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REGISTERED NUMBER: 01104045 (England and Wales)











Midland Chilled Foods Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023






Midland Chilled Foods Limited (Registered number: 01104045)

Contents of the Financial Statements
for the Year Ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


Midland Chilled Foods Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: A G Bosco
F Marchi
F Fanetti





REGISTERED OFFICE: Brierly Place, New London Road
Chelmsford
Essex
CM2 OAP





REGISTERED NUMBER: 01104045 (England and Wales)





AUDITORS: Haines Watts Tamworth Limited
Chartered Accountants and Statutory Auditors
Sterling House
97 Lichfield Street
Tamworth
Staffordshire
B79 7QF

Midland Chilled Foods Limited (Registered number: 01104045)

Strategic Report
for the Year Ended 31 December 2023


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

The principal activity of the company in the year under review continued to be the wholesale marketing of a wide range of chilled, frozen and ambient processed food products, including our own 'Bakers Range' range and own label ranges for many major customers.

Key financial highlights are as follows:


2023 2022 2021 2020 2019

Turnover (£   's) 42,883 48,455 42,322 38,004 51,830
Turnover growth (£   's) (5,572) 6,133 4,318 (13,826) (2,443)
Gross profit margin 18.66% 22.52% 22.31% 23.11% 22.28%


REVIEW OF BUSINESS
In January 2023 our Willenhall facility was destroyed due to a fire. The business was operational within 48 hours thanks largely to our robust disaster recovery protocols and the utilisation of our Basingstoke distribution centre. Our production facility based at the Willenhall site manufacturing baked goods, pie and pastry products accounted for over 10% of our turnover, was unrecoverable following the fire due to the bespoke nature of the products.

As a business our strategic focus was to leverage our parent company, Granarolo Spa's dairy product range, and wider global reach of dairy products to help strengthen our sales in the UK, whilst replacing the lost turnover coming from our pastry production facility.

For 2024 we expect to build on the positive results posted from 2023, as we continue to drive an increase in turnover and profitability. This will be further enhanced with the completion in early 2025 of our new state of the art distribution facility at the Willenhall site.

The new multi temperature warehouse will offer us an increase of over 4000 pallet spaces compared to today and this will allow us to increase our buying efficiency whilst also improving availability to our customers.

PRINCIPAL RISKS AND UNCERTAINTIES
The company aims to manage the uncertainty of future revenue streams by focusing on its proven market leading service, maintaining strong relationships with all of its customers, and continued investment in state of the art production facilities to enable diversification into new and emerging markets.

The principal credit risk arises from trade debtors and is managed by credit referencing and credit insurance together with robust procedures for the collection of monies due to the company.

ON BEHALF OF THE BOARD:





A G Bosco - Director


2 August 2024

Midland Chilled Foods Limited (Registered number: 01104045)

Report of the Directors
for the Year Ended 31 December 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the wholesale marketing of a wide range of chilled, frozen and ambient processed food products, including our own "Bakers Range" range and own label ranges for many major customers.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

A G Bosco
F Marchi

Other changes in directors holding office are as follows:

K F O'Leary - resigned 30 June 2023

F Fanetti was appointed as a director after 31 December 2023 but prior to the date of this report.

R S Piaggi ceased to be a director after 31 December 2023 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Midland Chilled Foods Limited (Registered number: 01104045)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
The auditors, Haines Watts Tamworth Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A G Bosco - Director


2 August 2024

Report of the Independent Auditors to the Members of
Midland Chilled Foods Limited


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

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Midland Chilled Foods Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Midland Chilled Foods Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Identifying and assessing potential risks related to irregularities

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:

- results of our enquiries of management about their own identification and assessment of the risks and irregularities
- any matters we identified having obtained an understanding of the company policies and procedures relating to identifying, evaluating and complying with laws and regulations and whether they are aware of any instances of non-compliance
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud
- the internal controls set up 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.
- obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements, including UK Companies Act 2006, pensions and tax legislation
- 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 material penalty. These include the impact of import restrictions and adherence to food safety and hygiene standards.

