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COMPANY REGISTRATION NUMBER: 06099534
Kosher Deli (UK) Limited
Financial Statements
31 December 2023
Kosher Deli (UK) Limited
Financial Statements
Year ended 31 December 2023
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13
Kosher Deli (UK) Limited
Strategic Report
Year ended 31 December 2023
Principal Activities
The principal activity of the company during the period was that of wholesale and retail food suppliers.
Business Review
The turnover and profit increased during the year due to an increase in wholesale and export sales.
The main key performance indicators which are used by management to monitor performance on a daily, weekly, and monthly basis are sales of meats and labour and direct costs associates with those sales.
The financial position of the company, its cash flows and liquidity position, are shown in the balance sheet, cash flow statement and subsequent notes.
The directors have assessed the company's working capital requirements and capital expenditure over the next twelve months and are confident that the company has secured sufficient financial resources to fund all planned expenditure. Therefore, the directors believe that the company is well placed to manage its business risks successfully despite the difficult current economic climate.
Principal risks and uncertainties
a) The company uses a variety of financial instruments, including cash, loans, inter-company debt and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to provide working capital for the company's operations.
b) Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities and is primarily associated with trade creditors and bank loans. The company aims to mitigate liquidity risk by managing cash generation by its operations, the use of cash flow forecast to monitor funding requirements and by ensuring sufficient financing arrangements are in place.
c) Credit risk is managed by ensuring that credit terms are only granted to customer who demonstrate an appropriate payment history and satisfy credit worthiness procedures.
d) Potential risks that the business faces include overcapacity in the sector and the availability of future livestock herds in Britain and Poland. The sector is also exposed to animal welfare food safety concerns.
Development and performance
The directors are continually seeking for opportunities to expand either through organic growth or by acquisition. The company continues to monitor the needs of its customers by broadening its range of new food items. The company continues to invest heavily in its future business success by introducing new products and widening its suppliers and customer base. Going forward, the company expects margins to stabilise at current levels.The company's strong position in the kosher meat and food market has already helped it navigate through the economic and meat market volatility of the last few years by maintaining both a stable turnover and margins during 2023.
We refer to the attached financial statements for the period to 31 December 2023. Competitive trading conditions coupled with unavoidable increases in overhead and factory and shop running costs, and significant fluctuations in the international value of sterling have all impacted on the results of the company. Despite the above, careful management has still resulted in an increase in turnover for the year.
This report was approved by the board of directors on 9 August 2024 and signed on behalf of the board by:
Mrs H Klein
Director
Registered office:
Hallswelle House
1 Hallswelle Road
London
England
NW11 0DH
Kosher Deli (UK) Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mr A Bendahan
Mrs H Klein
Dividends
Particulars of recommended dividends are detailed in note 14 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 9 August 2024 and signed on behalf of the board by:
Mrs H Klein
Director
Registered office:
Hallswelle House
1 Hallswelle Road
London
England
NW11 0DH
Kosher Deli (UK) Limited
Independent Auditor's Report to the Members of Kosher Deli (UK) Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of Kosher Deli (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 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; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls by testing journal entries and evaluating whether there was evidence of management bias which represented a risk of material misstatement due to fraud. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Phillip Smulovitch
(Senior Statutory Auditor)
For and on behalf of
GK & Co. LLP
Chartered accountants & statutory auditor
Hallswelle House
1 Hallswelle Road
London
England
NW11 0DH
9 August 2024
Kosher Deli (UK) Limited
Statement of Comprehensive Income
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
12,540,447
10,708,677
Cost of sales
6,335,589
5,578,311
-------------
-------------
Gross profit
6,204,858
5,130,366
Property outgoings
17,441
14,999
Administrative expenses
5,594,141
4,792,010
Other operating income
5
51,860
57,209
------------
------------
Operating profit
6
645,136
380,566
Income from shares in group undertakings
10
( 12,545)
Other interest receivable and similar income
11
41,250
88,005
Interest payable and similar expenses
12
265,813
224,768
------------
------------
Profit before taxation
420,573
231,258
Tax on profit
13
107,674
1,822
---------
---------
Profit for the financial year
312,899
229,436
---------
---------
Revaluation of tangible assets
( 367,740)
---------
---------
Total comprehensive income for the year
312,899
( 138,304)
---------
---------
All the activities of the company are from continuing operations.
