REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 28 February 2024 |
for |
Mikado Foods (Uk) Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 28 February 2024 |
for |
Mikado Foods (Uk) Ltd |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Contents of the Financial Statements |
for the Year Ended 28 February 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
Mikado Foods (Uk) Ltd |
Company Information |
for the Year Ended 28 February 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
Kennel Club House |
Gatehouse Way |
Aylesbury |
Buckinghamshire |
HP19 8DB |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Strategic Report |
for the Year Ended 28 February 2024 |
For the fiscal year ending 28th February 2024, Mikado Foods (UK) Ltd has achieved substantial growth, including a successful expansion into the chilled category. Our financial performance has notably improved, and we have strategically reinvested last year's profits into commercial property, which will reduce rental expenses and provide additional rental income. We are also preparing for a strategic acquisition to further strengthen our market position and diversify our product range. |
REVIEW OF BUSINESS |
1. Financial Performance |
- Operating Profit: |
o 2024 (01/03/2023 to 28/02/2024): £3,196,611 |
o 2023 (01/01/2022 to 28/02/2023, full 14-month period): £2,037,712 |
o 2023 (prorated to 12 months): £1,749,153 |
- Profit Increase: The operating profit increased by £1,450,000, or 83%, comparing the prorated 12-month figures, reflecting successful expansion and effective reinvestment strategies. |
- Cost Management: Achieved a 10% reduction in costs through the consolidation of third-party warehousing and logistics, alongside other efficiency measures. |
2. Investment in Commercial Property |
- Property Investment: Profits from the previous year were reinvested into acquiring commercial property. This strategic move will lower our rental expenses and provide additional rental income, enhancing our financial stability. |
- Impact: The investment is expected to positively affect our bottom line by reducing operational costs and providing a steady revenue stream. |
3. Market Expansion |
- Chilled Category: Successfully entered major UK retailers, contributing 12% to revenue. Investments in cold chain logistics and product development were crucial to this achievement. |
- Product Diversification: Expanded our product range with new ambient and chilled goods to align with evolving consumer preferences. |
4. Operational Efficiency |
- Technology Investments: Reinvested in ERP and data analytics to streamline operations, improve demand forecasting, and enhance overall efficiency. |
5. Strategic Acquisition Plans |
- Objective: Plan to acquire a complementary company to broaden our product portfolio, increase market share, and leverage operational synergies. |
- Focus: Target businesses in the chilled or ambient sectors with strong market presence and alignment with our sustainability goals. |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Strategic Report |
for the Year Ended 28 February 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
6. Challenges and Risk Management |
- Integration: Emphasize effective integration of the acquired company to maximize synergies. |
- Supply Chain and Regulatory Risks: Continue investing in diversified supply chains and regulatory compliance to navigate global disruptions and Brexit-related challenges. |
7. Reputation Risk |
Commitment to Quality and Compliance: Mikado Foods (UK) Ltd understands the importance of maintaining a strong reputation in the food industry. We are committed to ensuring that all products meet the highest quality standards and comply with relevant regulations. |
Ethical Sourcing and Transparency: We prioritise ethical sourcing and transparent business practices to uphold our reputation as a trusted food importer and distributor. Any deviation from these standards could pose a significant risk to our reputation, and as such, we continue to monitor and enhance our supply chain practices. |
Crisis Management: We have developed robust crisis management protocols to address potential reputational risks swiftly and effectively, ensuring that any issues are resolved with minimal impact on our brand and customer trust. |
8. Priorities for Next Year |
- Acquisition: Complete and integrate the acquisition smoothly. |
- Market and Product Growth: Strengthen our market position, expand chilled product offerings, and drive innovation. |
- Sustainability: Advance eco-friendly packaging solutions and further reduce our carbon footprint. |
9. Conclusion |
The fiscal year ending 28th February 2024 has been marked by strong growth and strategic investments. The successful expansion into the chilled category, investment in commercial property, and planned acquisition position us for continued success and financial stability. |
ON BEHALF OF THE BOARD: |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Report of the Directors |
for the Year Ended 28 February 2024 |
The directors present their report with the financial statements of the company for the year ended 28 February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a full-service importer and distributor of food products. |
DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Report of the Directors |
for the Year Ended 28 February 2024 |
AUDITORS |
The auditors, DUX Advisory Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Mikado Foods (Uk) Ltd |
Opinion |
