Nortrade Foods Limited 01727161 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is that of the distribution of frozen food products. Digita Accounts Production Advanced 6.30.9574.0 true true true true false false false 01727161 2023-01-01 2023-12-31 01727161 2023-12-31 01727161 bus:OrdinaryShareClass1 2023-12-31 01727161 bus:Consolidated 2023-12-31 01727161 core:AcceleratedTaxDepreciationDeferredTax 2023-12-31 01727161 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-12-31 01727161 core:CurrentFinancialInstruments 2023-12-31 01727161 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 01727161 core:PatentsTrademarksLicencesConcessionsSimilar 2023-12-31 01727161 core:BetweenTwoFiveYears 2023-12-31 01727161 core:WithinOneYear 2023-12-31 01727161 core:FurnitureFittingsToolsEquipment 2023-12-31 01727161 core:MotorVehicles 2023-12-31 01727161 core:OtherPropertyPlantEquipment 2023-12-31 01727161 core:DeferredTaxation 2023-12-31 01727161 bus:FRS102 2023-01-01 2023-12-31 01727161 bus:Audited 2023-01-01 2023-12-31 01727161 bus:FullAccounts 2023-01-01 2023-12-31 01727161 bus:RegisteredOffice 2023-01-01 2023-12-31 01727161 bus:CompanySecretary1 2023-01-01 2023-12-31 01727161 bus:Director1 2023-01-01 2023-12-31 01727161 bus:Director10 2023-01-01 2023-12-31 01727161 bus:Director2 2023-01-01 2023-12-31 01727161 bus:Director3 2023-01-01 2023-12-31 01727161 bus:Director6 2023-01-01 2023-12-31 01727161 bus:Director7 2023-01-01 2023-12-31 01727161 bus:Director8 2023-01-01 2023-12-31 01727161 bus:Director9 2023-01-01 2023-12-31 01727161 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 01727161 bus:Consolidated 2023-01-01 2023-12-31 01727161 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 01727161 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-01-01 2023-12-31 01727161 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 01727161 core:MotorVehicles 2023-01-01 2023-12-31 01727161 core:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 01727161 core:PlantMachinery 2023-01-01 2023-12-31 01727161 core:DeferredTaxation 2023-01-01 2023-12-31 01727161 core:Subsidiary1 2023-01-01 2023-12-31 01727161 core:Subsidiary1 countries:Spain 2023-01-01 2023-12-31 01727161 core:UKTax 2023-01-01 2023-12-31 01727161 1 2023-01-01 2023-12-31 01727161 countries:AllCountries 2023-01-01 2023-12-31 01727161 2022-12-31 01727161 core:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 01727161 core:CostValuation 2022-12-31 01727161 core:FurnitureFittingsToolsEquipment 2022-12-31 01727161 core:MotorVehicles 2022-12-31 01727161 core:OtherPropertyPlantEquipment 2022-12-31 01727161 core:DeferredTaxation 2022-12-31 01727161 2022-01-01 2022-12-31 01727161 2022-12-31 01727161 bus:OrdinaryShareClass1 2022-12-31 01727161 core:AcceleratedTaxDepreciationDeferredTax 2022-12-31 01727161 core:HirePurchaseContracts core:CurrentFinancialInstruments 2022-12-31 01727161 core:CurrentFinancialInstruments 2022-12-31 01727161 core:CurrentFinancialInstruments core:WithinOneYear core:PreviouslyStatedAmount 2022-12-31 01727161 core:CurrentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 01727161 core:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 01727161 core:BetweenTwoFiveYears 2022-12-31 01727161 core:WithinOneYear 2022-12-31 01727161 core:FurnitureFittingsToolsEquipment 2022-12-31 01727161 core:MotorVehicles 2022-12-31 01727161 core:OtherPropertyPlantEquipment 2022-12-31 01727161 core:PreviouslyStatedAmount 2022-12-31 01727161 core:PlantEquipmentOtherAssetsUnderOperatingLeases core:PreviouslyStatedAmount 2022-01-01 2022-12-31 01727161 core:PreviouslyStatedAmount 2022-01-01 2022-12-31 01727161 core:Subsidiary1 2022-01-01 2022-12-31 01727161 core:UKTax 2022-01-01 2022-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 01727161

Nortrade Foods Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

Nortrade Foods Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Statement of Income and Retained Earnings

11

Statement of Financial Position

12

Notes to the Financial Statements

13 to 25

 

Nortrade Foods Limited

Company Information

Directors

Mr J G Greig

Mrs J A Greig

Mr R W Greig

Mr A J S Smith

Mrs J Greig

Mr A Sturgeon

Mrs V Monk

Mr B Acklam

Company secretary

Mrs J A Greig

Registered office

Cranbrook Road
Gills Green
Hawkhurst
Kent
TN18 5BD

Auditor

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
TN13 1YL

 

Nortrade Foods Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is that of the distribution of frozen food products.

