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Registration number: 4197908

New Century Foods Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

New Century Foods Limited

Contents

Strategic Report

1 to 2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 23

 

New Century Foods Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is that of specialist bacon curers and wholesalers.

Fair review of the business

In the previous year, pork leg prices had risen sharply to a high value, consequently reducing the margin to 12% for the year ended 31 December 2022. Pork leg prices have continued to increase throughout the year ended 31 December 2023 being as high as £2.20 per kg by August 2023. Sales have increased 29% as a result of cost increases to keep up with raw material price rises but ultimately the margin has fallen to 11% at 31 December 2023. The directors regularly monitor the raw material input prices, and take steps to mitigate its impact where possible.

Net assets were £3,710k at 31 December 2022 and have increased to £3,849k after declaration of dividend, as a result of another profitable year.

During the year a further 17% of the business was purchased by SLJL Holdings Limited increasing the shareholding to 67%. John Walker continues to be involved in the day to day running of the business.

Since the year end, SLJL Holdings Limited have purchased a further 17% of share capital.

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

Financial KPIs

Unit

2023

2022

Turnover

£000

32,495

25,240

Gross profit

£000

3,652

2,982

Gross profit margin

%

11

12

 

New Century Foods Limited

Strategic Report for the Year Ended 31 December 2023

Principal risks and uncertainties

The business’ principle risks are competitors in the market, raw material prices and various financial risks.

Competitors in the Market:

The risk of competitors is managed by continually ensuring that the pricing remains competitive and the quality of the finished product is of the highest standard through strict quality control procedures.

Raw material prices:

Strict buying control processes ensure the impact of raw material prices is minimised.

Financial risks:

The Company’s operations expose it to a variety of financial risks, principally credit risk and liquidity risk.

The effects of credit risks are controlled by the adoption of policies that require appropriate credit checking and monitoring of the key customer and new accounts.

Liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of bank overdrafts and ensuring that sufficient funds are available to meet amounts due.

Non-financial risks:

The management of the business are subject to a number of non-financial risks and uncertainties including environment risks and the related impact of food scares. These risks are managed by a comprehensive health and safety and food safety policies which are subject to independent audit and inspection routines.

Approved by the Board on 27 August 2024 and signed on its behalf by:


Mr J Lehrmann
Director

   
     
 

New Century Foods Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

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

Mr S R Mumford

Mr J Walker

Mr J Lehrmann

Mr C Steele (appointed 27 September 2023)

Financial instruments

Objectives and policies

The directors take the management of risk very seriously and as such have policies and procedures in place which have been authorised by the board. Managing risk is seen as a key attribute of the company and the company's debt position is closely scrutinised on a regular basis to ensure that it remains serviceable in conjunction with the long term goals of growth and profitability.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 27 August 2024 and signed on its behalf by:


Mr J Lehrmann
Director

   
     
 

New Century Foods Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

New Century Foods Limited

Independent Auditor's Report to the Members of New Century Foods Limited

Opinion

We have audited the financial statements of New Century Foods Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.

 

New Century Foods Limited

Independent Auditor's Report to the Members of New Century Foods Limited

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

New Century Foods Limited

Independent Auditor's Report to the Members of New Century Foods Limited

the nature of the industry and sector, control environment and business performance including the design of remuneration policies;

the company’s own assessment of the risks that irregularities may occur either as a result of fraud or error;

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

the key laws and regulations under which the business operates and whether management were aware of any instances of noncompliance;

whether the management have knowledge of any actual, suspected or alleged fraud;

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: Laws and regulations applicable to the company specifically relating to health and safety, food standards and food safety; stock costing and revenue recognition.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Tax legislation, and Regulations established by regulators in the key markets in which the company operates specifically food standards and food safety regulations.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the operating and environmental regulations relevant to the company.

In addition to the above, our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements;

in addressing the risk of fraud through stock costing, we have reviewed the valuation of individual stock items to relevant invoices or appropriate costings where applicable.

enquiring of management, concerning any actual and potential litigation and claims;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

in addressing the risk of fraud in revenue recognition, in addition to our testing described above we have performed focussed testing on trades close to the year-end combined with analytical review procedures to assess accuracy and completeness of revenue recognised;

in addressing the risk of fraud in the use of purchase ledger/working capital transactions, we have reviewed the accounting treatments adopted by management against the specific contractual terms and arrangements associated with each individual transaction and reviewed the related disclosures in the financial statements; and

 

New Century Foods Limited

Independent Auditor's Report to the Members of New Century Foods Limited

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Due to 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





Robert Smith BSc FCA (Senior Statutory Auditor)
For and on behalf of RNS Chartered Accountants, Statutory Auditor

50-54 Oswald Road
Scunthorpe
North Lincolnshire
DN15 7PQ

27 August 2024

 

New Century Foods Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

32,494,499

25,240,263

Cost of sales

 

(28,842,488)

