Company registration number 03005254 (England and Wales)
DIRECT FOOD INGREDIENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DIRECT FOOD INGREDIENTS LIMITED
COMPANY INFORMATION
Directors
Mr S D Loake
Mrs C A Hough
Mr A Watt
Miss R Hordern
Mr J Bradley
Company number
03005254
Registered office
The Bull & Gate
70 Waters Green
Macclesfield
Cheshire
SK11 6JZ
Auditor
Josolyne LLP
Merchant Exchange
Waters Green
Macclesfield
Cheshire
SK11 6JX
Business address
The Bull & Gate
70 Waters Green
Macclesfield
Cheshire
SK11 6JZ
Bankers
HSBC
2-4 St Ann's Square
Manchester
M2 7HD
DIRECT FOOD INGREDIENTS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
DIRECT FOOD INGREDIENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The group comprises of Direct Food Ingredients Limited and its subsidiary Direct Food West Indies Ltd.

Direct Food Ingredients Limited is a leading supplier of functional ingredients and materials, supplying the food manufacture, beverage, sports nutrition, and animal feed sectors. The company has considerable expertise in sourcing materials from manufacturers and suppliers worldwide. It continues to maintain and build strong relationships with both internal and external stakeholders, which has further strengthened its place in the market and has been instrumental in the ongoing success of the company.

 

Focus on customer service, quality ingredients and people remain at the forefront of Direct Foods plans for future development and growth. This approach has enabled the business to achieve its current position as a dependable distributor of materials within its operating industries and will continue to serve as the foundation for future improvements.

 

Commercial

 

Market conditions during FY23 remained turbulent, however we did see an increase in productivity as the volume sold through FY23 was greater than FY22. Political unrest in the Middle East had a significant impact on the cost of freight and lead times of raw materials shipped from the far east. Not only has this impacted lead times and order fulfilment, but it has also impacted on the supply of contracts from the perspective of turnover and profitability, as raw materials have had to be sourced on the local market at higher prices.

 

As we move into FY24 the business is focused on developing and implementing a revised 5-year plan to stabilise and grow the business. The introduction of a revised structure to include category managers has been implemented, we have also invested in Salesforce, this will allow for better monitoring and control of the P&L as well as drive increased levels of productivity.

 

Quality

 

In 2023, we celebrated our 13th year of successful BRCGS accreditation, once again achieving the AA award. This ongoing success in maintaining the highest levels of quality assurance for our company and our customers, who incorporate our food ingredients into the food chain, is due to our heavy investment in staff training and ongoing academic achievements. Our quality team has attained BRCGS professional status and holds advanced qualifications, including master's degrees in food operations, advanced HACCP, and lead and internal audit qualifications, alongside regular food safety training for all relevant staff.

 

We reinforced our commitment to environmental issues and climate change by achieving a "Good" grade status on the Ecovadis platform. The impact of climate change has been felt firsthand, especially with shipping container reroutes due to the conflict in the Middle East. This extended route exposes products to multiple weather extremes, risking prolonged exposure to high moisture levels. To address this, we are working with manufacturers in the Far East on solutions such as advanced shipping desiccants, improved packaging, and moisture level monitoring via humidity sensors.

 

Post-Brexit, we continue to face trade challenges due to ongoing legislative changes. UK-EU trade remains difficult, particularly with additional paperwork for products of animal origin. To alleviate these issues, we have invested significantly in a new third-party-operated storage facility in Europe. Our European distribution centre aims to ease import and export challenges, while we actively communicate trade constraints to DEFRA and the British Retail Consortium to advocate for less restrictive legislation.

 

We have invested in audits in India and welcomed our Indian partners to enhance quality standards and business relations, providing an alternative to the Chinese markets. This foresight ensures our sustainability in the event of sanctions on China or other countries in conflict and demonstrates our commitment to the UK food industry and food security for all individuals in the UK.

DIRECT FOOD INGREDIENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

IT

 

The company has continued to invest significantly in IT over the past 12 months, implementing several applications and infrastructure enhancements to support the business.  In addition, there has been a full hardware refresh and migration to a new cloud based CRM system.  There is a continual drive to improve the applications and tools available throughout the business and the company regularly reviews both off-the-shelf products and the suite of internal applications to determine the most suitable solution.

