Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-01-01falseThe principal activities of the company continued to be that of the wholesale of confectionery.30falsefalse26false NI614585 2023-01-01 2023-12-31 NI614585 2022-01-01 2022-12-31 NI614585 2023-12-31 NI614585 2022-12-31 NI614585 2022-01-01 NI614585 5 2023-01-01 2023-12-31 NI614585 5 2022-01-01 2022-12-31 NI614585 6 2023-01-01 2023-12-31 NI614585 6 2022-01-01 2022-12-31 NI614585 d:CompanySecretary1 2023-01-01 2023-12-31 NI614585 d:Director1 2023-01-01 2023-12-31 NI614585 d:Director2 2023-01-01 2023-12-31 NI614585 d:Director3 2023-01-01 2023-12-31 NI614585 d:RegisteredOffice 2023-01-01 2023-12-31 NI614585 d:Agent1 2023-01-01 2023-12-31 NI614585 e:Buildings 2023-01-01 2023-12-31 NI614585 e:Buildings 2023-12-31 NI614585 e:Buildings 2022-12-31 NI614585 e:Buildings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI614585 e:MotorVehicles 2023-01-01 2023-12-31 NI614585 e:MotorVehicles 2023-12-31 NI614585 e:MotorVehicles 2022-12-31 NI614585 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI614585 e:FurnitureFittings 2023-01-01 2023-12-31 NI614585 e:FurnitureFittings 2023-12-31 NI614585 e:FurnitureFittings 2022-12-31 NI614585 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI614585 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI614585 e:Goodwill 2023-01-01 2023-12-31 NI614585 e:Goodwill 2023-12-31 NI614585 e:Goodwill 2022-12-31 NI614585 e:ComputerSoftware 2023-12-31 NI614585 e:ComputerSoftware 2022-12-31 NI614585 e:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 NI614585 e:CurrentFinancialInstruments 2023-12-31 NI614585 e:CurrentFinancialInstruments 2022-12-31 NI614585 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 NI614585 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 NI614585 e:ReportableOperatingSegment5 2023-01-01 2023-12-31 NI614585 e:ReportableOperatingSegment5 2022-01-01 2022-12-31 NI614585 f:UnitedKingdom 2023-01-01 2023-12-31 NI614585 f:UnitedKingdom 2022-01-01 2022-12-31 NI614585 e:UKTax 2023-01-01 2023-12-31 NI614585 e:UKTax 2022-01-01 2022-12-31 NI614585 e:ShareCapital 2023-12-31 NI614585 e:ShareCapital 2022-12-31 NI614585 e:ShareCapital 2022-01-01 NI614585 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 NI614585 e:RetainedEarningsAccumulatedLosses 2023-12-31 NI614585 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 NI614585 e:RetainedEarningsAccumulatedLosses 2022-12-31 NI614585 e:RetainedEarningsAccumulatedLosses 2022-01-01 NI614585 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 NI614585 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 NI614585 d:OrdinaryShareClass1 2023-01-01 2023-12-31 NI614585 d:OrdinaryShareClass1 2023-12-31 NI614585 d:OrdinaryShareClass1 2022-12-31 NI614585 d:OrdinaryShareClass2 2023-01-01 2023-12-31 NI614585 d:OrdinaryShareClass2 2023-12-31 NI614585 d:OrdinaryShareClass2 2022-12-31 NI614585 d:FRS102 2023-01-01 2023-12-31 NI614585 d:Audited 2023-01-01 2023-12-31 NI614585 d:FullAccounts 2023-01-01 2023-12-31 NI614585 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 NI614585 2 2023-01-01 2023-12-31 NI614585 e:Goodwill e:OwnedIntangibleAssets 2023-01-01 2023-12-31 NI614585 e:ComputerSoftware e:OwnedIntangibleAssets 2023-01-01 2023-12-31 NI614585 g:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: NI614585










NORTHERN CONFECTIONERS LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
NORTHERN CONFECTIONERS LTD
 

COMPANY INFORMATION


Directors
Brian Devlin 
Mary Devlin 
Maurice Devin 




Company secretary
Mary Devlin



Registered number
NI614585



Registered office
58 Old Eglish Road
Dungannon

Co Tyrone

BT71 7PA




Independent auditors
FPM Accountants Limited

Howard House

30 Northland Row

Dungannon

Co. Tyrone

BT71 6AP




Bankers
Danske Bank
1-6 Donegall Square West

Belfast

Co Antrim

BT1 6JS





 
NORTHERN CONFECTIONERS LTD
 

CONTENTS



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


 
NORTHERN CONFECTIONERS LTD
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The principal activity of the company continued to be that of the wholesale of confectionery.
There has been no significant change in these activities during the year ended 31 December 2023.