(22,258,456)

Gross profit

 

3,652,011

2,981,807

Administrative expenses

 

(3,050,844)

(2,592,402)

Operating profit

5

601,167

389,405

Other interest receivable and similar income

6

-

8,815

Interest payable and similar expenses

7

(24,409)

(8,691)

   

(24,409)

124

Profit before tax

 

576,758

389,529

Tax on profit

11

(176,924)

(144,193)

Profit for the financial year

 

399,834

245,336

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

New Century Foods Limited

(Registration number: 4197908)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

1,803,936

1,543,283

Current assets

 

Stocks

13

1,173,103

1,267,841

Debtors

14

5,232,281

4,219,348

Cash at bank and in hand

15

259,069

831,374

 

6,664,453

6,318,563

Creditors: Amounts falling due within one year

16

(4,237,681)

(4,021,369)

Net current assets

 

2,426,772

2,297,194

Total assets less current liabilities

 

4,230,708

3,840,477

Creditors: Amounts falling due after more than one year

16

(177,808)

-

Provisions for liabilities

18

(204,026)

(130,437)

Net assets

 

3,848,874

3,710,040

Capital and reserves

 

Called up share capital

20

77,978

77,978

Capital redemption reserve

12,490

12,490

Retained earnings

3,758,406

3,619,572

Shareholders' funds

 

3,848,874

3,710,040

Approved and authorised by the Board on 27 August 2024 and signed on its behalf by:
 


Mr J Lehrmann
Director

   
 

New Century Foods Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 January 2023

77,978

12,490

3,619,572

3,710,040

Profit for the year

-

-

399,834

399,834

Dividends

-

-

(261,000)

(261,000)

At 31 December 2023

77,978

12,490

3,758,406

3,848,874

Share capital
£

Capital redemption reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2022

77,978

12,490

34,493

3,339,743

3,464,704

Profit for the year

-

-

-

245,336

245,336

Transfers

-

-

(34,493)

34,493

-

At 31 December 2022

77,978

12,490

-

3,619,572

3,710,040

 

New Century Foods Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

399,834

245,336

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

158,752

162,084

Loss from disposals of investments

4

-

70,316

Finance income

6

-

(8,815)

Finance costs

7

24,409

8,691

Corporation tax expense

11

176,924

144,193

 

759,919

621,805

Working capital adjustments

 

Decrease/(increase) in stocks

13

94,738

(378,120)

Increase in debtors

14

(1,012,933)

(855,942)

Increase in creditors

16

715,331

587,764

Cash generated from operations

 

557,055

(24,493)

Corporation tax paid

 

(139,527)

(223,084)

Net cash flow from operating activities

 

417,528

(247,577)

Cash flows from investing activities

 

Acquisitions of tangible assets

12

(419,405)

(346,663)

Acquisition of intangible assets

-

(6,997)

Proceeds from sale of intangible assets

 

-

362,756

Dividend income

6

-

8,815

Net cash flows from investing activities

 

(419,405)

17,911

Cash flows from financing activities

 

Interest paid

7

(24,409)

(8,691)

Proceeds from other borrowing

 

220,000

-

Dividends paid

21

(261,000)

-

Net cash flows from financing activities

 

(65,409)

(8,691)

Net decrease in cash and cash equivalents

 

(67,286)

(238,357)

Cash and cash equivalents at 1 January

 

326,355

564,712

Cash and cash equivalents at 31 December

15

259,069

326,355

 

New Century Foods Limited

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

1

General information

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

The address of its registered office is:
14 Ram Boulevard
Foxhills Industrial Estate
Scunthorpe
North Lincolnshire
DN15 8QW

The company registered number is: 4197908

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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 reviewed where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

 

New Century Foods Limited

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

Tax

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

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

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

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

over 50 years

Plant and machinery

over 4, 5, 7 or 10 years

Expenditure on leasehold property

over 50 years

Motor vehicles

over 5 years

Cash and cash equivalents

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

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price. They are subsequently measured less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

New Century Foods Limited

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised at the transaction price.

Borrowings

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

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

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

Leases

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

New Century Foods Limited

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

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

3

Turnover

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

2023
£

2022
£

Sale of goods

32,494,499

25,240,263

4

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Loss from disposals of investments

-

(70,316)

5

Operating profit

Arrived at after charging

2023
£

2022
£

Depreciation expense

158,752

162,084

Operating lease expense - other

189,920

183,581

6

Other interest receivable and similar income

2023
£

2022
£

Dividend income

-

8,815

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

24,409

8,691

 

New Century Foods Limited

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

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

4,084,435

4,265,351

Social security costs

388,128

405,774

Pension costs, defined contribution scheme

274,733

118,081

Other employee expense

41,340

37,978

4,788,636

4,827,184

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

2023
No.

2022
No.

Production

114

124

Administration and support

13

10

127

134

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

97,572

68,895

Contributions paid to money purchase schemes

101,000

6,000

198,572

74,895

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

3

2

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

13,455

12,170


 

