REGISTERED NUMBER: 09880905 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
BRECKS HOLDINGS LIMITED |
REGISTERED NUMBER: 09880905 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2024 |
FOR |
BRECKS HOLDINGS LIMITED |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 13 |
Consolidated Balance Sheet | 14 |
Company Balance Sheet | 16 |
Consolidated Statement of Changes in Equity | 17 |
Company Statement of Changes in Equity | 18 |
Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Cash Flow Statement | 20 |
Notes to the Consolidated Financial Statements | 22 |
BRECKS HOLDINGS LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Beckside Court |
Annie Reed Road |
Beverley |
East Yorkshire |
HU17 0LF |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 March 2024 |
The directors present their strategic report of the company and the group for the year ended 30 March 2024. |
PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
The principal activity of the company throughout the year was that of a holding company with the company holding investments in a number of trading companies which operate within the food manufacture and machinery industries. |
The group had a much better year. The adverse impact of the failure of Plant and Bean Limited was all dealt with in the previous financial year, leaving the positive profit from the discontinued business to impact the profit of this year. |
Excluding the discontinued business, the group still demonstrated a significant improvement over the prior year, posting a profit before tax. |
The future prospects of the group continue to look favourable as the trading environment is showing signs of improvement. |
We have summarised below some further comments about the individual group companies. |
The overall consolidated group trading resulted in a profit of £17,337,814, 2023: £(10,238,713) before tax however if the results of Plant and Bean Ltd and associated write offs are excluded the group results would be as set out below:- |
2024 | 2023 |
£'000 |
£'000 |
Gross profit | 3,372 | 2,340 |
Profit/(loss) before tax excluding Plant and Bean Ltd | 270 | (516 | ) |
Brecks Engineering Limited |
The continued improvements & investment from previous years bore fruit this year with the company producing a profit before tax. |
Monster Brands Limited |
The trading result for the company showed an improvement over the previous financial year as a result of withdrawing unprofitable sales from a major UK retailer. This meant that sales volume and turnover reduced, but sales in the remaining retailers grew steadily as the year progressed. |
The Brecks Company Limited |
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. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
GROUP STRATEGIC REPORT |
for the Year Ended 30 March 2024 |
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 group has seen a continuation of the improving trading environment within which it operates. |
GOING CONCERN |
The directors have a reasonable expectation that the Brecks Group will continue in operational existence for at least 12 months from the date of this report and are confident of positive forecasts moving forward. The group will now focus on returning to volume and value growth with current customers and gaining new customers to utilise available manufacturing capacity |
The directors have 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 directors are confident that the bank will remain supportive as they look to upgrade the manufacturing facility to cope with future customer demands. |
Accordingly, the financial statements of the group have been prepared on a going concern basis. |
ON BEHALF OF THE BOARD: |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 March 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 March 2024. |
RESEARCH AND DEVELOPMENT |
The group engages in research and development activities to improve the nutritional benefits of its food ingredients. |
FUTURE DEVELOPMENTS |
The group will continue to focus on improving volume and value growth with current customers and gaining new customers to utilise available manufacturing capacity |
DIRECTORS |
The directors shown below have held office during the whole of the period from 31 March 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group's principal financial instruments comprise trade debtors, trade creditors and bank loans and overdrafts. The main purpose of these instruments is to raise funds to finance the group's operations. |
