(900) |
Net debt |
(991) |
3,256 |
(178) |
2,086 |
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Provisions for liabilities |
Group
Deferred tax |
|
At 1 April 2023 |
|
(Decrease)/increase in existing provisions |
|
At 31 March 2024 |
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. 000 |
£ 000 |
No. 000 |
£ 000 |
|
|
|
9 |
|
9 |
Commitments |
Group
Capital commitments
Off-balance sheet arrangements |
Milk Volume Arrangements
The group has contracts with milk suppliers where a set notice period is required to terminate the supply arrangement. During the notice period the group is committed to procuring a certain volume of milk depending on forecasts. Due to the uncertainty regarding volumes required and future milk prices a financial commitment cannot be reliably quantified.
A E Rodda & Son Group Limited
Notes to the Financial Statements
Year Ended 31 March 2024
Related party transactions |
Related Partnership
(Certain directors of the company are partners in the partnership)
The partnership operates the distribution side of the business. During the year the group purchased services from the partnership amounting to £1,872,000 (2023 - £1,589,000). At the balance sheet date the amount due (from) / to the partnership was £231,000 (2023 - £(203,000)).
Relatives of some Directors
Relatives of some Directors hold debenture loans in the company which were issued on 22 March 2023 and 31 March 2001. Interest totalling £65,000 (2023 - £34,000) was charged on these debenture loans in the year. At the balance sheet date the amount due to relatives of some Directors was £900,000 (2023 - £900,000).
The Directors consider the debentures to be part of the long term funding of the Group.
Control |
The ultimate controlling party is