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Registration number: 08843480

Holleys Fine Foods Limited

Annual Report and Audited Financial Statements

for the Year Ended 31 December 2023

image-name
 

Holleys Fine Foods Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 22

Detailed Profit and Loss Account

23 to 25

 

Holleys Fine Foods Limited

Company Information

Directors

Mr CD Holley

Mr K Holley

Mr JC Holley

Mr M Wallis

Mr SA Rogers

Mr RS Holley

Mr RJ Holley (deceased)

Registered office

Unit F Boscombe Business Park
Severn Road
Hallen
Bristol
BS10 7SB

Bankers

Handelsbanken
66 Queen Square
Bristol
BS1 4JP

Auditors

Moore Scarrott Audit Limited
Calyx House
South Road
Taunton
Somerset
TA1 3DU

 

Holleys Fine Foods Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the Company is wholesale of food, beverages and confectionery.

Fair review of the business

The company saw a further growth in turnover this year which continues the success of the past few years in growing market share and expanding its customer base across the UK.

This past 12 months has seen the company relocate to larger and customer-built premises in Avonmouth to enable continued growth for the future and to allow the team to focus on delivering excellent service and efficient distribution of our product range.

Rising fuel and energy prices, cost inflation and labour shortages have all had an impact on our business over the past 12 months, but the team have worked hard to ensure that our prices remain competitive and our service levels have been maintained.

In a year that has been impacted by moving premises, implementing new systems and processes and expanding our geographical coverage, the Directors are pleased to present another year of excellent results and look forward to the year ahead knowing that the investment made in 2023 will put the business in a stronger position for the years ahead.

The Company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Gross profit margin

%

20

20

Net profit margin

%

5

5

Principal risks and uncertainties


Uncertainties in wider economy
The company is exposed to potential negative changes in the global economic and geopolitical environment, including but not restricted to, the impact of Brexit and the war in the Ukraine.

Rising inflation is an ongoing concern, for all businesses including our own.

The ongoing effects of rising energy costs and the cost of living crisis, for our staff, our group, our customers and our consumers, is an area for concern. As a producer, we continue to experience rapidly increasing costs arising from food produce and energy.

As the company has a bank debt in place to fund the building of new premises, the group is exposed to the risk of increased interest rates when servicing capital repayments

The risk is managed through continuous monitoring of the economic environment and regulatory changes, including ongoing engagement with regulators and external bodies, to assess the potential impact and mitigate accordingly.

Operational performance and reputation
Owing to a number of factors, there is a risk of decline to the high customer service levels which customers are accustomed to. The board maintains oversight of the key performance indicators of Company operations including regular board meetings with management.

There is also a risk of supply chain disruption adversely affecting product availability, delivery and cost. Risks are reviewed by the appropriate teams to manage key suppliers and products. Supplier assessments and due diligence are undertaken during the procurement process. There is also ongoing monitoring of supply chain demand against potential supply capacity constraints. Should significant circumstances arise, supply chain continuation plans are agreed upon by the Board and implemented by management.

 

Holleys Fine Foods Limited

Strategic Report for the Year Ended 31 December 2023

Section 172(1) statement

The directors understand the business, strategic targets and ever changing market and environment that the company operates in. Strategic decisions are taken at board level and escalated to the parent company when required to do so. Such escalation requirements are defined in numerous internal company policies that all directors are aware of. The directors have taken decisions they believe are in the best interests of the company, members and stakeholders. The board meets every month to discuss current topics across all areas of the business. They receive an overview of the current financial performance and discuss matters of importance during the board meetings.

The directors recognise that the employees are fundamental and are integral to the business to deliver strategic ambitions. The success of the business depends on attracting, retaining and motivating employees. Directors ensure that the company does the upmost to be a responsible employer considering pay, benefits, upkeep of health and safety requirements and workplace environments. When making decisions the directors factor the implication of decisions on the employees where it is relevant and possible to do so.

The directors recognise that in order to achieve its strategic objectives it must have strong relationships with its customers and suppliers. The directors receive regular information and feedback from business operations that inform them how current and emerging relationships are developing. The directors actively seek and receive third party information indicating performance from a customer point of view. The directors also receive regular updates on supplier activities and contract management topics.

The directors will take into account the impact of the company's operations on the community and environment in any decision making process where it is necessary to do.

