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REGISTERED NUMBER: NI613347 (Northern Ireland)















LOUGH ERNE INVESTMENTS LIMITED

Group Strategic Report, Directors' Report and

Consolidated Financial Statements for the Year Ended 25 December 2023






LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)






Contents of the Consolidated Financial Statements
FOR THE YEAR ENDED 25 DECEMBER 2023




Page

Company Information 1

Group Strategic Report 2 to 4

Directors' Report 5 to 8

Independent Auditors' Report 9 to 12

Consolidated Income Statement 13

Consolidated Statement of Financial Position 14

Company Statement of Financial Position 15

Consolidated Statement of Changes in Equity 16

Company Statement of Changes in Equity 17

Consolidated Statement of Cash Flows 18

Notes to the Consolidated Statement of Cash
Flows

19


to


20

Notes to the Consolidated Financial Statements 21 to 36


LOUGH ERNE INVESTMENTS LIMITED

Company Information
FOR THE YEAR ENDED 25 DECEMBER 2023







DIRECTORS: C Crawford
R Crawford
L D Crawford
C McMenamin
M Crawford



REGISTERED OFFICE: Manor Waterhouse Farm
Lisnaskea
Co. Fermanagh
BT92 0BN



REGISTERED NUMBER: NI613347 (Northern Ireland)



INDEPENDENT AUDITORS: CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP



BANKERS: Danske Bank
Donegal Square West
Belfast
Co. Antrim
BT1 6JS



SOLICITORS: J C Brady & Son
10 Belmore Street
Enniskillen
Co Fermanagh
BT74 6AA

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Group Strategic Report
FOR THE YEAR ENDED 25 DECEMBER 2023

The directors present their strategic report of the Company and the Group for the year ended 25 December 2023.

REVIEW OF THE GROUP'S BUSINESS
The Company and the Group trades in the business of egg processing and farming.

The Group is structured and positioned in a manner that will enable it to meet the demands of the market and business environment, consequently the directors are optimistic about the future prospects of the group.

The Group has two facilities in Northern Ireland located in Lisnaskea, Co. Fermanagh and Donaghmore, Co. Tyrone, as well as a third facility in Chesterfield, England.

KEY PERFORMANCE INDICATORS
The directors consider the key performance indicators of the Group to be those that reflect the performance of the Group as a whole:

2023 2022
Revenue £233,063,654 £174,741,729
Gross profit margin 14.8% 14.9%

Non financial key performance indicators
2023 2022
Average number of employees 299 306

PRINCIPAL RISKS AND UNCERTAINTIES
The directors acknowledge that as well as rewards there are risks and uncertainties inherent in the food production and processing sector which must be closely monitored and controlled.

The level of activity in the food production and processing sector is affected by many factors including commodity markets, government and EU legislation and changes in international agricultural practices. The board has put in place systems and procedures which monitor these factors.

The Group works with a range of food production and processing partners with strong records of delivery and closely examines its pool of suppliers for quality and consistency of raw materials, adherence to relevant industry legislation and sufficiency of resources and solvency. This combined with excellent people, well developed supply chains and an established customer base, allows the business to consistently deliver the growth enjoyed over recent periods.

Financial risk:
The Group's operations expose it to a variety of financial risks that include price risk, foreign exchange risk, credit risk and liquidity risk. The Group has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the Group.

Price risk:
The Group is exposed to commodity price risk of its operations. However, given the size of the Group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the Group's operations change in size or nature.

Foreign exchange risk:
While the majority of the Group's revenues and expenses are denominated in sterling, the Group is exposed to some foreign exchange risk in the normal course of business, principally on sales in euro. While the Group has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Group Strategic Report
FOR THE YEAR ENDED 25 DECEMBER 2023


Credit risk:
The Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit which is reassessed regularly by the board.

Liquidity risk:
The Group generates sufficient cashflow to ensure it has adequate available funds for operations and planned expansions.

SECTION 172(1) STATEMENT
The directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so had regard, amongst other matters, to:

a) the likely consequences of any decision in the long term;

b) the interests of the Group's employees;

c) the need to foster the Group's business relationships with suppliers, customers and others;

d) the impact of the Group's operations on the community and the environment;

e) the desirability of the Group maintaining a reputation for high standards of business conduct; and

f) the need to act fairly as between members of the Group.

The directors have had regard to the matters set out in sections 172(1)(a)-(f) when discharging their section 172 duties.

The Group undertakes many local community engagements and is a proud member of Business in the Community. Working together with other member companies, we are focussed on undertaking projects and initiatives that will build a better society and a more sustainable future. We also offer work placement programmes to provide students an opportunity to develop their knowledge and skillset within the working environment.

Employee welfare is at the core of the Group's values. We invest in the services of an external occupational nurse once a year for free health checks which include eye and hearing tests and fitness to work in a food environment screening. Our life assurance scheme with Legal & General is available for all employees and our Employee Assistance Programme (EAP) is a welcome platform providing information, advice, training and services to help employees deal with events and issues in everyday work and personal life.

Food safety and animal welfare are fundamental to the Group. All our sites are accredited to BRC Global Standards for Food Safety (Grade AA) and our inhouse laboratory is certified by CLAS, the leading independent accreditation scheme for the food industry. Our products are produced to exacting standards and customer specifications with the most robust and intricate supply chain systems ensuring full traceability. Our agricultural manager ensures our farmers remain educated on changing regulations within the industry and continue to supply the high-quality eggs that we, and our customers demand.

