Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31truetruetruetruetruetrue182023-01-01falseNo description of principal activity19falsefalse 02666517 2023-01-01 2023-12-31 02666517 2022-01-01 2022-12-31 02666517 2023-12-31 02666517 2022-12-31 02666517 2022-01-01 02666517 1 2023-01-01 2023-12-31 02666517 1 2022-01-01 2022-12-31 02666517 6 2023-01-01 2023-12-31 02666517 6 2022-01-01 2022-12-31 02666517 d:CompanySecretary1 2023-01-01 2023-12-31 02666517 d:Director1 2023-01-01 2023-12-31 02666517 d:Director2 2023-01-01 2023-12-31 02666517 d:RegisteredOffice 2023-01-01 2023-12-31 02666517 e:Buildings 2023-01-01 2023-12-31 02666517 e:Buildings 2023-12-31 02666517 e:Buildings 2022-12-31 02666517 e:Buildings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02666517 e:MotorVehicles 2023-01-01 2023-12-31 02666517 e:MotorVehicles 2023-12-31 02666517 e:MotorVehicles 2022-12-31 02666517 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02666517 e:FurnitureFittings 2023-01-01 2023-12-31 02666517 e:FurnitureFittings 2023-12-31 02666517 e:FurnitureFittings 2022-12-31 02666517 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02666517 e:ComputerEquipment 2023-01-01 2023-12-31 02666517 e:ComputerEquipment 2023-12-31 02666517 e:ComputerEquipment 2022-12-31 02666517 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02666517 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02666517 e:CurrentFinancialInstruments 2023-12-31 02666517 e:CurrentFinancialInstruments 2022-12-31 02666517 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 02666517 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 02666517 e:UKTax 2023-01-01 2023-12-31 02666517 e:UKTax 2022-01-01 2022-12-31 02666517 e:ShareCapital 2023-12-31 02666517 e:ShareCapital 2022-12-31 02666517 e:ShareCapital 2022-01-01 02666517 e:CapitalRedemptionReserve 2023-01-01 2023-12-31 02666517 e:CapitalRedemptionReserve 2023-12-31 02666517 e:CapitalRedemptionReserve 2022-12-31 02666517 e:CapitalRedemptionReserve 2022-01-01 02666517 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02666517 e:RetainedEarningsAccumulatedLosses 2023-12-31 02666517 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02666517 e:RetainedEarningsAccumulatedLosses 2022-12-31 02666517 e:RetainedEarningsAccumulatedLosses 2022-01-01 02666517 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02666517 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02666517 d:OrdinaryShareClass1 2023-01-01 2023-12-31 02666517 d:OrdinaryShareClass1 2023-12-31 02666517 d:OrdinaryShareClass1 2022-12-31 02666517 d:FRS102 2023-01-01 2023-12-31 02666517 d:Audited 2023-01-01 2023-12-31 02666517 d:FullAccounts 2023-01-01 2023-12-31 02666517 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02666517 e:WithinOneYear 2023-12-31 02666517 e:WithinOneYear 2022-12-31 02666517 e:BetweenOneFiveYears 2023-12-31 02666517 e:BetweenOneFiveYears 2022-12-31 02666517 2 2023-01-01 2023-12-31 02666517 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02666517










CENTRAL FOODS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CENTRAL FOODS LIMITED
 
 
COMPANY INFORMATION


Directors
G Lauder 
A Lauder 




Company secretary
C Emms



Registered number
02666517



Registered office
Maple Court
Ash Lane

Collingtree

Northampton

NN4 0NB




Independent auditors
MHA
Chartered Accountants & Statutory Auditors

Century House

The Lakes

NN4 7HD





 
CENTRAL FOODS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Profit and Loss Account
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 23


 
CENTRAL FOODS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors have pleasure in presenting their report and the financial statements for the year ended 31 December 2023.

Business review
 
The principal activity of the company during the year was that of frozen food brokers and specialist frozen food suppliers to the wholesale and catering industries, operating from its base in Northamptonshire covering markets across the United Kingdom and Northern Ireland.
Working closely with its client base, the company aims to offer a wide range of frozen products, including frozen ‘free from’, vegetarian and vegan ranges to meet current market trends and customer requirements whilst continuing company growth.  
The performance of the company continues to be stable despite current economic conditions and their direct effects on manufacturing, storage and transportation costs. The results for the year, set out on page 9 show an increase in turnover for the year to £46,266,628 (2022 - £38,690,963) and a profit before tax for the year of £5,474,293 (2022 - £4,165,068). Turnover exceeded the expected % increase forecasted, the total turnover for 2023 increasing by 19.6% on 2022. 