The directors are fully aware of their legal responsibilities and obligations, they are also fully aware of the Group Policies and Code of conduct which are designed to uphold the core values of Holleys and ensure all stakeholders conduct themselves as it would expect. By following these principles and guidelines, the business is conducted with the upmost integrity. Regular internal reviews take place, which help ensure that the guidelines are followed and identify any areas or processes that can be improved.

The directors consider the best possible action in its decision making process to deliver the strategy aligned with the Group. When making these decisions the Directors act as fairly as they can for all members however this can mean that sometimes certain stakeholder interests may not be fully aligned.

The Holleys Board understand their duties and responsibilities individually and collectively. They have acted in accordance with their duties codified in law, which include their duty to act in a way in which they consider would be most likely to promote the success of the company to the benefit of its members whilst considering the stakeholders of the company and matters set out in section 172 (1) of the Companies Act 2006.

Approved and authorised by the Board on 19 September 2024 and signed on its behalf by:
 


Mr RS Holley
Director

 

Holleys Fine Foods 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 of the Company
The Directors who held office during the year were as follows:
Mr C D Holley
Mr K R Holley
Mr J C Holley
Mr M Wallis
Mr S A Rogers
Mr R S Holley (appointed 5 April 2023)
Mr R J Holley (deceased) (passed away on 5 February 2024)
Mr J D Wallis (resigned 5 April 2023)
 

Financial instruments

Objectives and policies

The company has adopted policies in respect of achieving its objectives relating to financial instruments through a mixture of bank facilities including overdraft arrangements and finance lease arrangements.

Further details of financial instruments are given within the notes to the financial statements under note 2 - Accounting Policies.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk
The company's revenue derives from the wholesale of foods and as such, the company is exposed to the risk of price changes in the supply of the food market.

Credit risk
The company supplies goods to other companies and credit terms are offered to those customers. Holleys Fine Foods Limited has credit risk insurance in place to protect against the risk of default by these debtors.

Trading risk
The company is exposed to the risk in change of importation legislation and demand following the United Kingdom's exit from the European Union.

Supply chain risk
The company is also reliant on a good supply chain within the food and beverage industry without which the company is unable to fulfil customer contracts.

Cash flow risk
Risks of this nature generally arise from timing differences which arise during the company's trading cycle. Any exceptional cash flow risks are mitigated by careful management of banking facilities, level of stock, trade debtors and trade creditors by the company's experienced staff.

 

Holleys Fine Foods Limited

Directors' Report for the Year Ended 31 December 2023

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Moore Scarrott Audit Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 19 September 2024 and signed on its behalf by:
 


Mr RS Holley
Director

 

Holleys Fine Foods Limited

Independent Auditor's Report to the Members of Holleys Fine Foods Limited

Opinion

We have audited the financial statements of Holleys Fine Foods Limited (the 'Company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 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 responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Director's 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 original financial statements were 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 Directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Holleys Fine Foods Limited

Independent Auditor's Report to the Members of Holleys Fine Foods Limited

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

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 [set out on page 5], the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

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

 

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 on 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.

 

Holleys Fine Foods Limited

Independent Auditor's Report to the Members of Holleys Fine Foods Limited

Obtain sufficient appropriate audit evidence regarding the financial information of the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

 

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.

 

Our approach to identifying and assessing the risks 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;

we identified the laws and regulations applicable to the company, through discussions with directors and other management, and from our knowledge and experience of the sector;

we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements of the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

we assessed the extent of compliance with 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 through 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;

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

understanding the design of the company’s remuneration policies.

 

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 the accounting policies 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;

reading the minutes of meetings of those charged with governance;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

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

 

Holleys Fine Foods Limited

Independent Auditor's Report to the Members of Holleys Fine Foods Limited

Use of our report

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



Mr Duncan Nicholas FCA (Senior Statutory Auditor)
For and on behalf of Moore Scarrott Audit Limited, Statutory Auditor

Calyx House
South Road
Taunton
Somerset
TA1 3DU

19 September 2024

 

Holleys Fine Foods Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

4

22,543,264

19,302,126

Cost of sales

 

(18,093,529)

(15,513,640)

Gross profit

 

4,449,735

3,788,486

Administrative expenses

 

(3,358,003)

(2,912,336)

Other operating income

5

-

2,150

Operating profit

6

1,091,732

878,300

Other interest receivable and similar income

7

2,923

329

Interest payable and similar expenses

8

(3,073)

1,389

   

(150)

1,718

Profit before tax

 

1,091,582

880,018

Tax on profit

11

(33,663)

(100,990)

Profit for the financial year

 

1,057,919

779,028

All the above results relate to continuing operations.