The Group is renowned for our deep-rooted commitment to caring for the environment and every year we participate in the Business in the Community Environmental Benchmarking Survey. In 2021 we installed a new state-of-the-art waste water treatment facility. This will ensure we remain within our environmental consent limits whilst giving us the capacity to grow our expanding customer base. The Group has also voluntarily entered into Climate Change Agreements (CCAs) at both our sites as a further commitment to meeting and exceeding energy efficiency and carbon reduction targets in exchange for CCL relief until 31 March 2025. As well as proactively working to reduce our carbon emissions year-on-year, any CCL relief received will be reinvested in energy efficiency projects.

Refer to the Principle risks and uncertainties section in the Strategic Report for further information concerning the Group's initiatives relating to the performance of the directors S172 duties.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Group Strategic Report
FOR THE YEAR ENDED 25 DECEMBER 2023

STRATEGY
The Group's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the Group's operations. The Group aims to increase market share within UK.

FUTURE DEVELOPMENTS
The Group is committed to long term creation of shareholder value by increasing the Group's market share in the UK and Irish markets. The economic environment continues to evolve and is making a return to relative stability and certainty. Overall in the coming year the Group aims to increase revenue and operating profits. The Group will continue to develop relations with suppliers, generate new business where possible and increase retention levels while remaining highly competitive. The Group is continually researching and developing new products and services to ensure it continues to provide a strong product to the market.

ENVIRONMENT
The Group recognises its corporate responsibility to carry out its operations whilst ensuring that there is minimal environmental impact. The directors continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce wastage wherever possible.

ON BEHALF OF THE BOARD:





C McMenamin - Director


25 September 2024

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Directors' Report
FOR THE YEAR ENDED 25 DECEMBER 2023

The directors present their report with audited financial statements of the Company and the Group for the year ended 25 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the Company and the Group is egg processing and farming.

DIVIDENDS
The total distribution of dividends for the year ended 25 December 2023 was £85,000 (2022: £100,000).

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

RESEARCH AND DEVELOPMENT
The Group continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

DIRECTORS
The directors shown below have held office during the whole of the period from 26 December 2022 to the date of this report.

C Crawford
R Crawford
L D Crawford
C McMenamin
M Crawford

CHARITABLE DONATIONS AND EXPENDITURE
The Group made no political donations or incurred any political expenditure during the current or prior year.

DISCLOSURES REQUIRED UNDER SCHEDULE 7
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties and future developments in the Group's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

ENGAGEMENT WITH EMPLOYEES
The employees of the company are kept informed on matters through meetings and the publication of company newsletters. The group maintains an internal human resources department which provides induction and advice in all disciplines of employment policies, procedures, legislation and staff development. It also encourages and promotes social interaction and staff team building activities.

EMPLOYMENT OF DISABLED PERSONS
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Directors' Report
FOR THE YEAR ENDED 25 DECEMBER 2023

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Lough Erne Investments Limited is committed to operating a responsible business. This commitment is reflected in initiatives aimed at making a positive impact on society and the environment, through our operations and with key stakeholders including customers, colleagues, communities and suppliers. This includes the following:

Environment:
We are subject to Integrated Pollution Prevention and Control (IPPC) Regulations. This requires industrial and agricultural activities with a high pollution potential to have a permit; this permit can only be issued if certain environmental conditions are met, so that the companies themselves bear responsibility for preventing and reducing any pollution they may cause. We report annually to the Environment Agency, complete inspections, and ensure we stay within our environmental consent limits.

The group had voluntarily entered into a Climate Change Agreement (CCA) at both our sites as a further commitment to meeting and exceeding energy efficiency and carbon reduction targets. We were delighted that we achieved these targets and therefore can avail of CCL relief until 31 March 2025.

Employee Engagement:
Training is paramount to our employees professional learning and development across all areas of the business. We continue to proactively invest in training and development to ensure our employees have an opportunity to progress and enhance their knowledge and skill base, which will in turn, further enhance our forward thinking and highly skilled workforce.

Community Engagement:
The group undertakes many local community engagements and is a proud member of Business in the Community. Working together with other member companies, we are focussed on undertaking projects and initiatives that will build a better society and a more sustainable future. We also offer work placement programmes to provide students an opportunity to develop their knowledge and skillset within the working environment. A number of charities that benefitted from donations from the Company in the year included Cancer Connect NI, NI Deaf Youth Association, Marie Curie Cancer, Macmillian Cancer Support and Lisnaskea and Enniskillen Foodbank.

STREAMLINED ENERGY AND CARBON REPORTING
Under Streamlined Energy and Carbon Report (SECR) legislation we are mandated to include energy consumption, emissions, intensity metrics, and all energy efficiency improvements implemented in our most recent financial year, for our UK operations. We are proud to say we achieved 100% verifiable data coverage with no estimations required.

Lough Erne Investment`s Scope 1 and 3 direct emissions (combustion of natural gas and transportation fuels) for this reporting year are 2,619.18 tCO2e, resulting from the direct combustion of 11,188,533 kWh. This represents a carbon increase of 70.69% from last year ending December 2022.

Scope 2 indirect emissions (purchased electricity) for this reporting year are 1,188.27 tCO2e, resulting from the consumption of 5,891,264 kWh of electricity purchased and consumed in day-to-day business operations. This represents a carbon increase of 17.92% from last year ending December 2022.

Lough Erne Investment`s operations have an intensity metric of 0.09 tCO2e/finished product tonnes for this reporting year. This represents an increase of 33.09% from last year ending December 2022.