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

Audit response to risks identified

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 as having a direct effect on the financial statements
- enquiring of management concerning actual and potential legal action and claims
- carrying out 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 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.
- considering performance targets and their influence on efforts made by management to manage earnings

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.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Midland Chilled Foods Limited


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




Stephen Butler BA FCA (Senior Statutory Auditor)
for and on behalf of Haines Watts Tamworth Limited
Chartered Accountants and Statutory Auditors
Sterling House
97 Lichfield Street
Tamworth
Staffordshire
B79 7QF

2 August 2024

Midland Chilled Foods Limited (Registered number: 01104045)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 42,882,512 48,455,124

Cost of sales 34,881,596 37,543,433
GROSS PROFIT 8,000,916 10,911,691

Distribution costs 4,852,268 5,742,346
Administrative expenses 1,623,883 4,213,611
6,476,151 9,955,957
OPERATING PROFIT 5 1,524,765 955,734


Interest payable and similar expenses 7 93,797 28,459
PROFIT BEFORE TAXATION 1,430,968 927,275

Tax on profit 8 363,584 36,557
PROFIT FOR THE FINANCIAL YEAR 1,067,384 890,718

Midland Chilled Foods Limited (Registered number: 01104045)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,067,384 890,718


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,067,384

890,718

Midland Chilled Foods Limited (Registered number: 01104045)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 11,079 15,015
Tangible assets 10 4,602,481 5,592,356
Investments 11 50 50
4,613,610 5,607,421

CURRENT ASSETS
Stocks 12 2,243,092 2,976,066
Debtors 13 11,839,176 6,425,396
Cash at bank 13,699 2,497
14,095,967 9,403,959
CREDITORS
Amounts falling due within one year 14 9,524,450 6,766,372
NET CURRENT ASSETS 4,571,517 2,637,587
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,185,127

8,245,008

CREDITORS
Amounts falling due after more than one year 15 (335,497 ) (458,786 )

PROVISIONS FOR LIABILITIES 19 (178,171 ) (182,147 )
NET ASSETS 8,671,459 7,604,075

CAPITAL AND RESERVES
Called up share capital 20 38,802 38,802
Retained earnings 21 8,632,657 7,565,273
SHAREHOLDERS' FUNDS 8,671,459 7,604,075

The financial statements were approved by the Board of Directors and authorised for issue on 2 August 2024 and were signed on its behalf by:





A G Bosco - Director


Midland Chilled Foods Limited (Registered number: 01104045)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 38,802 6,674,555 6,713,357

Changes in equity
Total comprehensive income - 890,718 890,718
Balance at 31 December 2022 38,802 7,565,273 7,604,075

Changes in equity
Total comprehensive income - 1,067,384 1,067,384
Balance at 31 December 2023 38,802 8,632,657 8,671,459

Midland Chilled Foods Limited (Registered number: 01104045)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (2,845,806 ) (1,200,557 )
Interest paid (90,854 ) (24,569 )
Interest element of hire purchase payments
paid

(2,943

)

(3,890

)
Tax paid (7 ) (117,213 )
Net cash from operating activities (2,939,610 ) (1,346,229 )

Cash flows from investing activities
Purchase of tangible fixed assets (804,513 ) (500,949 )
Sale of tangible fixed assets 1,271,227 -
Net cash from investing activities 466,714 (500,949 )

Cash flows from financing activities
New loans in year - 270,000
Loan repayments in year (134,331 ) (129,531 )
Intercompany movement 2,863,930 10,638
Capital repayments in year (40,943 ) (83,505 )
Net cash from financing activities 2,688,656 67,602

Increase/(decrease) in cash and cash equivalents 215,760 (1,779,576 )
Cash and cash equivalents at beginning of
year

2

(254,260

)

1,525,316

Cash and cash equivalents at end of year 2 (38,500 ) (254,260 )

Midland Chilled Foods Limited (Registered number: 01104045)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,430,968 927,275
Depreciation charges 527,096 524,216
Finance costs 93,797 28,459
2,051,861 1,479,950
Decrease/(increase) in stocks 732,974 (828,289 )
Increase in trade and other debtors (5,413,780 ) (794,265 )
Decrease in trade and other creditors (216,861 ) (1,057,953 )
Cash generated from operations (2,845,806 ) (1,200,557 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 13,699 2,497
Bank overdrafts (52,199 ) (256,757 )
(38,500 ) (254,260 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,497 1,525,316
Bank overdrafts (256,757 ) -
(254,260 ) 1,525,316