The group's approach to managing risks applicable to 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. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 March 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRECKS HOLDINGS LIMITED |
Qualified Opinion |
We have audited the financial statements of Brecks Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report,the financial statements: |
- Give a true and fair view of the state of the group's and of the parent company affairs as at 30 March 2024 and of the group's loss 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 qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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 it is appropriate to provide a basis for our qualified opinion. |
This qualification applies to the results for the year ended 30th March 2023 and the opening balances for the year ended 30th March 2024 only. |
Our opinion was qualified in the year ended 30th March 2023 due to Plant and Bean Ltd entering administration on 31st May 2023. As Plant and Bean Ltd staff no longer worked within the entity, the year end stock balance as at 30th March 2023 was not reconciled to the stock count undertaken. We were unable to satisfy ourselves by alternative means concerning the inventory quantities and values held at 30 March 2023, which are included in the prior year balance sheet at £1,176,878, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the inventory balance to be required in the prior year, the strategic report would also need to be amended and this would impact on the opening position for the year ended 30 March 2024. Due to Plant and Bean Ltd no longer being part of the group as at 30th March 2024 this qualification has no impact on the balance sheet as at 30th March 2024. |
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 group's and the parent 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. |
We draw attention to note 2 which explains that during the year Plant and Bean Ltd entered administration after receiving no further funding from its minority shareholder. As the the directors were aware of this when the accounts for 30th March 2023 were drawn up, full provison was made for all unrecoverable amounts. |
No material uncertainty is raised in relation to the remaining subsidiaries and the group as a whole is still considered a going concern with Plant and Bean Ltd no longer being part of the group at 30th March 2024. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRECKS HOLDINGS LIMITED |
Key audit matters |
We draw attention to the fact that Plant and Bean Ltd ceased to be under the control of the parent company as at 31 May 2023. As such the results of Plant and Bean Ltd are only consolidated within these accounts to this date. |
Except for the matter described in the basis for qualified opinion section for the prior year, we have determined that there are no further key audit matters to be communicated in our report |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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. |
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 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. |
As described in the basis for qualified opinion section of our report, in the year ended 30th March 2023 we were unable to satisfy ourselves concerning the inventory quantities of £1,176,878 held at this date. Due to Plant and Bean Ltd no longer being part of the group as at 30th March 2024 this qualification has no impact on the balance sheet as at 30th March 2024. |
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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRECKS HOLDINGS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRECKS HOLDINGS 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 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 |
BRECKS HOLDINGS 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 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONSOLIDATED INCOME STATEMENT |
for the Year Ended 30 March 2024 |
2024 | 2024 | 2024 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4 | 14,870,545 | 682,761 | 15,553,306 |
Cost of sales | (11,498,247 | ) | (1,098,868 | ) | (12,597,115 | ) |
GROSS PROFIT/(LOSS) | 3,372,298 | (416,107 | ) | 2,956,191 |
Distribution costs | (15,415 | ) | (9,475 | ) | (24,890 | ) |
Administrative expenses | (2,932,790 | ) | (330,201 | ) | (3,262,991 | ) |
424,093 | (755,783 | ) | (331,690 | ) |
Other operating income | 3,100 | - | 3,100 |