We are committed to year-on-year improvements in our operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years.










LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Directors' Report
FOR THE YEAR ENDED 25 DECEMBER 2023




Measure
For the year
ended 31
December
2023

For the year
ended 31
December 2022



Units
Energy consumption used to
calculate emissions

17,079,797

11,691,284

kWh
Emissions from purchased
electricity

1,118.27

1,007.72

tCO2e
Emissions from gas, fuels and
transportation

2,619.17

1,534.49

tCO2e
Total Gross tCO2e 3,737.45 2,542.21 tCO2e
Intensity ratio 0.09 0.07 Gross tCO2e/production tonne

Measures ongoing and undertaken through 2023:
1. Solar Panel Installation: In December 2023, the group significantly enhanced sustainability by
expanding solar power capacity. Ready Egg installed additional solar panels, increasing our solar
energy generation from 50kWh to 170kWh. This investment reduces dependence on
non-renewable energy sources and helps lower operational costs and carbon footprint. This
expansion is part of ongoing commitment to integrating renewable energy into production
processes
2. Energy-Efficient Equipment (New Pasteurizer) Installation: At the end of 2023, the group
upgraded the pasteurization process by fitting a new pasteurizer, P3. Compared to the previous
setup, which utilized two older pasteurizers (P1 and P2) to achieve the same output of 10 tonnes
of eggs per hour, the new pasteurizer offers significant energy savings. P3 requires 23.8kW less
in maximum electrical load and 73kW less in glycol cooling demand. This upgrade enhances
production efficiency and reduces overall energy consumption, making operations more
sustainable and cost effective.

Measures prioritised for implementation in 2024:
1. Pipework Insulation Improvement: In 2024, one of the group’s key initiatives will be to improve
the insulation on the pipework in specific areas of the factory (scrambled egg), particularly in the
scrambled egg processing section. By upgrading the insulation, the group aim to minimize heat
loss, improve energy efficiency, and contribute to more stable temperature control. This will lead
to reduced energy consumption and better overall operational efficiency.
2. Energy-Efficient Equipment (New Pasteurizer) Installation: At the end of 2023, the group
upgraded the pasteurization process by fitting a new pasteurizer, P3. Compared to the previous
setup, which utilized two older pasteurizers (P1 and P2) to achieve the same output of 10 tonnes
of eggs per hour, the new pasteurizer offers significant energy savings. P3 requires 23.8kW less
in maximum electrical load and 73kW less in glycol cooling demand. This upgrade enhances
production efficiency and reduces overall energy consumption, making operations more
sustainable and cost effective.
3. Hot Water System Upgrade: In the processing plant room, the current hot water manifold is used
to heat various parts of the facility, including office spaces, sugar tank heat exchangers, CIP heat
exchangers, tray-pallet washing machines, factory sinks, and the P1 and P2 pasteurizers. This
system is currently powered by two old diesel boilers, which are both inefficient and
environmentally taxing. In 2024, the group plan to replace these boilers with an 800kW steam-to
hot-water heat exchanger. This new system will leverage the spare capacity of the existing
kerosene steam boiler, allowing the group to retire the old diesel boilers, reduce fossil fuel
dependency, and improve operations' overall efficiency and sustainability.


Human Rights, Modern Slavery and Human Trafficking
As the world is grappling with the challenges of human nature and climate change, it is vitally important that we continue to identify, prevent, mitigate, and account for how we address adverse human rights impacts within our business and supply chain.

We have a responsibility to respect international human rights standards (by not infringing on people's rights), and to address adverse human rights impacts that we cause or contribute to.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Directors' Report
FOR THE YEAR ENDED 25 DECEMBER 2023

Modern slavery is a crime and a violation of fundamental human rights. It takes various forms, such as slavery, servitude, forced and compulsory labour and human trafficking, all of which have in common the deprivation of a person's liberty by another in order to exploit them for personal or commercial gain. We have a zero-tolerance approach to modern slavery and we are committed to acting ethically and with integrity in all our business dealings and relationships and to implementing and enforcing effective systems and controls to ensure modern slavery is not taking place anywhere in our own business or in any of our supply chains.

From 2021 the group added its annual modern slavery statement to the UK government's Modern Slavery statement registry online. Please refer to this, or visit www.readyeggproducts.com for our full statement.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable 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 Company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Group's auditors are aware of that information.

AUDITORS
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





C McMenamin - Director


25 September 2024

Independent Auditors' Report to the Members of
Lough Erne Investments Limited

Opinion
We have audited the financial statements of Lough Erne Investments Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 25 December 2023 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the Group's and of the Parent Company affairs as at 25 December 2023 and of the Group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the 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.

Independent Auditors' Report to the Members of
Lough Erne Investments Limited


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 where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the Parent Company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page eight, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Independent Auditors' Report to the Members of
Lough Erne Investments Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 financial statements.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;
- We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;
- We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;
- Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and
- Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

- Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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.

Independent Auditors' Report to the Members of
Lough Erne Investments 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 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 as a body, for our audit work, for this report, or for the opinions we have formed.




