Company registration number SC275128 (Scotland)
FAILTE FOOD SERVICE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
FAILTE FOOD SERVICE LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
FAILTE FOOD SERVICE LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr G Rennie
Mr J Cummiskey
Secretary
Mr J Cummiskey
Company number
SC275128
Registered office
East Warehouse
Glasgow Fruit Market
Blochairn Road
Glasgow
Scotland
G21 2SW
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
FAILTE FOOD SERVICE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
Turnover has increased by 13% to £27,621,277 (2023: £24,493,475). Profit before tax increased to £3,522,526 (2023: £2,700,380). The directors are satisfied with these results in the year taking into account the current economic climate and remain confident about the business’ prospects going forward.
Principal risks and uncertainties
The directors have assessed the main risk facing the Company as a catastrophe at its premises. To mitigate against this risk the Company has implemented disaster recovery policies which would serve to minimise the effects of any such events and allow the business to continue as normal.
Key performance indicators
The Company’s gross profit margin has increased slightly from 22.9% in 2023 to 23.6% in 2024 and the operating margin has increased from 9.6% in 2023 to 11.2% in 2024. Overall, the key performance indicators reflect positively on the Company’s trading in the year and the directors are satisfied with these results.
Other information and explanations
The Company makes little use of financial instruments other than an operational bank account and so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company.
Future trading prospects
Despite a challenging economic backdrop the Company have continued to operate profitably. We believe that the next 12 months will continue to be challenging however we are confident that the Company, due to its reliability and quality of service, will continue to be profitable. Whilst there remains a significant amount of economic uncertainty we remain positive about Failte’s future trading prospects.
We are proud to be the top independent supplier to the retail and catering sectors. We see this as a strong foundation to support the planned future growth of the business.
Mr J Cummiskey
Director
23 August 2024
FAILTE FOOD SERVICE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the Company during the year was the sale and distribution of foods and soft drinks to the catering and retail sectors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £300,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr G Rennie
Mr J Cummiskey
Auditor
The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible 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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
FAILTE FOOD SERVICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
On behalf of the board
Mr J Cummiskey
Director
23 August 2024
FAILTE FOOD SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FAILTE FOOD SERVICE LIMITED
- 5 -
Opinion
We have audited the financial statements of Failte Food Service Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 January 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
FAILTE FOOD SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FAILTE FOOD SERVICE LIMITED
- 6 -
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the company through discussions with directors and management and from our knowledge of the regulatory environment relevant to the company.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
FAILTE FOOD SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FAILTE FOOD SERVICE LIMITED
- 7 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
David Holt
Senior Statutory Auditor
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
28 August 2024
FAILTE FOOD SERVICE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
27,621,277
24,493,475
Cost of sales
(21,117,847)
(18,890,791)
Gross profit
6,503,430
5,602,684
Administrative expenses
(3,406,401)
(3,254,999)
Operating profit
4
3,097,029
2,347,685
Interest receivable and similar income
7
34,819
92,326
Gains and losses on current asset investments
8
390,678
260,369
Profit before taxation
3,522,526
2,700,380
Tax on profit
9
(843,869)
(675,298)
Profit for the financial year
2,678,657
2,025,082
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
The notes on pages 11 to 20 form part of these financial statements.
FAILTE FOOD SERVICE LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
643,019
648,004
Investments
12
15,201
15,201
658,220
663,205
Current assets
Stocks
14
921,180
1,242,046
Debtors
15
795,208
779,515
Investments
16
2,134,538
2,559,981
Cash at bank and in hand
9,836,926
6,287,926
13,687,852
10,869,468
Creditors: amounts falling due within one year
17
(3,050,280)
(2,618,901)
Net current assets
10,637,572
8,250,567
Total assets less current liabilities
11,295,792
8,913,772
Provisions for liabilities
Deferred tax liability
18
135,896
132,533
(135,896)
(132,533)
Net assets
11,159,896
8,781,239
Capital and reserves
Called up share capital
19
10,000
10,000
Profit and loss reserves
11,149,896
8,771,239
Total equity
11,159,896
8,781,239
The notes on pages 11 to 20 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
Mr J Cummiskey
Director
Company Registration No. SC275128
FAILTE FOOD SERVICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
10,000
7,046,157
7,056,157
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
2,025,082
2,025,082
Dividends
10
-
(300,000)
(300,000)
Balance at 31 January 2023
10,000
8,771,239
8,781,239
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
2,678,657
2,678,657
Dividends
10
-
(300,000)
(300,000)
Balance at 31 January 2024
10,000
11,149,896
11,159,896
The notes on pages 11 to 20 form part of these financial statements.
