Company registration number 02181268 (England and Wales)
PETS CHOICE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PETS CHOICE LIMITED
COMPANY INFORMATION
Directors
Anthony Raeburn
Hans-Jurgen Deuerer
Secretary
Scott Campbell
Company number
02181268
Registered office
Brentwood House
Lower Philips Road
Whitebirk Industrial Estate
Blackburn
Lancashire
BB1 5UD
Auditor
Taylor Viney & Marlow Limited
46-54 High Street
Ingatestone
Essex
CM4 9DW
PETS CHOICE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
12
Notes to the financial statements
13 - 33
PETS CHOICE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The company has continued to develop and invest in new and innovative products during the year with strong sales growth achieved (14.5%). We attribute this to our wide product range and excellent customer service levels.

 

The directors believe the company requires modern, efficient manufacturing processes to remain competitive, maintain quality standards and raise environmental, hygiene and safety standards. To drive forward their expansion strategy, the directors continue to invest in improvements to our production facilities.

 

The company's key performance indicators are outlined below:

 

Turnover increased by almost 15% (2022: 19%) driven by NPD, innovation and improved distribution. Gross margin has been maintained against the backdrop of significant commodity inflation by realising efficiencies from current and prior year investments.

 

Distribution and selling costs increased 22.5% year on year (2022: 10%). The rise in these costs as a percentage of turnover this is less than 0.5% year on year.

 

The company realised a profit before tax of £6.7m (2022: £5.8m). The directors believe their strategy for the company remains viable and are satisfied with the company's performance for the year given the current inflationary pressures facing the economy.

 

Financially, the company is weathering the inflationary pressures facing the global economy well, but has had to navigate volatility in shipping costs, volatility in exchange rates and rising production input costs. The directors have been working closely with all key stakeholders to limit any impacts and continue to monitor this on a daily basis.

Principal risks and uncertainties

The principal risks and uncertainties facing the business include:

- Maintaining key supplier and customer relationships. The company trades with a broad customer and supplier base. Close commercial relationships exist with all our suppliers and customers and there is a focus on maintaining these.

- Possible fluctuations in the price and availability of raw materials. Management proactively manage supply chain relationships and access to materials.

- Contamination of our products or their ingredients. Quality assurance processes are in place to ensure finished products are produced in accordance with regulatory requirements and applicable specifications.

- Major health & safety or environmental incident. Inspection and health & safety auditing processes are in place to minimise risk and insurance cover is maintained for insurable risk.

- Potential disruption to manufacturing and /​ or distribution in the event of circumstances beyond our control such as adverse weather, flood, fire, system failure or a major interruption in the supply of raw materials or finished product.

- Access to credit. The continued growth and expansion of the company's operations increases demand for credit. The company's financial position remains sufficiently strong and key personnel continue to focus on working capital management.

- Foreign currency risk management. Transactional currency exposures arise from transactions denominated in United States Dollars and Euros. Where possible the company avoids exchanging foreign currency into sterling so minimising exposure to exchange rate fluctuations.

PETS CHOICE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The future

The company operates in a robust market, although it remains a key challenge to manage the business in the context of global commodity input price instability and the strength of the pound sterling.

 

The maturity of the UK market and challenging routes to market continue to test management's ability to maintain our growth trajectory. However, we believe the right team is in place to achieve this while offering quality and value to our customers.

 

On behalf of the board

Anthony Raeburn
Director
16 August 2024
PETS CHOICE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the manufacture and distribution of pet related products.

Results and dividends

The results for the year are set out on page 9.

Ordinary interim dividends were paid amounting to £510,389. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Anthony Raeburn
Hans-Jurgen Deuerer
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Future developments

The directors currently have no plans for diversification, as detailed in the Strategic Report.

Auditor

The auditor, Taylor Viney & Marlow Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

PETS CHOICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Energy and carbon report

 

Streamlined Energy and Carbon Reporting

The company is committed to reducing the amount of energy used throughout the business and ultimately reducing the carbon footprint.