Mr. Desmond Kelly (F.C.A) (Senior Statutory Auditor)
for and on behalf of CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

25 September 2024

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Consolidated
Income Statement
FOR THE YEAR ENDED 25 DECEMBER 2023

2023 2022
Notes £ £

REVENUE 5 233,063,654 174,741,729

Cost of sales (198,504,056 ) (148,716,969 )
GROSS PROFIT 34,559,598 26,024,760

Distribution costs (4,254,415 ) (2,953,718 )
Administrative expenses (13,641,972 ) (14,203,570 )
16,663,211 8,867,472

Other operating income 436,557 228,979
OPERATING PROFIT 7 17,099,768 9,096,451

Finance income 103,204 123,906
17,202,972 9,220,357

Finance costs 8 (829,537 ) (452,855 )
PROFIT BEFORE TAXATION 16,373,435 8,767,502

Tax on profit 9 (3,804,969 ) (2,373,487 )
PROFIT FOR THE FINANCIAL YEAR 12,568,466 6,394,015

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

12,568,466

6,394,015

Profit attributable to:
Owners of the parent 6,582,919 3,191,557
Non-controlling interests 5,985,547 3,202,458
12,568,466 6,394,015

Total comprehensive income attributable to:
Owners of the parent 6,582,919 3,191,557
Non-controlling interests 5,985,547 3,202,458
12,568,466 6,394,015

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Consolidated Statement of Financial Position
25 DECEMBER 2023

2023 2022
Notes £ £
NON-CURRENT ASSETS
Intangible assets 12 17,935,925 20,229,018
Property, plant and equipment 13 46,009,872 42,884,296
Investments 14 - -
63,945,797 63,113,314

CURRENT ASSETS
Inventories 15 4,565,545 6,082,297
Receivables: amounts falling due within
one year

16

37,486,313

30,952,287
Cash at bank 12,860,695 4,127,829
54,912,553 41,162,413
PAYABLES
Amounts falling due within one year 17 (34,584,073 ) (31,060,671 )
NET CURRENT ASSETS 20,328,480 10,101,742
TOTAL ASSETS LESS CURRENT
LIABILITIES

84,274,277

73,215,056

PAYABLES
Amounts falling due after more than
one year

18

(8,508,558

)

(10,396,364

)

PROVISIONS FOR LIABILITIES 23 (3,521,684 ) (2,514,380 )

GOVERNMENT GRANTS 24 (25,861 ) (79,604 )
NET ASSETS 72,218,174 60,224,708

CAPITAL AND RESERVES
Called up share capital 25 1,169,671 1,169,671
Share premium 7,070,740 7,070,740
Retained earnings 34,887,433 28,389,514
SHAREHOLDERS' FUNDS 43,127,844 36,629,925

NON-CONTROLLING INTERESTS 26 29,090,330 23,594,783
TOTAL EQUITY 72,218,174 60,224,708

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by:





C McMenamin - Director


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Company Statement of Financial Position
25 DECEMBER 2023

2023 2022
Notes £ £
NON-CURRENT ASSETS
Intangible assets 12 - -
Property, plant and equipment 13 15,664,075 14,726,022
Investments 14 7,172,535 7,172,535
22,836,610 21,898,557

CURRENT ASSETS
Inventories 15 744,381 743,574
Receivables: amounts falling due within
one year

16

2,352,697

1,507,064
3,097,078 2,250,638
PAYABLES
Amounts falling due within one year 17 (2,621,321 ) (1,205,326 )
NET CURRENT ASSETS 475,757 1,045,312
TOTAL ASSETS LESS CURRENT
LIABILITIES

23,312,367

22,943,869

PAYABLES
Amounts falling due after more than
one year

18

(3,435,725

)

(3,896,364

)
NET ASSETS 19,876,642 19,047,505

CAPITAL AND RESERVES
Called up share capital 25 1,169,671 1,169,671
Share premium 7,070,740 7,070,740
Retained earnings 11,636,231 10,807,094
SHAREHOLDERS' FUNDS 19,876,642 19,047,505

Company's profit for the financial year 914,137 294,524

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by:





C McMenamin - Director


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 25 DECEMBER 2023

Called up
share Retained Share
capital earnings premium
£ £ £
Balance at 26 December 2021 1,169,671 25,297,957 7,070,740

Changes in equity
Dividends - (100,000 ) -
Total comprehensive income - 3,191,557 -
Balance at 25 December 2022 1,169,671 28,389,514 7,070,740

Changes in equity
Dividends - (85,000 ) -
Total comprehensive income - 6,582,919 -
Balance at 25 December 2023 1,169,671 34,887,433 7,070,740
Non-controlling Total
Total interests equity
£ £ £
Balance at 26 December 2021 33,538,368 20,882,325 54,420,693

Changes in equity
Dividends (100,000 ) (490,000 ) (590,000 )
Total comprehensive income 3,191,557 3,202,458 6,394,015
Balance at 25 December 2022 36,629,925 23,594,783 60,224,708

Changes in equity
Dividends (85,000 ) (490,000 ) (575,000 )
Total comprehensive income 6,582,919 5,985,547 12,568,466
Balance at 25 December 2023 43,127,844 29,090,330 72,218,174

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Company Statement of Changes in Equity
FOR THE YEAR ENDED 25 DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £
Balance at 26 December 2021 1,169,671 10,612,570 7,070,740 18,852,981

Changes in equity
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 294,524 - 294,524
Balance at 25 December 2022 1,169,671 10,807,094 7,070,740 19,047,505

Changes in equity
Dividends - (85,000 ) - (85,000 )
Total comprehensive income - 914,137 - 914,137
Balance at 25 December 2023 1,169,671 11,636,231 7,070,740 19,876,642

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 25 DECEMBER 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 25,135,264 9,897,399
Interest paid (829,537 ) (452,855 )
Tax paid (3,290,553 ) (1,976,914 )
Taxation refund (372,268 ) -
Net cash from operating activities 20,642,906 7,467,630

