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REGISTERED NUMBER: 01685437 (England and Wales)















Nortech Foods Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2023






Nortech Foods Limited (Registered number: 01685437)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Nortech Foods Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: J G Braide
M J Crees


SECRETARY: J G Braide


REGISTERED OFFICE: Ings Road
Doncaster
South Yorkshire
DN5 9TL


REGISTERED NUMBER: 01685437 (England and Wales)


SENIOR STATUTORY AUDITOR: Ian Parsons FCA


AUDITORS: Paylings
Accountants
Statutory Auditors
No.2 Silkwood Office Park
Fryers Way
Wakefield
West Yorkshire
WF5 9TJ


BANKERS: HSBC plc
City Office
33 Park Row
Leeds
West Yorkshire
LS1 1LD


SOLICITORS: Ramsdens Solicitors
7 King Street
Mirfield
West Yorkshire
WF14 8AW

Nortech Foods Limited (Registered number: 01685437)

Strategic Report
for the Year Ended 31 December 2023

Business Overview

Nortech Foods Limited (Nortech) is a wholly owned subsidiary of SARIA Limited (SARIA): SARIA operates in a wide range of sectors associated with the food chain, renewable energy, and recycling.

Nortech is involved in the production and sale of animal fats for use in the fast food and baking industry primarily in the UK, and the packing of vegetable fats for sale to the same outlets and for sale to the major retailers.

The company has established a range of strategies as follows:

As the UK's largest producer, refiner and packer of edible animal and poultry fats, Nortech is well placed to provide 'added-value' markets for co-products generated from the primary meat production sector in the UK.

Nortech has a long-term strategy to reduce its exposure to the market for animal fat consumption by expanding its range of products to include white vegetable fats. In addition, the company has expanded its range of 'toll processing' for third parties to dilute the high fixed costs of operating a dedicated melting/refining/packing plant.

Key Performance Indicators (KPIs)

The market for primary raw material remained challenging and highly volatile in 2023. The volatility to raw material costs which started in 2022 following the war in Ukraine and the global impact on oils & fat prices continued into the initial part of 2023. The volatility in the market for raw animal fats was further impacted by demand for edible fat for use in biofuel production.

As shown in the company's income statement on page 8, the company's performance has decreased to a loss of £1,651,070 from a loss of £880,126 in the previous period. At the year end the shareholder's funds were (£1,073,669) (2022 - £577,401).

SARIA manages its operations on a divisional basis. For this reason, the company's directors believe that further key performance indicators for the company are not necessary or appropriate for an understanding of the development, performance, or position of the business.

Risk

With businesses active across a wide variety of sectors and operating large-scale processing operations always entails risks. Beside market developments, we are also affected by global events such as commodity market price changes driven by weather patterns; such events entail risks but also present us with new opportunities. With high fat prices offered for biodiesel production in 2023, this created challenges throughout the year.

The Group is faced with challenges when conducting analysis and making decisions. If we do not incorporate market developments or if we evaluate them incorrectly, they may pose serious business risks. The risks affecting Nortech Foods Limited are largely dealt with on a group basis, apart from the ones highlighted below:

Business Unit/ Area Risk Mitigation Factor

Food manufacturing - Nortech Market moves away from animal fats. Expand range of vegetable-based fats to
benefit from increased consumption.

Legislative changes to animal
by-product categorisation
High risk moves to low risk. Operate category 3 rendering plants to
benefit from switch from Category 1 (high
risk).

Low risk moves to edible co-product. Operate edible co-product production/
trading businesses to benefit from switch
from animal by-product to food status.


Nortech Foods Limited (Registered number: 01685437)

Strategic Report
for the Year Ended 31 December 2023

Health & Safety Health & safety incidents could result
in harm to the company's employees,
contractors or local communities.
Ensuring safety and wellbeing is an
ethical obligation for the company.
Poor safety records or serious
accidents could have a serious impact
on the company's production and
reputation.
The company focuses on identifying,
mitigating and managing the safety risks
inherent across its operations. The
company's objective is to create a safety
culture through regular training and
awareness campaigns for employees and
contractors. The company operates a 'best
practice' system of in-house training to
develop an embedded health & safety
culture.


Environment and Employees

The company operates in accordance with and contributes fully to group environmental policies and works within its IPPC permit with the Environment Agency.

Employee numbers are outlined in note 4 on page 15 of the accounts.

The company participates in the group's policies and practices about Health and Safety at work, pension, and health care schemes. The good working relationships between Nortech, its employees and the Trade Unions continue.

