REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
THE BRECKS COMPANY LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
THE BRECKS COMPANY LIMITED |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
THE BRECKS COMPANY LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 March 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Beckside Court |
Annie Reed Road |
Beverley |
East Yorkshire |
HU17 0LF |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
STRATEGIC REPORT |
for the Year Ended 30 March 2024 |
The director presents his strategic report for the year ended 30 March 2024. |
The principal activities of the company throughout the year were that of a food manufacturing company. The company also holds investments in a number of trading companies which operate within the food manufacture & machining industries. |
The company had an improved trading year. Although volumes remained similar to the previous year, the demand for higher value products increased as the year progressed, resulting in an increased turnover. This bodes well for the future as sales of this type are increasing but are still below the pre pandemic level, giving plenty of scope for further growth. |
Efficiency improvements implemented during the year have played a major part in improving booth gross profit & operating profit. This has happened despite inconsistent demand and international supply chain issues as a result of geo political events. |
The company's key financial performance indicators during the year were as follows: |
2024 | 2023 |
£'000 |
£'000 |
Gross profit continuing operations | 2,522 | 1,971 |
EBITDA continuing operations | 884 | 469 |
Net assets | 9,626 | 9,217 |
PRINCIPAL RISKS AND UNCERTAINTIES |
At the year end, the largest risks and uncertainties are dependent on geo political events. These include, the risks to international supply chains, the risk of oil price increases pushing up energy costs, transport costs & inflation in general. |
In managing the business the directors have established controls to enable them to respond to and mitigate the impact of such risks. |
An upside uncertainty, bearing in mind the above, is how quickly the UK economy and consumer confidence improves and there is a return to "normality" of UK eating habits. |
Post year end, the company has seen a continuation of the improving trading environment within which it operates. |
ON BEHALF OF THE BOARD: |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
REPORT OF THE DIRECTOR |
for the Year Ended 30 March 2024 |
The director presents his report with the financial statements of the company for the year ended 30 March 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 March 2024 will be £ |
RESEARCH AND DEVELOPMENT |
The company engages in research and development activities to improve the nutritional benefits of its food ingredients. |
FUTURE DEVELOPMENTS |
To focus on continually improving & growing the extrusion business. |
DIRECTOR |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise trade debtors, trade creditors and bank loans and bank overdrafts. The main purpose of these instruments is to raise funds to finance the company's operations. |
The company's approach to managing risks applicable to the financial instruments is shown below. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
In respect of bank overdrafts, liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating and fixed rates of interest. |
In respect of bank loans, these loans are from financial institutions. The interest rate on the loans is variable, but the monthly repayments are fixed. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
REPORT OF THE DIRECTOR |
for the Year Ended 30 March 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is 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 he 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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE BRECKS COMPANY LIMITED |
Opinion |
We have audited the financial statements of The Brecks Company Limited (the 'company') for the year ended 30 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 30 March 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. |
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 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 financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE BRECKS COMPANY 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE BRECKS COMPANY 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: |
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
However, 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: |
- the nature of the industry and sector, control environment and business performance; |
- we also obtained an understanding of the legal and regulatory frameworks that the company operates in and determined that the most significant are those that relate to the reporting framework, FRS 102, the Companies Act 2006 and the relevant tax laws and regulations in the UK. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, relating in majority to general health and safety, quality control and employee matters; |
- we reviewed results of our enquiries of management about their own identification and assessment of the risks of irregularities; and assessed how the entity identifies, evaluates and complies with laws and regulations and whether management were aware of any instances of non-compliance. We corroborated our enquiries through our review of board minutes and consideration of the results of our audit procedures across the company; |
- we also considered how the entity detects and responds to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and; |
- we considered the controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how management monitors those controls |
- the internal controls established to mitigate risks of non-compliance with laws and regulations were also investigated. |
- we also considered the existence of performance targets and their potential influence on management to manage earnings. |
- where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. |
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
We reviewed financial statement disclosures and performed testing to supporting documentation to assess compliance with applicable laws and regulations. |
