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FROSTKRONE UK LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
FROSTKRONE UK LIMITED
 

COMPANY INFORMATION


Directors
Mr M Bross (resigned 30 June 2024)
Mr F Dervieux 
Mr M A Bach (appointed 8 May 2023, resigned 30 June 2024)
Mr R Wedel (appointed 8 May 2023)
Mr P J Skelding (appointed 8 May 2023)
Mr A Juhnke (appointed 1 July 2024)
Mr H Lompe (appointed 1 July 2024)
Mr M D Thomas (appointed 1 July 2024)




Company secretary
Mr M Bross



Registered number
SC651695



Registered office
Barncraig Boreland Road
Dysart

Kirkcaldy

Fife

KY1 2YG




Independent auditors
Sumer Auditco Limited
Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH





 
FROSTKRONE UK LIMITED
 

CONTENTS



Page
Group strategic report
1 - 3
Directors' report
4 - 6
Independent auditors' report
7 - 9
Consolidated statement of comprehensive income
10
Consolidated statement of financial position
11
Company statement of financial position
12
Consolidated statement of changes in equity
13
Company statement of changes in equity
14
Consolidated statement of cash flows
15 - 16
Consolidated analysis of net debt
17
Notes to the financial statements
18 - 37


 
FROSTKRONE UK LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors have pleasure in presenting their strategic report for the period ended 31 December 2023.

Business review
 
The Group is an award-winning producer of bespoke food for the foodservice and retail sectors, with a balanced portfolio of blue-chip customers in the UK, EU and beyond.
The Frostkrone UK Group is part of the larger Frostkrone Food Group headquartered in Germany, which comprises of food manufacturing businesses based in a number of different countries. This has given the UK Group the ability to leverage operational and commercial synergies and drive revenue growth opportunities. The Directors are confident that further benefits will arise from this association over the coming years. 
Despite being faced with ongoing macro-economic challenges, not least the continued cost-of-living crisis and higher than normal rates of inflation, the UK Group was successful in increasing its sales revenues on a like-for-like basis in 2023.  
The Group continues to focus on new product development as a fundamental strategy to drive sustainable growth in the future, and investing in enhancing capabilities, capacity, and new efficiency measures.
Gross profit margins were down year-on-year as a percentage of revenue following a shift in business mix away from foodservice towards retail, along with continued raw material cost inflation in some areas. Further operational efficiencies were made during 2023 and will continue into 2024 as the Group continues to optimise its operational performance. 
The Group recorded a financial loss of £4.6m for 2023, compared with a loss of £3.1m in 2022. These figures included Goodwill amortisation charges of £3.0m in each financial year. The Group is focused on continuing to increase Sales Revenues while driving operational efficiency improvements and investing in key areas of the business that will guarantee its future success. The Directors are confident that the business will continue to improve these areas and overall financial performance in 2024, with latest forecasts indicating strong growth in Sales Revenues and overall profitability. 
Cash balances remained positive at the end of 2023, with working capital being closely managed and capital expenditure being financed through operational cash flow. 

Financial key performance indicators
 
Key performance indicators are monitored over key areas including the monitoring of actual results against budget and prior periods. One of the Group’s key performance indicators is turnover growth. Turnover increased to £66.9m compared to £63.8m in the previous year, an overall growth rate of 4.9%. This was largely due to year-on-year volume growth with new and existing customers. 

Page 1

 
FROSTKRONE UK LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The principal risks centre around volatility in the external macroeconomic environment. The past few years have seen huge levels of uncertainty, including the war in Ukraine, increasing raw material prices and high inflation in general, high interest rates and an ongoing cost of living crisis. All of these factors have a direct impact on demand for the Group’s products. The recent indications are that inflation is now coming back down to normal levels while interest rates are likely to begin to fall later in 2024. 
The Group believes that it continues to be well placed to meet these challenges due to its continuing investment in people, capital equipment and new product development for its wide and balanced customer portfolio. Sales, profit and cash performance is monitored on a weekly basis and decisions made accordingly. 
Interest rate risk – Borrowings consist of loans from fellow Frostkrone Group companies at a fixed rate of interest and fixed rate hire purchase finance, which alleviates the interest rate risks.
Currency risk – A proportion of cash balances are held in Euros to mitigate this risk. Foreign exchange rates are regularly monitored. The UK Group does not hedge currency risk due to materiality but our German based parent does.
Supply risk – Regular conversations are held with overseas and UK suppliers and partner companies to manage supply chains to best effect.

