REGISTERED NUMBER: 01413059 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
Harlech Foodservice Limited |
REGISTERED NUMBER: 01413059 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
Harlech Foodservice Limited |
Harlech Foodservice Limited (Registered number: 01413059) |
Contents of the Consolidated Financial Statements |
for the year ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Statement of Financial Position | 13 |
Company Statement of Financial Position | 15 |
Consolidated Statement of Changes in Equity | 17 |
Company Statement of Changes in Equity | 18 |
Consolidated Statement of Cash Flows | 19 |
Notes to the Consolidated Statement of Cash Flows | 20 |
Notes to the Consolidated Financial Statements | 22 |
Harlech Foodservice Limited |
Company Information |
for the year ended 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
Belmont House |
Shrewsbury Business Park |
Shrewsbury |
Shropshire |
SY2 6LG |
Harlech Foodservice Limited (Registered number: 01413059) |
Group Strategic Report |
for the year ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
The Group and Company is engaged in the sales and distribution of food and food related products throughout North Wales and the North West of England. The subsidiaries of the Company, Bwydlyn Cyf and Harlech Frozen Foods Limited, are non-trading entities. |
The Group and Company's policy is to ensure continuity of liquidity through effective management of its current assets and liabilities. |
REVIEW OF BUSINESS |
Harlech Foodservice Ltd employs around 200 staff at its bases at Criccieth, Chester and Merthyr Tydfil, operating a fleet of over 50 vehicles to deliver a range of foodservice products to hospitality, health, care and education customers across Wales, West Midlands and Northwest England. |
Revenue continued to outpace inflation, rising 21.2% to £46.6m in the year, with customers reacting positively to our competitive prices and excellent service proposition. |
Gross Margin strengthened from 24.9% to 29.4% partly due to changing our buying group from Fairway to Country Range at the start of the financial year. We anticipate margin weakening slightly as we increase the share of business from larger contracts. |
Operating Profit recovered strongly from the pandemic affected years, increasing by 2.4m to £1.861m, driven largely by the increase in turnover and improvement in GM and closure of the onsite butchery facility. |
We have developed an excellent team and in March 2023 introduced a Sharing Success bonus scheme for all non-sales staff, which we are pleased will pay rewards in its first year. We have good opportunity for progression with 21 people promoted during FY24. |
Despite strong headwinds in the Independent Hospitality sector, our outlook remains positive as we have rebalanced the sectors we serve, expanded our geography and our proposition is proving highly competitive: we have a strong team, satisfied customers, good growth in revenue, improving margins and costs under control. |
Since the year ended, we have embarked on an Invest to Grow strategy which we expect to payback within 2 years. |
- Opened additional depots in Carmarthen (SW Wales) and Telford (W Mids & Welsh borders), which provides efficient hub and spoke distribution throughout Wales and the border regions. |
- Recruited additional field sales, more than doubling the sales team to 30 heads, to ensure excellent customer relationships across our broader geography. |
- Expanded and modernised our delivery fleet to 65 vehicles to ensure we achieve delivery windows throughout our expanded geography. |
- Extended our freezer and introduced narrow aisles, almost doubling our total storage to 1,200 pallets and removing the need for outside storage. |
To support our Invest to Grow strategy, we purchased Celtic Foodservice in June 2024, a foodservice company that operates in the West Wales area. |
Harlech Foodservice Limited (Registered number: 01413059) |
Group Strategic Report |
for the year ended 31 March 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties are health and safety of our employees; inflation; the economic uncertainty and customer demand; our ability to win and retain business. |
The business has a robust business continuity plan which is regularly reviewed. |
We recognise we operate in a high-risk environment and health and safety is actively promoted by the Board. We work closely with an external partner to advise on policy and support training and adherence to health and safety on a continuous basis. |
We have developed strong controls to manage and mitigate the volatile inflationary environment. |
We have broadened the business both geographically and through customer type, whilst at the same time ensuring market leading customer service and price proposition to ensure competitive advantage. |
FOREIGN CURRENCY RISK |
Whilst the Company is not exposed directly to foreign currency fluctuations, a large majority of the products which it sells are manufactured abroad and therefore costs can fluctuate. |
CREDIT AND CASH FLOW RISK |
The company and Group's credit risk is attributable to its trade debtors, which is minimised by the number of long established customers and the introduction of good credit management. Accounts are reviewed weekly and amounts outside terms are minimal. We have moved the majority of independent customers to automatic direct debit payment or Pay As You Go. |
LIQUIDITY RISK |
We are bouncing back strongly and quickly from the pandemic, where our business was affected significantly due to 95% independent hospitality mix. This risk has been mitigated through growth in public sector, reducing independent hospitality to around 60%. |
We actively forward plan our cash flow requirements and have made significant progress clearing and reducing our pandemic related costs. We have now cleared our PAYE and VAT arrears and reduced our CBILs loan by £480k. |
Harlech Foodservice Limited (Registered number: 01413059) |
Group Strategic Report |
for the year ended 31 March 2024 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Group results were as follows: |
2024 | 2023 | 2022 | 2021 |
Turnover |
£46,559,934 |
£38,407,507 |
£32,884,738 |
£18,007,870 |
Turnover growth | 21.22% | 16.79% | 82.6% | (45.2)% |
Gross profit margin | 29.4% | 24.91% | 21.98% | 23.6% |
Operating profit |
£1,861,646 |
(£505,909) |
(£856,983) |
(£1,675,720) |
Key performance indicators support the directors' assessment of the performance of the business. |
Other key performance indicators: |
The directors maintain several key performance indicators other than those purely financial, in order to assess customer service and operational performance. |
The directors consider it to be seriously prejudicial to disclose these indicators. |
Turnover, cash flow, margin, cost to serve and operating profit are the company's financial KPIs and are detailed in the attached accounts. Non-financial KPIs include service level to our customers and reportable accidents. |
INVESTMENTS |
We have committed to modernising our fleet over the next 2 years with an additional 6 HGV on order for delivery in January 2025. During Q4 FY23 and Q1 FY24 we have extended our freezer and built new ambient goods receiving area to ensure we can continue our strong growth. |
ON BEHALF OF THE BOARD: |
Harlech Foodservice Limited (Registered number: 01413059) |
Report of the Directors |
for the year ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
DIVIDENDS |
Interim dividends were paid during the year ended 31 March 2024 as follows: |
Ordinary 0.04 shares | Nil |
Ordinary B 0.04 shares | Nil |
Ordinary C 0.04 shares | £75,000 |
Ordinary D 0.04 shares | Nil |
The directors did not recommend any final dividends. |
The total distribution of dividends for the year ended 31 March 2024 will be £75,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Harlech Foodservice Limited (Registered number: 01413059) |
Report of the Directors |
for the year ended 31 March 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, WR Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Harlech Foodservice Limited |
Opinion |
We have audited the financial statements of Harlech Foodservice Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Harlech Foodservice Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Harlech Foodservice Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations; and |
- we identified the laws and regulations applicable to the company through discussion with directors and other senior management, and from our commercial knowledge and experience of the wholesale food sector; and |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection and employment; and |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships. |
- tested journal entries to identify unusual transactions. |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation. |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
Report of the Independent Auditors to the Members of |
Harlech Foodservice Limited |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
Belmont House |
Shrewsbury Business Park |
Shrewsbury |
Shropshire |
SY2 6LG |
Harlech Foodservice Limited (Registered number: 01413059) |
Consolidated |
Income Statement |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
REVENUE | 46,559,934 | 38,407,507 |
Cost of sales | 32,873,188 | 28,841,190 |
GROSS PROFIT | 13,686,746 | 9,566,317 |
Distribution costs | 1,818,625 | 1,511,441 |
Administrative expenses | 10,057,602 | 8,583,317 |
11,876,227 | 10,094,758 |
1,810,519 | (528,441 | ) |
Other operating income | 51,127 | 22,532 |
OPERATING PROFIT/(LOSS) | 4 | 1,861,646 | (505,909 | ) |
Interest receivable and similar income | 120 | - |
1,861,766 | (505,909 | ) |
Interest payable and similar expenses | 5 | 135,515 | 146,897 |
PROFIT/(LOSS) BEFORE TAXATION | 1,726,251 | (652,806 | ) |
Tax on profit/(loss) | 6 | 189,839 | (299,582 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 1,536,412 | (353,224 | ) |
Harlech Foodservice Limited (Registered number: 01413059) |
Consolidated |
Other Comprehensive Income |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 1,536,412 | (353,224 | ) |
OTHER COMPREHENSIVE INCOME |
Share options granted | 56,092 | - |
Share options exercised | (31,836 | ) | - |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
24,256 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,560,668 |
(353,224 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 1,560,668 | (353,224 | ) |
Harlech Foodservice Limited (Registered number: 01413059) |
Consolidated Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 9 | 4,013,413 | 2,580,416 |
Investments | 10 | - | 5,000 |
4,013,413 | 2,585,416 |
CURRENT ASSETS |
Inventories | 11 | 3,387,742 | 2,873,470 |
Debtors | 12 | 2,766,849 | 2,378,947 |
Cash at bank and in hand | 13 | 883,156 | 504,547 |
7,037,747 | 5,756,964 |
CREDITORS |
Amounts falling due within one year | 14 | 6,179,608 | 5,679,888 |
NET CURRENT ASSETS | 858,139 | 77,076 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,871,552 |
2,662,492 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(1,539,354 |
) |
(1,037,637 |
) |
PROVISIONS FOR LIABILITIES | 20 | (189,839 | ) | - |
NET ASSETS | 3,142,359 | 1,624,855 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 92 | 90 |
Share premium | 22 | 31,834 | - |
Capital redemption reserve | 22 | 10 | 10 |
Other reserves | 22 | 406,845 | 382,589 |
Retained earnings | 22 | 2,703,578 | 1,242,166 |
SHAREHOLDERS' FUNDS | 3,142,359 | 1,624,855 |
Harlech Foodservice Limited (Registered number: 01413059) |
Consolidated Statement of Financial Position - continued |
31 March 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by: |
M G Clishem - Director |
Harlech Foodservice Limited (Registered number: 01413059) |
Company Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 9 |
Investments | 10 |
CURRENT ASSETS |
Inventories | 11 |
Debtors | 12 |
Cash at bank and in hand | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Capital redemption reserve | 22 |
Other reserves | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year |
1,536,412 |
(353,224 |
) |
Harlech Foodservice Limited (Registered number: 01413059) |
Company Statement of Financial Position - continued |
31 March 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Harlech Foodservice Limited (Registered number: 01413059) |
Consolidated Statement of Changes in Equity |
for the year ended 31 March 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 April 2022 | 90 | 1,595,390 | - |
Changes in equity |
Total comprehensive income | - | (353,224 | ) | - |
Balance at 31 March 2023 | 90 | 1,242,166 | - |
Changes in equity |
Issue of share capital | 2 | - | 31,834 |
Dividends | - | (75,000 | ) | - |
Total comprehensive income | - | 1,536,412 | - |
Balance at 31 March 2024 | 92 | 2,703,578 | 31,834 |
Capital |
redemption | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 April 2022 | 10 | 382,589 | 1,978,079 |
Changes in equity |
Total comprehensive income | - | - | (353,224 | ) |
Balance at 31 March 2023 | 10 | 382,589 | 1,624,855 |
Changes in equity |
Issue of share capital | - | - | 31,836 |
Dividends | - | - | (75,000 | ) |
Total comprehensive income | - | 24,256 | 1,560,668 |
Balance at 31 March 2024 | 10 | 406,845 | 3,142,359 |
Harlech Foodservice Limited (Registered number: 01413059) |
Company Statement of Changes in Equity |
for the year ended 31 March 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | - |
Balance at 31 March 2023 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 March 2024 |
Capital |
redemption | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | ( |
) |
Balance at 31 March 2023 |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 31 March 2024 |
Harlech Foodservice Limited (Registered number: 01413059) |
Consolidated Statement of Cash Flows |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,610,456 | 1,246,574 |
Interest paid | (126,487 | ) | (129,232 | ) |
Interest element of hire purchase payments paid |
(9,028 |
) |
(17,665 |
) |
Tax paid | - | 299,582 |
Net cash from operating activities | 1,474,941 | 1,399,259 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,860,834 | ) | (649,604 | ) |
Sale of intangible fixed assets | 1,560 | (49,447 | ) |
Sale of tangible fixed assets | 14,405 | 173,847 |
Sale of fixed asset investments | 3,200 | - |
Interest received | 120 | - |
Net cash from investing activities | (1,841,549 | ) | (525,204 | ) |
Cash flows from financing activities |
Loan repayments in year | (303,876 | ) | (305,340 | ) |
Capital repayments in year | 1,061,469 | (245,316 | ) |
Amount introduced by directors | 119,172 | 161,514 |
Amount withdrawn by directors | (112,640 | ) | (133,257 | ) |
Share issue | 2 | - |
Share premium | 31,834 | - |
Share options granted | 24,256 | - |
Equity dividends paid | (75,000 | ) | - |
Net cash from financing activities | 745,217 | (522,399 | ) |
Increase in cash and cash equivalents | 378,609 | 351,656 |
Cash and cash equivalents at beginning of year |
2 |
504,547 |
152,891 |
Cash and cash equivalents at end of year |
2 |
883,156 |
504,547 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Statement of Cash Flows |
for the year ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit/(loss) for the financial year | 1,536,412 | (353,224 | ) |
Depreciation charges | 413,432 | 359,742 |
Loss on disposal of fixed assets | 240 | 49,447 |
Finance costs | 135,515 | 146,897 |
Finance income | (120 | ) | - |
Taxation | 189,839 | (299,582 | ) |
2,275,318 | (96,720 | ) |
(Increase)/decrease in inventories | (514,272 | ) | 163,862 |
(Increase)/decrease in trade and other debtors | (374,268 | ) | 194,038 |
Increase in trade and other creditors | 223,678 | 985,394 |
Cash generated from operations | 1,610,456 | 1,246,574 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 883,156 | 504,547 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 504,547 | 152,891 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Statement of Cash Flows |
for the year ended 31 March 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 504,547 | 378,609 | 883,156 |
504,547 | 378,609 | 883,156 |
Debt |
Finance leases | (62,780 | ) | (1,061,469 | ) | (1,124,249 | ) |
Debts falling due within 1 year | (304,800 | ) | 9,519 | (295,281 | ) |
Debts falling due after 1 year | (1,037,637 | ) | 294,357 | (743,280 | ) |
(1,405,217 | ) | (757,593 | ) | (2,162,810 | ) |
Total | (900,670 | ) | (378,984 | ) | (1,279,654 | ) |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements |
for the year ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Harlech Foodservice Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements present the results of the Group and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Turnover |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties. |
Debt instruments (other thank those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently, at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rates for measuring any impairment loss is the current effective interest rate determined under the contract. |
Financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. |
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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The directors have prepared forecasts which show that the company will be able to operate within its current level of facilities for at least 12 months from the signing of these financial statements. The directors are not aware of any reason why the facilities will not be renewed at the same level as they stand when the bank facilities are renewed in October. As a result of these considerations the directors have a responsible expectation that the company will continue in operational existence for the foreseeable future and therefore adopt the going concern basis in preparing the financial statements. |
Valuation of investments |
Investments in listed company shares are remeasured to market value at each Statement of Financial Position date. Gains and losses on remeasurement are recognised in profit or loss for the period. |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 6,754,726 | 5,696,551 |
Social security costs | 602,770 | 529,151 |
Other pension costs | 144,531 | 124,921 |
7,502,027 | 6,350,623 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production staff | 15 | 33 |
Distribution staff | 172 | 140 |
Administrative staff | 23 | 24 |
The average number of employees by undertakings that were proportionately consolidated during the year was 210 (2023 - 197 ) . |
Year Ended 31.3.24 |
Year Ended 31.3.23 |
£ | £ |
Directors' remuneration | 636,687 | 551,048 |
One director exercised share options during the year and received shares under an Enterprise | Investment Scheme. |
Information regarding the highest paid director is as follows: |
Year Ended 31.3.24 |
Year Ended 31.3.23 |
£ | £ |
Emoluments etc | 177,839 | 111,240 |
The highest paid director exercised share options in the year under an Enterprise Investment Scheme. |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
4. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 413,432 | 359,743 |
Loss on disposal of fixed assets | 240 | 49,447 |
Auditors' remuneration | 18,773 | 21,199 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | - | 38 |
Bank loan interest | 102,703 | 85,947 |
Invoice discounting charges |
and interest | 23,784 | 43,247 |
Hire purchase interest | 9,028 | 17,665 |
135,515 | 146,897 |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | - | (299,582 | ) |
Deferred tax | 189,839 | - |
Tax on profit/(loss) | 189,839 | (299,582 | ) |
UK corporation tax has been charged at 25 % . |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit/(loss) before tax | 1,726,251 | (652,806 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
431,563 |
(124,033 |
) |
Effects of: |
Expenses not deductible for tax purposes | 11,278 | 10,157 |
Capital allowances in excess of depreciation | (1,146,480 | ) | - |
Depreciation in excess of capital allowances | - | 113,876 |
Utilisation of tax losses | 634,465 | - |
Adjustments to tax charge in respect of previous periods | - | (299,582 | ) |
Difference due to change in tax rate | 62,163 | - |
Deferred tax asset not provided for last year | 196,850 | - |
Total tax charge/(credit) | 189,839 | (299,582 | ) |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Share options granted | 56,092 | - | 56,092 |
Share options exercised | (31,836 | ) | - | (31,836 | ) |
24,256 | - | 24,256 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary C shares of 0.04 each |
Interim | 75,000 | - |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
9. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 April 2023 | 1,336,815 | 81,914 | 2,562,397 |
Additions | 116,908 | - | 23,340 |
Disposals | - | - | - |
At 31 March 2024 | 1,453,723 | 81,914 | 2,585,737 |
DEPRECIATION |
At 1 April 2023 | 264,418 | 10,056 | 1,906,886 |
Charge for year | 29,701 | 1,638 | 116,019 |
Eliminated on disposal | - | - | - |
At 31 March 2024 | 294,119 | 11,694 | 2,022,905 |
NET BOOK VALUE |
At 31 March 2024 | 1,159,604 | 70,220 | 562,832 |
At 31 March 2023 | 1,072,397 | 71,858 | 655,511 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 213,133 | 3,187,064 | 7,381,323 |
Additions | 36,575 | 1,684,011 | 1,860,834 |
Disposals | - | (34,115 | ) | (34,115 | ) |
At 31 March 2024 | 249,708 | 4,836,960 | 9,208,042 |
DEPRECIATION |
At 1 April 2023 | 197,263 | 2,422,284 | 4,800,907 |
Charge for year | 9,245 | 256,829 | 413,432 |
Eliminated on disposal | - | (19,710 | ) | (19,710 | ) |
At 31 March 2024 | 206,508 | 2,659,403 | 5,194,629 |
NET BOOK VALUE |
At 31 March 2024 | 43,200 | 2,177,557 | 4,013,413 |
At 31 March 2023 | 15,870 | 764,780 | 2,580,416 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
9. | PROPERTY, PLANT AND EQUIPMENT - continued |
Company |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
9. | PROPERTY, PLANT AND EQUIPMENT - continued |
Company |
The net book value of assets held under finance lease or hire purchase contracts, included above, are as follows: |
2024 | 2023 |
£ | £ |
Motor vehicles | 1,305,284 | 262,697 |
10. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 April 2023 | 5,000 |
Disposals | (5,000 | ) |
At 31 March 2024 | - |
NET BOOK VALUE |
At 31 March 2024 | - |
At 31 March 2023 | 5,000 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 5,101 |
Disposals | ( |
) | (5,000 | ) |
At 31 March 2024 | 101 |
NET BOOK VALUE |
At 31 March 2024 | 101 |
At 31 March 2023 | 5,101 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Parc Amaeth, Llanystumdwy, Criccieth, Gwynedd. LL52 0LJ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Parc Amaeth, Llanystumdwy, Criccieth, Gwynedd. LL52 0LJ |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 3,387,742 | 2,873,470 |
No impairment loss has been recognised against stock in the current or previous year. |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,591,049 | 2,118,490 |
Bad debt provision | (85,141 | ) | (86,375 | ) | (85,141 | ) | (86,375 | ) |
Other debtors | 379,659 | 125,140 |
Directors' current accounts | 15,336 | 1,702 | 15,336 | 1,702 |
VAT | 350,292 | 151,620 |
Prepayments and accrued income | 515,654 | 68,370 |
2,766,849 | 2,378,947 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
13. | CASH AT BANK AND IN HAND |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank deposit account | 5 | 5 |
Bank account | 882,591 | 503,982 | 882,591 | 503,982 |
Cash in hand | 560 | 560 |
883,156 | 504,547 | 883,156 | 504,547 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 295,281 | 304,800 |
Hire purchase contracts (see note 17) | 328,175 | 62,780 |
Trade creditors | 4,375,558 | 4,024,678 |
Social security and other taxes | 221,579 | 349,597 |
CT61 tax | 8,303 | - | 8,303 | - |
Other creditors | 342,928 | 313,481 |
Directors' current accounts | 51,066 | 30,900 | 51,066 | 30,900 |
Accruals and deferred income | 556,718 | 593,652 |
6,179,608 | 5,679,888 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 743,280 | 1,037,637 |
Hire purchase contracts (see note 17) | 796,074 | - |
1,539,354 | 1,037,637 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 295,281 | 304,800 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 285,600 | 298,605 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 457,680 | 624,000 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 115,032 | - | 115,032 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 328,175 | 62,780 |
Between one and five years | 796,074 | - |
1,124,249 | 62,780 |
Company |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
17. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 1,038,561 | 1,342,437 |
Hire purchase contracts | 1,124,249 | 62,780 | 1,124,249 | 62,780 |
2,162,810 | 1,405,217 |
Bank loans are secured by a debenture comprising of fixed and floating charges over all the assets and undertakings of Harlech Foodservice Limited including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future. |
The obligations under finance lease and hire purchase contracts are secured against the assets to which they relate. |
19. | FINANCIAL INSTRUMENTS |
Group Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Financial assets: |
FInancial assets that are debt instruments measured at amortised cost |
2,389,064 |
2,536,662 |
2,389,064 |
2,536,662 |
Financial liabilities: |
Financial liabilities measured at amortised cost |
(7,497,383 |
) |
(6,367,928 |
) |
(7,497,383 |
) |
(6,367,928 |
) |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 189,839 | - | 189,839 | - |
Group |
Deferred |
tax |
£ |
Provided during year | 189,839 |
Balance at 31 March 2024 | 189,839 |
Company |
Deferred |
tax |
£ |
Provided during year |
Balance at 31 March 2024 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
21. | CALLED UP SHARE CAPITAL |
Alloted, issued and fully paid |
Number: |
Class: |
Nominal value: |
2024 |
2023 |
£ | £ |
624 | Ordinary | 0.04 | 25 | 28 |
1,500 | Ordinary B | 0.04 | 60 | 60 |
126 | Ordinary C | 0.04 | 5 | 2 |
42 | Ordinary D | 0.04 | 2 | - |
92 | 90 |
Income and voting rights: |
The Ordinary shares hold the right to dividend income and the directors of the company shall determine what, if any, dividend is to be payable to the holders of each Ordinary share. Every dividend shall be distributed to the appropriate shareholders pro-rata according to their shareholding. Each share carries one voting right. |
The Ordinary B shares hold no voting rights and have the right to the distribution of the other reserves only. |
The Ordinary C shares rank pari passu with Ordinary Shares. |
The Ordinary D shares rank pari passu with Ordinary Shares. |
Capital: |
In the event of a winding up of the company or other return of capital, the assets of the company available for the distribution in respect of both the Ordinary, Ordinary B, Ordinary C shares and Ordinary D shares divided equally between the shareholders. |
Redemption of shares: |
No class of shares holds redemption rights. |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
22. | RESERVES |
Group |
Capital |
Retained | Share | redemption | Other |
earnings | premium | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 April 2023 | 1,242,166 | - | 10 | 382,589 | 1,624,765 |
Profit for the year | 1,536,412 | 1,536,412 |
Dividends | (75,000 | ) | (75,000 | ) |
Share options | - | 31,834 | - | - | 31,834 |
Share option reserve | - | - | - | 56,092 | 56,092 |
Share options exercised | - | - | - | (31,836 | ) | (31,836 | ) |
At 31 March 2024 | 2,703,578 | 31,834 | 10 | 406,845 | 3,142,267 |
Company |
Capital |
Retained | Share | redemption | Other |
earnings | premium | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 April 2023 | 1,624,866 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Share options | - | 31,834 | - | - | 31,834 |
Share option reserve | - | - | - | 56,092 | 56,092 |
Share options exercised | - | - | - | (31,836 | ) | (31,836 | ) |
At 31 March 2024 | 3,142,368 |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
22. | RESERVES - continued |
Capital redemption reserve: |
This reserve records the nominal value of shares repurchased by the company. |
Profit and loss account: |
This contains all current and prior period gains and losses. |
Share premium reserve |
This reserve relates to the exercised share options. |
Other reserves: |
This reserve consists of the following amounts |
B share reserve |
Share option reserve |
Total |
£ | £ | £ |
At 1 April 2023 | 382,589 | - | 382,589 |
Share options granted | 56,092 | 56,090 |
Share options exercised | (31,836) | (31,834) |
At 31 March 2024 | 382,589 | 24,256 | 406,845 |
The rights attributable to the B class shares in accordance with an agreement dated 29 February 2008. This is distributable to the holders of the Ordinary B class shares. |
23. | PENSION COMMITMENTS |
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. |
The pension cost charge represents contributions payable by the Group to the fund and amounted to £144,531 (2023 - £124,921) and is recognised as an expense in the Consolidated Statement of Income and Retained Earnings. Included in other creditors at 31 March 2024 is £50,412 (2023 - £27,221) payable to the fund. |
24. | CONTINGENT LIABILITIES |
The directors have confirmed that there were no contingent liabilities which should be disclosed at 31 March 2024 or March 2023. |
Harlech Foodservice Limited (Registered number: 01413059) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
25. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Included in debtors falling due within one year are amounts totalling £15,336 (2023 £1,702) due from the directors of the Group and Company, these amounts are repayable on demand. During the year interest was charged on these balances at the official rate. |
Subsequently these loans have been repaid. |
26. | RELATED PARTY DISCLOSURES |
During the year the Group and Company paid rent to Harlech Frozen Foods (1984) Limited Directors Self Administered Pension Plan totalling £190,000 (2023 £190,000) which some of the directors are trustees of. The amount owing at the balance sheet date was £279,342 (2023 - £285,000). |
Included in creditors falling due within one year are amounts totalling £51,066 (2023 - £30,900) due to the directors of the company, these amounts are repayable on demand. During the year no interest was paid on these balances. |
27. | ULTIMATE CONTROLLING PARTY |
The Company's shares are owned by several investors. A Foskett, J Foskett and L Roberts each have the largest shareholding of 24% No investor acting individually has the ability to control the activities of the company and consequently it is considered that there is no ultimate controlling party. |