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Registered number: 06026309










De Groot Fresh Produce UK Limited










Annual report and financial statements

For the year ended 31 December 2023

 
De Groot Fresh Produce UK Limited
 

Company Information


Directors
B H P M De Groot 
C J Rowe 




Company secretary
Blakelaw Secretaries Limited



Registered number
06026309



Registered office
New Kings Court Tollgate
Chandler's Ford

Eastleigh

Hampshire

SO53 3LG




Independent auditor
Kreston Reeves LLP
Statutory Auditor & Chartered Accountants

Montague Place

Quayside

Chatham Maritime

Chatham

Kent

ME4 4QU





 
De Groot Fresh Produce UK Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Notes to the financial statements
 
13 - 24


 
De Groot Fresh Produce UK Limited
 

Strategic report
For the year ended 31 December 2023

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

Business review
 
2023 saw a continuance  of the  Ukraine conflict which continued to manifest itself  particularly in extremely high fuel  and energy prices. Beyond that, the  international sanctions against Russia hardly affected operations. In 2023, volume was slightly  lower than previous year,  but helped by a higher average  (market) price level, turnover reached a new absolute  record  high. Late on in 2023 we saw the advent of the conflict in Gaza, this affected some product  supply from  Israel and close area, but  the main issue was the shipping disruption via the Suez Canal - adding considerable shipping time and costs.
The company's two-man Executive Board remained unchanged in the year under review. De Groot  Fresh Produce wants to remain a relevant player in trade and services in the UK market  in the future. We want to achieve this through intensive cooperation with our chain partners.  In doing so, we operate worldwide as a socially aware and reliable partner striving for fair chains.
Last year, we were  once again able to count on the  passion and boundless efforts of our employees. We thank them for their contribution to the  results achieved

Principal risks and uncertainties
 
Strategy
The management  is more than ever confronted with rapidly changing environmental factors that must be dealt with energetically and decisively. The long-term continuity of the company is always central  to the responsible assumption of the associated business risks. For strategic and tactical decisions, substantial investments, long-term (contractual)  obligations and joint ventures, the company applies a careful  assessment process to strike  the right balance between risks and benefits.
Where  possible, major financial risks are hedged through  insurance and/or other financial instruments. The company follows a conservative financing strategy. Remaining strategic risks may of course have a material  impact on the  company's financial results and competitive position.
Operating activities
A substantial part of the company's turnover comes from products sold at daily or weekly prices. Any unfavourable market price developments cannot always be estimated in advance. 
However, the operational risks in fresh food trading are much more related to loss of freshness in the chain. Product quality in the chain is guaranteed by careful monitoring of suppliers and the consistent use of quality systems in which the company invests continuously. In addition by utilizing efficient logistics organisations and conditioned storage facilities further reduces product risk. External audits and reports by independent, controlling and certifying bodies confirm that these internal efforts actually result in adequate risk control. 
Delivery reliability towards our customers is a condition for success. To ensure this, the company strives to retain suppliers of core products for the long term. A policy of "fair business" forms the starting point for intensive relationship management with attention to ensuring a safe working environment and good accommodation for staff in the (international) growing regions. In terms of logistics, we rely on trusted supply chain partners. The reliability and continuity systems is a key concern. The continuity of these systems is guaranteed by redundant
implementation of servers and adequate back-up and recovery procedures. 
Together with specialised partners, much attention is paid to cyber security, with potential vulnerabilities being continuously monitored and remedied. Besides the internal ICT department of our parent company, we uses service agreements with specialised external parties to provide support where necessary. Obviously, operational risks can have an impact on the company's financial results.   
 
Page 1

 
De Groot Fresh Produce UK Limited
 

Strategic report (continued)
For the year ended 31 December 2023

Financial position
The company mainly trades in GBP. Only a limited part of the company’s buying and selling activities is concluded in foreign currencies, in particular EUR and USD. The company may use financial instruments such as forward foreign exchange contracts where appropriate.
Due to the traditionally high debtor risk in the fresh produce industry, the company mitigates this risk through credit insurance taken out with a reputable party. The credit limits and (changes in) payment behaviour of the customer portfolio are monitored continuously. On the purchasing side, the company is exposed to risks arising from advance payments on goods to be received. Through a strict authorisation procedure, efforts are made to mitigate these risks. As a result, the potential impact on the financial results remains manageable.
Financial reporting
The accuracy of internal and external financial reporting largely depends on an adequate estimate of the gross margin realised where, at the time of sale, the purchase value of the raw materials is not always known. The importance of margin monitoring on purchasing parties is therefore evident. The administrative organisation aims to limit this risk, and the possible impact of incorrect estimates.
Legislation and regulations
Sustainable and socially responsible business is an important condition for the company’s long-term success. Of course, strict compliance with local and UK laws and regulations is critical. In addition to financial consequences, failure to comply with laws and regulations can lead to serious damage to reputation and loss of trust. Quality and food safety are paramount at the company. The company has advanced and certified quality management systems in place. 
Information on culture and behaviour
The company pays great attention to food safety. We have to provide our clients and, ultimately, consumers with safe food. To ensure this, we have set up a food safety culture policy also included in our labour regulations. The labour regulations also include the house rules that are important for safety and a good working atmosphere in our organisation, such as rules on respectful behaviour and the zero tolerance policy on drugs, theft and criminal offences.

