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Registered number: 03761294









Delamere Dairy Limited









Annual Report and Financial Statements

For the Year Ended 31 December 2023

 
Delamere Dairy Limited
 
 
Company Information


Directors
E A Sutton 
E J Salt 
P D J Brunt 
A Whiston 
D Parry (appointed 22 March 2023)
J M D Cope (resigned 22 March 2023)




Company secretary
E A Sutton



Registered number
03761294



Registered office
Yew Tree Farm
Bexton Lane

Knutsford

Cheshire

WA16 9BH




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG





 
Delamere Dairy Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 25


 
Delamere Dairy Limited
 
 
Strategic Report
For the Year Ended 31 December 2023

Introduction
 
The directors present their strategic report together with the audited financial statements for the year ended 31 December 2023.

Business review
 
The principal activity of the company in the year under review was that of dairy product traders, specialising in cows’ and goats’ milk products and a range of plant based dairy alternatives.
 
Turnover in 2023 increased by 12% to £37.90m (2022 £33.85m), due to inflationary increases, the introduction of new products and customers, and a level of organic growth. Turnover in 2023 consolidated and built upon growth seen in 2022 . 
 
Operating profit bounced back and grew significantly (297%) to £3.0m  (2022 £0.76m) due to realignment of selling prices in Q4 2022, some significant operational improvements and new product listings. This followed a challenging 2022 where the war in Ukraine and the evolving post-Brexit developments had challenged the costs and distribution channels in the business. 
 
Increased sales were achieved in the UK market due to a prominently retail-focused customer base, a deepening of distribution within key customers and new product development. Sustained growth in the pet, alternative dairy and the sterilised drinks market cemented the brand within the convenience sector. Delamere Dairy continues to invest in building relationships in territories within and outside of Europe. For this reason, Delamere Dairy’s supply and distribution chain remains under continuous strategic review.
 
Continued investment in new product development will continue to deliver new turnover with several new product lines launching, further strengthening UK sales.
 
During 2023, along with its growing focus on sustainability, Delamere Dairy Limited reviewed its environmental, social and governance (ESG) position and continued to support a Charitable Foundation (Delamere Dairy Foundation). Charitable donations to the Foundation in this period totalled £215k (2022: £108k).
Principal risks and uncertainties
At the time of writing this report, the Company has navigated the Covid-19 pandemic, learnt to trade within the EU with the post Brexit administrative requirements and stabilised the supply chain disruption and price pressure created by the war in Ukraine. It has been a challenging, extended period. However, we can confirm that, at this time, the business continues to perform well and that risks have been evaluated to ensure that staff, contractors, and investments are protected and that the Company remains a going concern and able to service its liabilities.
 
The Company’s revenues are principally derived from retail markets. These markets, and therefore Company revenues, can be subject to variations in patterns of demand and are largely influenced by political factors, economic growth and consumer confidence. In response to this risk, the directors keep up to date with local and wider economic conditions and can adapt the pricing strategy and cost base of the Company accordingly.
The Company continues to seek new markets and categories to facilitate growth. In addition to the close management of credit risk and contractual arrangements, this risk is managed by ensuring the core UK business remains profitable and vibrant.

Page 1

 
Delamere Dairy Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Financial risk management
 
The Company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk, interest rate risk and foreign exchange rate risk. The company has in place a risk management programme that seeks to
limit the adverse effects on the financial performance of the company by monitoring the factors that affect each of these risks.
Price risk
The Company is exposed to changes in the market prices of its products, both from an input and sales perspective. To protect against adverse price movements, the Company is frequently reviewing its agreements with suppliers to ensure these are on commercially favourable terms.
Credit risk
Credit risk is managed by running credit checks on new customers and by monitoring payments against the contractual arrangements.
Liquidity and interest rate risk 
The Company's bank loan and invoice discounting facility bears interest at a rate which changes in respect to changes in Bank of England Base Rate, thereby exposing the Company to measured risk on adverse movements in that rate.
Foreign exchange risk
The Company maintains a natural hedge using foreign currency bank accounts with sales and purchases made in foreign currencies. The Board monitors the net exposure and uses appropriate bank facilities, such as forward contracts, to limit the effects on the financial performance of the Company to such exposure. The Company buys a significant proportion of its products in Euros. FX exposure is managed both by implementing a minimum 3-month Euro forward contracts policy.