Page 2

 
FROSTKRONE UK LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Group
 
The directors of Frostkrone UK Limited must act in accordance with a set of general duties. These include a duty under Section 172 of the Companies Act to promote the success of the group and in doing so they must have regard (amongst other things) to the factors summarised below:
a) the likely consequences of any decision on the long term
b) the interest of the company's employees
c) the need to foster the company's business relationship with suppliers, customers and others
d) the impact of the company's operations on the community and environment
e) the desirability of the company maintaining a reputation for high standards of business conduct
f) the need to act fairly between shareholders of the company
Most of the stakeholder engagement is carried out by the board of directors who meet on a regular basis. The board considers and discusses the information across the organisation to help it understand the company's operations, and the interests and views of the key stakeholders. Main supporting elements for this are:
• yearly budgeting
• rolling forecast on a quarterly basis
• monthly reporting meetings to the board and the shareholders
• monthly sales meetings with the respective entities
• quarterly meetings of the advisory board of the holding entity
In these meetings the development of the entity and its subsidiaries is controlled, based on financial, commercial and operational key performance indicators as well as deviation analysis, and adequate reactions to response to any deviation are decided and monitored.
The UK Group continues to work on various synergy initiatives within the wider Frostkrone Group. These are designed to further drive commonality of approach where appropriate, best practice sharing and greater use of the overall Groups resources and capabilities.


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



Mr P J Skelding
Director

Date: 4 September 2024

Page 3

 
FROSTKRONE UK LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Group's financial statements and then apply them consistently;

make judgments 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;

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

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

Results and dividends

The loss for the year, after taxation, amounted to £4,649,001 (2022 - loss £3,073,592).

There are no proposed dividends for the period ended 31 December 2023.

Directors

The directors who served during the year were:

Mr M Bross (resigned 30 June 2024)
Mr F Dervieux 
Mr M A Bach (appointed 8 May 2023, resigned 30 June 2024)
Mr R Wedel (appointed 8 May 2023)
Mr P J Skelding (appointed 8 May 2023)

Future developments

Core operations remain healthy and the directors consider the business to be in a strong financial position to exploit future opportunities, working in collaboration with its sister businesses in the Frostkrone Group.

Page 4

 
FROSTKRONE UK LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Engagement with employees

Frostkrone UK Limited seeks to ensure that all its businesses operate sound and progressive employment policies to the mutual benefit of employees and the group. The Group places considerable importance on consultation and communication with all employees. Managers are required to develop appropriate communication procedures to ensure that all employees are properly informed of developments within the businesses to which they belong.

Engagement with suppliers, customers and others

Engagement with customers
Frostkrone UK Limited has a dedicated Commercial team on the ground in the UK with a key focus on developing and solidifying relationships with its customer base.  This centres on regular communication flows as well as hosting customers on a regular basis for product development and exchanges on customer expectations.
Engagement with suppliers
Frostkrone UK Limited works with all suppliers to embrace consistent standards of ethical behaviour. The supply chain team is creating regular touchpoints, allowing for positive engagement and exchanges on updates and new developments.
Engagement with the community
Frostkrone UK Limited considers and reviews the impact itself and its subsidiaries have on the local community and gets involved in local projects. These have included beside others food donations to local charities.

Disabled employees

Frostkrone UK Limited gives full and fair consideration to applications for employment from disabled persons, having regard to their aptitudes and abilities. Every effort is made to continue the employment of people who become disabled, including the provision of additional facilities and training where appropriate. Opportunities for career development and promotion are available to all employees.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the year are as follows:
• Scope 1 CO²:         2,784 to.
• Scope 2 CO²:         2,177 to.
• Total CO²:              4,961 to.
Energy consumption used to calculate above emissions is 9,922 Mwh.
The electricity and gas used by the business are the main sources of our carbon emissions and we continually focus on energy reduction and efficiency projects.

Methodology: 
• Baseline values of companies from different categories of CO² consumption are used. Clustered    according to Scope 1 and Scope 2 according to GHG (Greenhouse Gas Protocol).
• These are evaluated with standard industry values and output as a CO² balance.