We have audited the financial statements of Mikado Foods (Uk) Ltd (the 'company') for the year ended 28 February 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 28 February 2024 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 Auditors' 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. The opening balances, however, were unaudited as they relate to a prior period where no audit was performed. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Mikado Foods (Uk) Ltd |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We note that the opening balances have not been subject to audit procedures. Based on the work we have performed, we have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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. |
Report of the Independent Auditors to the Members of |
Mikado Foods (Uk) Ltd |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and |
non-compliance with laws and regulations, our procedures included the following: |
- We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which it operates. We determined that the following laws and regulations were most significant: Companies Act 2006, UK GAAP, the UK Corporate Governance Code and the Data Protection Act. |
- We obtained an understanding of how the company is complying with those legal and regulatory frameworks and made enquiries to the management of known or suspected instances of fraud and non-compliance with laws and regulations. |
- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included: |
- Identifying and assessing the controls management has in place to prevent and detect fraud; |
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- Challenging assumptions and judgments made by management in its significant accounting estimates and judgments. |
- Identifying and testing journal entries, in particular journal entries posted with unusual account |
combinations; and |
- Assessing the extent of compliance with the relevant laws and regulations. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusions. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Mikado Foods (Uk) Ltd |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
Kennel Club House |
Gatehouse Way |
Aylesbury |
Buckinghamshire |
HP19 8DB |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Statement of Comprehensive |
Income |
for the Year Ended 28 February 2024 |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,190,941 | 2,037,712 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
3,218,655 | 2,039,291 |
Profit on disposal of fixed assets | - | 10,000 |
3,218,655 | 2,049,291 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Balance Sheet |
28 February 2024 |
28.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Statement of Changes in Equity |
for the Year Ended 28 February 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2024 |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Cash Flow Statement |
for the Year Ended 28 February 2024 |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of investment property | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
654,905 |
Cash and cash equivalents at end of year | 2 | 2,683,343 | 890,381 |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Cash Flow Statement |
for the Year Ended 28 February 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Gain on revaluation of fixed assets | - | (10,000 | ) |
Finance costs | 4,920 | 12,726 |
Finance income | (22,044 | ) | (1,579 | ) |
3,209,321 | 2,052,804 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 28 February 2024 |
28.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 2,683,343 | 890,381 |
Period ended 28 February 2023 |
28.2.23 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 890,381 | 654,905 |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Cash Flow Statement |
for the Year Ended 28 February 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.23 | Cash flow | At 28.2.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 890,381 | 1,792,962 | 2,683,343 |
890,381 | 2,683,343 |
Debt |
Debts falling due within 1 year | (50,000 | ) | 50,000 | - |
Debts falling due after 1 year | (116,667 | ) | 116,667 | - |
(166,667 | ) | 166,667 | - |
Total | 723,714 | 1,959,629 | 2,683,343 |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements |
for the Year Ended 28 February 2024 |
1. | STATUTORY INFORMATION |
Mikado Foods (Uk) Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The presentation currency of these financial statements is in £ sterling and they are rounded to the nearest £1. |
The financial statements have been prepared on a going concern basis under the historical cost convention. The directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. The Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Significant judgements and estimates |
In preparing the financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. These assumptions are reassessed annually as part of the accounts preparation process. |
The significant judgements that the directors have made in applying the Company's accounting policies that have the most significant effect on the statutory financial statements are discussed below: |
- Bad debt provision |
The company establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability, the directors have considered factors such as the ageing of debtors, past experience of recoverability, and the credit profile of individual or groups of customers. |
- Stock provision |
At the end of each reporting period stock are assessed for impairment. If an item of stock is impaired, the stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the Statement of Comprehensive Income. |
- Depreciation policy |