Financial key performance indicators
 
We monitor several KPI’s within the business though consider our key financial performance indicators being the operating profit and control of cashflow.
Operating profit for the year was £3.0m (2022: £0.76m) and the Company has closely monitored cashflow throughout the year. Cash at bank and in hand totalled £77k at 31 December 2023 (2022: £33k), with net cash generated from operating activities totalling £2.5m in the period and net cash used in financing activities totalling £2.46m (predominantly relating to movements on the invoice discounting facility).

Other key performance indicators
 
Non-financial key performance indicators are numerous but centre on employee workforce management, quality, and health & safety.


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


E J Salt
Director

Date: 2 July 2024

Page 2

 
Delamere Dairy 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 judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £2,215,768 (2022 - £524,249).

Dividends of £550,000 (2022: £150,000) were declared and paid during the year. The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

E A Sutton 
E J Salt 
P D J Brunt 
A Whiston 
D Parry (appointed 22 March 2023)
J M D Cope (resigned 22 March 2023)

Future developments

The directors consider that the forthcoming financial year will be another year of solid performance building further security for all our stakeholders.

Page 3

 
Delamere Dairy Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 December 2023

Research and development activities

The company continues to invest in research and development with the purpose of developing new products.

Matters covered in the Strategic Report

Financial risk management objectives and policies have been included in the Strategic Report as these are considered to be of strategic importance to the Directors.

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 auditorsHurst 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.
 


E J Salt
Director

Date: 2 July 2024


Page 4

 
Delamere Dairy Limited
 
 
 
Independent Auditors' Report to the Members of Delamere Dairy Limited
 

Opinion


We have audited the financial statements of Delamere Dairy 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 the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
Delamere Dairy Limited
 
 
 
Independent Auditors' Report to the Members of Delamere Dairy Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of directors
 

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


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


Page 6

 
Delamere Dairy Limited
 
 
 
Independent Auditors' Report to the Members of Delamere Dairy 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business     performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of local management and parent company management, including whether management    was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge   of any actual, suspected, or alleged fraud. 
• Supporting documentation relating to the Company's policies and procedures for:
    - Identifying, evaluating, and complying with laws and regulations
    - Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the    financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which    have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or    which had a fundamental effect on the operations of the Company, including General Data Protection requirements,   and Anti-bribery and Corruption, the Health and Safety at Work Act 1974 and the Food Safety And Hygiene            (England) Regulations 2013.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with    the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with    laws and regulations and fraud.
• Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of    material misstatement due to fraud.
 
Page 7

 
Delamere Dairy Limited
 
 
 
Independent Auditors' Report to the Members of Delamere Dairy Limited (continued)


We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to    identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or   error.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the    judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of    business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, 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.


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.


Helen Besant-Roberts (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

2 July 2024
Page 8

 
Delamere Dairy Limited
 
 
Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
37,894,972
33,850,426

Cost of sales
  
(31,912,221)
(30,808,965)

Gross profit
  
5,982,751
3,041,461

Administrative expenses
  
(2,981,525)
(2,285,652)

Operating profit
 5 
3,001,226
755,809

Interest receivable and similar income
 9 
-
540

Interest payable and similar expenses
 10 
(97,164)
(73,119)

Profit before tax
  
2,904,062
683,230

Tax on profit
 11 
(688,294)
(158,981)

Profit for the financial year
  
2,215,768
524,249

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

The notes on pages 12 to 25 form part of these financial statements.

Page 9

 
Delamere Dairy Limited
Registered number: 03761294

Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
108,037
140,569

Tangible assets
 14 
44,464
79,705

  
152,501
220,274

Current assets
  

Stocks
 15 
2,117,848
2,103,287

Debtors: amounts falling due within one year
 16 
11,115,304
10,607,685

Cash at bank and in hand
 17 
76,560
32,924

  
13,309,712
12,743,896

Creditors: amounts falling due within one year
 18 
(4,076,793)
(5,228,448)

Net current assets
  
 
 
9,232,919
 
 
7,515,448

Total assets less current liabilities
  
9,385,420
7,735,722

Provisions for liabilities
  

Deferred tax
 19 
-
(16,070)

Net assets
  
9,385,420
7,719,652


Capital and reserves
  

Called up share capital 
 20 
400
400

Share premium account
 21 
49,950
49,950

Profit and loss account
 21 
9,335,070
7,669,302

  
9,385,420
7,719,652


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


E J Salt
Director

Date: 2 July 2024

The notes on pages 12 to 25 form part of these financial statements.