Page 5

 
FROSTKRONE UK LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsSumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 4 September 2024 and signed on its behalf.
 





Mr P J Skelding
Director

Page 6

 
FROSTKRONE UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FROSTKRONE UK LIMITED
 

Opinion


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


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's loss 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or 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.


Page 7

 
FROSTKRONE UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FROSTKRONE UK LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Directors' report.


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


adequate accounting records have not been kept 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 Directors' responsibilities statement set out on page 4, 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 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.


Page 8

 
FROSTKRONE UK LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FROSTKRONE UK LIMITED (CONTINUED)


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 an Auditors' 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 Group financial statements.


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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditors' report.


Use of our report
 

This report is made solely to the Company's members in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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 for our audit work, for this report, or for the opinions we have formed.





Mark Gibson (Senior statutory auditor)
for and on behalf of
Sumer Auditco Limited
Chartered Accountants
Pentland House
Saltire Centre
Glenrothes
Fife
KY6 2AH

4 September 2024
Page 9

 
FROSTKRONE UK LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

  

Turnover
 4 
66,886,862
63,782,134

Cost of sales
  
(54,247,727)
(50,996,694)

Gross profit
  
12,639,135
12,785,440

Distribution costs
  
(2,458,198)
(2,043,234)

Administrative expenses
  
(13,193,102)
(11,476,492)

Other operating income
 5 
269,543
1,100

Operating loss
 6 
(2,742,622)
(733,186)

Interest receivable and similar income
 10 
-
146

Interest payable and similar expenses
 11 
(2,472,583)
(2,238,212)

Loss before taxation
  
(5,215,205)
(2,971,252)

Tax on loss
 12 
566,204
(102,340)

Loss for the financial year
  
(4,649,001)
(3,073,592)

  

Total comprehensive income for the year
  
(4,649,001)
(3,073,592)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(4,649,001)
(3,073,592)

  
(4,649,001)
(3,073,592)

The notes on pages 18 to 37 form part of these financial statements.

Page 10

 
FROSTKRONE UK LIMITED
REGISTERED NUMBER: SC651695

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
£
£

Fixed assets
  

Intangible assets
 14 
20,635,329
23,647,539

Tangible assets
 15 
8,913,799
8,811,434

  
29,549,128
32,458,973

Current assets
  

Stocks
 17 
13,439,133
14,118,631

Debtors: amounts falling due within one year
 18 
16,858,824
18,042,948

Cash at bank and in hand
 19 
2,117,203
2,493,788

  
32,415,160
34,655,367

Creditors: amounts falling due within one year
 20 
(20,025,675)
(21,664,201)

Net current assets
  
 
 
12,389,485
 
 
12,991,166

Total assets less current liabilities
  
41,938,613
45,450,139

Creditors: amounts falling due after more than one year
 21 
(32,331,192)
(30,614,716)

Provisions for liabilities
  

Deferred tax
 24 
(487,640)
(1,066,641)

  
 
 
(487,640)
 
 
(1,066,641)

Net assets
  
9,119,781
13,768,782


Capital and reserves
  

Called up share capital 
 25 
4
4

Share premium account
 26 
19,075,992
19,075,992

Profit and loss account
 26 
(9,956,215)
(5,307,214)

  
9,119,781
13,768,782


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 September 2024.




Mr P J Skelding
Mr F Dervieux
Director
Director

The notes on pages 18 to 37 form part of these financial statements.

Page 11

 
FROSTKRONE UK LIMITED
REGISTERED NUMBER: SC651695

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
£
£

Fixed assets
  

Investments
 16 
42,956,277
42,956,277

  
42,956,277
42,956,277

Current assets
  

Debtors: amounts falling due after more than one year
 18 
7,395,067
6,856,542

Debtors: amounts falling due within one year
 18 
1,399,285
746,260

Cash at bank and in hand
 19 
43,005
62,024

  
8,837,357
7,664,826

Creditors: amounts falling due within one year
 20 
(6,939,503)
(4,778,545)

Net current assets
  
 
 
1,897,854
 
 
2,886,281

Total assets less current liabilities
  
44,854,131
45,842,558

  

Creditors: amounts falling due after more than one year
 21 
(31,772,470)
(30,268,628)

  

Net assets
  
13,081,661
15,573,930


Capital and reserves
  

Called up share capital 
 25 
4
4

Share premium account
 26 
19,075,992
19,075,992

Profit and loss account carried forward
  
(5,994,335)
(3,502,066)

  
13,081,661
15,573,930


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 September 2024.