The Company has no recognised gains or losses for the year other than the results above.

 

Holleys Fine Foods Limited

(Registration number: 08843480)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

68,390

93,197

Tangible assets

13

535,956

502,861

 

604,346

596,058

Current assets

 

Stocks

14

1,440,524

1,037,154

Debtors

15

2,842,607

2,029,492

Cash at bank and in hand

 

232,632

541,438

 

4,515,763

3,608,084

Creditors: Amounts falling due within one year

17

(2,622,654)

(1,908,955)

Net current assets

 

1,893,109

1,699,129

Total assets less current liabilities

 

2,497,455

2,295,187

Creditors: Amounts falling due after more than one year

17

(70,373)

-

Provisions for liabilities

18

(144,578)

(139,118)

Net assets

 

2,282,504

2,156,069

Capital and reserves

 

Called up share capital

118,800

118,800

Retained earnings

2,163,704

2,037,269

Shareholders' funds

 

2,282,504

2,156,069

Approved and authorised by the Board on 19 September 2024 and signed on its behalf by:
 


Mr RS Holley
Director

 

Holleys Fine Foods Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

118,800

2,037,269

2,156,069

Profit for the year

-

1,057,919

1,057,919

Dividends

-

(931,484)

(931,484)

At 31 December 2023

118,800

2,163,704

2,282,504

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

118,800

1,942,296

2,061,096

Profit for the year

-

779,028

779,028

Dividends

-

(684,055)

(684,055)

At 31 December 2022

118,800

2,037,269

2,156,069

 

Holleys Fine Foods Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

1,057,919

779,028

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

187,692

89,953

Finance income

7

(2,923)

(329)

Finance costs

8

-

3,026

Income tax expense

11

33,663

100,990

 

1,276,351

972,668

Working capital adjustments

 

(Increase)/decrease in stocks

14

(403,370)

7,954

Increase in trade debtors

15

(813,115)

(92,465)

Increase in trade creditors

17

705,969

82,653

Cash generated from operations

 

765,835

970,810

Income taxes paid

11

(85,433)

(207,997)

Net cash flow from operating activities

 

680,402

762,813

Cash flows from investing activities

 

Interest received

7

2,923

329

Acquisitions of tangible assets

(195,978)

(396,450)

Acquisition of intangible assets

12

-

(34,100)

Net cash flows from investing activities

 

(193,055)

(430,221)

Cash flows from financing activities

 

Interest paid

8

-

(3,026)

Repayment of other borrowing

 

(2)

2

Payments to finance lease creditors

 

135,333

-

Dividends paid

(931,484)

(684,055)

Net cash flows from financing activities

 

(796,153)

(687,079)

Net decrease in cash and cash equivalents

 

(308,806)

(354,487)

Cash and cash equivalents at 1 January

 

541,438

895,925

Cash and cash equivalents at 31 December

 

232,632

541,438

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit F Boscombe Business Park
Severn Road
Hallen
Bristol
BS10 7SB

These financial statements were authorised for issue by the Board on 19 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable the future economic benefits will flow into the entity, and specific criteria have been met for each of the company activities.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Foreign currency transactions and balances

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

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Fixtures and fittings

25% reducing balance

Office equipment

25% reducing balance

Motor vehicles

33% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Software

25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in the profit or loss.
 

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

3 Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However the nature of estimation means that actual outcomes could differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects that period, or in the period of revision and future periods if the revision affects both current and future periods. The critical judgements and key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Critical judgements

Depreciation rates and residual values
Tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing assets lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Sources if estimation uncertainty
Impairment of fixed assets
The company determines whether there are indicators of impairment of tangible asset. Factors taken into account consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Stock provision
The company determins whether there are conditions that exist at the balance sheet date that indicates that the net realisable value of individual stock lines are less than the carrying value. Such indicators include post year end sales, and market demand.

Bad debt provision
The company determines whether there are conditions that exist at the balance sheet date that indicates the recoverable value of debtors is less than the carrying value. Such indicators include post year end cash receipts, and customer sales activity.

4

Turnover

The analysis of the Company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

22,279,803

19,036,372

Other revenue

263,461

265,754

22,543,264

19,302,126

All turnover arose within the United Kingdom.