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information
Failte Food Service Limited is a private company limited by shares incorporated in Scotland. The registered office is East Warehouse, Glasgow Fruit Market, Blochairn Road, Glasgow, Scotland, G21 2SW. The company's registration number is SC275128.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Failte Group Limited. These consolidated financial statements are available to the public from Companies House, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the Statement of Comprehensive Income represents the value of all goods sold during the year, less returns received at a selling price exclusive of Value Added Tax. Sales are recognised at the point at which the Company has fulfilled its contractual obligations and the risks and rewards attaching to the product, such as obsolescence, have been transferred to the customer.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20% on cost
Motor vehicles
20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.
Tangible fixed assets are reviewed annually by the directors for any impairment. Factors taken into consideration in reaching such a decision included the economic viability and expected future financial performance of the asset.
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Stocks
Stocks, which comprise goods held for resale, are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost represents purchase price.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Fair value measurement of financial instruments
Financial assets, other than those held at fair value through the profit and loss account are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Current asset investments
Current asset investments are stated at market value. Any gain or loss on current asset investments is recognised in the profit and loss account.
1.13
Investments are stated at cost less provision for impairment, if such a reduction is deemed to be of a permanent nature.
2
Judgements and key sources of estimation uncertainty
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 revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
Judgements in applying accounting policies and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates. In preparing the financial statements the directors have made the following judgements:
Determine whether leases entered in to by the Company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Determine whether there are indicators of impairment of the Company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.
Determine whether any stock provision is required via comparison of cost and net realisable value of stock on an item by item basis,
3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
16,969
5,288
Dividends received
17,850
87,038
The turnover and profit before taxation are attributable to the Company's principal activity.
All turnover is generated in the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
11,600
Depreciation of owned tangible fixed assets
320,637
305,808
Profit on disposal of tangible fixed assets
(6,518)
(9,659)
Operating lease charges
171,006
166,488
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Distribution
48
47
Administration
12
12
Total
60
59
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
5
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,734,160
1,520,853
Social security costs
143,398
124,825
Pension costs
53,065
49,114
1,930,623
1,694,792
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,800
1,800
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
16,969
5,288
Other income from investments
Dividends received
17,850
87,038
Total income
34,819
92,326
8
Gains and losses on current asset investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
(171,054)
(952,681)
Other gains/(losses)
Gain on disposal of current asset investments
561,732
1,213,050
390,678
260,369
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
839,622
683,228
Adjustments in respect of prior periods
884
11,810
Total current tax
840,506
695,038
Deferred tax
Origination and reversal of timing differences
3,363
(19,740)
Total tax charge
843,869
675,298
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,522,526
2,700,380
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
846,463
513,072
Tax effect of expenses that are not deductible in determining taxable profit
251
1,578
Tax effect of income not taxable in determining taxable profit
(4,290)
(18,373)
Depreciation on assets not qualifying for tax allowances
1,814
1,327
Enhanced capital allowances
(1,160)
(10,387)
Under/(over) provided in prior years
884
11,810
Deferred tax at different rates
131
(4,738)
Unrealised (gain)/loss not deductible for tax purposes
(224)
181,009
Taxation charge for the year
843,869
675,298
From April 2023 onwards, the main rate of corporation tax rose from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19% which is a new small profits rate. Deferred tax has been calculated at a rate of 25%.
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
10
Dividends
2024
2023
£
£
Final paid
300,000
300,000
11
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 February 2023
1,079,693
1,644,358
2,724,051
Additions
100,127
218,375
318,502
Disposals
(13,620)
(13,620)
At 31 January 2024
1,179,820
1,849,113
3,028,933
Depreciation and impairment
At 1 February 2023
934,667
1,141,380
2,076,047
Depreciation charged in the year
55,349
265,288
320,637
Eliminated in respect of disposals
(10,770)
(10,770)
At 31 January 2024
990,016
1,395,898
2,385,914
Carrying amount
At 31 January 2024
189,804
453,215
643,019
At 31 January 2023
145,026
502,978
648,004
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
201
201
Unlisted investments
15,000
15,000
15,201
15,201
The Company's unlisted investment represents its £15,000 investment in a buying group.