Page 10

 
Delamere Dairy Limited
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
400
49,950
7,669,302
7,719,652


Comprehensive income for the year

Profit for the year
-
-
2,215,768
2,215,768
Total comprehensive income for the year
-
-
2,215,768
2,215,768

  Dividends: Equity capital
-
-
(550,000)
(550,000)


Total transactions with owners
-
-
(550,000)
(550,000)


At 31 December 2023
400
49,950
9,335,070
9,385,420



Statement of Changes in Equity
For the Year Ended 31 December 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
400
49,950
7,295,053
7,345,403


Comprehensive income for the year

Profit for the year
-
-
524,249
524,249
Total comprehensive income for the year
-
-
524,249
524,249

  Dividends: Equity capital
-
-
(150,000)
(150,000)


Total transactions with owners
-
-
(150,000)
(150,000)


At 31 December 2022
400
49,950
7,669,302
7,719,652


The notes on pages 12 to 25 form part of these financial statements.

Page 11

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

Delamere Dairy Limited is a private company limited by share capital incorporated in England & Wales, company number 03761294. The address of its registered office and the principal place of business is Yew Tree Farm, Bexton Lane, Knutsford, Cheshire, WA16 9BH. 
The nature of the company's operation and its principal activity is that of dairy product traders, specialising in goat's and cow's milk products and a range of plant based milk alternatives. 

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 judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Delamere Dairy Holdings Limited as at 31 December 2023 and these financial statements may be obtained from the Registrar of Companies.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 12

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.4

Revenue

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

Sale of goods

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

Invoices are raised and turnover recognised on the day that goods are delivered.

 
2.5

Operating leases: the Company as lessee

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

 
2.6

Interest income

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

 
2.7

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.

 
2.8

Pensions

Defined contribution pension plan

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

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

Page 13

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

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

Page 14

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, the methods used are as below.

Depreciation is provided on the following basis:

Plant and machinery
-
15%
reducing balance
Fixtures and fittings
-
25%
reducing balance
Improvements to property
-
10%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Stocks

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

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

 
2.13

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.14

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.

 
2.15

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.

Page 15

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.16

Financial instruments

With the exception of forward currency contracts, the Company only enters into basic financial instruments 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 non-puttable ordinary shares.
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 Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivative

 
2.17

Dividends

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions.
The directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amount of the assets and liabilities within the next financial year.

Page 16

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

4.


Turnover

The whole of the turnover is attributable to the principal activity, being dairy product traders, specialising in goat's,  cow's and sheep milk products and a range of plant based milk alternatives.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
37,184,700
33,614,868

Rest of Europe
597,972
183,531

Rest of the world
112,300
52,027

37,894,972
33,850,426



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
22,687
15,407

Amortisation of intangible assets, including goodwill
35,155
35,364

Exchange differences
(112,608)
(28,071)

Other operating lease rentals
84,071
77,774


6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
18,325
17,475

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 17

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

7.


Employees

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


2023
2022
£
£

Wages and salaries
1,594,872
1,235,219

Social security costs
163,077
158,406

Cost of defined contribution scheme
104,068
33,548

1,862,017
1,427,173


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


        2023
        2022
            No.
            No.







Administration
33
30


8.


Directors' remuneration

2023
2022
£
£



Directors' emoluments
562,771
415,263

Company contributions to defined contribution pension schemes
80,203
4,798

642,974
420,061

During the year retirement benefits were accruing to 5 directors (2022 - 4) in respect of defined contribution pension schemes. 
The highest paid director received remuneration of £208,931 (
2022 - £174,392).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (
2022 - £1,321). 


9.