The data relates to UK emissions for the 12-month period from 1 January 2023 to 31 December 2023.
Pets Choice Ltd Energy Use and Associated Greenhouse Gas Emissions

Total energy consumption    16,552,312 kWh

Emissions from combustion of gas (Scope 1)    1,662.83 tCO2e

Emissions from purchased electricity (Scope 2)    1,545.25 tCO2e

Total gross emissions    3,208.08 tCO2e

 

 

Quantification and reporting methodology

 

The carbon emissions have been calculated in accordance with the Greenhouse Gas (GHG) Protocol. Using the 2023 government conversion factors of 0.20707 for electricity and 0.18293 for gas.

 

Intensity Ratio

We have chosen to report our gross emissions against total sales value £’000.

Intensity ratio; Tonnes of CO2e per £’000 of Turnover – 3.1% (This is an 3% reduction on the prior year)

Measures taken to improve energy efficiency

 

Pets Choice Limited are committed to reducing the Environmental impact of operations. In the period covered the company has continued to switched to LED lighting, the sustainability committee setup in 2021 considers all energy efficiency ratings when purchasing new equipment across the business and reviews energy saving and environmental initiatives.

PETS CHOICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Anthony Raeburn
Director
16 August 2024
PETS CHOICE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PETS CHOICE LIMITED
- 6 -
Opinion

We have audited the financial statements of Pets Choice Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

PETS CHOICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PETS CHOICE LIMITED
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Audit staff with sufficient knowledge and expertise to identify non-compliance with laws and regulations were deployed on the audit.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

PETS CHOICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PETS CHOICE LIMITED
- 8 -

Use of our report

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

David J. Stevens (Senior Statutory Auditor)
For and on behalf of Taylor Viney & Marlow Limited
16 August 2024
Chartered Accountants
Statutory Auditor
46-54 High Street
Ingatestone
Essex
CM4 9DW
PETS CHOICE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
108,693,708
94,882,697
Cost of sales
(73,366,000)
(68,048,855)
Gross profit
35,327,708
26,833,842
Distribution costs
(16,029,987)
(11,572,837)
Administrative expenses
(11,820,756)
(9,547,095)
Other operating income
43,846
50,590
Exceptional item
4
(600,000)
-
0
Operating profit
5
6,920,811
5,764,500
Interest receivable and similar income
9
-
0
1,067,314
Interest payable and similar expenses
10
(182,065)
(165,551)
Amounts written off investments
11
-
(864,383)
Profit before taxation
6,738,746
5,801,880
Tax on profit
12
(1,673,502)
(1,090,637)
Profit for the financial year
5,065,244
4,711,243

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PETS CHOICE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
14
1,488,319
1,843,622
Negative goodwill
14
-
0
(3,389)
Net goodwill
1,488,319
1,840,233
Other intangible assets
14
455,748
532,544
Total intangible assets
1,944,067
2,372,777
Tangible assets
15
11,492,836
11,399,198
Investments
16
134
134
13,437,037
13,772,109
Current assets
Stocks
18
12,318,490
12,989,957
Debtors falling due after more than one year
19
1,455,400
2,074,150
Debtors falling due within one year
19
22,098,766
19,696,261
Cash at bank and in hand
5,757,114
4,132,709
41,629,770
38,893,077
Creditors: amounts falling due within one year
20
(26,777,135)
(24,675,870)
Net current assets
14,852,635
14,217,207
Total assets less current liabilities
28,289,672
27,989,316
Creditors: amounts falling due after more than one year
21
-
0
(4,380,000)
Provisions for liabilities
Deferred tax liability
23
1,618,338
1,492,837
(1,618,338)
(1,492,837)
Net assets
26,671,334
22,116,479
Capital and reserves
Called up share capital
26
567,099
567,099
Other reserves
712,000
712,000
Profit and loss reserves
28
25,392,235
20,837,380
Total equity
26,671,334
22,116,479
PETS CHOICE LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
Anthony Raeburn
Director
Company registration number 02181268 (England and Wales)
PETS CHOICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Reserves provided for by the Articles of Association
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
567,099
712,000
16,636,526
17,915,625
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
4,711,243
4,711,243
Dividends
13
-
-
(510,389)
(510,389)
Balance at 31 December 2022
567,099
712,000
20,837,380
22,116,479
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
5,065,244
5,065,244
Dividends
13
-
-
(510,389)
(510,389)
Balance at 31 December 2023
567,099
712,000
25,392,235
26,671,334
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Pets Choice Limited is a private company limited by shares incorporated in England and Wales. The registered office and trading address is Brentwood House, Lower Philips Road, Whitebirk Industrial Estate, Blackburn, Lancashire, BB1 5UD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Pets Choice Limited is a subsidiary of P.F.I. Vitakraft GmbH and the results of Pets Choice Limited are included in the consolidated financial statements of P.F.I. Vitakraft GmbH which are available from the German company register.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.2
Business combinations

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

 

The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

 

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Going concern

Atruet 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.