Mr P J Skelding
Mr F Dervieux
Director
Director

The notes on pages 18 to 37 form part of these financial statements.

Page 12

 
FROSTKRONE UK LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2023
4
19,075,992
(5,307,214)
13,768,782
13,768,782


Comprehensive income for the year

Loss for the year
-
-
(4,649,001)
(4,649,001)
(4,649,001)
Total comprehensive income for the year
-
-
(4,649,001)
(4,649,001)
(4,649,001)


Total transactions with owners
-
-
-
-
-


At 31 December 2023
4
19,075,992
(9,956,215)
9,119,781
9,119,781



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2022
4
19,075,992
(2,233,622)
16,842,374
16,842,374


Comprehensive income for the year

Loss for the year
-
-
(3,073,592)
(3,073,592)
(3,073,592)
Total comprehensive income for the year
-
-
(3,073,592)
(3,073,592)
(3,073,592)


Total transactions with owners
-
-
-
-
-


At 31 December 2022
4
19,075,992
(5,307,214)
13,768,782
13,768,782


The notes on pages 18 to 37 form part of these financial statements.

Page 13

 
FROSTKRONE UK LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


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

£
£
£
£

At 1 January 2023
4
19,075,992
(3,502,066)
15,573,930


Comprehensive income for the year

Loss for the year
-
-
(2,492,269)
(2,492,269)
Total comprehensive income for the year
-
-
(2,492,269)
(2,492,269)


Total transactions with owners
-
-
-
-


At 31 December 2023
4
19,075,992
(5,994,335)
13,081,661



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


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

£
£
£
£

At 1 January 2022
4
19,075,992
(1,704,391)
17,371,605


Comprehensive income for the year

Loss for the year
-
-
(1,797,675)
(1,797,675)
Total comprehensive income for the year
-
-
(1,797,675)
(1,797,675)


Total transactions with owners
-
-
-
-


At 31 December 2022
4
19,075,992
(3,502,066)
15,573,930


The notes on pages 18 to 37 form part of these financial statements.

Page 14

 
FROSTKRONE UK LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(4,649,001)
(3,073,592)

Adjustments for:

Amortisation of intangible assets
3,012,210
3,012,210

Depreciation of tangible assets
1,335,163
1,531,816

Loss on disposal of tangible assets
1,038
1,333

Interest paid
2,472,583
2,238,212

Interest received
-
(146)

Taxation charge
(566,204)
102,340

Decrease/(increase) in stocks
679,498
(7,200,533)

Decrease/(increase) in debtors
725,241
(3,407,498)

(Decrease)/increase in creditors
(2,848,986)
6,560,043

Corporation tax received
215,523
67,812

Net cash generated from operating activities

377,065
(168,003)


Cash flows from investing activities

Purchase of tangible fixed assets
(1,438,566)
(969,513)

Sale of tangible fixed assets
-
14,306

Investment cost of subsidiary
-
(34,927)

Interest received
-
146

HP interest paid
(22,807)
9,062

Loan advanced from Group companies
2,796,448
3,065,613

Net cash from investing activities

1,335,075
2,084,687
Page 15

 
FROSTKRONE UK LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of/new finance leases
361,051
31,691

Interest paid
(2,449,776)
(2,247,274)

Net cash used in financing activities
(2,088,725)
(2,215,583)

Net (decrease) in cash and cash equivalents
(376,585)
(298,899)

Cash and cash equivalents at beginning of year
2,493,788
2,792,687

Cash and cash equivalents at the end of year
2,117,203
2,493,788


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,117,203
2,493,788

2,117,203
2,493,788


The notes on pages 18 to 37 form part of these financial statements.