13
Subsidiaries
Details of the company's subsidiaries at 31 January 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Eastwarehouse Limited
Glasgow Fruit Market, Blochairn Road, Glasgow, Scotland, G21 2SW
Dormant
Ordinary
100.00
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
921,180
1,242,046
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
579,915
569,615
Amounts owed by group undertakings
150,163
150,163
Other debtors
23,455
20,483
Prepayments and accrued income
41,675
39,254
795,208
779,515
16
Current asset investments
2024
2023
£
£
Investments
2,134,538
2,559,981
Listed investments included above:
Listed investments carrying amount
2,134,538
2,559,981
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,183,352
739,798
Amounts owed to group undertakings
1,261,521
1,261,521
Corporation tax
410,647
464,272
Other taxation and social security
71,663
38,498
Other creditors
37,585
35,041
Accruals and deferred income
85,512
79,771
3,050,280
2,618,901
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
18
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
2024
2023
Balances:
£
£
Accelerated capital allowances
135,896
132,533
2024
Movements in the year:
£
Liability at 1 February 2023
132,533
Charge to profit or loss
3,363
Liability at 31 January 2024
135,896
No deferred tax asset has been provided in relation to the unrealised loss on investments. This is because it is not certain that there will be future gains against which these losses will be offset.
19
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary shares of £1
10,000
10,000
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
167,325
167,325
Between two and five years
189,300
189,300
In over five years
548,192
595,517
904,817
952,142
FAILTE FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
21
Related party transactions
Transactions with related parties
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Associated companies
404,222
387,034
44,840
42,340
22
Ultimate controlling party
In the opinion of the directors there is no ultimate controlling party.
23
Ultimate parent company
The Company's immediate and ultimate parent undertaking is Failte Group Limited, a company registered in Scotland, which is the smallest and largest group of companies for which group financial statements are prepared. Copies of the group financial statements are available to the public from Companies House, Edinburgh Quay 2, 139 Fountainbridge, Edinburgh, EH3 9FF.
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.200Mr G RennieMr J CummiskeyMr J CummiskeyfalsefalseSC2751282023-02-012024-01-31SC275128bus:Director12023-02-012024-01-31SC275128bus:CompanySecretaryDirector12023-02-012024-01-31SC275128bus:CompanySecretary12023-02-012024-01-31SC275128bus:Director22023-02-012024-01-31SC275128bus:RegisteredOffice2023-02-012024-01-31SC2751282024-01-31SC2751282022-02-012023-01-31SC275128core:RetainedEarningsAccumulatedLosses2022-02-012023-01-31SC275128core:RetainedEarningsAccumulatedLosses2023-02-012024-01-31SC2751282023-01-31SC275128core:FurnitureFittings2024-01-31SC275128core:MotorVehicles2024-01-31SC275128core:FurnitureFittings2023-01-31SC275128core:MotorVehicles2023-01-31SC275128core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-31SC275128core:CurrentFinancialInstrumentscore:WithinOneYear2023-01-31SC275128core:CurrentFinancialInstruments2024-01-31SC275128core:CurrentFinancialInstruments2023-01-31SC275128core:ShareCapital2024-01-31SC275128core:ShareCapital2023-01-31SC275128core:RetainedEarningsAccumulatedLosses2024-01-31SC275128core:RetainedEarningsAccumulatedLosses2023-01-31SC275128core:ShareCapital2022-01-31SC275128core:RetainedEarningsAccumulatedLosses2022-01-31SC275128core:FurnitureFittings2023-02-012024-01-31SC275128core:MotorVehicles2023-02-012024-01-31SC275128core:UKTax2023-02-012024-01-31SC275128core:UKTax2022-02-012023-01-31SC27512812023-02-012024-01-31SC27512812022-02-012023-01-31SC27512822023-02-012024-01-31SC27512822022-02-012023-01-31SC27512832023-02-012024-01-31SC27512832022-02-012023-01-31SC27512842023-02-012024-01-31SC27512842022-02-012023-01-31SC27512852023-02-012024-01-31SC27512852022-02-012023-01-31SC275128core:FurnitureFittings2023-01-31SC275128core:MotorVehicles2023-01-31SC2751282023-01-31SC275128core:Non-currentFinancialInstruments2024-01-31SC275128core:Non-currentFinancialInstruments2023-01-31SC275128core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-01-31SC275128core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-01-31SC275128core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-01-31SC275128core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-01-31SC275128core:CurrentFinancialInstrumentscore:ListedExchangeTraded2024-01-31SC275128core:CurrentFinancialInstrumentscore:ListedExchangeTraded2023-01-31SC27512822023-02-012024-01-31SC27512812023-02-012024-01-31SC275128core:WithinOneYear2024-01-31SC275128core:WithinOneYear2023-01-31SC275128core:BetweenTwoFiveYears2024-01-31SC275128core:BetweenTwoFiveYears2023-01-31SC275128core:MoreThanFiveYears2024-01-31SC275128core:MoreThanFiveYears2023-01-31SC275128bus:PrivateLimitedCompanyLtd2023-02-012024-01-31SC275128bus:FRS1022023-02-012024-01-31SC275128bus:Audited2023-02-012024-01-31SC275128bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP