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Registered number: 11427292










KEPAK HUDDERSFIELD LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
KEPAK HUDDERSFIELD LIMITED
 

CONTENTS



Page
Company Information
 
 
1
Strategic Report
 
 
2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 9
Statement of Comprehensive Income
 
 
10
Statement of Financial Position
 
 
11
Statement of Changes in Equity
 
 
12
Statement of Cash Flows
 
 
13
Analysis of Net Debt
 
 
14
Notes to the Financial Statements
 
 
15 - 22


 
KEPAK HUDDERSFIELD LIMITED
 

COMPANY INFORMATION


DIRECTORS
Simon Walker 
Robert Grogan 
John Horgan 




COMPANY SECRETARY
Walter Martin



REGISTERED NUMBER
11427292



REGISTERED OFFICE
The Snackhouse
St. Georges Park

Kirkham

Preston

PR4 2DZ




INDEPENDENT AUDITORS
HSOC Accountants Limited
Chartered Accountants and Statutory Audit Firm

Adelaide House

90 Upper George’s Street

Dun Laoghaire

Co. Dublin




BANKERS
Allied Irish Banks
City Business Centre

26 Finsbury Square

London

EC2A 1DS




SOLICITORS
Forbes Solicitors
Oak House

28 Sceptre Way

Walton Summit

Preston

Lancashire

PR5 6AW




Page 1

 
KEPAK HUDDERSFIELD LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

BUSINESS REVIEW
 
The Company's turnover was £10,103,997 (2022 - £30,542,904). Net assets at 31 December 2023 amounted to £79,264 (2022 - £7,920). The Company ceased trading as a meat proceesor in 2020 and began wholesaling food in 2021. In 2020, the Directors had disposed of the majority of the assets and discharged in full most of the third party liabilities of the business.

PRINCIPAL RISKS AND UNCERTAINTIES
 
Economic Risk
The Company’s trading is significantly influenced by (i) the availability and pricing of high quality beef and lamb stocks, (ii) the risk of increased interest rates and/or inflation having an adverse impact on served markets, (iii) the risk of unrealistic increases in wages or infrastructural cost impacting adversely on competitiveness of the Company and its principal customers and (iv) the risk of adverse exchange movements. The Company actively manages its purchasing activity by innovative product sourcing to ensure an adequate supply of stocks to meet market requirements. These risks are also managed by strict control of costs. Foreign exchange exposure is actively managed using both forward foreign exchange contracts and currency contracts.
Competition Risk
The Company has traditionally been at risk from competitors, using tactics such as predatory pricing, looking to damage key customer relationships. The Directors of the Company manage competition risk through paying close attention to customer service levels and by distinguishing the Company from our competitors through innovation of both products and services.
Environmental Risk
The Company is continually at risk from the various animal and human health scares that are linked to food. In recent years, this has included foot and mouth disease, avian flu and BSE. The Company has developed product quality and traceability systems to minimise the potential risks from all known sources.
Financial Risk
The Company has budgetary and financial reporting procedures, supported by appropriate key performance indicators, to manage credit, liquidity and other financial risk.

FINANCIAL KEY PERFORMANCE INDICATORS
 
The Directors are in the process of compiling a set of Financial KPI's for the Company.


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





Robert Grogan
Director

Date: 19 September 2024

Page 2

 
KEPAK HUDDERSFIELD LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors are responsible for preparing the 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;

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.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £71,344 (2022 -£9,772).

No dividends or transfers to reserves are recommended by the Directors (2022 - £Nil).

DIRECTORS

The Directors who served during the year were:

Simon Walker 
Robert Grogan 
John Horgan 

FUTURE DEVELOPMENTS

It is the intention of the Directors to continue to develop the activities of the Company.

Page 3

 
KEPAK HUDDERSFIELD LIMITED
 

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

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company'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.

POST BALANCE SHEET EVENTS

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

AUDITORS

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

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





Robert Grogan
Director

Date: 19 September 2024

Page 4

 
KEPAK HUDDERSFIELD LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK HUDDERSFIELD LIMITED
 

OPINION


We have audited the financial statements of Kepak Huddersfield Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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.


Page 5

 
KEPAK HUDDERSFIELD LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK HUDDERSFIELD LIMITED (CONTINUED)


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The Directors are responsible for the other information contained within the Annual 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.


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.


Page 6

 
KEPAK HUDDERSFIELD LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK HUDDERSFIELD LIMITED (CONTINUED)


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 7

 
KEPAK HUDDERSFIELD LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK HUDDERSFIELD LIMITED (CONTINUED)


AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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:
Based on understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006. 
We evaluated the Directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions. 
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
• Discussing with the Directors and management their policies and procedures regarding compliance with laws and regulations;
• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
• Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud. 
Our audit procedures in relation to fraud included but were not limited to:
• Making enquiries of the Directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
• Gaining an understanding of the internal controls established to mitigate risks related to fraud;
• Discussing amongst the engagement team the risks of fraud; and
• Addressing the risks of fraud through management override of controls by performing journal entry testing.
 