Kosher Deli (UK) Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
15
11,160,020
11,360,005
Current assets
Stocks
16
378,004
251,933
Debtors
17
2,389,675
2,253,057
Cash at bank and in hand
124,866
64,849
------------
------------
2,892,545
2,569,839
Creditors: amounts falling due within one year
18
1,885,909
2,015,419
------------
------------
Net current assets
1,006,636
554,420
-------------
-------------
Total assets less current liabilities
12,166,656
11,914,425
Creditors: amounts falling due after more than one year
19
4,435,878
4,474,824
Provisions
Taxation including deferred tax
21
709,121
692,331
-------------
-------------
Net assets
7,021,657
6,747,270
-------------
-------------
Capital and reserves
Called up share capital
24
1
1
Revaluation reserve
25
2,871,460
2,871,460
Profit and loss account
25
4,150,196
3,875,809
------------
------------
Shareholders funds
7,021,657
6,747,270
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 9 August 2024 , and are signed on behalf of the board by:
Mrs H Klein
Director
Company registration number: 06099534
Kosher Deli (UK) Limited
Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 January 2022
1
3,239,200
3,646,373
6,885,574
Profit for the year
229,436
229,436
Other comprehensive income for the year:
Revaluation of tangible assets
15
( 367,740)
( 367,740)
----
------------
------------
------------
Total comprehensive income for the year
( 367,740)
229,436
( 138,304)
At 31 December 2022
1
2,871,460
3,875,809
6,747,270
Profit for the year
312,899
312,899
----
------------
------------
------------
Total comprehensive income for the year
312,899
312,899
Dividends paid and payable
14
( 38,512)
( 38,512)
----
----
--------
--------
Total investments by and distributions to owners
( 38,512)
( 38,512)
----
------------
------------
------------
At 31 December 2023
1
2,871,460
4,150,196
7,021,657
----
------------
------------
------------
Kosher Deli (UK) Limited
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
312,899
229,436
Adjustments for:
Depreciation of tangible assets
205,667
254,316
Income from shares in group undertakings
12,545
Other interest receivable and similar income
( 41,250)
( 88,005)
Interest payable and similar expenses
265,813
224,768
Tax on profit
107,674
1,822
Accrued expenses
176,752
294,059
Changes in:
Stocks
( 126,071)
100,422
Trade and other debtors
( 136,618)
( 410,616)
Trade and other creditors
445,129
( 852,426)
------------
---------
Cash generated from operations
1,209,995
( 233,679)
Interest paid
( 265,813)
( 224,768)
Interest received
41,250
88,005
Tax paid
( 16,901)
------------
---------
Net cash from/(used in) operating activities
985,432
( 387,343)
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 5,682)
( 58,499)
Proceeds from sale of subsidiaries
( 12,545)
------------
---------
Net cash used in investing activities
( 5,682)
( 71,044)
------------
---------
Cash flows from financing activities
Proceeds from borrowings
( 210,222)
( 339,898)
Proceeds from loans from group undertakings
( 659,738)
831,231
Payments of finance lease liabilities
( 11,261)
( 11,262)
Dividends paid
( 38,512)
------------
---------
Net cash (used in)/from financing activities
( 919,733)
480,071
------------
---------
Net increase in cash and cash equivalents
60,017
21,684
Cash and cash equivalents at beginning of year
64,849
43,165
---------
--------
Cash and cash equivalents at end of year
124,866
64,849
---------
--------
Kosher Deli (UK) Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Hallswelle House, 1 Hallswelle Road, London, England, NW11 0DH.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. All figures are rounded to the nearest pound.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances .
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
25% reducing balance
Fixtures, fittings and equipment
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
9,676,684
8,538,082
Rendering of services
1,040,066
965,225
Overseas
1,823,697
1,205,370
-------------
-------------
12,540,447
10,708,677
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
10,716,750
9,503,307
Overseas
1,823,697
1,205,370
-------------
-------------
12,540,447
10,708,677
-------------
-------------
5. Other operating income
2023
2022
£
£
Rental income
51,860
57,209
--------
--------
6. Operating profit
Operating profit or loss is stated after charging:
2023
2022
£
£
Depreciation of tangible assets
205,667
254,316
---------
---------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
22,500
20,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
71
70
Administrative staff
5
5
----
----
76
75
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
3,250,106
2,661,198
Social security costs
198,256
219,556
Other pension costs
41,870
39,855
------------
------------
3,490,232
2,920,609
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
26,936
63,102
--------
--------
10. Income from shares in group undertakings
2023
2022
£
£
Loss on subsidiary loan written off
(12,545)
----
--------
11. Other interest receivable and similar income
2023
2022
£
£
Interest on loans and receivables
41,081
87,995
Interest on bank deposits
169
10
--------
--------
41,250
88,005
--------
--------
12. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
237,148
203,789
Interest on obligations under finance leases and hire purchase contracts
1,599
1,594
Interest payable - other loans
27,066
19,373
Other interest payable and similar charges
12
---------
---------
265,813
224,768
---------
---------
13. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
90,884
Adjustments in respect of prior periods
( 5,726)
--------
-------
Total current tax
90,884
( 5,726)
--------
-------
Deferred tax:
Origination and reversal of timing differences
16,790
7,548
---------
-------
Tax on profit
107,674
1,822
---------
-------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
420,573
231,258
---------
---------
Profit on ordinary activities by rate of tax
98,918
43,939
Adjustment to tax charge in respect of prior periods
( 5,726)
Effect of expenses not deductible for tax purposes
2,393
Effect of capital allowances and depreciation
2,331
( 7,548)
Group loss adjustment
(10,365)
(38,784)
---------
---------
Tax on profit
90,884
(5,726)
---------
---------
14. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
38,512
--------
----
15. Tangible assets
Freehold properties
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost/valuation
At 1 January 2023
10,546,000
2,802,510
515,030
56,190
13,919,730
Additions
800
2,882
2,000
5,682
-------------
------------
---------
--------
-------------
At 31 December 2023
10,546,000
2,803,310
517,912
58,190
13,925,412
-------------
------------
---------
--------
-------------
Depreciation
At 1 January 2023
2,064,453
468,829
26,443
2,559,725
Charge for the year
185,459
12,271
7,937
205,667
-------------
------------
---------
--------
-------------
At 31 December 2023
2,249,912
481,100
34,380
2,765,392
-------------
------------
---------
--------
-------------
Carrying amount
At 31 December 2023
10,546,000
553,398
36,812
23,810
11,160,020
-------------
------------
---------
--------
-------------
At 31 December 2022
10,546,000
738,057
46,201
29,747
11,360,005
-------------
------------
---------
--------
-------------
Tangible assets held at valuation
The freehold properties are shown at the greater of cost and directors valuation as at the balance sheet date. The life expectancy of the freehold properties is considered to be more than 60 years and therefore no depreciation is considered to be necessary.