Page 16

 
FROSTKRONE UK LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,493,788

(376,585)

2,117,203

Debt due after 1 year

(30,271,157)

(1,501,313)

(31,772,470)

Debt due within 1 year

(8,116,866)

(1,075,783)

(9,192,649)

Finance leases

(616,044)

(361,051)

(977,095)


(36,510,279)
(3,314,732)
(39,825,011)

The notes on pages 18 to 37 form part of these financial statements.

Page 17

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Frostkrone UK Limited is a private company, limited by shares, incorporated in Scotland; with registration number: SC651695. The registered office address is Barncraig Boreland Road, Dysart, Kirkcaldy, Fife, KY1 2YG. 
The financial statements are presented in Sterling which is the functional currency of the company and rounded to the nearest £.
The principal activity of the Group was that of producing and selling frozen food.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company 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.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the Group and Company has adequate working capital to execute their operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group and Company has adequate resources to continue in the operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 18

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

 
2.5

Turnover

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

Sale of goods

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

 
2.6

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Research and development

Research and development expenditure is written off in the year in which it has incurred.

 
2.8

Interest income

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

Page 19

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Finance costs

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

 
2.10

Pensions

Defined contribution pension plan

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

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

 
2.11

Current and deferred taxation

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

The current 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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 20

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10
years

 
2.13

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Freehold property
-
4% straight line
Leasehold property
-
10% straight line
Plant and machinery
-
6% to 33% straight line
Motor vehicles
-
25% straight line
Fixtures, fittings and equipment
-
6% to 33.33% straight line
Dairy
-
6% straight line
Tenant improvements
-
10% straight line

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

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

Page 21

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.14

Impairment of fixed assets

Assets that are subject to depreciation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount in the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows. Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

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

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

 
2.17

Debtors

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

 
2.18

Cash and cash equivalents

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

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

 
2.19

Creditors

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

Page 22

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements required management to make several judgments and estimates. The most significant areas of estimation within the Group's financial statements relate to the valuation of investments, stock and depreciation.
The directors review the valuation method on a regular basis to ensure that the carrying value of stock remains appropriate. Due consideration is given to amounts realised following the year end in relation to stock included in the financial statements at the year end.
The directors review depreciation rates on a regular basis to ensure that the policy rates remain appropriate and fairly charge the cost of fixed assets over their predicted useful lives for each specific category of fixed assets.
Management determine whether there are any indicators of impairment in the company’s subsidiaries company investment. The directors consider current financial position and projected future financial performance in making such assessments.

Page 23

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

The whole of the turnover is attributable to the trade of food products.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
59,786,810
55,814,698

Rest of Europe
849,726
744,397

Rest of the world
6,250,326
7,223,039

66,886,862
63,782,134



5.


Other operating income

2023
2022
£
£

Other operating income
269,543
1,100

269,543
1,100



6.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
531,209
107,619

Other operating lease rentals
16,275
42,835

Depreciation of owned tangible fixed assets
1,098,342
1,232,569

Depreciation of tangible fixed assets held under finance leases
236,821
299,247

Loss on disposal of tangible fixed assets
1,038
1,333

Amortisation of intangible assets
3,012,210
3,012,210


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Groups's auditors and its associates for the audit of the Group's annual financial statements
55,372
37,352

Page 24

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
10,929,238
10,284,333
1,023,985
404,728

Social security costs
914,310
931,586
102,554
59,814

Cost of defined contribution scheme
330,691
290,404
88,352
-

12,174,239
11,506,323
1,214,891
464,542


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
5
5
4
2



Production
244
253
-
-



Sales
45
41
2
-



Administration
63
85
3
3

357
384
9
5


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
302,747
197,580

Directors pension costs
-
41,575

302,747
239,155


During the year retirement benefits were accruing to no directors (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £172,747 (2022 - £107,718).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £36,663).