1.4
Turnover

Turnover represents amounts receivable for goods and services supplied during the year net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

 

Negative goodwill arises where the price paid for an acquisition is less than the fair value of the net assets acquired. Negative goodwill is amortised over the period expected to benefit from the non-monetary assets it attaches to. The excess of the fair value over the price paid is recognised within non current assets.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.7
Intangible fixed assets other than goodwill

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

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

 

Intangible assets primarily comprise trade marks. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 10 years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.

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

Other intangibles
10 years straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land & Buildings
2% straight line
Leasehold improvements
2% straight line
Plant and machinery
10% or 20% or 33% on cost / 15% or 35% reducing balance
Fixtures & fittings
10% or 20% or 50% straight line
Office equipment
25% or 33% straight line
Motor vehicles
20% reducing balance

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.9
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.10
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is calculated using the FIFO method for outsourced raw materials and finished goods. Standard cost is used for manufactured goods.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Other financial assets

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss accounts over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred.

1.19
Foreign exchange

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

2
Judgements 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful life of Intangible Fixed Assets

Externally acquired intangible assets have a carrying value of £1,944k and have a finite life. Determining the useful life of these assets requires an estimation of the expected period in which economic benefits are expected to flow to the entity. This requires the entity to estimate the future cash flows expected to arise from each of the cash generating units and the period in which they will arise and continue for in the foreseeable to determine the appropriate period for goodwill to be amortised over.

 

Impairment of Stocks

Where necessary the company makes provision for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include an estimate of future demand.

 

Provision for overriders payable

The company has certain contractual and other constructive obligations to provide rebates to certain customers based upon particular criteria. A significant degree of estimation is required in determining the quantum of the provision.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
108,693,708
94,882,697
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
106,048,871
91,973,421
Rest of world
2,644,837
2,909,276
108,693,708
94,882,697
2023
2022
£
£
Other revenue
Interest income
-
220
Dividends received
-
1,067,094
Grants received
21,962
16,641
Rent recievable
15,738
16,738
4
Exceptional item
2023
2022
£
£
Expenditure
Loan waiver
600,000
-

In 2023, a fellow group company, Pet Food Brands Ltd, acquired the Bob Martin Trademarks which had previously been licenced to Pets Choice Limited. As part of the agreement Pets Choice Limited unconditionally waived its right to repayment of an amount totalling £600,000 that had been paid to Martin & Martin Holdings in advance of Royalties payable.

5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
214,314
108,203
Research and development costs
18,949
97,846
Government grants
(21,962)
(16,641)
Depreciation of owned tangible fixed assets
1,848,790
1,596,190
Profit on disposal of tangible fixed assets
(589)
(3,000)
Amortisation of intangible assets
428,709
339,660
Operating lease charges
368,181
344,353
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Operating profit
(Continued)
- 21 -

The amortisation of intangible assets is included within administration expenses.

6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,093
49,124
For other services
All other non-audit services
15,000
15,000
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration and Selling
119
104
Production and distribution
217
209
Total
336
313

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
11,556,001
10,395,632
Social security costs
915,866
840,056
Pension costs
285,868
264,950
12,757,735
11,500,638

Included in wages and salaries is temporary staff costs of £1,430,359 (2022: £1,526,233).