Cash flows from investing activities
Purchase of tangible fixed assets (7,200,518 ) (5,875,252 )
Sale of tangible fixed assets 432,714 66,597
Purchase of subsidiary (net of cash) - (23,875,531 )
Interest received 103,204 123,906
Net cash from investing activities (6,664,600 ) (29,560,280 )

Cash flows from financing activities
New loans in year - 8,500,000
Loan repayments in year (1,967,937 ) (479,126 )
HP repayments in year (27,677 ) (36,771 )
Equity dividends paid (575,000 ) (590,000 )
Net cash from financing activities (2,570,614 ) 7,394,103

Increase/(decrease) in cash and cash equivalents 11,407,692 (14,698,547 )
Cash and cash equivalents at
beginning of year

2

1,142,099

15,840,646

Cash and cash equivalents at end
of year

2

12,549,791

1,142,099

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 25 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£ £
Profit before taxation 16,373,435 8,767,502
Depreciation charges 4,000,066 3,422,904
Profit on disposal of fixed assets (262,596 ) (50,585 )
Goodwill amortisation 2,293,093 2,293,093
Government grants (51,662 ) (63,999 )
Finance costs 829,537 452,855
Finance income (103,204 ) (123,906 )
23,078,669 14,697,864
Decrease/(increase) in inventories 1,516,752 (2,344,208 )
Increase in trade and other debtors (6,079,542 ) (6,183,701 )
Increase in trade and other creditors 6,619,385 3,727,444
Cash generated from operations 25,135,264 9,897,399

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 25 December 2023
25/12/23 26/12/22
£ £
Cash and cash equivalents 12,860,695 4,127,829
Bank overdrafts (310,904 ) (2,985,730 )
12,549,791 1,142,099
Year ended 25 December 2022
25/12/22 26/12/21
£ £
Cash and cash equivalents 4,127,829 16,398,095
Bank overdrafts (2,985,730 ) (557,449 )
1,142,099 15,840,646


3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 26/12/22 Cash flow At 25/12/23
£ £ £
Net cash
Cash at bank 4,127,829 8,732,866 12,860,695
Bank overdrafts (2,985,730 ) 2,674,826 (310,904 )
1,142,099 11,407,692 12,549,791
Debt
Finance leases (29,528 ) (67,565 ) (97,093 )
Debts falling due within 1 year (2,467,090 ) 7,298 (2,459,792 )
Debts falling due after 1 year (10,396,364 ) 1,960,639 (8,435,725 )
(12,892,982 ) 1,900,372 (10,992,610 )
Total (11,750,883 ) 13,308,064 1,557,181

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 25 DECEMBER 2023

4. ACQUISITION OF BUSINESS

On 31 March 2022 the Group acquired 100% of the share capital of Skea Egg Farms Limited. The consideration was cash settled.

The following table sets out the values of the identifiable assets and liabilities acquired and their professional fair values to the Group.


Professional
Fair Value
£   
Assets
Tangible fixed assets 5,256,646
Inventory 1,420,173
Trade debtors 7,373,311
Other debtors 1,464,470
Prepayments 51,303
Bank and cash 1,585,151
17,151,054
Liabilities
Trade payables (3,875,104 )
Amounts owed to connected companies (634,335 )
Amounts owed to group companies (2,250 )
Other taxation and social security (240,073 )
Other creditors (6,820 )
Corporation tax (147,248 )
Accruals and deferred income (929,739 )
Provisions (274,715 )
Net assets 11,040,770
Goodwill arising on acquisition 22,419,912
Consideration 33,460,682

The goodwill represents the value of existing workforce and synergies that the group is expected to benefit through combining the separate businesses.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 25 DECEMBER 2023

1. GENERAL INFORMATION

Lough Erne Investments Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the General Information page.

2. STATEMENT OF COMPLIANCE

The financial statements of the Group for the year ended 25 December 2023 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Group's financial statements.

The financial statements are prepared in Sterling which is the functional currency of the Group, and rounded to the nearest pound (£), except when otherwise stated.

Basis of consolidation
The consolidated financial statements include the financial statements of the holding company and all its subsidiary companies made up to 25 December 2023.

Intercompany transactions, balances, income and expenses on transactions between Group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Joint ventures are all entities over which the group has joint control with one or more other joint venture partners. Investments in associates are accounted for using the gross equity method of accounting. Under the gross equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor's share of the profit or loss of the investee after the date of acquisition.

The group's share of post-acquisition profit or loss is recognised in the consolidated profit and loss account. When the group's share of losses in a joint venture equals or exceeds its interest in the associate, including any other unsecured receivables, the group recognises further losses and presents its share of the net liabilities of the joint venture in provisions for liabilities and charges.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

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

Sale of service:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the significant risks and rewards of ownership have been transferred to the buyer;
- the group retains no continuing involvement or control over the goods;
- the amount of revenue can be measured reliably;
- it is probable that future economic benefits will flow through the group; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of Services:
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably
- it is probable that the group will receive the consideration due under the contract
- the stage of completion of the contract at the end of the reporting period can be measured reliably, and;
- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill
Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 10 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold property4% - 5% Straight line
Plant and machinery5% - 33% Straight line
Fixtures and fittings10% - 33% Straight line
Motor vehicles20% Reducing balance
Computer equipment20% Straight line

The cost of freehold land is not depreciated.

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable and is charged to the Income Statement.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Financial instruments
The company and group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

(iii) Offsetting

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

Taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates that have been enacted or substantively enacted by the Statement of Financial Position date.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement.