Financial key performance indicators
 
The year 2023 ended with record sales of £24.8 million against sales of £23.3 million in the previous year. In 2023 the company benefited from an average (market) price level that was substantially higher than in 2022. Gross profit decreased significantly to £3.2 million. Relative to turnover we see a year on year decrease to 12.9% in 2023 compared to 17.8% in 2022 and continued margin pressure. Distribution remained relatively stable. 
Administration expenses rose by £0.2 million half of which was caused by unfavourable forex developments. As a result, the operating profit plummeted to £0.4 million compared to £1.5 million in the previous year. The effective tax pressure increased from 20.7% to 23.9%. In conclusion, we closed the year with a net result of £0.3 million. 
Company equity increased to £3.2 million due to retained earnings. As at 31 December 2023, the company had £2.7 million freely available cash in hand. The company has sufficient financial strength to realise its growth ambitions. 


This report was approved by the board and signed on its behalf.



C J Rowe
Director

Date: 16 September 2024

Page 2

 
De Groot Fresh Produce UK Limited
 

 
Directors' report
For the year ended 31 December 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

De Groot Fresh Produce UK is an experienced marketer of fresh fruit produce to the UK and Eire fresh produce industry since 2007. De Groot Fresh Produce UK imports fruit produce from more than 30 countries worldwide offering continuity of supply of main product lines such as citrus and pome fruits. In addition to these main products we also offer a large selection of seasonal and niche products. 
The company's shares are held by De Groot Fresh Group B.V., D.P. Leadon and CJ. Rowe. De Groot Fresh Produce UK had an average of 8 employees in 2023.

Results and dividends

The profit for the year, after taxation, amounted to £328,541 (2022 - £1,205,252).

The directors do not recommend the payment of a final dividend (2022: £791,110).

Directors

The directors who served during the year were:

B H P M De Groot 
C J Rowe 

Page 3

 
De Groot Fresh Produce UK Limited
 

 
Directors' report (continued)
For the year ended 31 December 2023

Future developments

We have a substantial revenue ambition for 2024. This is due to new supply agreements with current clients and increased sales into the retail sector in the UK fresh produce market.
However, we are cautious in our result forecast. The impact of extremely high inflation due to the situation in Ukraine is clearly noticeable. Increasing wage costs, rising fuel and transport costs and higher energy costs are causing an unprecedented rise in operating costs. In addition, upgrading our information systems will also generate additional costs. Given the above developments, we expect a moderation of results in spite of our track record in cost control and efficiency.
Given our solid organisation and healthy financial position, we face the future with confidence.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, Kreston Reeves LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





C J Rowe
Director

Date: 16 September 2024

Page 4

 
De Groot Fresh Produce UK Limited
 

 
Independent auditor's report to the members of De Groot Fresh Produce UK Limited
 

Opinion


We have audited the financial statements of De Groot Fresh Produce UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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 ReportOur 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.


Page 5

 
De Groot Fresh Produce UK Limited
 

 
Independent auditor's report to the members of De Groot Fresh Produce UK Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.


Page 6

 
De Groot Fresh Produce UK Limited
 

 
Independent auditor's report to the members of De Groot Fresh Produce UK Limited (continued)


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.


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:

Capability of the audit in detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates. Audit procedures performed by the engagement team included:
 
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management and internal audit; and
Assessment of identified fraud risk factors; and
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
Page 7

 
De Groot Fresh Produce UK Limited
 

 
Independent auditor's report to the members of De Groot Fresh Produce UK Limited (continued)



As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


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.


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 2006Our 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.