We also tested 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. There was a focus on manual journals and journals indicating large or unusual transactions; enquiries of company management; and challenging the assumptions and judgements made by management by reviewing third party evidence wherever possible. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE BRECKS COMPANY LIMITED |
The results of our procedures did not identify any instances or irregularities, including fraud. |
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. |
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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Beckside Court |
Annie Reed Road |
Beverley |
East Yorkshire |
HU17 0LF |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
INCOME STATEMENT |
for the Year Ended 30 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Impairment of investment | 6 |
693,883 | (1,489,062 | ) |
Interest receivable and similar income |
750,572 | (1,316,063 | ) |
Interest payable and similar expenses | 7 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 8 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 30 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
BALANCE SHEET |
30 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 March 2024 |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 March 2024 |
1. | STATUTORY INFORMATION |
The Brecks Company Limited is a private company limited by shares and incorporated and domiciled in England. It has its registered office and principal place of business at Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH. |
The principal activity of the company is that of the manufacture of breakfast cereals and cereals-based food. |
The presentational currency of the financial statements is Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Having regard to liquidity risk, current market conditions and other factors affecting the company, the use of the going concern basis of accounting is appropriate as, in the opinion of the director, there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern. |
As of 30 March 2024, the company had net assets of £9,626,949 a increase from the 2023 position of £9,217,001. The financial statements have been prepared on a going concern basis. |
The director has considered the impact of the current economic uncertainty on the company's business operations and the future prospects of the company. The company's financial forecasts, taking into consideration the current environment, show that the company is expected to continue to make profit and generate positive cashflows giving the company the ability to continue to operate for the foreseeable future. |
The director has considered the reliability of the sales & cost estimates & believe them to be achievable. The group 12 month profit before tax in the original budget has already been exceeded in the first quarter of the financial year. Forecasts more than 12 months forward show significant growth as new customers are brought on stream & trading conditions look to improve. |
The director is confident that the bank will remain supportive. |
Based on these facts and the current financial position, forecasts and cash flows of the company, the director has concluded it is appropriate for the financial statements to be prepared on a going concern basis. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about The Brecks Company Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Brecks Holdings Limited, Breighton Airfield, Bubwith, Selby, YO8 6DH. |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
No key sources of estimation uncertainty are noted by management that have a significant effect on the amounts recognised in the financial statements. |
Turnover |
Turnover is the amount derived from ordinary activities, measured at the fair value of the consideration received or receivable. Turnover excludes value added tax and trade discounts. |
Turnover from the sale of goods is recognised at point of sale. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Industrial buildings | - |
Plant and machinery | - |
Office equipment | - |
Motor vehicles | - |
Assets are recognised under the cost model. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Stocks |
Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacture / completion. |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
All financial instruments are measured at amortised cost. |
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 rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
The financial statements are presented in Sterling, which is also the functional currency of the company. Transactions in currencies other than the functional currency of the company are recorded at the rate of exchange on the date that the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the profit and loss account. Non-monetary items that are measured at historic cost in a foreign currency are not translated. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Employee benefits |
Short-term employee benefits are recognised as an expense in the period in which they are incurred. |
The obligations for contributions to the defined contribution scheme are recognised as an expense in the period they are incurred. The assets of the scheme are held separately from those of the company in an independent administered fund. |
Fixed asset investments |
Investments held as fixed assets are stated at cost less any provision for a permanent diminution in value. |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the Company if: |
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company; |
(ii) the Company and the party are subject to common control; |
(iii) the party is an associate of the Company or a joint venture in which the Company is a venture; |
(iv) the party is a member of key management personnel of the Company or the Company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or |
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company. |
(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that have occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. |
Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such case the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities. |
Trade and other creditors |
Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Interest bearing borrowings |
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
3. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 2,684 | 2,684 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management & administration | 7 | 7 |