Hire purchase and leasing commitments
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the group are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement. Rentals payable under operating leases are dealt with in the Income Statement as incurred over the period of the rental agreement.

Net finance expenses
Finance expenses:
Finance expenses comprise interest payable on borrowings and leases.

Finance income:
Finance income comprises interest receivable on funds invested in loans and cash and cash equivalents. Interest is recognised in profit or loss as it accrues.

Employee benefits
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

Investments in subsidiaries
Investments are held at cost.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

Distributions to equity holders
Dividends and other distributions to the group's shareholders are recognised as a liability in the
financial statements in the period in which the dividends and other distributions are approved by thegroup's shareholders. These amounts are recognised in the statement of changes in equity.

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Preference Share Capital
The preference shares are redeemable and non-voting. They carry a cumulative fixed 5% rate of return.

4. SIGNIFICANT JUDGEMENTS AND ESTIMATES

Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the entity's accounting policies
There are no critical judgements in applying the entity's accounting policies.

b) Key accounting estimates and assumptions
There are no critical accounting estimates and assumptions.

5. REVENUE

An analysis of revenue by class of business and geographical market is not given as, in the opinion of the Directors, this would be seriously prejudicial to the Group's interest.


6. EMPLOYEES AND DIRECTORS

The average number of employees, including directors employed during the year, was as follows:
Group Company
2023 2022 2023 2022
Production and processing staff 261 286 3 4
Admin staff 38 20 1 1
299 306 4 5


Staff costs, including directors' remuneration, for the above persons were as follows:
2023 2022
£    £   
Wages and salaries 9,242,454 7,432,287
Social security costs 772,100 659,252
Other pension costs 232,290 235,495
10,246,844 8,327,034


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023


Director emoluments during the year were as follows:

2023 2022
£    £   
Directors emoluments 1,517,935 548,970
Company contribution to defined pension schemes 12,768 5,982
1,530,703 554,952

During the year, retirement benefits were accruing to 3 director (2022: 3) in respect of defined benefit pension schemes. The directors are considered to be key management.

Information regarding the highest paid director is as follows:

2023 2022
£    £   
Directors' emoluments 617,964 259,843

The directors are considered to be the key management personnel of the group.

7. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Operating lease payments 57,744 54,429
Depreciation of tangible assets
- owned assets 4,000,066 3,422,904
Profit on disposal of fixed assets (262,595 ) (50,585 )
Goodwill amortisation 2,293,093 2,293,093
Fees payable to the company's auditors and their associates:
- the audit of the financial statements 44,300 21,755
- taxation compliance services 33,693 1,060
- advisory services 1,306 236,928
Foreign exchange differences 54,462 (108,462 )
Discounts received (4,985 ) (1,245 )
Amortisation of Government Grants (51,662 ) (63,999 )

8. FINANCE COSTS
2023 2022
£ £
Bank interest 824,150 452,855
Hire purchase interest 5,387 -
829,537 452,855

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 3,766,083 1,283,208
Adjustment in respect of prior
period (968,418 ) (42,954 )
Total current tax 2,797,665 1,240,254

Deferred tax:
Origination and reversal of temporary
differences and impact of rate change

951,038

797,058
Adjustment in respect of prior
period 56,266 336,175
Total deferred tax 1,007,304 1,133,233

Tax on profit 3,804,969 2,373,487

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 16,373,435 8,767,502
Profit multiplied by the standard rate of corporation tax in the UK
of 23.520 % (2022 - 19 %)

3,851,032

1,665,825

Effects of:
Expenses not deductible for tax purposes 259,963 16,840
Income not taxable for tax purposes - (14,578 )
Adjustments to tax charge in respect of previous periods (912,152 ) 111,260
Non-relevant depreciation 170,604 124,113
Movement in unrecognised deferred tax (175,953 ) -
Impact of super-deduction (23,018 ) (264,581 )
Impact of rate change 95,158 253,231
Losses not previously recognised - 45,689
Amortisation of goodwill 539,335 435,688
Total tax charge 3,804,969 2,373,487

10. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

11. DIVIDENDS
2023 2022
£ £
Ordinary shares of 1 each
Interim 40,000 45,000
Preference shares of 1 each
Interim 45,000 55,000
85,000 100,000

12. INTANGIBLE FIXED ASSETS

Group
Goodwill
£
COST
At 26 December 2022
and 25 December 2023 22,930,927
AMORTISATION
At 26 December 2022 2,701,909
Amortisation for year 2,293,093
At 25 December 2023 4,995,002
NET BOOK VALUE
At 25 December 2023 17,935,925
At 25 December 2022 20,229,018

The company did not hold intangible fixed assets at 31 March 2023 (2022: £Nil).