Tracey Becker (Senior statutory auditor)
  
for and on behalf of
Kreston Reeves LLP
 
Statutory Auditor
Chartered Accountants
  
Chatham Maritime

16 September 2024
Page 8

 
De Groot Fresh Produce UK Limited
 

Statement of comprehensive income
For the year ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
24,826,984
23,276,213

Cost of sales
  
(21,621,480)
(19,142,013)

Gross profit
  
3,205,504
4,134,200

Distribution costs
  
(1,777,627)
(1,796,246)

Administrative expenses
  
(1,006,981)
(799,238)

Operating profit
 5 
420,896
1,538,716

Interest receivable and similar income
 8 
6,611
142

Interest payable and expenses
 9 
(161)
(18,812)

Profit before tax
  
427,346
1,520,046

Tax on profit
 10 
(98,805)
(314,794)

Profit for the financial year
  
328,541
1,205,252

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
De Groot Fresh Produce UK Limited
Registered number: 06026309

Balance sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
557,104
14,368

  
557,104
14,368

Current assets
  

Stocks
  
192,824
323,658

Debtors: amounts falling due within one year
 13 
2,996,541
3,811,068

Cash at bank and in hand
 14 
2,712,079
2,175,167

  
5,901,444
6,309,893

Creditors: amounts falling due within one year
 15 
(3,239,516)
(3,433,770)

Net current assets
  
 
 
2,661,928
 
 
2,876,123

  

Net assets
  
3,219,032
2,890,491


Capital and reserves
  

Called up share capital 
 16 
111,111
111,111

Share premium account
  
88,889
88,889

Profit and loss account
  
3,019,032
2,690,491

  
3,219,032
2,890,491


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




C J Rowe
Director

Date: 16 September 2024

The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
De Groot Fresh Produce UK Limited
 

Statement of changes in equity
For the year ended 31 December 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
111,111
88,889
2,276,349
2,476,349


Comprehensive income for the year

Profit for the year
-
-
1,205,252
1,205,252
Total comprehensive income for the year
-
-
1,205,252
1,205,252


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(791,110)
(791,110)



At 1 January 2023
111,111
88,889
2,690,491
2,890,491


Comprehensive income for the year

Profit for the year
-
-
328,541
328,541
Total comprehensive income for the year
-
-
328,541
328,541


Total transactions with owners
-
-
-
-


At 31 December 2023
111,111
88,889
3,019,032
3,219,032


The notes on pages 13 to 24 form part of these financial statements.

Called up share capital
This represents the nominal value of ordinary shares that have been issued by the company and which are classified as equity instruments.
Share premium account
This reserve represents the excess of the fair value of the consideration receivable on the issue of ordinary share capital, net of the direct costs incurred in their issue, over the nominal value of those shares (which is recognised as called up share capital). Share premium may only be utilised to write-off any expenses incurred or commissions paid on the issue of those shares, or to pay up new shares to be allotted to members as fully paid bonus shares.
Profit and loss account
This reserve comprises all current and prior period retained profits and losses after deducting any distributions made to the company’s shareholders.

Page 11

 
De Groot Fresh Produce UK Limited
 

Statement of cash flows
For the year ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
328,541
1,205,252

Adjustments for:

Depreciation of tangible assets
15,917
-

Interest paid
161
18,812

Interest received
(6,611)
(142)

Taxation charge
98,805
314,794

Decrease in stocks
130,834
9,978

Decrease/(increase) in debtors
782,593
(936,058)

Decrease/(increase) in amounts owed by groups
31,934
(31,934)

(Decrease)/increase in creditors
(13,194)
227,879

Increase/(decrease)) in amounts owed to groups
11,547
(53,238)

Corporation tax (paid)
(291,412)
(434,535)

Net cash generated from operating activities

1,089,115
320,808


Cash flows from investing activities

Purchase of tangible fixed assets
(558,653)
(14,368)

Interest received
6,611
142

Net cash from investing activities

(552,042)
(14,226)

Cash flows from financing activities

Dividends paid
-
(791,110)

Interest paid
(161)
(18,812)

Net cash used in financing activities
(161)
(809,922)

Net increase/(decrease) in cash and cash equivalents
536,912
(503,340)

Cash and cash equivalents at beginning of year
2,175,167
2,678,507

Cash and cash equivalents at the end of year
2,712,079
2,175,167


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,712,079
2,175,167

2,712,079
2,175,167


The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

1.


General information

De Groot Fresh Produce UK Limited is a limited liability company incorporated in England and Wales with the registration number 06026309. 
The address of the registered office is New Kings Court Tollgate Chandler's Ford Eastleigh Hampshire SO53 3LG. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are presented to the nearest pound.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Page 14

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold Improvements
-
10%
Office equipment
-
20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Page 16

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)


Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates. 
The following judgements have had the most significant impact on the amounts recognised in the financial statements:
Lease commitments 
The Company has entered into lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the Company has acquired the risks and rewards associated with the ownership of the underlying assets. 