OPERATING PROFIT/(LOSS) | 7 | 427,193 | (755,783 | ) | (328,590 | ) |
Disposal of subsidiary | 8 | - | 18,121,526 | 18,121,526 |
427,193 | 17,365,743 | 17,792,936 |
Interest receivable and similar income | 56,689 | - | 56,689 |
Interest payable and similar expenses | 9 | (214,240 | ) | (297,571 | ) | (511,811 | ) |
PROFIT BEFORE TAXATION | 269,642 | 17,068,172 | 17,337,814 |
Tax on profit | 10 | (114,539 | ) | - | (114,539 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 12,583,432 |
Non-controlling interests | 4,639,843 |
17,223,275 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONSOLIDATED INCOME STATEMENT |
for the Year Ended 30 March 2024 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4 | 13,590,455 | 4,092,956 | 17,683,411 |
Cost of sales | (11,250,396 | ) | (5,754,067 | ) | (17,004,463 | ) |
GROSS PROFIT/(LOSS) | 2,340,059 | (1,661,111 | ) | 678,948 |
Distribution costs | (125,259 | ) | - | (125,259 | ) |
Administrative expenses | (2,783,809 | ) | (4,205,327 | ) | (6,989,136 | ) |
(569,009 | ) | (5,866,438 | ) | (6,435,447 | ) |
Other operating income | 3,000 | 100,213 | 103,213 |
OPERATING LOSS | 7 | (566,009 | ) | (5,766,225 | ) | (6,332,234 | ) |
Impairment | 8 | - | (2,638,235 | ) | (2,638,235 | ) |
(566,009 | ) | (8,404,460 | ) | (8,970,469 | ) |
Interest receivable and similar income | 172,999 | - | 172,999 |
Interest payable and similar expenses | 9 | (123,511 | ) | (1,317,732 | ) | (1,441,243 | ) |
LOSS BEFORE TAXATION | (516,521 | ) | (9,722,192 | ) | (10,238,713 | ) |
Tax on loss | 10 | 51,742 | - | 51,742 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (7,452,396 | ) |
Non-controlling interests | (2,734,575 | ) |
(10,186,971 | ) |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
for the Year Ended 30 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 17,223,275 | (10,186,971 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
17,223,275 |
(10,186,971 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 12,583,432 | (7,452,396 | ) |
Non-controlling interests | 4,639,843 | (2,734,575 | ) |
17,223,275 | (10,186,971 | ) |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONSOLIDATED BALANCE SHEET |
30 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 249,849 | 425,227 |
Tangible assets | 13 | 1,867,483 | 4,788,024 |
Investments | 14 |
Interest in associate | - | 2,054,117 |
2,117,332 | 7,267,368 |
CURRENT ASSETS |
Stocks | 15 | 905,873 | 2,214,296 |
Debtors | 16 | 6,371,601 | 6,589,070 |
Cash at bank and in hand | 141,563 | 490,611 |
7,419,037 | 9,293,977 |
CREDITORS |
Amounts falling due within one year | 17 | 4,609,009 | 23,653,547 |
NET CURRENT ASSETS/(LIABILITIES) | 2,810,028 | (14,359,570 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,927,360 |
(7,092,202 |
) |
CREDITORS |
Amounts falling due after more than one year | 18 | (1,427,277 | ) | (1,595,028 | ) |
PROVISIONS FOR LIABILITIES | 23 | (53,997 | ) | (89,959 | ) |
NET ASSETS/(LIABILITIES) | 3,446,086 | (8,777,189 | ) |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONSOLIDATED BALANCE SHEET - continued |
30 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 24 | 3,000,000 | 3,000,000 |
Retained earnings | 25 | 932,087 | (10,978,261 | ) |
SHAREHOLDERS' FUNDS | 29 | 3,932,087 | (7,978,261 | ) |
NON-CONTROLLING INTERESTS | 26 | (486,001 | ) | (798,928 | ) |
TOTAL EQUITY | 3,446,086 | (8,777,189 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on 23 August 2024 and were signed on its behalf by: |
J E Hirst - Director |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
COMPANY BALANCE SHEET |
30 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
SHAREHOLDERS' FUNDS | 29 |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 March 2024 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 31 March 2022 | 3,000,000 | (3,525,865 | ) | (525,865 | ) | 1,935,647 | 1,409,782 |
Changes in equity |
Total comprehensive income | - | (7,452,396 | ) | (7,452,396 | ) | (2,734,575 | ) | (10,186,971 | ) |
Balance at 30 March 2023 | 3,000,000 | (10,978,261 | ) | (7,978,261 | ) | (798,928 | ) | (8,777,189 | ) |
Changes in equity |
Disposal of subsidiary | - | (673,084 | ) | (673,084 | ) | - | (673,084 | ) |
Total comprehensive income | - | 12,583,432 | 12,583,432 | 4,639,843 | 17,223,275 |
3,000,000 | 932,087 | 3,932,087 | 3,840,915 | 7,773,002 |
Non-controlling interest arising on business combination |
- |
- |
- |
(4,326,916 |
) |
(4,326,916 |
) |
Balance at 30 March 2024 | 3,000,000 | 932,087 | 3,932,087 | (486,001 | ) | 3,446,086 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