 

New Century Foods Limited

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

11

Taxation

Tax charged in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

75,752

82,944

UK corporation tax adjustment to prior periods

27,583

29,000

103,335

111,944

Deferred taxation

Arising from origination and reversal of timing differences

73,589

32,249

Tax expense in the profit and loss account

176,924

144,193

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

576,758

389,529

Corporation tax at standard rate

144,190

74,011

Decrease from effect of different tax rates

(4,765)

-

Effect of expense not deductible in determining taxable profit

4,894

131

Deferred tax expense from unrecognised temporary difference from a prior period

73,589

32,249

Increase in tax expense from adjustment in prior year period

27,583

29,000

Tax decrease from effect of capital allowances and depreciation

(68,567)

(4,558)

Tax increase from effect of loss on disposal of intangible assets

-

13,360

Total tax charge

176,924

144,193

 

New Century Foods Limited

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

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

204,026

204,026

2022

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

130,437

130,437

12

Tangible assets

Freehold land and buildings
£

Plant and machinery
 £

Motor vehicles
 £

Expenditure on leasehold property
£

Total
£

Cost or valuation

At 1 January 2023

1,339,351

2,490,923

4,311

17,926

3,852,511

Additions

-

240,270

179,135

-

419,405

At 31 December 2023

1,339,351

2,731,193

183,446

17,926

4,271,916

Depreciation

At 1 January 2023

396,420

1,906,527

-

6,281

2,309,228

Charge for the year

19,882

132,539

5,972

359

158,752

At 31 December 2023

416,302

2,039,066

5,972

6,640

2,467,980

Carrying amount

At 31 December 2023

923,049

692,127

177,474

11,286

1,803,936

At 31 December 2022

942,931

584,396

4,311

11,645

1,543,283

13

Stocks

2023
£

2022
£

Finished goods and goods for resale

1,173,103

1,267,841

 

New Century Foods Limited

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

14

Debtors

Note

2023
£

2022
£

Trade debtors

 

4,567,193

3,963,371

Amounts owed by related parties

22

508,274

119,632

Other debtors

 

10,200

9,408

Prepayments

 

78,956

75,326

Social security and other taxes

 

67,658

51,611

   

5,232,281

4,219,348

15

Cash and cash equivalents

2023
£

2022
£

Cash on hand

1,215

5,964

Cash at bank

257,631

-

Short-term deposits

223

825,410

259,069

831,374

Bank overdrafts

-

(505,019)

Cash and cash equivalents in statement of cash flows

259,069

326,355

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

17

42,192

505,019

Trade creditors

 

3,797,034

3,095,849

Social security and other taxes

 

132,252

114,460

Outstanding defined contribution pension costs

 

28,453

22,505

Other creditors

 

76,615

84,382

Accrued expenses

 

85,383

87,210

Corporation tax liability

 

75,752

111,944

 

4,237,681

4,021,369

Due after one year

 

Loans and borrowings

17

177,808

-

 

New Century Foods Limited

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

17

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

42,192

-

Bank overdrafts

-

505,019

42,192

505,019

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

177,808

-

The bank overdraft is secured against the assets of the company.

The bank loan is repayable monthly with final instalment in June 2028. Interest is charged at 2.85% above the base rate.

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

130,437

130,437

Increase in existing provisions

73,589

73,589

At 31 December 2023

204,026

204,026

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £274,733 (2022 - £118,081).

Contributions totalling £28,453 (2022 - £22,505) were payable to the scheme at the end of the year and are included in creditors.

 

New Century Foods Limited

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

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

-

-

77,978

77,978

Ordinary A shares of £1 each

51,985

51,985

-

-

Ordinary B shares of £1 each

25,993

25,993

-

-

 

77,978

77,978

77,978

77,978

21

Dividends

   

2023

 

2022

   

£

 

£

Final dividend

 

261,000

 

-

         

22

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

Mr J Walker

Director's loan account

119,971

212,348

(312,206)

20,113

         

2022

At 1 January 2022
£

Advances to director
£

At 31 December 2022
£

Mr J Walker

Director's loan account

-

119,971

119,971

       
     

 

No interest is being charged in respect of this balance and it is repayable on demand.

Summary of transactions with parent

SLJL Holdings Limited
 (Parent company)
 
At the balance sheet date the amount due from SLJL Holdings Limited was £488,500.
 

 

New Century Foods Limited

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

23

Parent and ultimate parent undertaking

The ultimate controlling party is Mr J Lehrmann and Mrs S Lehrmann.

The parent of the largest group in which these financial statements are consolidated is SLJL Holdings Limited, incorporated in the UK.

The address of SLJL Holdings Limited is:
14 Ram Boulevard
Foxhills Industrial Park
Scunthorpe
North Lincolnshire
DN15 8QW