 

An on-premises IT infrastructure remains the most cost-effective solution for the current processing requirements of the business and provides the most flexibility for software development environments and application integration.  The company has a long-standing agreement with an IT support provider who ensure that service is monitored and maintained.  There is also an internal IT team who provide first line assistance to the business. The long-term strategy remains as an on-premises solution with cloud services being utilised for some functions which are not business critical.

 

Over the next 12-18 months the company has plans for several new applications which will improve efficiency and enable it to work more effectively with its customers and suppliers.  Alongside the development work there are plans to make improvements to the existing disaster recovery provision and a focus on applications to support the current business continuity procedures.

 

Employee Matters

 

The company prides itself on the work culture it has created which promotes equal opportunities and encourages staff to continuously improve skills and technical knowledge at every level of the business. It has continued to strengthen the workforce through the training initiative which has seen several employees enroll on and complete a variety of relevant qualifications across all departments. Further to this we offer consistent ‘on the job’ training and hold regular departmental and individual reviews to ensure all employees are continuing to enhance their professional development within the business.

 

The company operates an ‘open door’ management style which allows for an open and transparent communitive environment, this encourages employees to voice concerns and offer feedback on the company’s operating procedures. This style offers a supportive atmosphere whilst also highlighting opportunities for improvement throughout the business and encourages employees to be invested in its successes.

 

Direct Food considers itself fortunate in the talented team we have, working in line with the company’s ethos, which is to consistently deliver a high level of service to all our customers, suppliers, and fellow team members. Great customer service through effective team working being at the core of all its trading activities.

DIRECT FOOD INGREDIENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Principal Risks and Uncertainties

 

The principal risk and uncertainties for the company are mainly financial and the board has measures in place to mitigate such risks where necessary.

 

Liquidity risk – The Company continues to operate a multiple currency invoice discounting facility to fund its book debts. It maintains robust credit control procedures and holds regular meetings to review debtors and to ensure it trades within the limits of the invoice discounting facility. Cashflow is reviewed on a regular basis alongside stock trends and customer credit limits.

 

Foreign exchange rate risk – The majority of products purchased are from overseas and are predominantly traded in USD and Euros and we are therefore exposed to fluctuations in exchange rates. We have a currency purchasing policy to help hedge against these fluctuations and as above trade in multiple currencies to mitigate more of this risk. We have also been reviewing/monitoring other alternative currencies, to ensure we maintain a level of risk that’s suits our business.

 

Credit risk – The company continues to maintain tight credit control procedures which are continuously reviewed, this ensures bad debts are kept to a minimum.

 

Supply chain constraints – The conflicts in both Eastern Europe and the Middle East have caused constraints on the availability of raw materials and a significant rise in costs. We continue to mitigate the risks through the use of the purchasing strategy, which focuses on alternative suppliers, increased stock holding and alternative distribution centres.

 

Technological changes – the company recognises the importance of reliable and secure IT systems and maintains a range of security measures to prevent unauthorised access. The company's IT systems have an automatic offsite backup facility which can be used to bring systems back online in the event of hardware failure, preventing data loss, and ensuring a high level of system availability.

 

Key Performance Indicators

The company operates a range of financial KPI’s which are monitored on either a weekly basis by different staff or monthly at Board level. These include the following:

 

 

31st December 2022

31st December 2023

Turnover

£24,304,544

£20,160,772

Gross profit

£5,056,613

£3,044,249

Gross profit margin

20.8%

15.1%

Profit before tax

£1,834,296

£585,922

Net profit margin

7.5%

2.9%

 

On behalf of the board

Miss R Hordern
Director
29 August 2024
DIRECT FOOD INGREDIENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company and group continued to be that of import, storage and distribution of functional foods, nutritional and sport ingredients along with vitamin and mineral premixes.

Directors

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

Mr S D Loake
Mrs C A Hough
Mr A Watt
Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,211,218. The directors do not recommend payment of a further dividend.

Auditor

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

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DIRECT FOOD INGREDIENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Miss R Hordern
Director
29 August 2024
DIRECT FOOD INGREDIENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DIRECT FOOD INGREDIENTS LIMITED
- 6 -
Opinion

We have audited the financial statements of Direct Food Ingredients Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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

The directors of the parent company have not included the results of its subsidiary Direct Food Ingredients West Indies Limited in the group accounts as the records are incomplete for the period. As the subsidiary’s accounting records are insufficiently maintained and time has elapsed since the reporting date, there were no complete records to audit. We have therefore not audited the subsidiary.