Page 25

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
-
146

-
146


11.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
427
-

Interest payable to group companies
2,208,841
2,159,907

Finance leases and hire purchase contracts
22,807
(9,062)

Interest on banks loans and overdrafts
240,508
87,367

2,472,583
2,238,212


12.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
-
(10,893)


-
(10,893)


Total current tax
-
(10,893)

Deferred tax


Recognition of tax losses carried forward
(605,892)
(57,527)

Origination and reversal of timing differences
111,765
107,208

Prior year adjustments
(72,077)
63,552

Total deferred tax
(566,204)
113,233


Taxation on (loss)/profit on ordinary activities
(566,204)
102,340
Page 26

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(5,215,205)
(2,971,252)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(1,225,573)
(564,538)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
707,869
572,320

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,800
1,222

Capital allowances for year in excess of depreciation
36,686
963

Adjustment to tax charge in respect of prior periods
(75,306)
52,659

Additional super deduction capital allowances
(119)
(43,145)

Tax charge recognised at a rate different than the standard rate
(29,696)
25,730

Deferred tax asset not recognised
-
30,192

R&D claim
(15,830)
-

Unrelieved tax losses carried forward
31,965
26,937

Total tax charge for the year
(566,204)
102,340


Factors that may affect future tax charges

The UK corporation tax during the year ended 31 December 2023 was 23.5% (2022: 19%). Finance Act 2021 enacted an increase in the corporation tax rate to 25% with effect from 1 April 2023. Deferred tax balances have been restated to take account of this increase, therefore deferred tax is calculated at 25%.


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £2,492,269 (2022 - loss £1,797,675).

Page 27

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Intangible assets

Group





Goodwill

£



Cost


At 1 January 2023
30,122,095



At 31 December 2023

30,122,095



Amortisation


At 1 January 2023
6,474,556


Charge for the year on owned assets
3,012,210



At 31 December 2023

9,486,766



Net book value



At 31 December 2023
20,635,329



At 31 December 2022
23,647,539



Page 28

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets

Group






Freehold property
Leasehold property
Plant and machinery
Motor vehicles
Fixtures,
fittings and
equipment

£
£
£
£
£



Cost or valuation


At 1 January 2023
410,876
171,426
11,455,592
37,022
1,082,618


Additions
-
-
1,304,688
-
133,878


Disposals
(1,038)
-
-
-
-



At 31 December 2023

409,838
171,426
12,760,280
37,022
1,216,496



Depreciation


At 1 January 2023
273,745
171,426
5,382,110
37,022
761,636


Charge for the year on owned assets
14,384
-
852,135
-
104,761



At 31 December 2023

288,129
171,426
6,234,245
37,022
866,397



Net book value



At 31 December 2023
121,709
-
6,526,035
-
350,099



At 31 December 2022
137,131
-
6,073,482
-
320,982
Page 29

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           15.Tangible fixed assets (continued)


Dairy
Tenant
Improve-ments
Total

£
£
£



Cost or valuation


At 1 January 2023
1,390,412
3,259,578
17,807,524


Additions
-
-
1,438,566


Disposals
-
-
(1,038)



At 31 December 2023

1,390,412
3,259,578
19,245,052



Depreciation


At 1 January 2023
837,129
1,533,022
8,996,090


Charge for the year on owned assets
36,833
327,050
1,335,163



At 31 December 2023

873,962
1,860,072
10,331,253



Net book value



At 31 December 2023
516,450
1,399,506
8,913,799



At 31 December 2022
553,283
1,726,556
8,811,434

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
1,239,092
483,848

1,239,092
483,848

Page 30

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
42,956,277



At 31 December 2023
42,956,277





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Innovate Foods Limited
Barncraig Boreland Road, Dysart, Kirkcaldy, Fife, Scotland, KY1 2YG
Food producer
Ordinary
100%
Abergavenny Holdings Limited
Unit 7 Gilchrist Thomas Industrial Estate, Blaenavon, Pontypool, Wales, NP4 9RL
Holding company
Ordinary
100%
Abergavenny Fine Foods Limited
Unit 6 Castle Meadows Park, Merthyr Road, Abergavenny, Monmouthshire, NP7 7RZ
Food producer
Ordinary
100%
Pantysgawn Limited
Unit 7 Gilchrist Thomas Industrial Estate, Blaenavon, Pontypool, Wales, NP4 9RL
Dormant
Ordinary
100%

Abergavenny Holdings Limited holds the shares in Abergavenny Fine Foods Limited and Pantysgawn Limited.