Fair Review of the Business

The directors note that 2023 has been a difficult year for the company. The business has seen a significant reduction in turnover however the directors note that 2022 results were exceptionally high with the business benefiting from the pent-up demand post Covid. Current turnover is still notably higher than pre-Covid levels.

Despite turnover reducing by £5.25m, the overall gross profit has remained consistent, falling by just £9k as a result of the GPM improving from 8.17% to 9.27%. The directors note significant cost reductions resulting from fuel prices stabilising, lower import and duty related costs and more efficient stock purchasing.

The directors have retained tight control over the majority of the company overheads, however the increased interest payable as a result of soaring interest rates has been unavoidable. In addition to this, the previous year reported other operating income of £151k relating to sale of the trade customer list and these two factors have ultimately led to the reduction in profit,

Net assets at 31 December 2023 amounted to £6,494,750 (2022: £6,457,965).

The directors note that 2022 stock was exceptionally high and there has been an active focus to reduce this to a more realistic and appropriate level.

The directors are focused on continually improving the purchasing systems and stock monitoring systems, as well as long term growth strategies such as marketing, obtaining relevant accreditations and investing in people, new technology and equipment. The company also continues to utilise NTF Europe SL (100% subsidiary incorporated in Spain) to encourage growth in the EU and to ensure it continues to have the same access and trading rights with the EU, particularly in the Republic of Ireland following BREXIT.

The directors understand that external factors will continue to impact future profit margins however are hopeful that the business will remain profitable in the year ended 31 December 2024. The principal activity will remain consistent.

Key Performance Indicators

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

 

Unit

2023

2022

Turnover

£000

38,258

43,505

Turnover Percentage Change

%

(12)

13

Gross Profit

£000

3,547

3,555

Gross Profit Percentage

%

9

8

 

Nortrade Foods Limited

Strategic Report for the Year Ended 31 December 2023

Non-Financial Key Performance Indicators

The company seeks to ensure that responsible business practice is fully integrated into the management of all its operations and into the culture of all parts of its business. It believes that the consistent adoption of reasonable business practice is essential for operational excellence which in turn ensures the delivery of its core objectives of sustained profitability.

The company will continue to invest in the underlying systems, governance and infrastructure to support the company going forward.

In a company of this size the directors consider there are collectively numerous non-financial performance indicators but that individually none are key.

Principal risks and uncertainties

The company uses various financial instruments including cash balances, invoice financing, bank loans, trade debtors and trade creditors. The main purpose of these instruments is to raise finance for the company's continuing operations. The existence of these financial instruments exposes the company to a number of financial risks, some of which are described in more detail below. The directors monitor and review these risks regularly.

The company is exposed to interest rate risk, this is managed by the use of both fixed and floating facilities on the overdrafts in use.

The company is exposed to credit risk, the risk that counterparties will not be able to meet their obligations as they fall due. There are regular credit reviews of counterparty limits, this risk is further mitigated by the company through credit insurance and continuous contact with its customers.

The company is exposed to foreign exchange risk. The nature of the company's operations mean the majority of goods purchased are denominated in foreign currency. The directors regularly review foreign currency markets in order to mitigate the effects of significant negative exchange movements. The company continued to enter into forward currency contracts throughout the year to further mitigate the risk.

The company is exposed to operational risk, the risk caused by failures in business processes, or the systems or physical infrastructure that support them, that have the potential to result in financial loss or reputation damage. This includes errors, omissions, systems failure, lack of resources or physical assets and deliberate acts such as fraud. The regulated environment in which the company operates imposes reporting requirements and continuing self assessment and appraisal. The company seeks to continually improve its operating efficiencies and standards.

In respect of bank balances the company manages liquidity risks by maintaining a balance between the continuity of funding and flexibility through use of invoice financing.

Overall the company monitors cashflow on a daily basis, including a review of available banking facilities, debtors and creditors to ensure the company has sufficient working capital to meet its outgoings as they fall due and to maintain continued trading.