Midland Chilled Foods Limited (Registered number: 01104045)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 2,497 11,202 13,699
Bank overdrafts (256,757 ) 204,558 (52,199 )
(254,260 ) 215,760 (38,500 )
Debt
Finance leases (40,943 ) 40,943 -
Debts falling due within 1 year (158,118 ) 11,043 (147,075 )
Debts falling due after 1 year (458,786 ) 123,289 (335,497 )
(657,847 ) 175,275 (482,572 )
Total (912,107 ) 391,035 (521,072 )

Midland Chilled Foods Limited (Registered number: 01104045)

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


1. STATUTORY INFORMATION

Midland Chilled Foods Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis which assumes that the company will continue to operate for the foreseeable future. Parent company support has been confirmed for the next 12 months and budgets and cash flow projections compiled which indicate the company has sufficient reserves to continue to trade. The directors believe that support afforded, careful cashflow considerations is sufficient upon which to adopt the going concern basis.

Related party exemption
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.

Midland Chilled Foods Limited (Registered number: 01104045)

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


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgement, estimates and assumptions about carrying amounts 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 revision and future periods where the revision affects both current and future periods.

In preparing these financial statements the directors have made judgements including:

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Leasing obligations

Determine whether leases entered into by the company either as a lessor or 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 based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

Provisions

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability.

Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

Sales ledger bad debt provisions

Management review debts on a case by case basis to highlight deviation from terms and therefore possible provision requirement.

Stock provisions

Through experience over time, the management have formulated a standard policy of provisioning based on stock movement. This is monitored on an ongoing basis and judgement used on a line by line basis should trends change significantly.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised on despatch of goods.

Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 10 years.

Midland Chilled Foods Limited (Registered number: 01104045)

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


2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 3% on cost
Plant and machinery - 25% on reducing balance
Motor vehicles - 30% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

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.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Midland Chilled Foods Limited (Registered number: 01104045)

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


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 42,882,512 48,455,124
42,882,512 48,455,124

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,061,277 4,601,004
Social security costs 393,127 500,601
Other pension costs 310,099 386,156
4,764,503 5,487,761

Midland Chilled Foods Limited (Registered number: 01104045)

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


4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Direct 117 143
Administration 49 53
166 196

2023 2022
£    £   
Directors' remuneration 336,357 342,895
Directors' pension contributions to money purchase schemes 13,087 11,124

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 181,162 210,460
Pension contributions to money purchase schemes 6,693 6,592

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 523,161 493,643
Depreciation - assets on hire purchase contracts - 26,653
Development costs amortisation 3,936 3,418
Auditors' remuneration 29,105 27,554
Foreign exchange differences 15,674 12,628

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Exceptional items 2,250,691 -

The exceptional item relates to net insurance claim monies receivable as a direct result of the fire breaking out on the premises at the beginning of the year.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 90,854 24,569
Hire purchase 2,943 3,890
93,797 28,459

Midland Chilled Foods Limited (Registered number: 01104045)

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


8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 367,560 -

Deferred tax (3,976 ) 36,557
Tax on profit 363,584 36,557

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,430,968 927,275
Profit multiplied by the standard rate of corporation tax in the UK of 23.521%
(2022 - 19%)

336,578

176,182

Effects of:
Depreciation in excess of capital allowances 27,006 7,530
Group relief adjustment - (147,155 )
Total tax charge 363,584 36,557

9. INTANGIBLE FIXED ASSETS
Development
Goodwill costs Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 853,271 30,089 883,360
AMORTISATION
At 1 January 2023 853,271 15,074 868,345
Amortisation for year - 3,936 3,936
At 31 December 2023 853,271 19,010 872,281
NET BOOK VALUE
At 31 December 2023 - 11,079 11,079
At 31 December 2022 - 15,015 15,015