Page 31

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
11,461,471
11,260,335

Finished goods and goods for resale
1,838,411
2,740,090

Long-term contract balances
139,251
118,206

13,439,133
14,118,631



18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Debtors: amounts falling due after more than one year

Amounts owed by group undertakings
-
-
7,395,067
6,856,542

-
-
7,395,067
6,856,542


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Debtors: amounts falling due within one year

Trade debtors
15,672,732
15,733,918
-
-

Amounts owed by group undertakings
63,823
523,917
491,447
445,324

Other debtors
412,442
835,130
1,623
72,690

Prepayments and accrued income
655,265
905,070
-
-

Tax recoverable
54,562
44,913
-
-

Deferred taxation
-
-
906,215
228,246

16,858,824
18,042,948
1,399,285
746,260



19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
2,117,203
2,493,788
43,005
62,024

2,117,203
2,493,788
43,005
62,024


Page 32

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
6,123,801
8,684,713
10,800
-

Amounts owed to group undertakings
9,192,649
8,116,866
6,872,299
4,754,149

Other taxation and social security
283,756
261,191
29,428
6,103

Obligations under finance lease and hire purchase contracts
418,373
272,485
-
-

Other creditors
3,669,031
4,007,193
6,357
-

Accruals and deferred income
338,065
321,753
20,619
18,293

20,025,675
21,664,201
6,939,503
4,778,545


Secured loans
Obligations under finance lease and hire purchase contracts are secured by the assets they relate to.
Included in creditors due within one year is an amount of £3,522,065 (2022 - £3,502,152) which is secured over the company's trade debtors.


21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Net obligations under finance leases and hire purchase contracts
558,722
343,559
-
-

Amounts owed to group undertakings
31,772,470
30,271,157
31,772,470
30,268,628

32,331,192
30,614,716
31,772,470
30,268,628


Secured loans
Obligations under finance lease and hire purchase contracts are secured by the assets they relate to.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
418,373
272,485

Between 1-5 years
558,722
343,559

977,095
616,044

Page 33

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
2,117,203
2,493,788
43,005
62,024

Financial assets measured at amortised cost
16,148,997
17,092,965
7,888,137
7,374,556

18,266,200
19,586,753
7,931,142
7,436,580


Financial liabilities

Financial instruments measured at amortised cost
51,096,016
51,401,682
38,682,545
35,041,070


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets measured at amortised cost comprise trade debtors, other debtors and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise trade creditors, accruals, other creditors and amounts owed to group undertakings.


24.


Deferred taxation


Group



2023


£






At beginning of year
(1,066,641)


Charged to profit or loss
579,001



At end of year
(487,640)

Page 34

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
24.Deferred taxation (continued)

Company


2023


£






At beginning of year
228,246


Charged to profit or loss
677,969



At end of year
906,215

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(1,634,482)
(1,473,833)
-
-

Tax losses carried forward
1,098,443
352,616
906,215
228,246

Other timing differences
6,985
23,710
-
-

Unused tax credits
37,414
24,616
-
-

Pension plan obligations
4,000
6,250
-
-

(487,640)
(1,066,641)
906,215
228,246


The accelerated capital allowances are expected to reverse in subsequent periods. The other timing differences will reverse in the next financial year. There are no expiry dates associated with any of these components.


25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



4 (2022 - 4) Ordinary shares of £1.00 each
4
4


Page 35

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares sold less transaction costs.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


27.


Related party transactions

The company has taken the exemption available under FRS 102 not to disclosure transactions with other wholly owned members of the Group.


28.


Controlling party

The immediate parent company is Mozzaxx Holding 1 GmbH and the ultimate parent is Mozzaxx Co-Invest GmbH & Co. KG, a limited partnership registered in Germany.


29.


Contingent liabilities

A floating charge is in place in favour of Wilmington Trust SP Services (Frankfurt) GmbH as security agent pursuant to a EUR 122,500,000 facilities agreement (originally dated 31 January 2019 and subjected to future amendments) available to other group companies.


30.


Capital commitments




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


Group
Group
2023
2022
£
£

Contracted for but not provided in these financial statements
-
32,934


31.


Pension commitments

The Group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the funds and amounted to £330,691 (2022 - £290,404). Contributions totalling £25,339 (2022 - £19,618) were payable to the funds at the reporting date and are included in creditors.

Page 36

 
FROSTKRONE UK LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

32.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
159,045
104,250

Later than 1 year and not later than 5 years
160,650
155,261

319,695
259,511
Page 37