 

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 group and parent 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 group's and 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.

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.

DIRECT FOOD INGREDIENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DIRECT FOOD INGREDIENTS LIMITED
- 7 -

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 group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

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 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 parent 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.

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

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and its industry, and determined that the most significant are those that relate to breaches of health and safety regulations, data protection, employment laws and tax legislation. We also considered those laws and regulations that have a direct effect on the financial statements such as FRS102 accounting principles and the Companies Act 2006. We have considered the extent to which non-compliance might have a material effect on the financial statements and also evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements.

DIRECT FOOD INGREDIENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DIRECT FOOD INGREDIENTS LIMITED
- 8 -

We established that the principal risks related to revenue recognition, management bias in accounting estimates and management override. Audit procedures performed included:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

James Bostock ACA (Senior Statutory Auditor)
For and on behalf of Josolyne LLP
29 August 2024
Chartered Accountants
Statutory Auditor
Merchant Exchange
Waters Green
Macclesfield
Cheshire
SK11 6JX
DIRECT FOOD INGREDIENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
3
20,160,772
24,304,544
Cost of sales
(17,116,523)
(19,247,931)
Gross profit
3,044,249
5,056,613
Distribution costs
(265,854)
(703,562)
Administrative expenses
(2,217,497)
(2,545,247)
Other operating income
12,209
26,492
Operating profit
4
573,107
1,834,296
Investment income
6
12,815
-
0
Profit before taxation
585,922
1,834,296
Tax on profit
9
(154,624)
(361,222)
Profit for the financial year
431,298
1,473,074
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
DIRECT FOOD INGREDIENTS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
24,818
14,411
Investments
10
29
29
24,847
14,440
Current assets
Inventories
13
2,713,163
4,181,596
Trade and other receivables
14
2,890,940
3,512,088
Cash and cash equivalents
1,359,091
934,809
6,963,194
8,628,493
Current liabilities
16
(1,874,902)
(2,750,384)
Net current assets
5,088,292
5,878,109
Total assets less current liabilities
5,113,139
5,892,549
Provisions for liabilities
Deferred tax liability
17
510
-
0
(510)
-
Net assets
5,112,629
5,892,549
Equity
Called up share capital
19
45,000
45,000
Capital redemption reserve
5,000
5,000
Retained earnings
5,062,629
5,842,549
Total equity
5,112,629
5,892,549

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

The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
29 August 2024
Mrs C A Hough
Mr A Watt
Director
Director
Miss R Hordern
Mr J Bradley
Director
Director
Company registration number 03005254 (England and Wales)
DIRECT FOOD INGREDIENTS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
24,818
14,411
Investments
10
29
29
24,847
14,440
Current assets
Inventories
13
2,713,163
4,181,596
Trade and other receivables
14
2,890,940
3,512,088
Cash and cash equivalents
1,359,091
934,809
6,963,194
8,628,493
Current liabilities
16
(1,874,902)
(2,750,384)
Net current assets
5,088,292
5,878,109
Total assets less current liabilities
5,113,139
5,892,549
Provisions for liabilities
Deferred tax liability
17
510
-
0
(510)
-
Net assets
5,112,629
5,892,549
Equity
Called up share capital
19
45,000
45,000
Capital redemption reserve
5,000
5,000
Retained earnings
5,062,629
5,842,549
Total equity
5,112,629
5,892,549

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £431,298 (2022 - £1,473,074 profit).