COMPANY 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 |
Balance at 30 March 2023 |
Changes in equity |
Balance at 30 March 2024 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (261,377 | ) | (3,252,035 | ) |
Interest paid | (140,907 | ) | (1,375,540 | ) |
Finance costs paid | (75,543 | ) | (65,704 | ) |
Tax paid | - | 60,051 |
Net cash from operating activities | (477,827 | ) | (4,633,228 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (67,650 | ) | (115,645 | ) |
Purchase of fixed asset investments | - | (2,054,117 | ) |
Net cash from investing activities | (67,650 | ) | (2,169,762 | ) |
Cash flows from financing activities |
New loans in year | 448,000 | 7,308,922 |
Loan repayments in year | (53,005 | ) | (303,534 | ) |
Disposal of subsidiary | (198,566 | ) | - |
Net cash from financing activities | 196,429 | 7,005,388 |
(Decrease)/increase in cash and cash equivalents | (349,048 | ) | 202,398 |
Cash and cash equivalents at beginning of year |
2 |
490,611 |
288,213 |
Cash and cash equivalents at end of year | 2 | 141,563 | 490,611 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 March 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit/(loss) before taxation | 17,337,814 | (10,238,713 | ) |
Depreciation charges | 355,203 | 944,164 |
Impairment | - | 2,638,235 |
Disposal of subsidiary | (18,121,526 | ) | - |
Finance costs | 511,811 | 1,441,243 |
Finance income | (56,689 | ) | (172,999 | ) |
26,613 | (5,388,070 | ) |
Decrease/(increase) in stocks | 628,641 | (177,016 | ) |
(Increase)/decrease in trade and other debtors | (660,818 | ) | 928,063 |
(Decrease)/increase in trade and other creditors | (255,813 | ) | 1,384,988 |
Cash generated from operations | (261,377 | ) | (3,252,035 | ) |
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 30 March 2024 |
30/3/24 | 31/3/23 |
£ | £ |
Cash and cash equivalents | 141,563 | 490,611 |
Year ended 30 March 2023 |
30/3/23 | 31/3/22 |
£ | £ |
Cash and cash equivalents | 490,611 | 288,213 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 30 March 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 31/3/23 | Cash flow | At 30/3/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 490,611 | (349,048 | ) | 141,563 |
490,611 | (349,048 | ) | 141,563 |
Debt |
Debts falling due within 1 year | (6,673,947 | ) | 6,433,842 | (240,105 | ) |
Debts falling due after 1 year | (1,491,959 | ) | 64,682 | (1,427,277 | ) |
(8,165,906 | ) | 6,498,524 | (1,667,382 | ) |
Total | (7,675,295 | ) | 6,149,476 | (1,525,819 | ) |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 30 March 2024 |
1. | STATUTORY INFORMATION |
Brecks Holding 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 throughout the year was that of a holding company. The company holds investments in a number of trading companies which operate within the food manufacture and machining industries. |
The presentational currency of the financial statements is Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
During the year Plant and Bean Ltd entered administration after receiving no further funding from its minority shareholder. The directors raised a material uncertainty in relation to the going concern of Plant and Bean Ltd in 2022. In 2023 the Plant and Bean Ltd results were included in the consolidated results as prepared on a basis other than that of going concern resulting in the impairment of assets as seen in Note 8. This has not impacted on the future forecasts of the group, as the directors had not originally utilised this recovery to build the forecasts. |
The group's financial forecasts, taking into consideration the current environment, show that the group is expected to continue to make profit and generate positive cashflows giving the group the ability to continue to operate for the foreseeable future. |
Future forecasts have been stress tested on different product mixes & reduced volume levels with the company expected to continue to make profit & generate positive cash flows within these scenarios. Overdraft and invoice finance availability is shown within all future forecasts. The Brecks Company Limited has undergone an extended period of significant change with the disposal of the Meat Free business & The Plant and Bean Ltd investment. A return to focus on the core business is already showing some significant new customers. 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 directors are confident that the bank will remain supportive. |