13. PROPERTY, PLANT AND EQUIPMENT

Group
Freehold Fixtures
land and Plant and and
property machinery fittings
£ £ £
COST
At 26 December 2022 35,153,771 33,981,600 241,433
Additions 2,090,425 4,844,522 98,568
Disposals - (1,387,189 ) -
At 25 December 2023 37,244,196 37,438,933 340,001
DEPRECIATION
At 26 December 2022 8,087,474 18,595,507 206,158
Charge for year 1,040,207 2,816,538 36,189
Eliminated on disposal - (1,254,648 ) -
At 25 December 2023 9,127,681 20,157,397 242,347
NET BOOK VALUE
At 25 December 2023 28,116,515 17,281,536 97,654
At 25 December 2022 27,066,297 15,386,093 35,275

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

13. PROPERTY, PLANT AND EQUIPMENT - continued

Group

Motor Computer
vehicles equipment Totals
£ £ £
COST
At 26 December 2022 847,600 235,176 70,459,580
Additions 258,050 4,195 7,295,760
Disposals (42,500 ) - (1,429,689 )
At 25 December 2023 1,063,150 239,371 76,325,651
DEPRECIATION
At 26 December 2022 494,508 191,637 27,575,284
Charge for year 87,792 19,340 4,000,066
Eliminated on disposal (4,923 ) - (1,259,571 )
At 25 December 2023 577,377 210,977 30,315,779
NET BOOK VALUE
At 25 December 2023 485,773 28,394 46,009,872
At 25 December 2022 353,092 43,539 42,884,296

Company
Freehold
land and Plant and
property machinery Totals
£ £ £
COST
At 26 December 2022 15,163,712 1,199,816 16,363,528
Additions 1,249,476 29,180 1,278,656
Disposals - (45,758 ) (45,758 )
At 25 December 2023 16,413,188 1,183,238 17,596,426
DEPRECIATION
At 26 December 2022 808,134 829,372 1,637,506
Charge for year 203,721 119,326 323,047
Eliminated on disposal - (28,202 ) (28,202 )
At 25 December 2023 1,011,855 920,496 1,932,351
NET BOOK VALUE
At 25 December 2023 15,401,333 262,742 15,664,075
At 25 December 2022 14,355,578 370,444 14,726,022

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

14. FIXED ASSET INVESTMENTS

Company


Shares in
group
undertakings
£
Cost at 26 December 2022 and 25 December 2023 7,172,535

The company's principal subsidiary is:
Direct Holding

Name
Country of
incorporation

Principal Activity

Share %

Ownership Class
Ready Egg
Products Limited

Northern Ireland

Egg processing

51

Ordinary Shares

The registered address of the subsidiary is 116 Crom Road, Milltate, Lisnaskea, Co. Fermanagh, BT92 0BN.

Indirect Holding

Name
Country of
incorporation

Principal Activity

Share %

Ownership Class
Skea Egg Farms
Limited

Northern Ireland

Egg processing

51

Ordinary Shares

The registered address of the subsidiary is 116 Crom Road, Milltate, Lisnaskea, Co. Fermanagh, BT92 0BN.

The aggregate capital, reserves and results of the company's subsidiary undertakings for the year were:

2023 2022
£ £
Capital and reserves
Ready Egg Products Limited 60,024,026 47,991,542
Skea Egg Farms Limited 15,014,798 13,589,889

Profit for financial year
Ready Egg Products Limited 13,032,484 6,353,494
Skea Egg Farms Limited 5,424,909 2,549,119

The directors believe that the carrying value of the investments is supported by their underlying net assets.

15. STOCKS

Group Company
2023 2022 2023 2022
£ £ £ £
Raw materials 2,765,804 4,113,668 - -
Finished goods 1,799,741 1,968,629 744,381 743,574
4,565,545 6,082,297 744,381 743,574

The replacement cost of inventories did not differ significantly from the figures shown.

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

16. RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Trade receivables 31,677,834 24,751,728 1,953 54,844
Amounts owed by group undertakings - - 465,959 47,012
Amounts owed by connected parties 320,192 161,433 - -
Other receivables 3,472,556 3,776,634 1,871,634 1,392,057
Tax 454,484 - - -
VAT 261,079 - - -
Prepayments 1,300,168 2,262,492 13,151 13,151
37,486,313 30,952,287 2,352,697 1,507,064

The amounts owed by group undertakings and connected parties are unsecured, interest free and payable on demand.

17. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Bank loans and overdrafts (see note 19)
2,770,696

5,452,820

668,362

902,147
Hire purchase contracts (see note 20) 24,260 29,528 1,851 29,528
Trade payables 18,030,274 12,743,059 133,657 47,410
Amounts owed to group undertakings - - 1,646,000 -
Amounts owed to participating interests 192,629 317,904 - -
Tax - 410,121 - -
Social security and other taxes 208,303 191,266 1,561 2,599
Other payables - 35,848 - -
Directors' current accounts 105,285 177,219 105,285 177,219
Accruals and deferred income 13,252,626 11,702,906 64,605 46,423
34,584,073 31,060,671 2,621,321 1,205,326

The amounts owed to participating interests are unsecured, interest free and repayable on demand.

18. PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR

Group Company
2023 2022 2023 2022
£ £ £ £
Bank loans (see note 19) 8,435,725 10,396,364 3,435,725 3,896,364
Hire purchase contracts (see note 20) 72,833 - - -
8,508,558 10,396,364 3,435,725 3,896,364

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

19. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£ £ £ £
Amounts falling due within one year or on demand:
Bank overdrafts 310,904 2,985,730 208,570 435,057
Bank loans 2,459,792 2,467,090 459,792 467,090
2,770,696 5,452,820 668,362 902,147
Amounts falling due between one and two years:
Bank loans - 1-2 years 2,460,072 2,473,248 460,072 473,248
Amounts falling due between two and five years:
Bank loans - 2-5 years 4,380,216 5,844,755 1,380,216 1,344,755
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 1,595,437 2,078,361 1,595,437 2,078,361

Bank loans due more than five years are repaid by 3 monthly installments and the interest is charged at 2.1%.

20. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£ £
Net obligations repayable:
Within one year 24,260 29,528
Between one and five years 72,833 -
97,093 29,528

Company
Hire purchase contracts
2023 2022
£ £
Net obligations repayable:
Within one year 1,851 29,528

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

21. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2023 2022 2023 2022
£ £ £ £
Bank overdrafts 310,904 2,985,730 208,570 435,057
Bank loans 10,895,517 12,863,454 3,895,517 4,363,454
Hire purchase contracts 97,093 29,528 - -
11,303,514 15,878,712 4,104,087 4,798,511

The bank loans of the Parent above are secured over any land holdings by the Company greater than 20 acres, a personal guarantee of £600,000 from Mr Charles Crawford and a floating charge over all present and future freehold / leasehold property and any rights attaching thereto, all rents, fixtures and fittings, plant, machinery, equipment, furniture, licences, goodwill, uncalled capital, choses in action, claims, intellectual property, debts, credit balances, negotiable instruments, insurances and other property.

The bank facilities of the subsidiary are secured by fixed charges over the property of Ready Egg Products Limited and a floating charge over the assets of the Company

Hire purchase liabilities are secured against the asset to which they relate.

22. FINANCIAL INSTRUMENTS

2023 2022
£ £
Carrying amount of financial assets in the Group
Measured at fair value through the income statement 35,470,582 28,217,936

Carrying amount of financial liabilities in the Group
Measured at amortised cost 42,884,328 40,855,619

23. PROVISIONS FOR LIABILITIES

Group
2023 2022
£ £
Deferred tax
Accelerated capital allowances 2,287,147 2,514,380
Deferred tax 1,234,537 -
3,521,684 2,514,380

Group
Deferred tax
£
Balance at 26 December 2022 2,514,380
Provided during year 1,007,304
Balance at 25 December 2023 3,521,684

24. GOVERNMENT GRANTS

Group
2023 2022
£ £
Deferred government grants 25,861 79,604

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

25. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
69,671 Ordinary 1 69,671 69,671
1,100,000 Preference 1 1,100,000 1,100,000
1,169,671 1,169,671

26. NON-CONTROLLING INTERESTS

2023 2022
£ £

Balance at start of year 23,594,783 20,882,325
Share of profit for the year 5,985,547 3,202,458
Dividend paid in the year (490,000 ) (490,000 )
Balance at end of year 29,090,330 23,594,783

27. PENSION COMMITMENTS

The company makes contributions to a defined contribution scheme, the assets of the scheme being held separately from the assets of the company. The pension cost charge represents contributions payable to the scheme and amounted to £232,290 (2022: £235,495). Contributions were payable to the scheme at the year end amounting to £12,573 (2022: £18,516).

28. CONTINGENT LIABILITIES

There is a contingent liability to repay certain government grants received under the terms of letters of offer from Invest Northern Ireland if the Company fails to honour certain undertakings and commitments. In the opinion of the directors the terms of the letters of offer have been complied with and no loss is expected.

29. CAPITAL COMMITMENTS
2023 2022
£ £
Contracted but not provided for in the
financial statements - 3,180,557

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

30. FINANCIAL COMMITMENTS

Group

Total future minimum lease payments under non-cancellable operating leases are as follows:


Land and
buildings
Land and
buildings
2023 20212
£ £
Due:
Within one year 30,000 30,000
30,000 30,000
Company

Total future minimum lease payments under non-cancellable operating leases are as follows:


Land and
buildings
Land and
buildings
2023 2022
£ £
Due:
Within one year 30,000 30,000
30,000 30,000

31. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ending 25 December 2023 and 25 December 2022.
2023 2022
£ £
Directors
Balance outstanding at the start of year (177,219 ) (43,588 )
Amounts advanced (11,977 ) -
Amounts repaid 83,911 (133,631 )
Balance outstanding at end of year (105,285 ) (177,219 )

32. RELATED PARTY DISCLOSURES

LOUGH ERNE INVESTMENTS LIMITED (REGISTERED NUMBER: NI613347)

Notes to the Consolidated Financial Statements - continued
FOR THE YEAR ENDED 25 DECEMBER 2023

Entities with control, joint control or significant influence over the entity

The group has identified the following transactions with non-wholly owned subsidiaries, which must be disclosed.

RELATED PARTY DISCLOSURES

During the year the following related party transactions were conducted under normal commercial terms:

Ready Egg Products Limited is regarded as a related party as Lough Erne Investments Limited hold 51% of the share capital in this entity. Lough Erne Investments have charged Ready Egg Products Limited a management charge of £479,838 (2022: £411,041).

Skea Egg farms Limited is regarded as a related party by virtue of Ready Egg Products limited holding 100% of the share capital. Lough Erne Investments have charged Skea Egg Farms Limited a management charge of £500,302 (2022: £489,546).

At the year end there were amounts due from related parties of £320,192 (2022: £161,433) disclosed within note 16.

At the year end there were amounts owed to related parties of £192,629 (2022: £317,904) disclosed within note 17.

At the year end there were amounts owed to the directors of £105,285 (2022: £177,219) disclosed within note 17. The directors are regarded as related parties due to their position in the company.

Mr Charles Crawford is regarded as a related party due to his position as a director in the company. As disclosed in note 21, Mr Crawford has provided personal guarantee to the bank.

The dividends of £85,000 were paid to directors by virtue of their shareholding in the company.

33. ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent undertaking is Lough Erne Investments Limited, a company incorporated in Northern Ireland.

The smallest and largest group for which consolidated accounts are prepared including the results of this company Lough Erne Investments Limited.

At year end the ultimate controlling party is Mr Charles Crawford.