Principal risks and uncertainties
 
Financial risk management objectives and policies
The Company constantly monitors working capital and has strong procedures in place with regards to credit control to ensure that the parameters set out within credit insurance contracts are fully maintained to minimise bad debt.
Principal risks
The key business risk affecting the company remains the availability of credit insurance on several customers.  Where possible, the company trades with a policy of "zero credit risk”.
The long-term effects of Covid-19 and Brexit on the hospitality industry are now minimal risk to the Company but manufacturer and transport staff shortages still have the potential to cause delays in receiving and delivering product, and suppliers, in some cases, making the decision to close factories/sites or reduce product ranges as a consequence. The company has worked tirelessly with suppliers during 2023 to significantly improve product availability, as indicated overleaf at the Product Availability * indicator.  
The UK cost of living crisis and economic volatility also continue to pose a significant risk as consumers look to save money by reducing their out-of-home spend, including in cost sector, as well as profit sector, hospitality venues.
The company has made the necessary provisions regarding trade within Europe to prevent, where possible, any disruption to supply.  The company has continued with its withdrawal from the EU as a sales avenue but will continuously review.
 
Foreign exchange risk
The Company manages foreign exchange risk by spot purchasing on the day a purchase order is raised to reduce exposure.  The company also purchases, where possible, in £ sterling.

Page 1

 
CENTRAL FOODS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The Directors regularly review the company’s performance and service level indicators.  The main KPI’s at the end of 2023 were as follows:
                    
2023  2022
Current ratio                   2.46  2.49
Quick ratio                  1.90  1.95
Creditor days                 48.98  56.94
Debtor days                          48.18  52.13
        
Number of trading customers      213  213
Product complaints (per 1000 cases)    0.037  0.077
Product availability *      97.46% 88.01%
Charitable donations
During the year, the Company made donations to local organisations totalling £2,250 (2022 - £199).
Balance sheet
Fixed assets
Details of the 2023 movements for the buildings, vehicles and equipment of the Company are set out in Note 12 to the Financial Statements.
Net assets
Net assets for the year increased to £11,499,940 (2022 - £10,315,069)
Company strategy
The success of the company is dependent on the correct selection, pricing and availability of the products offered to the market, whilst delivering to schedule.  The company has a stable employee base which is focused on delivering on these areas to both meet the demands of the customer and the needs of the company.  Customer Service is top priority.
The future
The war in Ukraine continues, and recent issues in the Middle East, have the potential to cause unprecedented delays or shortages of product. Increasing oil prices, interest rates, wage rises, and inflation continue to affect food pricing in its upward trend.  The Directors are continually reassessing the company product range/sales focus with suppliers to future-proof the business against any such risks.
The company continues to maintain its position as a first port-of call for wholesalers and, increasingly, for the larger, end-user catering chains looking to source products for these and other hospitality sectors. 
By maintaining a focus on providing product for ‘essential services’ eg schools, prisons, care homes etc, the Directors hope this strategy will help sustain a strong trading base for the company.


This report was approved by the board and signed on its behalf.



C Emms
Secretary

Date: 18 July 2024

Page 2

 
CENTRAL 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' responsibilities statement

The directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £4,184,871 (2022 - £3,523,911).

Dividends of £3,000,000 were paid in the year (2022 - £Nil).

Directors

The directors who served during the year were:

G Lauder 
A Lauder 

Future developments

The company continues to prioritise customer service and focus on key markets as described in the Strategic Report.

Matters covered in the Strategic Report

The directors have omitted certain items from the Directors' Report as they are disclosed within the Strategic Report instead, in accordance with S414C (11) of the Companies Act 2006.

Page 3

 
CENTRAL FOODS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





C Emms
Secretary

Date: 18 July 2024

Page 4

 
CENTRAL FOODS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CENTRAL FOODS LIMITED
 

Opinion


We have audited the financial statements of Central Foods Limited (the 'Company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
CENTRAL FOODS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CENTRAL FOODS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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.