Consequently, having regard to liquidity risk, current market conditions and other factors of the group, the use of the going concern basis of accounting is considered appropriate as, in the opinion of the directors, there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the group to continue as a going concern. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
3. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The group's financial statements consolidate the financial statements of Brecks Holdings Limited and the following subsidiary undertakings: |
The Brecks Company Limited |
Brecks Engineering Limited |
Monster Brands Limited |
Harvest Moon Confectionery Ltd |
Plant and Bean Ltd (disposed of 31 May 2023) |
FRSCO 198 Ltd |
FRSCO 199 Ltd |
Intra-group balances and transactions are eliminated fully on consolidation. |
Brecks Engineering Limited (09268434) and Monster Brands Limited (10125595) are exempt from the requirements of the Companies Act relating to the audit of individual accounts for the year ended 30 March 2024 under Section 479A. |
Associates |
Investments in associates are measured at cost less any accumulated impairment losses. Dividends and other distributions received from the investment as treated as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition. |
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 the 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 excluding the impairment in relation to fixed assets of Plant and Bean Ltd in the prior year as shown in Note 7. |
With the exception of stock, highlighted in the report of the auditors, audit evidence was obtained from the administrator of Plant and Bean Ltd which resulted in adequate evidence to provide an audit opinion on this subsidiary in the prior year. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
3. | ACCOUNTING POLICIES - continued |
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 the point of sale. |
Turnover from services is recognised on completion of service, or when those services span the year end date, by reference to the stage of completion at the balance sheet date. |
Turnover from a construction contract is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied. |
- The amount of turnover can be measured reliably; |
- It is probable that the company will receive the consideration due under the contract; |
- The stage of completion of the contract at the end of the reporting period can be measured reliably; |
- The costs incurred and the costs to complete can be measured reliably; and |
- When it is probable that a loss will occur on a contract, this is recognised in full immediately as an onerous contract provision. |
Goodwill |
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 |
Freehold property | - |
Short leasehold | - |
Industrial buildings | - |
Plant and machinery | - |
Office equipment | - |
Motor vehicles | - |
Leased equipment | - |
Assets are measured 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 associates |
Investments in associate undertakings are recognised at cost. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
3. | ACCOUNTING POLICIES - continued |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
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 |
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 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. 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. |
Pension costs and employee benefits |
Short-term employee benefits are recognised as an expense in the period they are incurred. |
The obligations for contributions to 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. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
3. | ACCOUNTING POLICIES - continued |
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. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
3. | ACCOUNTING POLICIES - continued |
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. |
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. |
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. |
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. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
4. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Food | 15,014,064 | 17,268,883 |
Engineering | 539,242 | 414,528 |
15,553,306 | 17,683,411 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 12,067,872 | 14,431,133 |
Europe | 3,482,750 | 3,182,909 |
Rest of the world | 2,684 | 69,369 |
15,553,306 | 17,683,411 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,252,592 | 3,732,646 |