Page 8

 
KEPAK HUDDERSFIELD LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEPAK HUDDERSFIELD LIMITED (CONTINUED)



There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


USE OF OUR REPORT
 

This report is made solely to the Company's members, 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.





Hugh McGeown, FCA (Senior Statutory Auditor)
for and on behalf of
HSOC Accountants Limited
Chartered Accountants and Statutory Audit Firm

23 September 2024
Page 9

 
KEPAK HUDDERSFIELD LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
10,103,997
30,542,904

Cost of sales
  
(9,694,149)
(29,605,458)

GROSS PROFIT
  
409,848
937,446

Distribution costs
  
(93,634)
(832,575)

Administrative expenses
  
(212,577)
(12,991)

OPERATING PROFIT
  
103,637
91,880

Interest payable and similar expenses
 7 
(36,293)
(72,516)

PROFIT BEFORE TAX
  
67,344
19,364

Tax on profit
 8 
4,000
(9,592)

PROFIT FOR THE FINANCIAL YEAR
  
71,344
9,772

OTHER COMPREHENSIVE INCOME FOR THE YEAR
  

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
  
71,344
9,772

The notes on pages 15 to 22 form part of these financial statements.

Page 10

 
KEPAK HUDDERSFIELD LIMITED
REGISTERED NUMBER: 11427292

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

CURRENT ASSETS
  

Stocks
 9 
-
1,809,046

Debtors: amounts falling due within one year
 10 
108,430
2,542,741

Cash at bank and in hand
 11 
2,270
13,544

  
110,700
4,365,331

Creditors: amounts falling due within one year
 12 
(31,436)
(4,357,411)

NET CURRENT ASSETS
  
 
 
79,264
 
 
7,920

TOTAL ASSETS LESS CURRENT LIABILITIES
  
79,264
7,920

  

NET ASSETS
  
79,264
7,920


CAPITAL AND RESERVES
  

Called up share capital 
 14 
100
100

Profit and loss account
 15 
79,164
7,820

SHAREHOLDERS' FUNDS
  
79,264
7,920


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Robert Grogan
Director

Date: 19 September 2024

The notes on pages 15 to 22 form part of these financial statements.

Page 11

 
KEPAK HUDDERSFIELD LIMITED
 

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
100
(1,952)
(1,852)


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
9,772
9,772
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
9,772
9,772



At 1 January 2023
100
7,820
7,920


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
71,344
71,344
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
71,344
71,344


AT 31 DECEMBER 2023
100
79,164
79,264


The notes on pages 15 to 22 form part of these financial statements.

Page 12

 
KEPAK HUDDERSFIELD LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit / (loss) for the financial year
71,344
9,772

ADJUSTMENTS FOR:

Taxation charge
(4,000)
9,592

Interest paid
36,293
72,516

Decrease in stocks
1,809,046
150,108

Decrease/(increase) in debtors
149,762
(115,825)

Decrease in amounts owed by groups
2,284,549
1,453,511

(Decrease) in creditors
(248,739)
(759,400)

(Decrease) in amounts owed to groups
(4,073,236)
(777,861)

Corporation tax received/(paid)
-
(5,592)

NET CASH USED IN OPERATING ACTIVITIES

25,019
36,821



CASH FLOWS FROM FINANCING ACTIVITIES

Interest paid
(36,293)
(72,516)

NET CASH USED IN FINANCING ACTIVITIES
(36,293)
(72,516)

(DECREASE) IN CASH AND CASH EQUIVALENTS
(11,274)
(35,695)

Cash and cash equivalents at beginning of year
13,544
49,239

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
2,270
13,544


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
2,270
13,544

2,270
13,544


The notes on pages 15 to 22 form part of these financial statements.

Page 13

 
KEPAK HUDDERSFIELD LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

13,544

(11,274)

2,270



13,544
(11,274)
2,270

The notes on pages 15 to 22 form part of these financial statements.

Page 14

 
KEPAK HUDDERSFIELD LIMITED
 

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

1.


GENERAL INFORMATION

The Company is limited by shares and incorporated in the United Kingdom, having its registered office at The Snackhouse, St. Georges Park, Kirkham, Preston, PR4 2DZ. The Company's registered number is 11427292. The Company's principal activity is the wholesale trading of food.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires 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

The accounts have been prepared under the going concern basis as the Company’s intermediate parent undertaking, Kepak Holdings, has confirmed it will continue to provide financial support to enable the Company to meet its liabilities as they fall due.

 
2.3

REVENUE RECOGNITION

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.