Business review
 
Turnover has increased by 12.4% to £21.6m in the year ended 31 December 2023 relative to turnover of £19.2m achieved in the year ended 31 December 2022. Gross margin has increased from 9.8% for the year ended 31 December 2022 to 10.9% for the year ended 31 December 2023. Net assets for the year ended 31 December 2023 were £5.2m (2022: £4.3m).
The directors consider the results for the year to be satisfactory given the increase in annualised turnover and operating profits.
The directors have reviewed future cash forecasts for the company’s activities and believe that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
The directors are committed to long term creation of shareholder value by increasing the company’s market share 

Principal risks and uncertainties
 
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks relate to competition and product costs.
The company's operations expose it to financial risks mainly the effects of changes in credit risk. The board reviews and agrees policies for the prudent management of these risks as follows: 
Credit risk
Customers who wish to trade on credit terms are subject to strict verification procedures in advance of credit being awarded and are continually being monitored.
Inflation risk
As a result of the rising rate of inflation the company has seen the impact of this through rising costs. The company have an economic policy in place to review costs regularly and to minimise the impact of these rising costs where possible.

Financial key performance indicators
 
The company's key performance indicators are as follows:

2023
2022
        £
        £
Increase in turnover

12.4%

3.1%
 
Gross profit margin

10.8%

9.8%
 
Shareholders Equity

£5.2m

£4.3m
 

Page 1

 
NORTHERN CONFECTIONERS LTD
 

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


This report was approved by the board on 21 March 2024 and signed on its behalf.



................................................
Brian Devlin
Director

Page 2

 
NORTHERN CONFECTIONERS LTD
 

 
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.

Results and dividends

The profit for the year, after taxation, amounted to £893,092 (2022 - £681,925).

Ordinary dividends were paid amounting to £24,000. The directors do not recommend payment of a final dividend.
No preference dividends were paid. 

Directors

The directors who served during the year and up to the date of signing the financial statements were:

Brian Devlin 
Mary Devlin 
Maurice Devin 

Directors' responsibilities statement

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

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


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

make 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 Company will continue in business.

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

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'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's auditors are aware of that information.

Page 3

 
NORTHERN CONFECTIONERS LTD
 

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

Post balance sheet events

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

Auditors

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

This report was approved by the board on 21 March 2024 and signed on its behalf.
 





................................................
Brian Devlin
Director

Page 4

 
NORTHERN CONFECTIONERS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHERN CONFECTIONERS LTD
 

Opinion


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


In our opinion the financial statements:


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


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our 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.


Page 5

 
NORTHERN CONFECTIONERS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHERN CONFECTIONERS LTD (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 
NORTHERN CONFECTIONERS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHERN CONFECTIONERS LTD (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 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 obtained an understanding of the legal and regulatory framework applicable to the company through enquiry of management, industry research and the application of cumulative audit knowledge. We identified the following principal laws and regulations relevant to the company – Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 
We developed an understanding of the key fraud risks to the entity (including how fraud might occur), the controls in place to help mitigate those risks, and the accounts, balances and disclosures within the financial statements which may be susceptible to management bias. Our understanding was obtained through review of the financial statements for significant accounting esti


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


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


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Page 7

 
NORTHERN CONFECTIONERS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHERN CONFECTIONERS LTD (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.





Deborah Mullen (Senior statutory auditor)
for and on behalf of
FPM Accountants Limited
Statutory Auditors
Howard House
30 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

21 March 2024
Page 8

 
NORTHERN CONFECTIONERS LTD
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
21,552,381
19,181,557

Cost of sales
  
(19,201,242)
(17,298,294)

Gross profit
  
2,351,139
1,883,263

Administrative expenses
  
(1,218,222)
(1,025,885)

Operating profit
 5 
1,132,917
857,378

Interest receivable and similar income
 9 
28,095
2,601

Profit before tax
  
1,161,012
859,979

Tax on profit
 10 
(267,920)
(178,054)