Social security costs | 221,866 | 399,430 |
Other pension costs | 128,363 | 187,824 |
2,602,821 | 4,319,900 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management & administration | 9 | 25 |
Operations & production | 52 | 98 |
6. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration | 91,306 | 139,604 |
Directors' pension contributions to money purchase schemes | 1,321 | 1,321 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
6. | DIRECTORS' EMOLUMENTS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
The information in relation to the highest paid director was as follows: |
2024 | 2023 |
£ | £ |
Wages and salaries | 92,627 | 116,925 |
92,627 | 116,925 |
7. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant & machinery | - | 183,476 |
Other operating leases | 34,762 | 34,747 |
Depreciation - owned assets | 204,310 | 776,482 |
Goodwill amortisation | 134,330 | 167,682 |
Auditors' remuneration | 54,178 | 85,475 |
Foreign exchange differences | 3,290 | (4,956 | ) |
8. | EXCEPTIONAL ITEMS |
2024 | 2023 |
£ | £ |
Disposal of subsidiary | 18,121,526 | - |
Impairment | - | (2,638,235 | ) |
18,121,526 | (2,638,235 | ) |
Both the disposal of the subsidiary and impairment relate to the recoverable value of fixed assets in Plant and Bean Ltd due to it entering administration. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 73,392 | 19,911 |
Bank loan interest | 62,777 | 87,616 |
Other interest paid | 4,768 | 5,014 |
Loan | 281,419 | 1,262,999 |
Preference dividend | 89,455 | 65,703 |
511,811 | 1,441,243 |
10. | 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 | 150,501 | (60,051 | ) |
Deferred tax | (35,962 | ) | 8,309 |
Tax on profit/(loss) | 114,539 | (51,742 | ) |
UK corporation tax was charged at 19 %) in 2023. |
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 | 17,337,814 | (10,238,713 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
4,334,454 |
(1,945,355 |
) |
Effects of: |
Expenses not deductible for tax purposes | 66,730 | 3,815,938 |
Income not taxable for tax purposes | (4,499,784 | ) | (683,765 | ) |
Depreciation in excess of capital allowances | 14,289 | 5,100 |
Adjustments to tax charge in respect of previous periods | - | (60,052 | ) |
Deferred tax | (35,962 | ) | 21,678 |
Group relief brought forward | (12,106 | ) | - |
Losses not utilised | 248,177 | (1,205,286 | ) |
Change in tax rate | (1,259 | ) | - |
Total tax charge/(credit) | 114,539 | (51,742 | ) |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
10. | TAXATION - continued |
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%). |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 31 March 2023 | 1,444,351 | 6,361 | 1,450,712 |
Disposals | (41,048 | ) | - | (41,048 | ) |
At 30 March 2024 | 1,403,303 | 6,361 | 1,409,664 |
AMORTISATION |
At 31 March 2023 | 1,019,124 | 6,361 | 1,025,485 |
Amortisation for year | 134,330 | - | 134,330 |
At 30 March 2024 | 1,153,454 | 6,361 | 1,159,815 |
NET BOOK VALUE |
At 30 March 2024 | 249,849 | - | 249,849 |
At 30 March 2023 | 425,227 | - | 425,227 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
13. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Industrial | Plant and |
property | leasehold | buildings | machinery |
£ | £ | £ | £ |
COST |
At 31 March 2023 | 2,921,849 | 115,594 | 1,035,043 | 5,437,788 |
Additions | - | - | - | 67,650 |
Disposals | (2,500,000 | ) | - | - | (400,000 | ) |
Impairments | - | - | - | (34,739 | ) |
At 30 March 2024 | 421,849 | 115,594 | 1,035,043 | 5,070,699 |
DEPRECIATION |
At 31 March 2023 | 67,809 | 70,614 | 301,651 | 4,282,175 |
Charge for year | 8,437 | 4,498 | 15,662 | 175,714 |
Impairments | - | - | - | (150,858 | ) |
At 30 March 2024 | 76,246 | 75,112 | 317,313 | 4,307,031 |
NET BOOK VALUE |
At 30 March 2024 | 345,603 | 40,482 | 717,730 | 763,668 |
At 30 March 2023 | 2,854,040 | 44,980 | 733,392 | 1,155,613 |
Office | Motor | Leased |
equipment | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 31 March 2023 | 168,028 | 50,255 | 151,514 | 9,880,071 |
Additions | 25,000 | - | - | 92,650 |
Disposals | - | - | - | (2,900,000 | ) |
Impairments | (25,000 | ) | - | - | (59,739 | ) |
At 30 March 2024 | 168,028 | 50,255 | 151,514 | 7,012,982 |
DEPRECIATION |
At 31 March 2023 | 168,029 | 50,255 | 151,514 | 5,092,047 |
Charge for year | (1 | ) | - | - | 204,310 |
Impairments | - | - | - | (150,858 | ) |
At 30 March 2024 | 168,028 | 50,255 | 151,514 | 5,145,499 |
NET BOOK VALUE |
At 30 March 2024 | - | - | - | 1,867,483 |