Midland Chilled Foods Limited (Registered number: 01104045)

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


10. TANGIBLE FIXED ASSETS
Freehold Short Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
COST
At 1 January 2023 5,781,354 4,778 5,292,253 1,806,220 12,884,605
Additions 236,123 - 476,011 92,379 804,513
Disposals (921,053 ) - (2,080,105 ) - (3,001,158 )
At 31 December 2023 5,096,424 4,778 3,688,159 1,898,599 10,687,960
DEPRECIATION
At 1 January 2023 1,603,876 4,778 4,025,338 1,658,257 7,292,249
Charge for year 113,852 - 354,043 55,266 523,161
Eliminated on disposal (272,478 ) - (1,457,453 ) - (1,729,931 )
At 31 December 2023 1,445,250 4,778 2,921,928 1,713,523 6,085,479
NET BOOK VALUE
At 31 December 2023 3,651,174 - 766,231 185,076 4,602,481
At 31 December 2022 4,177,478 - 1,266,915 147,963 5,592,356

The net book value of tangible fixed assets includes £nil (2022 - £73,628) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £nil (2022 - £26,653) for the year.

11. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 January 2023
and 31 December 2023 50
NET BOOK VALUE
At 31 December 2023 50
At 31 December 2022 50

12. STOCKS
2023 2022
£    £   
Finished goods 2,243,092 2,976,066

Midland Chilled Foods Limited (Registered number: 01104045)

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


13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 5,257,893 5,834,682
Other debtors 133 88
Employee loans 1,544 1,874
VAT 98,942 -
Prepayments and accrued income 6,480,664 588,752
11,839,176 6,425,396

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 199,274 414,875
Hire purchase contracts (see note 17) - 40,943
Trade creditors 1,682,622 1,881,529
Amounts owed to group undertakings 7,094,142 4,230,212
Tax 351,157 (16,396 )
Social security and other taxes 106,755 117,671
VAT - 71,752
Accruals and deferred income 90,500 25,786
9,524,450 6,766,372

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 16) 335,497 458,786

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 52,199 256,757
Bank loans 147,075 158,118
199,274 414,875

Amounts falling due between one and two years:
Bank loans - 1-2 years 153,698 155,182

Amounts falling due between two and five years:
Bank loans - 2-5 years 181,799 303,604

During the prior year the company took out a further £270k loan to fund the purchase of plant and machinery. This loan is repayable by equal instalments over a five year period and carries an interest rate of 2.65% per annum above base rate.

Midland Chilled Foods Limited (Registered number: 01104045)

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


17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Gross obligations repayable:
Within one year - 42,711

Finance charges repayable:
Within one year - 1,768

Net obligations repayable:
Within one year - 40,943

Non-cancellable operating leases
2023 2022
£    £   
Within one year 960 28,535
Between one and five years 960 1,920
1,920 30,455

18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 52,199 256,757
Bank loans 482,572 616,904
Hire purchase contracts - 40,943
534,771 914,604

The hire purchase liabilities are secured against the assets to which they relate.

The bank loan for the purchase of new equipment is secured against the Basingstoke property.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 178,171 182,147

Midland Chilled Foods Limited (Registered number: 01104045)

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


19. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 182,147
Provided during year (3,976 )
Balance at 31 December 2023 178,171

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
38,802 Ordinary £1 38,802 38,802

21. RESERVES
Retained
earnings
£   

At 1 January 2023 7,565,273
Profit for the year 1,067,384
At 31 December 2023 8,632,657

22. CONTINGENT LIABILITIES

The company has given cross guarantees to Barclays Bank Plc in respect of amounts outstanding with its parent company. At the balance sheet date these amounted to £nil (2022 - £nil).

23. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 1,131,164 (2022 - £ 958,555 ) was paid.

24. ULTIMATE CONTROLLING PARTY

The company's immediate parent company is Granarolo UK Limited, a company registered in England & Wales. Granlatte Soc. Coop. Agricola heads the Granarolo Group and is registered in Italy. Granarolo S.P.A. prepare group accounts and these can be obtained from Via Cadriano 27/2, 40127 Bologna, Emilia-Romagna, Italy.