Future developments

The directors anticipate that they will continue to develop the company's established activities.

ON BEHALF OF THE BOARD:





M J Crees - Director


17 September 2024

Nortech Foods Limited (Registered number: 01685437)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
J G Braide has held office during the whole of the period from 1 January 2023 to the date of this report.

Other changes in directors holding office are as follows:

M J Crees was appointed as a director after 31 December 2023 but prior to the date of this report.

A R Smith ceased to be a director after 31 December 2023 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements 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 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Paylings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M J Crees - Director


17 September 2024

Report of the Independent Auditors to the Members of
Nortech Foods Limited

Opinion
We have audited the financial statements of Nortech Foods Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Nortech Foods Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

In preparing the financial statements, the directors are responsible for assessing the 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.

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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- reviewed the nature of the industry and sector, the control environment and business performance for the year.
- identifying the laws and regulations the company operates within and enquiring with management if they are
aware of any non compliance issues.
- discussed how and where fraud may occur with all members of the audit engagement team.
- in line with all audits under ISAs (UK) we were required to perform tests to respond to the risk of management
override.
We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to
assess if any bias, and assessed the rationale behind any significant or unusual transactions.
- reviewed directors' minutes to assess if any indications of fraud or non compliance.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Nortech Foods Limited


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




Ian Parsons FCA (Senior Statutory Auditor)
for and on behalf of Paylings
Accountants
Statutory Auditors
No.2 Silkwood Office Park
Fryers Way
Wakefield
West Yorkshire
WF5 9TJ

26 September 2024

Nortech Foods Limited (Registered number: 01685437)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 26,019,475 27,159,739

Changes in stocks of finished goods and work in
progress

(52,903

)

1,691,330
25,966,572 28,851,069

Other operating income 69,641 96,157
26,036,213 28,947,226

Raw materials and consumables 21,847,543 24,624,454
Other external expenses 184,452 191,371
22,031,995 24,815,825
4,004,218 4,131,401

Staff costs 4 2,278,389 2,092,702
Depreciation 140,668 146,963
Other operating expenses 3,480,228 3,052,037
5,899,285 5,291,702
OPERATING LOSS 5 (1,895,067 ) (1,160,301 )

Interest receivable and similar income 6 14 2,438
(1,895,053 ) (1,157,863 )

Interest payable and similar expenses 7 305,554 27,945
LOSS BEFORE TAXATION (2,200,607 ) (1,185,808 )

Tax on loss 8 (549,537 ) (305,682 )
LOSS FOR THE FINANCIAL YEAR (1,651,070 ) (880,126 )

Nortech Foods Limited (Registered number: 01685437)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (1,651,070 ) (880,126 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(1,651,070

)

(880,126

)

Nortech Foods Limited (Registered number: 01685437)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 759,115 661,007
759,115 661,007

CURRENT ASSETS
Stocks 11 2,556,563 2,748,739
Debtors 12 2,109,220 1,797,196
Cash at bank 306 31,557
4,666,089 4,577,492
CREDITORS
Amounts falling due within one year 13 6,498,873 4,661,098
NET CURRENT LIABILITIES (1,832,784 ) (83,606 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(1,073,669

)

577,401

CAPITAL AND RESERVES
Called up share capital 17 10,000 10,000
Retained earnings 18 (1,083,669 ) 567,401
SHAREHOLDERS' FUNDS (1,073,669 ) 577,401

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2024 and were signed on its behalf by:





M J Crees - Director


Nortech Foods Limited (Registered number: 01685437)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 10,000 1,447,527 1,457,527

Changes in equity
Total comprehensive income - (880,126 ) (880,126 )
Balance at 31 December 2022 10,000 567,401 577,401

Changes in equity
Total comprehensive income - (1,651,070 ) (1,651,070 )
Balance at 31 December 2023 10,000 (1,083,669 ) (1,073,669 )

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Nortech Foods Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The presentational currency is GBP.

Going concern
Whilst the entity has suffered from unforeseen market conditions in the past couple of years, this is considered to be a short term issue. Management anticipate improved performance in the coming financial year, with contracts coming up for renewal and the ability to react to the changes. The entity is financially supported by its parent through this challenging period, therefore the going concern basis of preparation is deemed appropriate.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In respect of depreciation, the entity is largely governed by the Rethmann accounting policies (issued by the parent group). These policies/rates are followed, to the extent that they are reflective of the average economic consumption of the asset type. Where the actual consumption of a class of asset differs materially from this policy, a more appropriate rate is applied.