5

Other operating income

The analysis of the Company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

-

2,150

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

162,884

68,323

Amortisation expense

24,808

21,630

Operating lease expense - plant and machinery

63,051

13,714

7

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

2,923

329

8

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other finance liabilities

-

3,026

Foreign exchange gains/(losses)

3,073

(4,415)

3,073

(1,389)

9

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,863,946

1,730,315

Other employee expense

80,897

91,687

1,944,843

1,822,002

The average number of persons employed by the Company (including Directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Other departments

65

55

65

55

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

11,750

11,400

Other fees to auditors

All other non-audit services

13,397

24,075


 

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

28,203

-

Deferred taxation

Arising from origination and reversal of timing differences

5,460

100,990

Tax expense in the income statement

33,663

100,990

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,091,582

880,018

Corporation tax at standard rate

272,896

167,203

Effect of expense not deductible in determining taxable profit (tax loss)

31,784

3,740

Deferred tax expense relating to changes in tax rates or laws

5,460

100,990

Decrease in UK and foreign current tax from adjustment for prior periods

(70,339)

-

Tax decrease from effect of capital allowances and depreciation

(5,459)

(87,307)

Tax decrease arising from group relief

(184,710)

(83,636)

Other tax effects for reconciliation between accounting profit and tax expense (income)

(15,969)

-

Total tax charge

33,663

100,990

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2023

857,887

106,033

963,920

At 31 December 2023

857,887

106,033

963,920

Amortisation

At 1 January 2023

835,302

35,420

870,722

Amortisation charge

10,489

14,319

24,808

At 31 December 2023

845,791

49,739

895,530

Carrying amount

At 31 December 2023

12,096

56,294

68,390

At 31 December 2022

22,584

70,613

93,197

13

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

372,369

229,146

159,305

19,600

780,420

Additions

135,849

28,690

31,439

-

195,978

At 31 December 2023

508,218

257,836

190,744

19,600

976,398

Depreciation

At 1 January 2023

93,198

127,539

41,645

15,176

277,558

Charge for the year

98,457

29,329

33,639

1,459

162,884

At 31 December 2023

191,655

156,868

75,284

16,635

440,442

Carrying amount

At 31 December 2023

316,563

100,968

115,460

2,965

535,956

At 31 December 2022

279,171

101,606

117,660

4,424

502,861

14

Stocks

2023
£

2022
£

Stock

1,440,524

1,037,154

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

15

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

2,535,634

1,788,183

Amounts owed by related parties

21

-

53,676

Other debtors

 

24,652

49,037

Prepayments

 

265,162

118,938

Accrued income

 

17,159

19,658

   

2,842,607

2,029,492

16

Cash and cash equivalents

2023
£

2022
£

Cash at bank

232,419

541,284

Short-term deposits

213

154

232,632

541,438

17

Creditors

Note

2023
£

2022
£

Due within one year

 

Hire purchase liabilities

20

64,960

-

Trade creditors

 

1,418,535

1,353,449

Amounts owed to group undertakings and undertakings in which the company has a participating interest

21

923,543

337,012

Social security and other taxes

 

105,064

78,122

Outstanding defined contribution pension costs

 

7,688

7,210

Other payables

 

63,319

32,847

Accruals

 

25,410

28,950

Corporation tax liability

11

14,135

71,365

 

2,622,654

1,908,955

Due after one year

 

Bank loans and overdrafts

20

70,373

-

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

139,118

139,118

Increase (decrease) in existing provisions

5,460

5,460

At 31 December 2023

144,578

144,578

 

Holleys Fine Foods Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

19

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary Shares of £1 each

118,800

118,800

118,800

118,800

       

20

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Hire purchase contracts

70,373

-

Current loans and borrowings

2023
£

2022
£

Hire purchase contracts

64,960

-

21

Related party transactions

Summary of transactions with parent

During the year Holleys Fine Foods Ltd paid management charges of £436,794 (2022: £367,008) to its parent Holleys Fine Foods Holdings Ltd. The company also entered into interest free transactions with Holleys Fine Foods Holdings Ltd, at the year end, the outstanding balance due to the parent was £923,543 (2022: £337,012) which is included within the creditors.
 

Summary of transactions with entities with joint control or significant interest

During the year Holleys Fine Foods Ltd entered into interest free transactions with Westerleigh Brands Ltd, a fellow subsidiary of Holleys Fine Foods Holdings Ltd. During the year, £14,970 was written off as an exceptional expense. At the year end, the outstanding balance due from this related party was £nil (2022: £53,676) which is included within the debtors.
 