Page 6

 
CENTRAL FOODS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CENTRAL FOODS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


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 an Auditors' 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:
Enquiry of management and those charged with governance around actual and potential litigation and
          claims;
• Performing audit work over the risk of management override of controls, including testing of journal and       other adjustments for appropriateness, evaluating the business rationale of significant transactions              outside the normal course of business and reviewing accounting estimates for bias;
• Reviewing financial statement disclosures and testing to supporting documentation to access compliance   with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Page 7

 
CENTRAL FOODS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CENTRAL FOODS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Rebecca Hughes BSc (Hons) FCCA (Senior Statutory Auditor)
for and on behalf of
MHA
Chartered Accountants
Statutory Auditors
Northampton, United Kingdom

20 August 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales
(registered number OC312313)
Page 8

 
CENTRAL FOODS LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
46,266,628
38,690,963

Cost of sales
  
(39,769,872)
(33,426,724)

Gross profit
  
6,496,756
5,264,239

Administrative expenses
  
(265,109)
(122,785)

Other operating charges
  
(870,745)
(940,865)

Operating profit
 5 
5,360,902
4,200,589

Interest receivable and similar income
 8 
147,262
18,398

Interest payable and similar expenses
 9 
(33,871)
(53,919)

Profit before tax
  
5,474,293
4,165,068

Tax on profit
 10 
(1,289,422)
(641,157)

Profit for the financial year
  
4,184,871
3,523,911

The notes on pages 12 to 23 form part of these financial statements.

Page 9

 
CENTRAL FOODS LIMITED
REGISTERED NUMBER: 02666517

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
33,377
38,625

  
33,377
38,625

Current assets
  

Stocks
 13 
4,365,343
3,717,145

Debtors: amounts falling due within one year
 14 
6,144,021
5,517,423

Cash at bank and in hand
 15 
8,798,321
7,823,365

  
19,307,685
17,057,933

Creditors: amounts falling due within one year
 16 
(7,839,247)
(6,778,744)

Net current assets
  
 
 
11,468,438
 
 
10,279,189

Total assets less current liabilities
  
11,501,815
10,317,814

Provisions for liabilities
  

Deferred tax
 17 
(1,875)
(2,745)

  
 
 
(1,875)
 
 
(2,745)

Net assets
  
11,499,940
10,315,069


Capital and reserves
  

Called up share capital 
 18 
37,390
37,390

Capital redemption reserve
 19 
6,234
6,234

Profit and loss account
 19 
11,456,316
10,271,445

  
11,499,940
10,315,069


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


G Lauder
Director
Date: 18 July 2024

The notes on pages 12 to 23 form part of these financial statements.

Page 10

 
CENTRAL FOODS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
37,390
6,234
6,747,534
6,791,158


Comprehensive income for the year

Profit for the year
-
-
3,523,911
3,523,911



At 1 January 2023
37,390
6,234
10,271,445
10,315,069


Comprehensive income for the year

Profit for the year
-
-
4,184,871
4,184,871


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(3,000,000)
(3,000,000)


At 31 December 2023
37,390
6,234
11,456,316
11,499,940


The notes on pages 12 to 23 form part of these financial statements.

Page 11

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Central Foods Limited is a private company limited by shares, domiciled in England and Wales, registered number 02666517.
The registered office and principal place of business is Maple Court, Ash Lane, Collingtree, Northampton, Northamptonshire, NN4 0NB. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Central Foods Group Limited  as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.

Page 12

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 13

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Outbuildings
-
10% straight line
Motor vehicles
-
25% straight line
Fixtures and fittings
-
25% straight line
Computer equipment
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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.

Page 15

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily separated from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.
Within the financial statements there is, a provision for stock with less than six months shelf life, to mitigate the risk of stock reaching it's expiration date prior to being sold. Management review this on a regular basis and deem this to be reasonable.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
There are currently no key sources of estimation uncertainty which have a significant effect on the amount recognised in the financial statements which would produce a material effect to the financial statements as a whole.


4.