The Rethmann policy of bad debt provision is applied, being 100% for debts over 365 days old, 50% for debts over 180 days old and 1% against all other debts.

Stock ageing is reviewed regularly by management to assess the requirement for a slow moving/obsolescence provision, however any such provision is not currently deemed necessary.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on the sale of goods, on despatch of those goods from our sites when the significant risks and rewards of ownership are transferred to our customers.

Turnover is recognised on the performance of services, as and when those services are carried out.

Other income
Other income arises from the recharge of operating costs incurred by an entity, where the facility of that entity is used by other group companies.

Straight recharge of costs that can be allocated directly to another group company are treated as recharges only, and the cost is passed directly to the other entity. No income is recognised in this instance.

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life.

Plant & machinery - 10% on cost, or 50% on cost (Dolavs)
Fixtures & fittings - 33.3% on cost, 20% on cost and 10% on cost
Assets under construction - not provided

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

For manufactured goods, the absorption cost method of valuation is used incorporating all production overheads.
If this results in a value higher than net realisable value for any stock item, then the selling price of that item is applied.

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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforecable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of posting the transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company has members in the SARIA Group Pension Schemes, funded defined benefit schemes.

The above defined benefit schemes have been closed to new members. Alternative provision is made for new employees in the form of a defined contribution scheme.

The pension charge represents contributions payable to the funds in respect of the accounting period.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 25,982,112 26,989,295
Europe 37,363 170,444
26,019,475 27,159,739

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,885,317 1,729,667
Social security costs 197,830 187,003
Other pension costs 195,242 176,032
2,278,389 2,092,702

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Office & management 5 4
Collection & processing 43 41
48 45

2023 2022
£    £   
Directors' remuneration - -

5. OPERATING LOSS

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

2023 2022
£    £   
Hire of plant and machinery 52,168 54,453
Depreciation - owned assets 140,667 144,034
Loss on disposal of fixed assets - 2,928
Auditors' remuneration 17,000 35,029
Foreign exchange differences (1,048 ) 5,705
Operating leases 51,308 42,443

6. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Intercompany interest 14 2,438

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 791 -
Other interest 304,763 27,945
305,554 27,945

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2023 2022
£    £   
Deferred tax:
Deferred tax (549,115 ) (309,755 )
Under(over) provision (422 ) 4,073
Total deferred tax (549,537 ) (305,682 )
Tax on loss (549,537 ) (305,682 )

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

2023 2022
£    £   
Loss before tax (2,200,607 ) (1,185,808 )
Loss multiplied by the standard rate of corporation tax in the UK of 23.520%
(2022 - 19%)

(517,583

)

(225,304

)

Effects of:
Expenses not deductible for tax purposes 975 786
Adjustments to tax charge in respect of previous periods (433 ) 4,073
Change in rate from previous year (32,496 ) (74,341 )
Superdeduction - (10,896 )
Total tax credit (549,537 ) (305,682 )

9. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1 January 2023 15,755
Disposals (11,340 )
At 31 December 2023 4,415
AMORTISATION
At 1 January 2023 15,755
Eliminated on disposal (11,340 )
At 31 December 2023 4,415
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

10. TANGIBLE FIXED ASSETS
Fixtures Assets
Plant & and under
machinery fittings construction Totals
£    £    £    £   
COST
At 1 January 2023 4,008,725 223,369 - 4,232,094
Additions 143,223 37,512 58,040 238,775
Disposals (5,626 ) (1,120 ) - (6,746 )
At 31 December 2023 4,146,322 259,761 58,040 4,464,123
DEPRECIATION
At 1 January 2023 3,421,814 149,273 - 3,571,087
Charge for year 125,265 15,402 - 140,667
Eliminated on disposal (5,626 ) (1,120 ) - (6,746 )
At 31 December 2023 3,541,453 163,555 - 3,705,008
NET BOOK VALUE
At 31 December 2023 604,869 96,206 58,040 759,115
At 31 December 2022 586,911 74,096 - 661,007

Transfers of assets between group companies have been done using gross cost and gross depreciation, rather than using net book value as the cost to the acquirer. This has been done in order to preserve historical information in relation to the properties of the group, in particular previous revaluations. This is considered to be the most appropriate method both from an accounting and tax perspective.