Profit for the financial year
  
893,092
681,925

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

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

Page 9

 
NORTHERN CONFECTIONERS LTD
REGISTERED NUMBER: NI614585

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
3,985
7,970

Tangible assets
 13 
1,979,214
1,833,718

  
1,983,199
1,841,688

Current assets
  

Stocks
 14 
1,959,367
1,890,503

Debtors: amounts falling due within one year
 15 
1,342,145
1,496,637

Cash at bank and in hand
 16 
2,404,122
2,214,009

  
5,705,634
5,601,149

Creditors: amounts falling due within one year
 17 
(2,410,220)
(3,039,753)

Net current assets
  
 
 
3,295,414
 
 
2,561,396

Total assets less current liabilities
  
5,278,613
4,403,084

Provisions for liabilities
  

Deferred tax
 18 
(116,945)
(110,508)

  
 
 
(116,945)
 
 
(110,508)

Net assets
  
5,161,668
4,292,576


Capital and reserves
  

Called up share capital 
 19 
1,200,100
1,200,100

Profit and loss account
  
3,961,568
3,092,476

  
5,161,668
4,292,576


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 March 2024.




................................................
Brian Devlin
Director

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

Page 10

 
NORTHERN CONFECTIONERS LTD
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,200,100
2,410,551
3,610,651


Comprehensive income for the year

Profit for the year
-
681,925
681,925



At 1 January 2023
1,200,100
3,092,476
4,292,576


Comprehensive income for the year

Profit for the year
-
893,092
893,092


Contributions by and distributions to owners

Dividends: Equity capital
-
(24,000)
(24,000)


At 31 December 2023
1,200,100
3,961,568
5,161,668


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

Page 11

 
NORTHERN CONFECTIONERS LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
893,092
681,925

Adjustments for:

Amortisation of intangible assets
3,985
3,985

Depreciation of tangible assets
78,938
38,681

Loss on disposal of tangible assets
-
(1,725)

Interest received
(28,095)
(2,601)

Taxation charge
267,920
178,054

(Increase) in stocks
(68,864)
(855,658)

Decrease/(increase) in debtors
154,492
(244,572)

(Decrease)/increase in creditors
(393,586)
364,870

Corporation tax (paid)
(78,680)
(122,521)

Net cash generated from operating activities

829,202
40,438


Cash flows from investing activities

Purchase of tangible fixed assets
(224,434)
(1,543,663)

Sale of tangible fixed assets
-
3,240

Interest received
28,095
2,601

Net cash from investing activities

(196,339)
(1,537,822)

Cash flows from financing activities

Loans due from/(repaid to) directors
(442,750)
360,500

Net cash used in financing activities
(442,750)
360,500

Net increase/(decrease) in cash and cash equivalents
190,113
(1,136,884)

Cash and cash equivalents at beginning of year
2,214,009
3,350,893

Cash and cash equivalents at the end of year
2,404,122
2,214,009


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,404,122
2,214,009

2,404,122
2,214,009


Page 12

 
NORTHERN CONFECTIONERS LTD
 

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

1.


General information

Northern Confectioners Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is 58 Old Eglish Road, Dungannon, Co. Tyrone, Northern Ireland, BT71 7PA. 
The principal activity of the company continued to be that of the wholesale of confectionery.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 
2.3

Revenue

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

Sale of goods

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

 
2.4

Operating leases: the Company as lessee

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

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.

Page 13

 
NORTHERN CONFECTIONERS LTD
 

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

2.Accounting policies (continued)

 
2.5

Interest income

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

 
2.6

Pensions

Defined contribution pension plan

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

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

 
2.7

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 balance sheet date.

Page 14

 
NORTHERN CONFECTIONERS LTD
 

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

2.Accounting policies (continued)

 
2.8

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 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 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
Other intangible fixed assets
-
4
years

 
2.9

Tangible fixed assets

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

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
2%
Straight line
Motor vehicles
-
25%
Reducing balance
Fixtures and fittings
-
15%
Reducing balance

 
2.10

Stocks

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

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

 
2.11

Debtors

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

Page 15

 
NORTHERN CONFECTIONERS LTD
 

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

2.Accounting policies (continued)

 
2.12

Cash and cash equivalents

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

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

 
2.13

Creditors

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

 
2.14

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.

 
2.15

Financial instruments

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

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 
Page 16

 
NORTHERN CONFECTIONERS LTD
 

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

2.Accounting policies (continued)


2.15
Financial instruments (continued)


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

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

Financial liabilities

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

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

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

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

Derecognition of financial assets

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

Derecognition of financial liabilities

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

 
2.16

Dividends

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

Page 17

 
NORTHERN CONFECTIONERS LTD
 

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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Confectionery
21,552,381
19,181,557

21,552,381
19,181,557


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
21,552,381
19,181,557

21,552,381
19,181,557



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
-
4,000

Depreciation of owned tangible fixed assets
78,938
38,681

Profit on disposal of tangible fixed assets
-
(1,725)

Amortisation of intangible assets
3,985
3,985

Page 18

 
NORTHERN CONFECTIONERS LTD
 

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

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
6,375
6,120

7.