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

DIRECT FOOD INGREDIENTS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
29 August 2024
Mrs C A Hough
Mr A Watt
Director
Director
Miss R Hordern
Mr J Bradley
Director
Director
Company registration number 03005254 (England and Wales)
DIRECT FOOD INGREDIENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2022
50,000
-
0
5,165,370
5,215,370
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,473,074
1,473,074
Dividends
8
-
-
(795,896)
(795,896)
Redemption of shares
19
-
5,000
1
5,001
Reduction of shares
19
(5,000)
-
-
(5,000)
Balance at 31 December 2022
45,000
5,000
5,842,549
5,892,549
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
431,298
431,298
Dividends
8
-
-
(1,211,218)
(1,211,218)
Balance at 31 December 2023
45,000
5,000
5,062,629
5,112,629
DIRECT FOOD INGREDIENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2022
50,000
-
0
5,165,370
5,215,370
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,473,074
1,473,074
Dividends
8
-
-
(795,896)
(795,896)
Redemption of shares
19
-
5,000
1
5,001
Reduction of shares
19
(5,000)
-
-
(5,000)
Balance at 31 December 2022
45,000
5,000
5,842,549
5,892,549
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
431,298
431,298
Dividends
8
-
-
(1,211,218)
(1,211,218)
Balance at 31 December 2023
45,000
5,000
5,062,629
5,112,629
DIRECT FOOD INGREDIENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,948,665
1,132,955
Income taxes paid
(317,361)
(476,989)
Net cash inflow from operating activities
1,631,304
655,966
Investing activities
Purchase of property, plant and equipment
(24,799)
-
Proceeds from disposal of property, plant and equipment
16,180
-
Interest received
12,815
-
0
Net cash generated from/(used in) investing activities
4,196
-
Financing activities
Redemption of shares
-
0
1
Dividends paid to equity shareholders
(1,211,218)
(795,896)
Net cash used in financing activities
(1,211,218)
(795,895)
Net increase/(decrease) in cash and cash equivalents
424,282
(139,929)
Cash and cash equivalents at beginning of year
934,809
1,074,738
Cash and cash equivalents at end of year
1,359,091
934,809
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Direct Food Ingredients Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Direct Food Ingredients Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Direct Food Ingredients Limited together with all material entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Revenue

Revenue 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. 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 dispatch 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.

1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

Leasehold improvements
20% on cost
Computers
25% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.7
Non-current investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Impairment of non-current assets

At each reporting period end date, the group 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).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.

1.9
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
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.

1.11
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

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

 

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

1.15
Retirement benefits

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

DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16
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 leased asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Sales
20,160,772
24,304,544
2023
2022
£
£
Other significant revenue
Interest income
12,815
-
2023
2022
£
£
Revenue analysed by geographical market
UK
19,271,703
23,199,705
Rest of the world
889,069
1,104,839
20,160,772
24,304,544
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(5,357)
39,243
Fees payable to the group's auditor for the audit of the group's financial statements
12,000
12,000
Depreciation of owned property, plant and equipment
9,452
11,584
Profit on disposal of property, plant and equipment
(11,240)
-
Operating lease charges
83,258
65,779
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
5
5
5
5
Staff
23
26
23
26
Total
28
31
28
31

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,304,959
1,419,227
1,304,959
1,419,227
Social security costs
151,159
187,224
151,159
187,224
Pension costs
58,304
22,544
58,304
22,544
1,514,422
1,628,995
1,514,422
1,628,995
6
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
12,815
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
12,815
-
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
412,683
306,024
Company pension contributions to defined contribution schemes
37,987
2,588
450,670
308,612

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
149,612
103,272
8
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
1,211,218
795,896
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
147,373
364,315
Deferred tax
Origination and reversal of timing differences
7,251
(3,093)
Total tax charge
154,624
361,222

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
585,922
1,834,296
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
137,692
348,516
Tax effect of expenses that are not deductible in determining taxable profit
16,367
14,324
Effect of change in corporation tax rate
565
(1,618)
Taxation charge
154,624
361,222
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
11
29
29
29
29
Movements in non-current investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
29
Carrying amount
At 31 December 2023
29
At 31 December 2022
29
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Fixed asset investments
(Continued)
- 25 -
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
29
Carrying amount
At 31 December 2023
29
At 31 December 2022
29
11
Subsidiaries

Direct Food Ingredients West Indies Ltd has not been included in the consolidation for the years ending 31st December 2023 and 31st December 2022, as the business has kept insufficient records to do so.