At 30 March 2023 | (1 | ) | - | - | 4,788,024 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
14. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
At 31 March 2023 | 2,054,117 |
Disposals | (2,054,117 | ) |
At 30 March 2024 | - |
NET BOOK VALUE |
At 30 March 2024 | - |
At 30 March 2023 | 2,054,117 |
Company |
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 group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit/(loss) for the year | ( |
) |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
Monster Brands Ltd, Harvest Moon Confectionery Ltd and Brecks Engineering Ltd are held through The Brecks Company Limited. |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Breighton Airfield, Bubwith, Selby, North Yorkshire, YO8 6DH |
Nature of business: |
% |
Class of shares: | holding |
Registered office: C/O Interpath Ltd 4th Floor, Tailor's Corner, Thirsk Row, Leeds, LS1 4DP |
Nature of business: |
% |
Class of shares: | holding |
On the 31st May 2023 Plant and Bean Ltd was placed into Administration. The aggregate capital and reserves at the date of the administration was £8,043,642 2023 £(7,626,061)) and the loss was £(1,053,354) (2023 £(10,639,067)). |
The interest in the associate in the prior year relates to an investment made in an associated company to Plant & Bean Ltd in Thailand. This was sold in the year end for its book value. |
15. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | - | 504,110 |
Raw materials | 639,001 | 1,217,968 |
Work-in-progress | 101,127 | 157,378 |
Finished goods | 165,745 | 334,840 |
905,873 | 2,214,296 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 1,948,851 | 2,285,770 |
Other debtors | 4,035,745 | 3,807,669 |
VAT | 49,337 | 90,875 |
Prepayments | 337,668 | 404,756 |
6,371,601 | 6,589,070 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 65,130 | 2,098,972 |
Other loans (see note 19) | 174,975 | 4,574,975 |
Trade creditors | 1,678,749 | 2,648,986 |
Amounts owed to group undertakings | 88,971 | 110,893 |
Amounts owed to participating interests | - | 9,763,902 | - | - |
Tax | 150,501 | - |
Social security and other taxes | 68,502 | 544,440 |
Other creditors | 1,691,632 | 1,595,726 |
Directors' current accounts | 220,000 | 240,897 | - | - |
Accrued expenses | 470,549 | 2,074,756 |
4,609,009 | 23,653,547 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 19) | 552,402 | 617,084 |
Preference shares (see note 19) | 874,875 | 874,875 |
Other creditors | - | 103,069 |
1,427,277 | 1,595,028 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 65,130 | 2,098,972 |
Other loans | - | 4,400,000 |
Preference shares | 174,975 | 174,975 | 174,975 | 174,975 |
240,105 | 6,673,947 |
Amounts falling due between one and two years: |
Bank loans | 62,346 | 59,267 |
Preference shares | 174,975 | 174,975 | 174,975 | 174,975 |
237,321 | 234,242 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 490,056 | 557,817 |
Preference shares | 524,925 | 524,925 | 524,925 | 524,925 |
1,014,981 | 1,082,742 |
Amounts falling due in more than five years: |
Repayable by instalments |
Preference shares | 174,975 | 174,975 | 174,975 | 174,975 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
19. | LOANS - continued |
Bank loans are repayable by fixed monthly instalments. |
Bank loans comprise: |
Maturity date | 2024 | 2023 |
£ | £ |
Mortgage | 2026 | - | 1,761,363 |
Fixed rate plus margin bank loan | 2026 | 573,712 | 626,717 |
CBILs loan | 2026 | - | 280,614 |
CBILs loan | 2025 | 43,820 | 47,365 |
617,532 | 2,716,059 |
The directors consider the carrying amounts of bank loans and overdrafts approximate to their fair value. |
Bank overdrafts and loans are secured by a debenture creating a fixed first charge over the company's freehold property. |
A bank loan for the property is secured by a legal mortgage which is held over the freehold and leasehold land, together with all buildings, fixtures and fittings, and fixed plant and machinery. Interest rate is 3.15% over base with a maturity date of 2026. This related to Plant and Bean Ltd which is no longer part of the group. |
The fixed rate bank loan has an interest rate of 2.5% above base. |
A CBILS loan is also held within bank loans, interest rate on this loan is 5.82% and maturity date is 2026. Government grants towards payments of charges and interest were provided for the first 12 months. The loans are secured over plant and machinery.This related to Plant and Bean Ltd which is no longer part of the group. There is one further CBILS loan held maturing in 2025. |