Page 17

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

4.


Turnover

The whole of the turnover is attributable to the sale of fruit.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
22,611,303
21,314,432

Rest of the world
2,215,681
1,961,781

24,826,984
23,276,213



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
82,589
(20,483)

Other operating lease rentals
9,358
10,918

Auditors remuneration
13,550
13,000


6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
592,860
541,990

Social security costs
67,928
64,658

Cost of defined contribution scheme
39,042
41,877

699,830
648,525


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees, including directors
8
9

Page 18

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
153,094
141,373

Company contributions to defined contribution pension schemes
12,000
14,107

165,094
155,480


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


8.


Interest receivable

2023
2022
£
£


Other interest receivable
6,611
142

6,611
142


9.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
161
18,812

161
18,812


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
97,733
285,914

Adjustments in respect of previous periods
1,072
28,880


98,805
314,794


Total current tax
98,805
314,794

Deferred tax

Total deferred tax
-
-


Taxation on profit on ordinary activities
98,805
314,794
Page 19

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
427,346
1,520,046


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
100,512
288,809

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,150
-

Capital allowances for year in excess of depreciation
(5,491)
(2,729)

Enhanced capital allowances
-
(519)

Adjustments to tax charge in respect of prior periods
1,072
28,880

Changes in provisions leading to an increase (decrease) in the tax charge
(438)
353

Total tax charge for the year
98,805
314,794


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2023
2022
£
£


Ordinary "A" shares
-
791,110

-
791,110

Page 20

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

12.


Tangible fixed assets





Leasehold Improvements
Office equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
7,904
6,464
14,368


Additions
555,933
2,720
558,653



At 31 December 2023

563,837
9,184
573,021



Depreciation


Charge for the year on owned assets
14,477
1,440
15,917



At 31 December 2023

14,477
1,440
15,917



Net book value



At 31 December 2023
549,360
7,744
557,104



At 31 December 2022
7,904
6,464
14,368

Page 21

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

13.


Debtors

2023
2022
£
£


Trade debtors
2,795,446
3,460,863

Amounts owed by group undertakings
-
31,934

Other debtors
36,571
63,858

Prepayments and accrued income
164,524
254,413

2,996,541
3,811,068



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,712,079
2,175,167

2,712,079
2,175,167



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
873,254
596,084

Amounts owed to group undertakings
23,477
11,930

Corporation tax
7,505
383,377

Other taxation and social security
33,234
27,719

Other creditors
-
1,050

Accruals and deferred income
2,302,046
2,413,610

3,239,516
3,433,770



16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



111,111 (2022 - 111,111) Ordinary shares of £1.00 each
111,111
111,111


Page 22

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023
17.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,175,167

536,912

2,712,079

Debt due within 1 year

3,094

(3,094)

-


2,178,261
533,818
2,712,079


18.


Capital commitments


At 31 December 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
-
33,609

-
33,609


19.


Pension commitments

The company operates a defined contirbution pension scheme. The assets of the scheme are held seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amount to £39,042 (2022: £41,877). Contributions totalling £nil (2022: £nil) was outstanding at the year end.


20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
14,000
14,000

Later than 1 year and not later than 5 years
56,000
56,000

Later than 5 years
-
14,000

70,000
84,000

Page 23

 
De Groot Fresh Produce UK Limited
 

 
Notes to the financial statements
For the year ended 31 December 2023

21.


Related party transactions

During the year, the company received £3,300 (2022: £3,600) from C Rowe, a director of the company. The balance outstanding from C Rowe as at 31 December 2023 as £3,400 (2022: £6,700). This was fully repaid on the 4 January 2024.
During the year the company made sales to De Groot Hedel, a fellow subsidiary undertaking of £7,821. The amount due from De Groot Hedel as at 31 December 2023 was £NIL (2022: £43,580).
During the year the company made purchases from De Groot International BV, a fellow subsidiary undertaking, of £2,492,907. The amount due to De Groot International BV as at 31 December 2023 was £23,477 (2022: £11,646).
Key Management Personnel 
Key management includes the directors and members of senior management. The compensation paid or payable to key management for employee services (including employer national insurance contributions) amounted to £368,255 in the year (2022: £325,869).


22.


Controlling party

The ultimate parent company is De Groot Fresh Group B.V., a company incorporated in The Netherlands, and whose office address is Drielseweg 23, 5321 NC Hedel, The Netherlands. 
De Groot Fresh Group B.V. is the largest and smallest group to prepare consolidated accounts including the results of this company. 
The ultimate controlling party is Stichting Administratiekantoor De Groot Group. 


Page 24