Flandrex UK Limited
Annual report and financial statements
For the year ended 31 December 2023
Flandrex UK Limited
Company information
Directors
Mr I R Hardman
Mrs J L Hardman
Secretary
Mrs J L Hardman
Company number
04237466
Registered office
13 Portal Business Park
Eaton Lane
Tarporley
Cheshire
England
CW6 9DL
Auditor
DJH Audit Limited
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
Flandrex UK Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
Flandrex UK Limited
Strategic report
For the year ended 31 December 2023
- 1 -

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

Business model

Flandrex UK Limited (the “Company”) is a company incorporated and domiciled in the UK. The company is a trading company within Plukon Food Group (the “Group”) and since 1 January 2021 when the initial changes to the import of goods into the UK from the EU were implemented, the Company has been the vehicle by which other Group companies including its immediate parent company, Plukon Mouscron SA, have exported goods into the UK.

 

Review of business including key performance indicators

The significantly higher turnover that was achieved in the the two year period to 31 December 2022 has equally been achieved in the year ended 31 December 2023 as direct sales stood at £80.2m (2022: £80.4m. The gross profit has increased in line with the increased turnover to £1.62m from £1.35m in 2022.

 

The Company continues to have in place a commission-based agreement with its immediate parent company and again based on increased direct sales in the UK this has increased from £0.7m in 2022 to £0.8m in 2023.

 

Turnover arising from direct sales is a key measure of how the Company and the Group is performing in the UK market; the increase from 2021 to 2022 was significant at 24.7% but this increase represented the Company's trading activity over the first and second year in the post Brexit period. 2023 is effectively the third year of trade post Brexit and the Company has seen no significant increase or decrease in activity despite the worsening economic climate in the UK.

The balance sheet shows net assets of £0.9m at 31 December 2023 compared to £0.8m at 31 December 2022.

The Company continues to successfully manage its debtor position with over 90% of its customers settling within 30 days.

Principal risks and uncertainties including financial instruments

Risks are identified and routinely monitored, with appropriate actions taken to mitigate their potential adverse consequences on the company’s performance objectives.

 

Risks in relation to the day-to-day operations include the potential for deterioration in relationships with its long-established customer base; failure of debtors to settle balances due (which is mitigated by the use of Trade Credit Insurance) and failure of technology or information systems.

 

The directors are of the opinion that the Company does not face any significant risks from other areas such as interest rate fluctuations or lack of liquidity.

The wider issues in relation to risk are:

The final stage for Brexit was identified in the 2022 financial statements as food safety checks on EU imports. These border controls were implemented on 30 April 2024 and the Company has managed the additional processing required through a structured approach to the documentation. The Company believes that this will work in their favour when increased checks are in place at the border.

Avian flu is an ongoing issue with its potential to create supply problems. The Group's website identifies its commitment to supply chain management which will address such issues as Avian flu.

Flandrex UK Limited
Strategic report (continued)
For the year ended 31 December 2023
- 2 -
Development and performance

The directors are confident that risks are being successfully managed, and that the Company and the Group is well placed to meet future demand; either maintaining or growing revenues in the ensuing financial years.

Also, our continued commitment to investing time and resources into maintaining approvals such as Authorised Economic Operator status will only improve our role in the European supply chain.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and straightforward nature of our business and is written in the context of the market sector we operate in.

Other information and explanations

In the year in question the company only has financial assets and liabilities such as trade debtors and creditors arising directly from its operations.

 

All suppliers who trade on credit terms are subject to continuing credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

The company does retain cash surpluses to ensure that the company has sufficient liquid resources to meet the operating needs of the business. At the present time continuing low interest rates and economic uncertainty have dissuaded the directors from investing any of the cash surpluses.

 

On behalf of the board

Mr I R Hardman
Director
11 September 2024
Flandrex UK Limited
Directors' report
For the year ended 31 December 2023
- 3 -

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

Principal activities

The principal activities of the company are as an intermediary in the wholesale of poultry together with the direct importation of poultry for sale in the UK market.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £776,530. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I R Hardman
Mrs J L Hardman
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

The auditor, DJH Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr I R Hardman
Director
11 September 2024
Flandrex UK Limited
Directors' responsibilities statement
For the year ended 31 December 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

Flandrex UK Limited
Independent auditor's report
To the members of Flandrex UK Limited
- 5 -
Opinion

We have audited the financial statements of Flandrex UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Flandrex UK Limited
Independent auditor's report (continued)
To the members of Flandrex UK Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 and the Directors' Report.

 

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

 

 

Responsibilities of directors

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

 

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

Auditor's responsibilities for the audit of the financial statements

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

Explanation as to what extent the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.