16. Stocks
2023
2022
£
£
Finished goods and goods for resale
378,004
251,933
---------
---------
17. Debtors
2023
2022
£
£
Trade debtors
681,331
446,411
Prepayments and accrued income
162,484
133,642
Sundry loans
886,118
867,037
Amounts owed by related undertakings
361,566
696,331
Other debtors
298,176
109,636
------------
------------
2,389,675
2,253,057
------------
------------
Included in sundry loans are loan to Clitterhouse Ltd £608,408(2022:£586,436), Medcalf Road Ltd £254,301 (2022 :£257,192) and Titchfield Road Ltd £23,409 (2022:£23,409). Clitterhouse Ltd and Medcalf Road Ltd are controlled by family members and Titchfield Road is controlled by Mr A Bendahan .
18. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
182,416
276,216
Trade creditors
1,008,974
579,120
Amounts owed to group undertakings
171,493
831,231
Other borrowing
72,862
46,110
Corporation tax
90,884
Social security and other taxes
56,074
48,994
Obligations under finance leases and hire purchase contracts
11,264
11,264
Director loan accounts
273,492
212,229
Other creditors
18,450
10,255
------------
------------
1,885,909
2,015,419
------------
------------
The bank borrowings are secured by a charge on the freehold properties. Additionally, the company has entered into a Composite Accounting Agreement whereby each participating company has provided a guarantee to the Bank.
19. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
3,978,368
4,156,053
Other borrowing
450,000
300,000
Obligations under finance leases and hire purchase contracts
7,510
18,771
------------
------------
4,435,878
4,474,824
------------
------------
Included in other loans payable after one year is a loan of £450,000 (2022- £300,000) from Finsbury Trust Company Ltd as trustee for The Four Plus Settlement,with its registered office at 50 Town Range, Gibraltar. This loan is repayable in full in 2032.
20. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
11,264
11,264
Later than 1 year and not later than 5 years
7,510
18,771
--------
--------
18,774
30,035
--------
--------
21. Provisions
Deferred tax (note 22)
£
At 1 January 2023
692,331
Additions
16,790
---------
At 31 December 2023
709,121
---------
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 21)
709,121
692,331
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
36,938
20,148
Revaluation of tangible assets
672,183
672,183
---------
---------
709,121
692,331
---------
---------
23. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 41,870 (2022: £ 39,855 ).
24. Called up share capital
Authorised share capital
2023
2022
No.
£
No.
£
Ordinary A shares of £ 1 each
50,000
50,000
50,000
50,000
Ordinary B shares of £ 1 each
50,000
50,000
50,000
50,000
---------
---------
---------
---------
100,000
100,000
100,000
100,000
---------
---------
---------
---------
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary A shares of £ 1 each
1
1
1
1
----
----
----
----
25. Reserves
Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
26. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
64,849
60,017
124,866
Debt due within one year
(1,330,940)
692,275
(638,665)
Debt due after one year
(4,174,824)
188,946
(3,985,878)
------------
---------
------------
( 5,440,915)
941,238
( 4,499,677)
------------
---------
------------
27. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr A Bendahan
212,229
61,263
273,492
---------
--------
---------
2022
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr A Bendahan
275,910
( 63,681)
212,229
---------
--------
---------
28. Related party transactions
The company was under the control of Mr Bendahan throughout the current and previous year. Mr Bendahan is the managing director. There were transactions with related companies at market value during the period. The management fees paid to these related undertakings amounted to £109,000 (2022:£(51,000)). Additionally, the company received interest in the sum of £41,081 (2022:87,995) from companies in which the director of this company has an interest.
Kosher Deli (UK) Limited
Notes to the Financial Statements (continued)
Year ended 31 December 2023
29. Controlling party
The ultimate parent company is Richtone Developments Ltd., a company incorporated in The British Virgin Islands.