 

The capital and reserves at the year end, together with the profit and loss for the year are unknown due to the insufficient records.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Direct Food Ingredients West Indies Ltd
Incorporated in Grenada, The Bull & Gate, 70 Waters Green, Macclesfield, Cheshire, SK11 6JZ
Ordinary
100.00
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Property, plant and equipment
Group
Leasehold improvements
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
2,430
24,879
26,062
53,371
Additions
-
0
21,686
3,113
24,799
Disposals
-
0
(19,203)
(21,559)
(40,762)
At 31 December 2023
2,430
27,362
7,616
37,408
Depreciation and impairment
At 1 January 2023
932
21,172
16,856
38,960
Depreciation charged in the year
486
4,311
4,655
9,452
Eliminated in respect of disposals
-
0
(19,203)
(16,619)
(35,822)
At 31 December 2023
1,418
6,280
4,892
12,590
Carrying amount
At 31 December 2023
1,012
21,082
2,724
24,818
At 31 December 2022
1,498
3,707
9,206
14,411
Company
Leasehold improvements
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
2,430
24,879
26,062
53,371
Additions
-
0
21,686
3,113
24,799
Disposals
-
0
(19,203)
(21,559)
(40,762)
At 31 December 2023
2,430
27,362
7,616
37,408
Depreciation and impairment
At 1 January 2023
932
21,172
16,856
38,960
Depreciation charged in the year
486
4,311
4,655
9,452
Eliminated in respect of disposals
-
0
(19,203)
(16,619)
(35,822)
At 31 December 2023
1,418
6,280
4,892
12,590
Carrying amount
At 31 December 2023
1,012
21,082
2,724
24,818
At 31 December 2022
1,498
3,707
9,206
14,411
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,713,163
4,181,596
2,713,163
4,181,596
14
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
2,792,862
2,922,013
2,792,862
2,922,013
Amounts owed by group undertakings
15,618
15,484
15,618
15,484
Other receivables
5,011
435,058
5,011
435,058
Prepayments and accrued income
77,449
132,792
77,449
132,792
2,890,940
3,505,347
2,890,940
3,505,347
Amounts falling due after more than one year:
Deferred tax asset (note 17)
-
0
6,741
-
0
6,741
Total debtors
2,890,940
3,512,088
2,890,940
3,512,088
15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,813,491
3,372,555
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
1,344,304
1,956,011
n/a
n/a
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
16
Current liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade payables
721,266
1,029,537
721,266
1,029,537
Corporation tax payable
146,849
316,837
146,849
316,837
Other taxation and social security
383,749
477,536
383,749
477,536
Other payables
582,337
870,979
582,337
870,979
Accruals and deferred income
40,701
55,495
40,701
55,495
1,874,902
2,750,384
1,874,902
2,750,384

Other payables includes £46,147 (2021 - £684,291) due to HSBC invoice discounting which is secured by a fixed charge over certain of the group's assets.

17
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
510
-
-
6,741
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
510
-
-
6,741
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(6,741)
(6,741)
Charge to profit or loss
7,251
7,251
Liability at 31 December 2023
510
510
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,304
22,544

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
42,500
42,500
42,500
42,500
Ordinary C shares of £1 each
2,500
2,500
2,500
2,500
45,000
45,000
45,000
45,000
20
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
34,092
28,885
34,092
28,885
Between two and five years
23,573
39,036
23,573
39,036
57,665
67,921
57,665
67,921
21
Related party transactions
Transactions with related parties

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

Sales
Sales
2023
2022
£
£
Company
Unique Nutrition Europe LLP
-
16,205
Unique Nutrition Europe (UK) Limited
634
-
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Related party transactions
(Continued)
- 30 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Company
Unique Nutrition Europe LLP
-
15,484
Entities over which the company has control, joint control or significant influence
302,222
251,538
Unique Nutrition Europe (UK) Limited
15,618
-
21
Related party transactions

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
50,684
66,364
50,684
66,364
22
Controlling party

The ultimate controlling party is S D Loake, a director of the company.

23
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
431,298
1,473,074
Adjustments for:
Taxation charged
154,624
361,222
Investment income
(12,815)
-
0
Gain on disposal of property, plant and equipment
(11,240)
-
Depreciation and impairment of property, plant and equipment
9,452
11,584
Movements in working capital:
Decrease/(increase) in inventories
1,468,433
(466,797)
Decrease/(increase) in trade and other receivables
614,407
(202,949)
Decrease in trade and other payables
(705,494)
(43,179)
Cash generated from operations
1,948,665
1,132,955
DIRECT FOOD INGREDIENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
934,809
424,282
1,359,091
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