22

Parent and ultimate parent undertaking

The Company's immediate parent is Holleys Fine Foods Holdings Limited, incorporated in England.
 

The results of the Company are consolidated into the group that is headed by Holleys Fine Foods Holdings Limited. The consolidated accounts are available to the public and may be obtained from Unit F Boscombe Business Park, Severn Road, Hallen, Bristol, BS10 7SB

 

Holleys Fine Foods Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
£

2022
£

Turnover (analysed below)

22,543,264

19,302,126

Cost of sales (analysed below)

(18,093,529)

(15,513,640)

Gross profit

4,449,735

3,788,486

Gross profit (%)

19.74%

19.63%

Administrative expenses

Employment costs (analysed below)

(1,134,438)

(1,106,374)

Establishment costs (analysed below)

(405,449)

(379,000)

General administrative expenses (analysed below)

(1,620,425)

(1,328,177)

Finance charges (analysed below)

(9,999)

(8,832)

Depreciation costs (analysed below)

(187,692)

(89,953)

(3,358,003)

(2,912,336)

Other operating income (analysed below)

-

2,150

Operating profit

1,091,732

878,300

Other interest receivable and similar income (analysed below)

2,923

329

Interest payable and similar charges (analysed below)

(3,073)

1,389

(150)

1,718

Profit before tax

1,091,582

880,018

 

Holleys Fine Foods Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
£

2022
£

   

Turnover

Sales

22,279,803

19,036,372

Other revenue

263,461

265,754

22,543,264

19,302,126

   

Cost of sales

Opening stock

(1,037,154)

(1,045,108)

Purchases

(15,292,006)

(12,728,041)

Direct costs

(1,264,452)

(988,086)

Closing stock

1,440,524

1,037,154

Wages and salaries (excluding directors)

(810,405)

(924,807)

Freight and carriage

(454,038)

(343,168)

Motor expenses

(675,998)

(521,584)

(18,093,529)

(15,513,640)

   

Employment costs

Wages and salaries (excluding directors)

(1,053,541)

(805,508)

Subcontract cost

-

(209,179)

Staff training

(67,917)

(73,407)

Staff welfare

(12,980)

(18,280)

(1,134,438)

(1,106,374)

   

Establishment costs

Rent

(112,242)

(185,415)

Rates

(88,857)

(47,661)

Light, heat and power

(94,110)

(26,838)

Insurance

(73,021)

(55,407)

Repairs and maintenance

(37,219)

(63,679)

(405,449)

(379,000)

   

General administrative expenses

Telephone and fax

(32,605)

(40,474)

Computer software and maintenance costs

(294,175)

(230,835)

Printing, postage and stationery

(140,802)

(132,021)

Trade subscriptions

(2,344)

(3,455)

Charitable donations

(89,175)

(85,151)

Hire of plant and machinery (Operating leases)

(15,372)

(13,714)

Cleaning

(35,952)

(12,203)

Management charges payable

(436,794)

(367,008)

Motor expenses

(100,607)

(120,932)

Car hire (Operating leases)

(47,679)

-

Advertising

(145,926)

(178,345)

Auditor's remuneration - The audit of the company's annual accounts

(11,750)

(11,400)

Auditors' remuneration - non audit work

(13,397)

(24,075)

Bookkeeping

(14,493)

(19,650)

Legal and professional fees

(165,860)

(58,401)

Bad debts written off

(50,027)

(30,513)

 

Holleys Fine Foods Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
£

2022
£

   

Leasing payments

(8,497)

-

Exceptional expenses

(14,970)

-

(1,620,425)

(1,328,177)

   

Finance charges

Bank charges

(9,999)

(8,832)

   

Depreciation costs

Amortisation of goodwill

(10,489)

(10,489)

Amortisation of other intangibles

(14,319)

(11,141)

Depreciation of plant and machinery

(29,329)

(29,937)

Depreciation of fixtures and fittings

(98,457)

(22,801)

Depreciation of motor vehicles

(1,459)

(2,178)

Depreciation of office equipment

(33,639)

(13,407)

(187,692)

(89,953)

   

Other operating income

Other operating income

-

2,150

   

Other interest receivable and similar income

Bank interest receivable

2,923

329

   

Interest payable and similar expenses

Other interest payable

-

(3,026)

Foreign currency (gains)/losses

(3,073)

4,415

(3,073)

1,389