Flandrex UK Limited
Independent auditor's report (continued)
To the members of Flandrex UK Limited
- 7 -
Our approach was as follows:

We obtained an understanding of the legal and regulatory framework that is applicable to the company and determined that the most significant are frameworks which are directly relevant to the assertions in the financial statements including amounts and disclosures; those that relate to the reporting framework Financial Reporting Standard FRS102; the Companies Act 2006 and UK taxation legislation; and employment matters.

 

We assessed how the company is complying with those frameworks by:

- making enquiries of management;

- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations together with the use of an appropriate software package to check the disclosures required by the relevant accounting standards and legislation.

 

We assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur. The risk of fraud associated with management override of controls is always deemed high and we performed audit procedures to address this specific risk including testing journal entries and other adjustments for appropriateness; also assessing whether judgements and assumptions used in accounting estimates (which is a low value area) were indicative of potential bias. Also we have confirmed that the company still has Authorised Economic Operator (AEO) status which is an internationally recognised quality mark recognising that the company has all the necessary systems in place to deliver a secure international supply chain.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Desirie Lea FCA FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
11 September 2024
Accountants
Statutory Auditor
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
Flandrex UK Limited
Statement of income and retained earnings
For the year ended 31 December 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
80,950,355
81,152,764
Cost of sales
(79,329,651)
(79,798,604)
Gross profit
1,620,704
1,354,160
Administrative expenses
(420,209)
(398,992)
Operating profit
4
1,200,495
955,168
Interest receivable and similar income
8
8,507
1,505
Interest payable and similar expenses
9
(46)
(58)
Profit before taxation
1,208,956
956,615
Tax on profit
10
(284,587)
(181,214)
Profit for the financial year
924,369
775,401
Retained earnings brought forward
776,531
611,130
Dividends
11
(776,530)
(610,000)
Retained earnings carried forward
924,370
776,531

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Flandrex UK Limited
Balance sheet
As at 31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,503
11,862
Current assets
Stocks
13
-
261,783
Debtors
14
5,496,052
5,394,612
Cash at bank and in hand
1,889,441
1,990,557
7,385,493
7,646,952
Creditors: amounts falling due within one year
15
(6,466,501)
(6,878,318)
Net current assets
918,992
768,634
Total assets less current liabilities
927,495
780,496
Provisions for liabilities
Deferred tax liability
16
2,125
2,965
(2,125)
(2,965)
Net assets
925,370
777,531
Capital and reserves
Called up share capital
18
1,000
1,000
Profit and loss reserves
924,370
776,531
Total equity
925,370
777,531

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
Mr I R Hardman
Mrs J L Hardman
Director
Director
Company registration number 04237466 (England and Wales)
Flandrex UK Limited
Statement of cash flows
For the year ended 31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
946,777
1,351,816
Interest paid
(46)
(58)
Income taxes paid
(279,075)
(116,744)
Net cash inflow from operating activities
667,656
1,235,014
Investing activities
Purchase of tangible fixed assets
(749)
(3,262)
Interest received
8,507
1,505
Net cash generated from/(used in) investing activities
7,758
(1,757)
Financing activities
Dividends paid
(776,530)
(610,000)
Net cash used in financing activities
(776,530)
(610,000)
Net (decrease)/increase in cash and cash equivalents
(101,116)
623,257
Cash and cash equivalents at beginning of year
1,990,557
1,367,300
Cash and cash equivalents at end of year
1,889,441
1,990,557
Flandrex UK Limited
Notes to the financial statements
For the year ended 31 December 2023
- 11 -
1
Accounting policies
Company information

Flandrex UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 13 Portal Business Park, Eaton Lane, Tarporley, Cheshire, England, CW6 9DL.

1.1
Reporting period

The company’s reporting period was changed to 31 December resulting in the financial statements to 31 December 2021 being presented for a period of thirteen months. The company changed to 31 December to align its accounting period end date with that of its immediate parent and other companies within the Plukon Group. The comparative amounts presented in the financial statements (including the related notes) are not entirely comparable as they relate to a period of thirteen months.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes where applicable. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from arising from commissions are included on a receivable basis. To the extent that the criteria for earning the commission has been completed by the balance sheet date, the commission will be recognised.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 12 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
20% per annum of net book value and 33% on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises only direct materials.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. As all financial assets are classified within one year, they are not amortised but carried at face value.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are carried at face value.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and continue to be measured at face value.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 16 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Direct sales
80,177,308
80,441,763
Commission
773,047
711,001
80,950,355
81,152,764
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
80,950,355
81,152,764
2023
2022
£
£
Other revenue
Interest income
8,507
1,505
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
4,108
5,116
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,125
5,500
For other services
All other non-audit services
4,125
5,898
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
7
7
Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
264,534
254,859
Social security costs
23,155
24,016
Pension costs
15,002
15,054
302,691
293,929
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
107,742
104,327
Company pension contributions to defined contribution schemes
12,000
12,000
119,742
116,327