Invoice financing included in other creditors is £954,993 (2023: £978,890). 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. |
Unlimited multilateral guarantee given by Brecks Holdings Limited, The Brecks Company Limited, Brecks Engineering Limited and Monster Brands Limited in relation to bank funding. |
Included in other loans in the prior year was £4,400,000 owed to minority shareholders of a subsidiary of the group under a formal singular loan agreement. Included in amounts owed to participating interests was £9,763,902 owed to the same company. Average interest was 1.5%, the loans were repayable on demand. This related to Plant and Bean Ltd which is no longer part of the group. |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Redeemable Preference | £1 | 1,049,850 | 1,049,850 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
19. | LOANS - continued |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 90,173 | 304,130 |
Between one and five years | 5,702 | 90,200 |
95,875 | 394,330 |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 617,532 | 2,716,056 |
Invoice financing | 954,993 | 978,890 |
1,572,525 | 3,694,946 |
Bank overdrafts and loans are secured by a debenture creating a fixed legal mortgage over the company's freehold property and a floating charge over the company's other assets and rights. |
Hire purchase creditors are secured over the assets to which they relate. |
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. |
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. |
22. | FINANCIAL INSTRUMENTS |
All financial instruments are measured at amortised cost. |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
23. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 53,997 | 89,959 |
Group |
Deferred |
tax |
£ |
Balance at 31 March 2023 | 89,959 |
Credit to Income Statement during year | (35,962 | ) |
Balance at 30 March 2024 | 53,997 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 3,000,000 | 3,000,000 |
The holders or 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. |
25. | RESERVES |
Group |
Retained |
earnings |
£ |
At 31 March 2023 | (10,978,261 | ) |
Profit for the year | 12,583,432 |
Disposal of subsidiary | (673,084 | ) |
At 30 March 2024 | 932,087 |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
25. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
Profit for the year |
At 30 March 2024 |
26. | NON-CONTROLLING INTERESTS |
Harvest Moon Confectionery Ltd is not a wholly owned subsidiaries. The minority interest in current year profit and year end net assets of Harvest Moon Confectionery Ltd is reported on the face of the balance sheet and consolidated income statement Plant and Bean Ltd is no longer part of the group, the minority interest until the date of exit of the group is shown on the profit and loss, no minority interest remains on the balance sheet as at the year end. |
27. | RELATED PARTY DISCLOSURES |
Other related parties |
2024 | 2023 |
£ | £ |
Sales | 66,683 | 363,919 |
Amount due from related party | 3,871,822 | 3,830,660 |
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. |
Other |
A director within the group has a controlling interest in another entity. Sales in the year to this entity amounted to £278,191 (2023: £163,274). Purchases in the year from this entity amounted to £39,985 (2023: £76,641). Amounts due from the company at year end was £32,979 (2023: £3,707), to the company £138,755 (2023: £98,789). |
A loan was also due to this company outside the group with common directorship of £135,350 (2023: 103,069). |
BRECKS HOLDINGS LIMITED (REGISTERED NUMBER: 09880905) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 30 March 2024 |
27. | RELATED PARTY DISCLOSURES - continued |
During the year, a total of key management personnel compensation of £ 116,021 (2023 - £ 116,925 ) was paid. |
28. | ULTIMATE CONTROLLING PARTY |
The controlling party is J E Hirst. |
29. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS |
Group |
2024 | 2023 |
£ | £ |
Profit/(loss) for the financial year | 12,583,432 | (7,452,396 | ) |
Disposal subsidiary | (673,084 | ) | - |
Net addition/(reduction) to shareholders' funds | 11,910,348 | (7,452,396 | ) |
Opening shareholders' funds | (7,978,261 | ) | (525,865 | ) |
Closing shareholders' funds | 3,932,087 | (7,978,261 | ) |
Company |
2024 | 2023 |
£ | £ |
Profit for the financial year |
Opening shareholders' funds | 3,000,000 | 3,000,000 |
Closing shareholders' funds | 3,000,000 | 3,000,000 |