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of other assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The remaining useful economic life of the tangible fixed assets is considered a source of significant estimation uncertainty. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them. |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases: |
Motor Vehicles 20% reducing balance |
Fixtures & Fittings 25% reducing balance |
Computer Equipment 33.33% straight line |
No depreciation is charged on the freehold property because it is the company's accounting policy to assume that the property will retain its value or even appreciate over time. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the Statement of Comprehensive Income in the period to which they relate. |
Financial instruments |
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
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. |
Financial instruments at amortised cost |
The company trade debtor and creditor balances are measured at amortised cost taking into account bad debt provisions or write offs respectively. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
United Kingdom |
Europe |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
Average number of employees |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director for the year ended 28 February 2024 is as follows: |
Year Ended |
28.2.24 |
£ |
Accrued pension at 28 February 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences |
Inventories recognised as an expense |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Bank loan interest |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Timing difference adjustment | 572 | 4,645 |
Total tax charge | 785,716 | 390,194 |
8. | DIVIDENDS |
Period |
1.1.22 |
Year Ended | to |
28.2.24 | 28.2.23 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 March 2023 |
Additions |
Disposals | ( |
) |
At 28 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 28 February 2024 |
NET BOOK VALUE |
At 28 February 2024 |
At 28 February 2023 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 March 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 28 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 28 February 2024 |
NET BOOK VALUE |
At 28 February 2024 |
At 28 February 2023 |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 March 2023 |
and 28 February 2024 |
NET BOOK VALUE |
At 28 February 2024 |
At 28 February 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Associated company |
Registered office: 2 Manor Courtyard,Hughenden Avenue,High Wycombe, HP13 5RE |
Nature of business: |
% |
Class of shares: | holding |
£ |
Aggregate capital and reserves |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
Additions |
At 28 February 2024 |
NET BOOK VALUE |
At 28 February 2024 |
12. | STOCKS |
28.2.24 | 28.2.23 |
£ | £ |
Stocks |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
28.2.24 | 28.2.23 |
£ | £ |
Trade debtors |
Amounts owed by associates |
Other debtors |
VAT |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
28.2.24 | 28.2.23 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Amounts owed to associates | 133,392 | 1,261,081 |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
28.2.24 | 28.2.23 |
£ | £ |
Bank loans (see note 16) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
28.2.24 | 28.2.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
17. | SECURED DEBTS |
The Lloyds Bank loan contains fixed and floating charges covers all the property or undertaking of the company. |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
18. | PROVISIONS FOR LIABILITIES |
28.2.24 | 28.2.23 |
£ | £ |
Deferred tax | 4,645 | 3,329 |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Provided during year |
Balance at 28 February 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 28.2.24 | 28.2.23 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 March 2023 |
Profit for the year |
At 28 February 2024 |
Mikado Foods (Uk) Ltd (Registered number: 07894108) |
Notes to the Financial Statements - continued |
for the Year Ended 28 February 2024 |
21. | RELATED PARTY DISCLOSURES |
During the financial year, the company entered into various transactions with related parties, which are disclosed in accordance with the applicable accounting standards. |
The company engaged Clearfast Freight Services Ltd for freight services and customs clearance, with transactions amounting to €1,016,106 (2023: € 92,362) and £147,974.98 (£ 14,803). |
Additionally, the company paid rent of £1,500 (2023: Nil) and a charging point fee of £9,188.40 (2023: Nil) to 2 Manor Courtyard Limited for the year. |
The company also paid $1,597,575.91 (2023: $1,147,423) for goods for resale and €20,071.24 for warehouse charges, commission, and customs to Mikado Ischmidt and Mikado Food. |
Furthermore, transactions with Mikado Europe amounted to €27,952.68 (2023: Nil) for goods for resale and commission. |
All the listed companies are considered related parties as they share directors and all shareholders with Mikado Foods UK. All these transactions were in the ordinary course of business. |
28.2.24 | 28.2.23 |
£ | £ |
Amount due from 2 Manor Cortyard Ltd | 10,000 | 10,000 |
Amount due to Clearfast Frieght Services LTD | 35,761 | 103,827 |
Amount due to Mikado Europe | 23,482 | - |
Amount due to ISCDOLLA I.Schmidt Handelsges. mbH (Dollar) |
22. | ULTIMATE CONTROLLING PARTY |
The company will be owned by MDH Group Holdings Ltd from 15th May 2024. |
23. | SUBSEQUENT EVENTS |
It has been determined that the group's structure will undergo changes; however, these changes will not impact the current year's financial statements. |