Operations & production | 37 | 40 |
Directors' remuneration is all due to one director. |
2024 | 2023 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
6. | EXCEPTIONAL ITEMS |
2024 | 2023 |
£ | £ |
Impairment of investment | ( |
) |
During the year one of the companies subsidiaries, Plant and Bean Ltd, entered into administration. The company therefore could not recover the debtors due to it and this was provided for in full in 2023. The administration has not, and is not considered to impact the going concern nature of The Brecks Company Limited. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest |
Bank loan interest |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax | ( |
) | ( |
) |
Tax on profit/(loss) | ( |
) |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of (2023 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
Marginal rate relief | (81 | ) | - |
Group relief | (41,450 | ) | (54,097 | ) |
Deferred tax | (1,518 | ) | (5,874 | ) |
Change in tax rate | (1,257 | ) | - |
Total tax charge/(credit) | 132,321 | (65,925 | ) |
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. In the year to 30 March 2024, deferred tax is charged at 25% (2023 - 25%). |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
10. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 31 March 2023 |
and 30 March 2024 |
AMORTISATION |
At 31 March 2023 |
and 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 |
At 30 March 2023 |
11. | TANGIBLE FIXED ASSETS |
Industrial | Plant and | Office |
buildings | machinery | equipment |
£ | £ | £ |
COST |
At 31 March 2023 |
Additions |
Impairments | - | - | (25,000 | ) |
At 30 March 2024 |
DEPRECIATION |
At 31 March 2023 |
Charge for year |
At 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 | ( |
) |
At 30 March 2023 | ( |
) |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Motor | Leased |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 31 March 2023 |
Additions |
Impairments | - | - | (25,000 | ) |
At 30 March 2024 |
DEPRECIATION |
At 31 March 2023 |
Charge for year |
At 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 |
At 30 March 2023 |
12. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 31 March 2023 |
and 30 March 2024 |
NET BOOK VALUE |
At 30 March 2024 |
At 30 March 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
The Brecks Company Limited has a controlling interest in Harvest Moon Confectionery Ltd by virtue that The Brecks Company Limited holds more than 50% of the voting rights of the company. |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by related parties |
Other debtors |
VAT |
Prepayments |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Amounts owed to related parties |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 220,000 | 220,000 |
Accrued expenses |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
17. | LOANS - continued |
Bank loans are repayable by fixed monthly instalments. |
Bank loans comprise: |
Maturity date | 2024 | 2023 |
£ | £ |
Fixed rate plus margin bank loan | 2026 | 573,712 | 626,718 |
573,712 | 626,718 |
The directors consider the carrying amounts of bank loans and overdrafts approximate to their fair value.The interest rate is 2.5% above base rate. |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
Invoice financing | 954,993 | 978,890 |
Bank overdrafts and loans are secured by a debenture creating a fixed first charge over the company's freehold property. Hire purchase creditors are secured over the assets to which they relate. |
Unlimited multilateral guarantee given by Brecks Holdings Limited, The Brecks Company Limited, Brecks Engineering Limited and Monster Brands Limited in relation to bank funding. |
Debenture including Fixed charge over all present freehold and leasehold property; First Fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertakings both present and future held by the bank. |
The invoice financing is secured by a fixed charge over all purchased debts and a floating charge over all remaining unsecured assets of the company. |
20. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 84,487 | 86,005 |
Deferred |
tax |
£ |
Balance at 31 March 2023 |
Utilised during year | ( |
) |
Balance at 30 March 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1,500 | 1,500 |
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets. |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
22. | RESERVES |
Retained |
earnings |
£ |
At 31 March 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 March 2024 |
23. | ULTIMATE PARENT COMPANY |
Brecks Holdings Limited is regarded by the director as being the company's ultimate parent company. |
Consolidation is performed at the ultimate parent company level. |
Brecks Holdings Limited is the ultimate and immediate parent company. It is a private company (number 09880905) limited by shares and incorporated and domiciled in England. It has its registered office at Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH. |
The consolidated accounts of Brecks Holdings Limited are publicly available from Companies House. |
24. | CONTINGENT LIABILITIES |
A cross guarantee on banking facilities is held between The Brecks Company Ltd, Brecks Holdings Ltd, Brecks Engineering Ltd and Monster Brands Ltd supported by a debenture from The Brecks Company Ltd and a debenture from Monster Brands Ltd. |
25. | RELATED PARTY DISCLOSURES |
2024 | 2023 |
£ | £ |
Sales |
Amount due from related party |
Provisions for uncollectible receivables relating to amount of outstanding balances |
2024 | 2023 |
£ | £ |
Sales |
Amount due from related party |
THE BRECKS COMPANY LIMITED (REGISTERED NUMBER: 02465785) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
25. | RELATED PARTY DISCLOSURES - continued |
Paperspace Limited |
Brian Willis, a former director has a significant interest. |
A year end loan is due to Paperspace of £42,292 (2023: £78,542). Movement in the loan balance relates to monthly repayments. Interest is charged at a reasonable market rate and the loan is repayable on demand. |
Brecks Farm Limited |
A year end loan is due to Brecks Farm Limited of £100,000 (2023: £100,000). The loan is repayable on demand. This is held in amounts due to group undertakings. In other creditors is a further £598,000 (2023: £598,000) due to the same company. |
During the year, a total of key management personnel compensation of £ |
26. | ULTIMATE CONTROLLING PARTY |
The controlling party is J E Hirst. |