Employees

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


2023
2022
£
£

Wages and salaries
739,165
553,040

Social security costs
66,452
47,858

Cost of defined contribution scheme
42,506
35,187

848,123
636,085


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


        2023
        2022
            No.
            No.







Sales and admin
9
9



Warehouse and delivery
21
17

30
26


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
12,576
10,689

Company contributions to defined contribution pension schemes
25,000
25,000

37,576
35,689


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

Page 19

 
NORTHERN CONFECTIONERS LTD
 

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

9.


Interest receivable

2023
2022
£
£


Other interest receivable
28,095
2,601

28,095
2,601


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
261,483
78,680


261,483
78,680


Total current tax
261,483
78,680

Deferred tax


Origination and reversal of timing differences
6,437
99,374

Total deferred tax
6,437
99,374


Tax on profit
267,920
178,054

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
£
£


Profit on ordinary activities before tax
1,161,012
859,979


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
272,838
163,396

Effects of:


Capital allowances for year in excess of depreciation
(11,355)
(84,716)

Deferred taxation
6,437
99,374

Total tax charge for the year
267,920
178,054

Page 20

 
NORTHERN CONFECTIONERS LTD
 

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


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2023
2022
£
£


Final dividend
24,000
-

24,000
-


12.


Intangible assets




Website development
Goodwill
Total

£
£
£



Cost


At 1 January 2023
15,940
1,100,000
1,115,940



At 31 December 2023

15,940
1,100,000
1,115,940



Amortisation


At 1 January 2023
7,970
1,100,000
1,107,970


Charge for the year on owned assets
3,985
-
3,985



At 31 December 2023

11,955
1,100,000
1,111,955



Net book value



At 31 December 2023
3,985
-
3,985



At 31 December 2022
7,970
-
7,970



Page 21

 
NORTHERN CONFECTIONERS LTD
 

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

13.


Tangible fixed assets





Freehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
1,711,901
223,355
91,158
2,026,414


Additions
137,855
33,500
53,079
224,434



At 31 December 2023

1,849,756
256,855
144,237
2,250,848



Depreciation


At 1 January 2023
4,537
147,823
40,336
192,696


Charge for the year on owned assets
36,995
27,258
14,685
78,938



At 31 December 2023

41,532
175,081
55,021
271,634



Net book value



At 31 December 2023
1,808,224
81,774
89,216
1,979,214



At 31 December 2022
1,707,364
75,532
50,822
1,833,718


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
1,959,367
1,890,503

1,959,367
1,890,503



15.


Debtors

2023
2022
£
£


Trade debtors
1,300,733
1,425,373

Other debtors
-
31,881

Prepayments and accrued income
41,412
39,383

1,342,145
1,496,637


Trade debtors is stated net of a provision for doubtful debts of £407,572 (2022: £382,723).

Page 22

 
NORTHERN CONFECTIONERS LTD
 

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

16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,404,122
2,214,009

2,404,122
2,214,009



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,230,684
1,767,275

Corporation tax
261,483
78,680

Other taxation and social security
84,866
12,208

Other creditors
755,640
1,174,390

Accruals and deferred income
77,547
7,200

2,410,220
3,039,753



18.


Deferred taxation




2023


£






At beginning of year
(110,508)


Charged to profit or loss
(6,437)



At end of year
(116,945)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(116,945)
(110,508)

(116,945)
(110,508)

Page 23

 
NORTHERN CONFECTIONERS LTD
 

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

19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary Shares shares of £1.00 each
100
100
1,200,000 (2022 - 1,200,000) Preference Shares shares of £1.00 each
1,200,000
1,200,000

1,200,100

1,200,100


20.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,214,009

190,113

2,404,122

Debt due within 1 year

-

-

-


2,214,009
190,113
2,404,122


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £42,506 (2022 - £35,187).


22.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the balance sheet date.


23.


Related party transactions

During the year the company was charged rent of £nil (2022: £4,000) by Maurice Devlin, a director and shareholder in the company.


24.


Controlling party

The ultimate controlling parties are Mr Brian Devlin and Mrs Mary Devlin due to their equity shareholding in the company.


Page 24