 

Nortrade Foods Limited

Strategic Report for the Year Ended 31 December 2023

Future Developments

The directors consider that the forthcoming year will be another year of growth although profitability will continue to remain under pressure from a combination of factors including exchange rate volatility, wages pressures, coldstore maintenance costs, increased import costs and further investment in brand development and technology.

Based on the information available and the company's current trading performance the directors expect the result for the year ending 31 December 2024 to be profitable. The directors intend to continue to make investments in the business to ensure the company maintains its reputation in the wholesale seafood industry and will continue to be investigating ways to increase turnover through opportunities as they arise.

Approved by the Board on 12 August 2024 and signed on its behalf by:

.........................................
Mr R W Greig
Director

 

Nortrade Foods Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors of the company

The directors who held office during the year were as follows:

Mr J G Greig

Mrs J A Greig

Mr R W Greig

Mr A J S Smith

Mrs J Greig

Mr A Sturgeon

Mrs V Monk

Mr B Acklam

Dividends

No interim dividends were paid during the year. The directors do not recommend the payment of a final dividend.

Information included in the Strategic Report

The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out in the group's strategic report information required by Schedule 7 of the large and medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of financial risk management, exposure and future developments.

Directors' liabilities

The company has Directors' and Officers' liability insurance for Directors and Officers as permitted by section 233 of the Companies Act 2006.

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the director on 12 August 2024 and signed by:



 

.........................................
Mr R W Greig
Director

 

Nortrade Foods 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

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.

 

Nortrade Foods Limited

Independent Auditor's Report to the Members of Nortrade Foods Limited
for the Year Ended 31 December 2023

Opinion

We have audited the financial statements of Nortrade Foods Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Our responsibilities and the responsibilities of the 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.

We have nothing to report in this regard.

 

Nortrade Foods Limited

Independent Auditor's Report to the Members of Nortrade Foods Limited
for the Year Ended 31 December 2023

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 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, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 6), 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.

 

Nortrade Foods Limited

Independent Auditor's Report to the Members of Nortrade Foods Limited
for the Year Ended 31 December 2023

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws, health and safety legislation, food hygiene standards, import and export legislation and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

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.

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.

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, misrepresentation or forgery.

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.

 

Nortrade Foods Limited

Independent Auditor's Report to the Members of Nortrade Foods Limited
for the Year Ended 31 December 2023

......................................
Martin Widdowson (Senior Statutory Auditor)
For and on behalf of Brebners, Statutory Auditor

1 Suffolk Way
Sevenoaks
TN13 1YL

19 August 2024

 

Nortrade Foods Limited

Statement of Income and Retained Earnings for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

38,258,323

43,505,000

Cost of sales

 

(34,711,380)

(39,949,585)

Gross profit

 

3,546,943

3,555,415

Distribution costs

 

(694,713)

(653,951)

Administrative expenses

 

(2,559,119)

(2,628,195)

Other operating income

4

-

150,812

Operating profit

5

293,111

424,081

Other interest receivable and similar income

6

4,302

1,325

Interest payable and similar charges

7

(249,059)

(144,418)

 

(244,757)

(143,093)

Profit before tax

 

48,354

280,988

Taxation

10

(11,569)

(53,134)

Profit for the financial year

 

36,785

227,854

Retained earnings brought forward

 

6,454,965

6,227,111

Retained earnings carried forward

 

6,491,750

6,454,965

 

Nortrade Foods Limited

Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

2,620

2,620

Tangible assets

12

215,173

265,706

Investments

13

2,727

2,727

 

220,520

271,053

Current assets

 

Stocks

14

8,408,138

10,399,831

Debtors

15

5,758,141

5,810,134

Cash at bank and in hand

 

1,060,892

716,803

 

15,227,171

16,926,768

Creditors: Amounts falling due within one year

17

(8,911,034)

(10,687,424)

Net current assets

 

6,316,137

6,239,344

Total assets less current liabilities

 

6,536,657

6,510,397

Provisions for liabilities

18

(41,907)

(52,432)

Net assets

 

6,494,750

6,457,965

Capital and reserves

 

Called up share capital

20

3,000

3,000

Profit and loss account

6,491,750

6,454,965

Shareholders' funds

 

6,494,750

6,457,965

Approved and authorised by the Board on 12 August 2024 and signed on its behalf by:
 

.........................................
Mr J G Greig
Director

.........................................
Mrs J A Greig
Director

.........................................
Mr R W Greig
Director

     

Company registration number: 01727161

 

Nortrade Foods Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales..