Turnover

The whole of the turnover is attributable to the principal activity of Central Foods Limited.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
19,857
27,053

Other operating lease rentals
50,400
44,663


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
20,500
18,000

Page 17

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
767,385
690,613

Social security costs
81,050
50,506

Pension costs
22,468
17,695

870,903
758,814


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management staff
2
2



Administrative staff
17
16

19
18


8.


Interest receivable

2023
2022
£
£


Other interest receivable
147,262
18,398


9.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
33,871
53,919

Page 18

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,290,292
610,781

Adjustments in respect of previous periods
-
(282)


Total current tax
1,290,292
610,499

Deferred tax


Origination and reversal of timing differences
(870)
30,658

Total deferred tax
(870)
30,658


Taxation on profit on ordinary activities
1,289,422
641,157

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
5,474,293
4,165,068


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
1,368,573
791,363

Effects of:


Eligible asset depreciation
4,670
1,802

Non-deductable expenses
1,926
-

Capital allowances for year in excess of depreciation
(3,974)
(16,012)

Adjustments to tax charge in respect of prior periods
-
(282)

Other timing differences leading to an increase (decrease) in taxation
(870)
30,658

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(158,419)

Changes in provisions leading to an increase (decrease) in the tax charge
-
(7,953)

Other differences leading to an increase (decrease) in the tax charge
86
-

Marginal relief
(80,989)
-

Total tax charge for the year
1,289,422
641,157

Page 19

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Dividends

2023
2022
£
£


Dividends paid
3,000,000
-


12.


Tangible fixed assets





Out-buildings
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
8,760
32,466
104,495
72,825
218,546


Additions
-
-
1,123
13,852
14,975


Disposals
-
-
-
(10,647)
(10,647)



At 31 December 2023

8,760
32,466
105,618
76,030
222,874



Depreciation


At 1 January 2023
5,399
16,327
94,831
63,364
179,921


Charge for the year on owned assets
876
5,869
3,501
9,611
19,857


Disposals
-
-
-
(10,281)
(10,281)



At 31 December 2023

6,275
22,196
98,332
62,694
189,497



Net book value



At 31 December 2023
2,485
10,270
7,286
13,336
33,377



At 31 December 2022
3,361
16,139
9,664
9,461
38,625


13.


Stocks

2023
2022
£
£

Raw materials and consumables
266,225
163,209

Finished goods and goods for resale
4,099,118
3,553,936

4,365,343
3,717,145


Page 20

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Debtors

2023
2022
£
£


Trade debtors
5,905,323
5,310,305

Other debtors
94,914
91,825

Prepayments and accrued income
143,784
115,293

6,144,021
5,517,423



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
8,798,321
7,823,365



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
6,899,371
6,181,549

Corporation tax
740,086
390,781

Other creditors
3,186
2,289

Accruals and deferred income
196,604
204,125

7,839,247
6,778,744


Page 21

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Deferred taxation




2023


£






At beginning of year
(2,745)


Charged to profit or loss
870



At end of year
(1,875)

2023
2022
£
£


Accelerated capital allowances
(1,875)
(2,745)


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



37,390 (2022 - 37,390) Ordinary shares shares of £1.00 each
37,390
37,390



19.


Reserves

Capital redemption reserve

Capital redemption reserve relates to non-distributable amounts that consist of funds utilised by the Company for the purpose of buying back its own shares.

Profit and loss account

The profit and loss account reserve includes all current and prior period retained profits and losses.


20.


Pension commitments

The Company contributes to certain employees' personal defined contribution pension schemes. Contributions during the year amounted to £22,468 (2022 - £17,695). There were no outstanding contributions due at either the current or prior year end. 

Page 22

 
CENTRAL FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
775
6,210

Later than 1 year and not later than 5 years
-
775

775
6,985


22.


Related party transactions

During the year, the Company paid management charges of £600,000 (2022 - £570,000) to Lauder Group Limited, a company in which the Directors have a controlling interest.


23.


Controlling party

The Company is a wholly owned subsidiary of Central Foods Group Limited, a company incorporated in England, registered number 11691692, whose registered office is Maple Court, Ash Lane, Collingtree, Northampton, NN4 0NB. Central Foods Group Limited is the parent company of the smallest and largest group preparing consolidated accounts which include the results of the Company.
The ultimate controlling party is considered to be the directors. 

 
Page 23