11. STOCKS
2023 2022
£    £   
Other stocks 167,254 172,933
Raw materials 321,802 475,376
Goods for resale 2,047,527 2,100,430
Plant spares in inventory 19,980 -
2,556,563 2,748,739

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 942,000 968,103
Amounts owed by group undertakings 19,724 195,576
Retention account 63,631 73,125
VAT 19,895 48,863
Deferred tax asset 1,059,039 509,503
Prepayments 4,931 2,026
2,109,220 1,797,196

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Deferred tax asset
2023 2022
£    £   
Accelerated capital allowances (20,479 ) (21,498 )
Other timing differences 3,683 3,683
Tax losses 1,075,835 527,318
1,059,039 509,503

Amounts owed by group undertakings in the current period represent ordinary trade receivables.

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 2,423,528 3,054,486
Amounts owed to group undertakings 3,558,505 1,188,713
Other creditors 407,347 347,204
Accrued expenses 109,493 70,695
6,498,873 4,661,098

Amounts owed to group undertakings represents money owed to the parent entity via the cashpooling facility. This loan is interest bearing at a variable amount, based on the subsidiaries share of the overall group debt each period. It is repayable on demand should the parent entity require it.

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 46,416 51,308
Between one and five years 84,625 131,041
131,041 182,349

15. FINANCIAL INSTRUMENTS

2023 2022
£    £   
Financial assets
Cash and cash equivalents 306 31,557
Financial assets that are debt instruments measured at amortised cost 2,109,220 1,797,196

Financial liabilities
Financial liabilities measured at amortised cost (6,498,873 ) (4,661,098 )

Financial assets measured at amortised cost comprise trade debtors, amounts owed by group and related entities, other debtors (inc tax debtors) and accrued income.

Financial liabilities measured at amortised cost comprise amounts owed to group and related entities, trade creditors, other creditors (inc tax creditors) and accruals.

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

16. DEFERRED TAX
£   
Balance at 1 January 2023 (509,503 )
Credit to Income Statement during year (549,536 )
Change of rate
Balance at 31 December 2023 (1,059,039 )

Deferred Tax has been provided for at 25%. The rate of corporation tax was 19% until 1st April 2023, at which point it increased to 25%.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary 1 10,000 10,000

All shares are voting shares. They are entitled to dividends as declared. They are entitled to participate in a distribution including on winding up. All shares are non redeemable.

18. RESERVES
Retained
earnings
£   

At 1 January 2023 567,401
Deficit for the year (1,651,070 )
At 31 December 2023 (1,083,669 )

19. EMPLOYEE BENEFIT OBLIGATIONS

There are two defined benefit arrangements operated by the SARIA Limited group, which are managed via independent trusts, of which some employees are members. Contributions are no longer being made to these schemes due to their surplus position.

The company is unable to identify its share of the underlying assets and liabilities of the schemes therefore the schemes are accounted for in the balance sheet of the parent entity only.

During 2022, the trustees of the schemes made the investment decision to use some of the schemes assets to purchase insurance policies/annuities, to guarantee the funding of the associated liabilities and thereby remove some of the risk from the Group. (Pension Buy-In). As a result the remaining net assets of the schemes are now much lower.

At the balance sheet date the FRS 102 value of the liabilities was £73,923,000 (2022 - £71,950,000) and the market value of the assets was £77,049,000 (2022 - £75,413,000) giving a net asset of £3,126,000 (2022 - £3,463,000 ) held in the balance sheet of the parent entity.

The above schemes have been closed to new members. The group has made alternate provision, in the form of a defined contribution scheme, for new employees or those not eligible to join the above schemes. This scheme is also administered on a group basis independently of any group company or director.

Total contributions payable by the company to the defined contribution scheme during the year amounted to £195,242 (2022 - £176,032). There were no accrued or prepaid pension contributions at the balance sheet date (2022 - £nil).

Nortech Foods Limited (Registered number: 01685437)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

20. RELATED PARTY DISCLOSURES

Remondis Doncaster Ltd

Fellow member company of the Rethmann Group


Purchases of goods and services £7,155 (2022: £6,792).

2023 2022
£    £   
Amount due to related party at the balance sheet date 1,536 1,401

21. ULTIMATE CONTROLLING PARTY

The immediate parent company of Nortech Foods Limited is SARIA Limited. Saria Limited is indirectly owned by the ultimate parent entity, Rethmann SE & Co. KG The ultimate parent entity is incorporated in Germany and is ultimately controlled by the Rethmann family.

The largest group for which group accounts including the company are drawn up, are the Rethmann SE & Co. KG group. A copy of the consolidated accounts are filed at Companies House alongside the accounts of Saria Limited (immediate parent entity).