The address of its registered office is:
Cranbrook Road
Gills Green
Hawkhurst
Kent
TN18 5BD

The principal activity of the company is that of the distribution of frozen food products.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS102. Its financial statements are consolidated into the financial statements of Auscot Holdings Limited. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS102:

(a) No cash flow statement has been presented for the company.
(b) No disclosure has been made of financial instruments measured at fair value through profit or loss.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.

Group accounts not prepared

The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included in the consolidated financial statements of Auscot Holdings Limited.

The financial statements contain information about Nortrade Foods Limited as an individual company and not its group
.

 

Nortrade Foods Limited

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

Going concern

The company made a profit for the year ended 31 December 2023 and had net assets at that date of £6,494,750. The directors have considered the impact of the ongoing economic uncertainty in the UK and the war between Ukraine and Russia and do not believe these events will have a significant impact on the company.

On the basis of the above, and after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly the financial statements have been prepared under the going concern basis.

Judgements and key sources of estimation

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.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Key assumptions and other estimation uncertainties provide a risk of causing a material adjustment to the carrying values of assets and liabilities.

Judgements and estimates that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Tangible fixed assets are depreciated to their estimated residual values over their estimated useful lives.

Provisions are made against the carrying value of stock where items are considered to be old or obsolete or where net realisable value is less than cost.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of frozen food products in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue at the point of despatch of products when the amount of revenue can be reliably measured.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current income 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 company operates and generates taxable income.

 

Nortrade Foods Limited

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

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

Asset class

Depreciation method and rate

Plant & Machinery

5% straight line

Fixtures, fittings and equipment

15% to 25% reducing balance

Motor Vehicles

25% reducing balance

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

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

 

Nortrade Foods Limited

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average 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 inventories 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.

Borrowings

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

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

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

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 company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

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

Financial instruments

Basic financial instruments are recognised at amortised cost, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when, in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party and in the case of liabilities, when the company's obligations are discharged, expire or are cancelled.

 

Nortrade Foods Limited

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

Finance leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. 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 Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.

The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.

3

Revenue

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

2023
£

2022
£

Sale of goods

38,258,323

43,505,000

The analysis of the company's turnover for the year by geographical market is as follows:

2023
 £

2022
 £

UK

37,929,643

42,149,487

Europe

317,280

1,355,513

Rest of world

11,400

-

38,258,323

43,505,000

4

Other operating income

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

2023
 £

2022
 £

Miscellaneous other operating income

-

150,812

 

Nortrade Foods Limited

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

5

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

54,438

56,707

Foreign exchange gains

(17,725)

(36,026)

Operating lease expense - plant and machinery

140,303

156,092

Loss on disposal of property, plant and equipment

1,815

691

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

4,302

1,325

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

248,670

144,418

Interest expense on other finance liabilities

389

-

249,059

144,418

8

Staff costs

The aggregate payroll costs were as follows:

2023
 £

2022
 £

Wages and salaries

1,072,176

1,015,432

Social security costs

115,477

111,472

Pension costs, defined contribution scheme

26,545

26,053

Other employee expense

4,979

8,231

1,219,177

1,161,188

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

2023
No.

2022
No.

Production and distribution

17

19

Administration and support

4

4

Sales

5

5

26

28

 

Nortrade Foods Limited

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

9

Auditor's remuneration

2023
 £

2022
 £

Audit of the financial statements

15,000

12,000

Other fees to auditors

Other compliance services

4,400

4,000


 

10

Taxation

Tax charged/(credited) in the income statement

2023
£

2022
£

Current taxation

UK corporation tax

22,094

56,759

Deferred taxation

Arising from origination and reversal of timing differences

(10,525)

(3,625)

Tax expense in the income statement

11,569

53,134

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

48,354

280,988

Corporation tax at standard rate

11,373

53,388

Tax decrease from effect of capital allowances and depreciation

(622)

(1,106)

Tax increase from other tax effects

818

852

Total tax charge

11,569

53,134

 

Nortrade Foods Limited

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

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

41,907

-

41,907

2022

Asset
£

Liability
£

Accelerated capital allowances

-

52,432

-

52,432

11

Intangible assets

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 January 2023

2,620

2,620

At 31 December 2023

2,620

2,620

Carrying amount

At 31 December 2023

2,620

2,620

At 31 December 2022

2,620

2,620

 

Nortrade Foods Limited

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

12

Tangible assets

Furniture, fittings and equipment
 £

Motor Vehicles
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

173,601

59,500

807,406

1,040,507

Additions

4,098

-

4,197

8,295

Disposals

(13,683)

-

(2,575)

(16,258)