Page 15

 
KEPAK HUDDERSFIELD LIMITED
 

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

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

STOCKS

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

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

 
2.5

DEBTORS

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

 
2.6

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.

 
2.7

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.8

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.

 
2.9

FINANCE COSTS

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

Page 16

 
KEPAK HUDDERSFIELD LIMITED
 

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

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

TAXATION

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 reporting 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 reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; 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 reporting date.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make certain estimates and assumptions that affect the reported profits, assets and liabilities. Assumptions include, but are not limited to, the following areas:
Provision for Risks and Liabilities:
A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits would be required to settle the obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the time value of money and, where appropriate, the risks specific to the liability.

Page 17

 
KEPAK HUDDERSFIELD LIMITED
 

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

4.


TURNOVER

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
10,103,997
30,542,904

10,103,997
30,542,904



5.


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
2,000
2,000


6.


EMPLOYEES

The Company has no employees other than the Directors, who did not receive any remuneration (2022 - £Nil).


7.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank charges
728
466

Loans from group undertakings
35,565
72,050

36,293
72,516

Page 18

 
KEPAK HUDDERSFIELD LIMITED
 

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

8.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
-
4,000

Adjustments in respect of previous periods
(4,000)
5,592


(4,000)
9,592


TOTAL CURRENT TAX
(4,000)
9,592

DEFERRED TAX

TOTAL DEFERRED TAX
-
-


TAXATION ON (LOSS)/PROFIT ON ORDINARY ACTIVITIES
(4,000)
9,592

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2022 -higher than) the standard rate of corporation tax in the UK of 23% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
67,344
19,364


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23% (2022 -19%)
15,489
3,679

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
321

Adjustments to tax charge in respect of prior periods
(4,000)
5,592

Group relief
(15,489)
-

TOTAL TAX CHARGE FOR THE YEAR
(4,000)
9,592


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

In 2021 an increase in the corporation tax rate to 25% with effect from 1 April 2023 was substantively enacted. The 23.5% rate used above reflects 9 months of this new rate and 3 months of the previous rate of 19%.

Page 19

 
KEPAK HUDDERSFIELD LIMITED
 

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

9.


STOCKS

2023
2022
£
£

Meat
-
1,809,046

-
1,809,046


The estimated replacement cost of stock is not materially different from the amounts stated above.


10.


DEBTORS

2023
2022
£
£


Amounts owed by group undertakings
108,063
2,392,612

Other debtors and prepayments
367
150,129

108,430
2,542,741


All amounts fall due within one year.


11.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
2,270
13,544

2,270
13,544


Page 20

 
KEPAK HUDDERSFIELD LIMITED
 

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

12.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
27
81,238

Amounts owed to group undertakings
-
4,073,236

Corporation tax
-
4,000

Other creditors and accruals
31,409
198,937

31,436
4,357,411


The repayment terms of trade creditors vary between on demand and sixty days. No interest is payable on trade creditors.
Tax and social insurance are subject to the terms of the relevant legislation. Interest accrues on late payment at the rate of 0.02% per day in Ireland and 3% per annum in the U.K. No interest was due at the financial year end date.
The terms of the accruals are based on the underlying contracts.
Amounts owed to one specific group undertaking are unsecured, interest bearing and repayable on demand.
Other amounts included within creditors not covered by specific note disclosures are unsecured, interest free and repayable on demand.


13.


FINANCIAL INSTRUMENTS

2023
2022
£
£

FINANCIAL ASSETS


Financial assets measured at amortised cost
110,333
2,532,637


FINANCIAL LIABILITIES


Financial liabilities measured at amortised cost
(31,436)
(4,353,411)


Financial assets measured at amortised cost comprise cash at bank and in hand, amounts owed by group undertakings and other debtors.


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

Page 21

 
KEPAK HUDDERSFIELD LIMITED
 

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

14.


SHARE CAPITAL

2023
2022
£
£
AUTHORISED, ALLOTTED, CALLED UP AND FULLY PAID



100 (2022 -100) Ordinary shares of £1.00 each
100
100



15.


RESERVES

Profit and loss account

The profit and loss account reserve represents cumulative gains and losses recognised in the Income Statement, net of transfers to/from other reserves.


16.OTHER FINANCIAL COMMITMENTS

The Company’s bankers have given guarantees to the HMRC on behalf of the Company amounting to £100k (2022 – £100k).


17.


TRANSACTIONS WITH DIRECTORS

There were no transactions with Directors.


18.


RELATED PARTY TRANSACTIONS

The Company has availed of the exemption under Section 33 of FRS 102 not to disclose transactions between wholly-owned group companies.
The Directors are considered to be the key management personnel of the Company. The Directors are not paid any remuneration by the Company.


19.


CONTROLLING PARTY

The Company's parent is Kepak Holdings; the ultimate holding company is Kingate Investments Unlimited, an unlimited company incorporated in the Isle of Man.


Page 22