8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
103,226
102,898
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
220
Income from fixed asset investments
Income from shares in group undertakings
-
0
1,067,094
Total income
-
0
1,067,314
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
98,626
141,474
Interest on invoice finance arrangements
75,326
16,832
Other interest on financial liabilities
8,113
6,756
Interest on finance leases and hire purchase contracts
-
489
182,065
165,551
11
Amounts written off investments
2023
2022
£
£
Gain/(loss) on disposal of fixed asset investments
-
0
(864,383)
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,548,194
1,103,622
Adjustments in respect of prior periods
(193)
-
0
Total current tax
1,548,001
1,103,622
Deferred tax
Origination and reversal of timing differences
125,501
(12,985)
Total tax charge
1,673,502
1,090,637

The standard rate of corporation tax has changed from the previous period following changes in legislation.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
6,738,746
5,801,880
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,584,990
1,102,357
Tax effect of expenses that are not deductible in determining taxable profit
(3,827)
4,740
Permanent capital allowances in excess of depreciation
(29,081)
(323,449)
Depreciation on assets not qualifying for tax allowances
19,982
303,276
Amortisation on assets not qualifying for tax allowances
101,631
55,213
Under/(over) provided in prior years
(193)
-
0
Deferred tax adjustments in respect of prior years
-
0
(12,985)
Dividend income
-
0
(202,748)
Losses not deducible
-
0
164,233
Taxation charge for the year
1,673,502
1,090,637
13
Dividends
2023
2022
£
£
Interim paid
510,389
510,389
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
14
Intangible fixed assets
Goodwill
Negative goodwill
Other intangibles
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
3,553,037
(502,393)
768,053
3,818,697
Amortisation and impairment
At 1 January 2023
1,709,414
(499,003)
235,510
1,445,921
Amortisation charged for the year
355,304
(3,390)
76,795
428,709
At 31 December 2023
2,064,718
(502,393)
312,305
1,874,630
Carrying amount
At 31 December 2023
1,488,319
-
0
455,748
1,944,067
At 31 December 2022
1,843,622
(3,389)
532,544
2,372,777

The carrying amount of goodwill on the acquisition of the trade and assets or brands of the following businesses at 31 December 2023 and their remaining useful economic lives were as follows;

 

The Tasty Bone Co. Limited - £373,544 with UEL of 2 years.

Spike's World Ltd - £305,719 with UEL of 3 years.

The Hatchwell Company Ltd - £720,000 with UEL of 9 years.

Rufus Foods Brand - £49,500 with UEL of 5 years.

Animate pet products Brand - £39,556 with UEL of 7 years.    

 

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
15
Tangible fixed assets
Land & Buildings
Leasehold improvements
Assets under construction
Plant and machinery
Fixtures & fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
66,261
2,536,911
-
0
18,557,171
3,232,973
1,069,052
240,134
25,702,502
Additions
48,692
-
0
848,574
748,114
97,709
201,750
-
0
1,944,839
Disposals
-
0
-
0
-
0
(3,071)
-
0
-
0
-
0
(3,071)
At 31 December 2023
114,953
2,536,911
848,574
19,302,214
3,330,682
1,270,802
240,134
27,644,270
Depreciation and impairment
At 1 January 2023
-
0
588,670
-
0
11,418,514
1,334,308
736,216
225,596
14,303,304
Depreciation charged in the year
220
65,939
-
0
1,325,069
323,036
130,398
4,128
1,848,790
Eliminated in respect of disposals
-
0
-
0
-
0
(660)
-
0
-
0
-
0
(660)
At 31 December 2023
220
654,609
-
0
12,742,923
1,657,344
866,614
229,724
16,151,434
Carrying amount
At 31 December 2023
114,733
1,882,302
848,574
6,559,291
1,673,338
404,188
10,410
11,492,836
At 31 December 2022
66,261
1,948,241
-
0
7,138,657
1,898,665
332,836
14,538
11,399,198
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Tangible fixed assets
(Continued)
- 26 -

The company's bankers hold a first legal charge over specific tangible fixed assets and a debenture over all assets of the company in relation to amounts owed to them.

 

 

16
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
17
134
134

The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.

17
Subsidiaries

Separate company financial statements are required to be prepared by law. Consolidated financial statements for the group are prepared and publicly available and include the subsidiary of Pets Choice Ltd.