At 31 December 2023

164,016

59,500

809,028

1,032,544

Depreciation

At 1 January 2023

93,634

39,104

642,063

774,801

Charge for the year

17,494

5,099

31,845

54,438

Eliminated on disposal

(11,352)

-

(516)

(11,868)

At 31 December 2023

99,776

44,203

673,392

817,371

Carrying amount

At 31 December 2023

64,240

15,297

135,636

215,173

At 31 December 2022

79,967

20,396

165,343

265,706

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:

2023
£

2022
£

Motor vehicles

15,297

20,396

   

13

Investments

2023
 £

2022
 £

Investments in subsidiaries

2,727

2,727

£

Cost or valuation

At 1 January 2023 and 31 December 2023

2,727

Carrying amount

At 31 December 2023

2,727

At 31 December 2022

2,727

 

Nortrade Foods Limited

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

Details of undertakings

Details of the investments 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

     

2023

2022

Subsidiary undertakings

NTF Europe SL

Calle Sagasta Num. 23, Planta 3, Puerta D, 28004, Madrid

Ordinary shares

100%

100%

 

Spain

     

NTF Europe SL

The principal activity of NTF Europe SL is the distribution of frozen fish products.

14

Stocks

2023
 £

2022
 £

Stock for resale

8,408,138

10,399,831

Stock for resale is stated after a provision for diminution of value of £106,599 (2022: £135,272).

 

Nortrade Foods Limited

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

15

Debtors

2023
 £

2022
 £

Trade debtors

4,422,002

4,569,689

Amounts owed by group undertakings

835,013

767,846

Other debtors

220,114

332,576

Prepayments

281,012

140,023

Total current trade and other debtors

5,758,141

5,810,134

Details of non-current trade and other debtors

£14,400 (2022: £57,600) of other debtors is classified as non current.

16

Cash and cash equivalents

2023
 £

2022
 £

Cash on hand

195

1,308

Cash at bank

1,060,697

715,495

1,060,892

716,803

Bank overdrafts

(4,690,507)

(5,492,070)

Cash and cash equivalents

(3,629,615)

(4,775,267)

17

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

21

4,690,507

5,495,653

Trade creditors

 

3,354,134

3,492,824

Amounts due to group undertakings

 

570,379

1,277,678

Social security and other taxes

 

50,415

44,462

Other payables

 

154,682

173,983

Accrued expenses

 

68,823

146,065

Corporation tax liability

 

22,094

56,759

 

8,911,034

10,687,424

 

Nortrade Foods Limited

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

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

52,432

52,432

Increase (decrease) in existing provisions

(10,525)

(10,525)

At 31 December 2023

41,907

41,907

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £26,545 (2022 - £26,053).

20

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary Shares of £1 each

3,000

3,000

3,000

3,000

       

There are no restrictions on the repayment of capital or the declaration of dividends.

21

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Bank overdrafts

4,690,507

5,492,070

Hire purchase contracts

-

3,583

4,690,507

5,495,653

Bank overdrafts are secured by a fixed charge over the company's book debts and by a fixed and floating charge over the other assets and undertakings of the company.

Obligations under hire purchase contracts are secured over the assets involved.

 

Nortrade Foods Limited

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

22

Commitments, Guarantees and contingencies

Amounts not recognised in the statement of financial position are as follows:

2023
£

2022
£

Not later than one year

141,663

120,731

Later than one year and not later than five years

222,204

213,385

363,867

334,116

Other financial commitments

The company has guaranteed the group's bank loan and overdraft facilities. The amount due at 31 December 2023 not reflected in these financial statements amounted to £1,547,169 (2022: £2,021,077) although no liability is expected to arise.

23

Related party transactions

Exemption has been taken under FRS 102, paragraph 33.1A not to disclose transactions or amounts falling due with companies that are wholly owned within the group.

24

Financial instruments

Derivatives

Currency
The company entered into forward foreign exchange contracts amounting to $4,000,000 (2022: $4,000,000 which were outstanding at 31 December 2023.The carrying value of financial assets measured at fair value amounted to £42,742 (2022: £42,349). Fair value is determined by reference to published exchange rate information.

25

Controlling party

The parent of the smallest and largest group preparing group accounts including the results of the company is headed by Auscot Holdings Limited.

The registered address of Auscot Holdings Limited is:
Cranbrook Road, Gills Green, Hawkhurst, Kent, TN18 5BD.

The company's immediate and ultimate parent undertaking is Auscot Holdings Limited.

 Ultimate control vests with Mr R Greig.