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
8,507
1,505
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
46
58
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
285,427
182,226
Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
10
Taxation
2023
2022
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(840)
(1,012)
Total tax charge
284,587
181,214

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,208,956
956,615
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
284,346
181,757
Tax effect of expenses that are not deductible in determining taxable profit
308
303
Depreciation compared to capital allowances
790
166
Deferred tax adjustment
(840)
(1,012)
Other timing differences
(17)
-
0
Taxation charge for the year
284,587
181,214
11
Dividends
2023
2022
£
£
Final paid
776,530
610,000
Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 19 -
12
Tangible fixed assets
Plant and machinery
£
Cost
At 1 January 2023
43,949
Additions
749
At 31 December 2023
44,698
Depreciation and impairment
At 1 January 2023
32,087
Depreciation charged in the year
4,108
At 31 December 2023
36,195
Carrying amount
At 31 December 2023
8,503
At 31 December 2022
11,862
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
-
0
261,783
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,310,792
5,224,790
Other debtors
2,197
4,705
Prepayments and accrued income
183,063
165,117
5,496,052
5,394,612
Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 20 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,426,340
6,849,938
Corporation tax
11,920
5,568
Other taxation and social security
7,918
8,774
Other creditors
4,049
1,149
Accruals and deferred income
16,274
12,889
6,466,501
6,878,318
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
2,125
2,965
2023
Movements in the year:
£
Liability at 1 January 2023
2,965
Credit to profit or loss
(840)
Liability at 31 December 2023
2,125
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,002
15,054

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
18
Share capital
(Continued)
- 21 -

The company has one class of ordinary shares which carry full rights with regards to voting participation and dividends.

19
Operating lease commitments
Lessee

At the reporting end date the company had no outstanding commitments for future minimum lease payments under non-cancellable operating leases.

20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The company is undertaking direct sales in the United Kingdom in relation to purchases from group companies:

 

Plukon Mouscron SA

Parent company

The purchases from the parent company total £54,107,117 in the year to 31 December 2023 (31 December 2022 - £48,814,280). The closing creditor balance is £4,834,016 (2022 - £4,069,595).

 

Plukon Ommel BV

Fellow subsidiary of Plukon Mouscron SA

 

There are also purchases from Plukon Ommel BV a fellow subsidiary of the parent company which total £3,797,009 in the year to 31 December 2023 (31 December 2022 - £7,609,230). The closing creditor balance is £299,022 (2022 - £376,824).

 

Plukon Sieradz SP. Z O.O.

Fellow subsidiary of Plukon Mouscron SA

 

There are also purchases from Plukon Sieradz SP. Z O.O. a fellow subsidiary of the parent company which total £21,098,010 in the year to 31 December 2022 (31 December 2022 - £23,333,860). The closing creditor balance is £1,293,302 (2021 - £1,007,934).

 

The commission receivable of £773,047 earned for the year ended 31 December 2023 relates to contracts in place with Plukon Mouscron SA (£762,547 - 2022 - £700,576) and Plukon Sieradz SP. Z O.O. (£10,500 - 2022 - £10,425). The closing debtor balances including accrued income is Plukon Mouscron SA £178,351 (2022 - £159,595) and Plukon Sieradz SP. Z O.O £1,700 (2022 - £1,700).

 

Also during the year, total dividends of £457,518 (2022 - £405,200) were paid to the parent company.

21
Ultimate controlling party

Bankiva BV (incorporated in The Netherlands) is regarded by the directors as being the company's ultimate parent company. The company is located at Industrieweg 36, Wezep, 8091AZ

 

The company's immediate parent company is Plukon Mouscron SA. A company registered in Belgium and located at Avenue de l'eau Vive 5 7700 Mouscron Belgie.

 

There is no ultimate controlling party.

Flandrex UK Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 22 -
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
924,369
775,401
Adjustments for:
Taxation charged
284,587
181,214
Finance costs
46
58
Investment income
(8,507)
(1,505)
Depreciation and impairment of tangible fixed assets
4,108
5,116
Movements in working capital:
Decrease/(increase) in stocks
261,783
(25,320)
Increase in debtors
(101,440)
(1,014,492)
(Decrease)/increase in creditors
(418,169)
1,431,344
Cash generated from operations
946,777
1,351,816
23
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,990,557
(101,116)
1,889,441
Flandrex UK Limited
Management information
For the year ended 31 December 2023
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