These financial statements are separate company financial statements for Pets Choice Ltd.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Pets Choice Healthcare Ltd
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
38 Main Street, Swords, CO Dublin 650010 Ireland
18
Stocks
2023
2022
£
£
Raw materials and consumables
3,775,056
4,100,463
Work in progress
563,463
498,095
Finished goods and goods for resale
7,979,971
8,391,399
12,318,490
12,989,957
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
20,387,639
18,953,016
Corporation tax recoverable
-
0
13,999
Other debtors
723,632
162,802
Prepayments and accrued income
987,495
566,444
22,098,766
19,696,261
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
1,455,400
1,455,400
Prepayments and accrued income
-
0
618,750
1,455,400
2,074,150
Total debtors
23,554,166
21,770,411
20
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
13,087,732
10,760,015
Amounts owed to group undertakings
4,160,490
4,890,620
Corporation tax
1,547,026
1,067,906
Other taxation and social security
2,497,587
3,016,605
Government grants
24
280,019
301,981
Other creditors
2,499,107
1,989,577
Accruals and deferred income
2,705,174
2,649,166
26,777,135
24,675,870
21
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
22
-
0
4,380,000
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
22
Loans and overdrafts
2023
2022
£
£
Bank loans
-
0
4,380,000
Payable after one year
-
0
4,380,000

The long term bank loan was repaid during the year.

 

 

23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated Capital Allowances
1,618,338
1,492,837
2023
Movements in the year:
£
Liability at 1 January 2023
1,492,837
Charge to profit or loss
125,501
Liability at 31 December 2023
1,618,338
24
Government grants
2023
2022
£
£
Arising from government grants
280,019
301,981

Government grants relate to amounts received for assistance with expenditure on projects approved by the Accelerating Business Growth Programme to redevelop an industrial site and create new jobs.

PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
285,868
264,950

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.

 

26
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
56,709,866
56,709,866
567,099
567,099

The company has one class of ordinary shares which carry no right to fixed income.

27
Reserves provided for by the Articles of Association
2023
2022
£
£
At the beginning and end of the year
712,000
712,000

In 1995 the High Court confirmed a reduction in the share capital and share premium account of the company to offset the deficit on the profit and loss account of the company at 31 March 1995. This resulted in the creation of the capital reserve.

28
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
20,837,380
16,636,526
Profit for the year
5,065,244
4,711,243
Dividends declared and paid in the year
(510,389)
(510,389)
At the end of the year
25,392,235
20,837,380
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
29
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
394,824
516,681
Between two and five years
1,212,468
1,930,139
In over five years
886,848
989,525
2,494,140
3,436,345
30
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
112,200
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
31
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
-
0
91,258
30,875,616
32,154,648
-
91,258
30,875,616
32,154,648
Advertising charges payable
2023
2022
£
£
Other related parties
128,977
132,779

During the year the company incurred finance charges from other related parties totalling £6,755 (2022: £6,755). This amount was unpaid at the balance sheet date and is included within creditors.

 

During the year management charges payable to entities with control, joint control or significant influence over the company totalled £728,367 (2022: £951,316).

 

During the year royalties payable to entities with control, joint control or significant influence over the company totalled £483,476 (2022: £nil).

 

During the year rent payable to entities with control, joint control or significant influence over the company totalled £210,000 (2022: £210,000).

 

 

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
4,160,356
4,890,486
Entities over which the entity has control, joint control or significant influence
134
134
Other related parties
7,908,148
5,898,144
12,068,638
10,788,764
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
31
Related party transactions
(Continued)
- 32 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
1,455,400
1,455,400
1,455,400
1,455,400
PETS CHOICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
31
Related party transactions
(Continued)
- 33 -
Other information

The company has guaranteed the borrowings of its parent company, Pet Food Brands Limited. At 31 December 2023, the contingent liability in respect of this guarantee was £10,806,793 (2022 - £10,806,793).

 

The company has guaranteed the obligation of Pet Food Brands Ltd in relation to its purchase of licenced trademarks from Martin & Martin Holdings Ltd. At 31 December 2023, the contingent liability in respect of this guarantee was £3,000,000.

32
Ultimate controlling party

The immediate parent company is Pet Food Brands Ltd whose registered office is Brentwood House, Lower Philips Road, Whitebirk Industrial Estate, Blackburn, Lancashire BB1 5UD.

 

The ultimate parent undertaking is P.F.I. Vitakraft GmbH, a company incorporated in Germany.

 

At the balance sheet date, P.F.I. Vitakraft GmbH was the parent undertaking of the largest and smallest group within which the subsidiary belonged and for which consolidated financial statements were prepared. The registered office address of P.F.I. Vitakraft GmbH is at Mahndorfer Heerstr. 928307 Bremen. The consolidated financial statements are available from the German company register.

 

 

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