Interest receivable

2023
2022
£
£


Other interest receivable
-
540

Page 18

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Invoice discounting charges
97,164
73,119


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
711,991
135,036

Adjustments in respect of previous periods
-
21,281


Total current tax
711,991
156,317

Deferred tax


Origination and reversal of timing differences
(23,697)
2,664

Total deferred tax
(23,697)
2,664


Taxation on profit on ordinary activities
688,294
158,981
Page 19

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,904,062
683,230


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
683,035
129,814

Effects of:


Non-tax deductible amortisation of goodwill and impairment
7,498
5,320

Expenses not deductible for tax purposes
11,482
833

Capital allowances for year in excess of depreciation
-
430

Adjustments to tax charge in respect of prior periods
-
21,281

Change in rate of tax
3,617
-

Other differences leading to an increase (decrease) in the tax charge
(7,427)
5,234

Group relief
(9,911)
(3,931)

Total tax charge for the year
688,294
158,981


Factors that may affect future tax charges

There are no factors that may affect future tax charges.


12.


Dividends

2023
2022
£
£


Dividends on ordinary shares
550,000
150,000

Page 20

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

13.


Intangible assets




Patents
Goodwill
Total

£
£
£



Cost


At 1 January 2023
103,235
307,001
410,236


Additions
2,623
-
2,623



At 31 December 2023

105,858
307,001
412,859



Amortisation


At 1 January 2023
60,666
209,001
269,667


Charge for the year on owned assets
7,155
28,000
35,155



At 31 December 2023

67,821
237,001
304,822



Net book value



At 31 December 2023
38,037
70,000
108,037



At 31 December 2022
42,569
98,000
140,569

Goodwill relates to contracts purchased in 2016. The carrying amount at 31 December is £70,000 (2022: £98,000) and the remaining amortisation period is 2.5 years.



Page 21

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

14.


Tangible fixed assets





Plant and machinery
Fixtures and fittings
Improve-ments to property
Total

£
£
£
£



Cost


At 1 January 2023
83,592
151,270
107,780
342,642


Additions
-
7,069
-
7,069


Disposals
-
-
(25,595)
(25,595)



At 31 December 2023

83,592
158,339
82,185
324,116



Depreciation


At 1 January 2023
52,862
133,251
76,824
262,937


Charge for the year on owned assets
15,050
4,552
3,085
22,687


Disposals
-
-
(5,972)
(5,972)



At 31 December 2023

67,912
137,803
73,937
279,652



Net book value



At 31 December 2023
15,680
20,536
8,248
44,464



At 31 December 2022
30,730
18,019
30,956
79,705


15.


Stocks

2023
2022
£
£

Raw materials and consumables
47,089
34,859

Finished goods and goods for resale
2,070,759
2,068,428

2,117,848
2,103,287


An impairment loss of £107,681 (2022: £39,424) was recognised in cost of sales against stock during the year due to slow moving and obsolete stock.

Page 22

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

16.


Debtors

2023
2022
£
£


Trade debtors
4,285,818
3,797,902

Amounts owed by group undertakings
6,686,065
6,393,892

Other debtors
43,369
137,580

Prepayments and accrued income
92,425
278,311

Deferred taxation
7,627
-

11,115,304
10,607,685


Impairment losses totalling £101,203 (2022: £6,819) were recognised during the year in relation to debtors.


17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
76,560
32,924



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,651,879
2,662,335

Corporation tax
467,822
-

Other taxation and social security
46,063
64,310

Invoice discounting facility
423,459
2,231,756

Accruals and deferred income
487,570
270,047

4,076,793
5,228,448


The invoice discounting facility is secured by means of a fixed and floating charge over the Company's book debts.

Page 23

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

19.


Deferred taxation




2023
2022


£

£






Liability at beginning of year
(16,070)
(13,406)


(Charged)/credited to profit or loss
23,697
(2,664)



Asset/(Liability) at end of year
7,627
(16,070)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(10,985)
(16,070)

Other timng differences
18,612
-

7,627
(16,070)


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



400 Ordinary shares of £1.00 each
400
400



21.


Reserves

Share premium account
The share premium account includes premium on issue of equity shares, net of any issue costs. 
Profit and loss account
Profit and loss account represents cumulative gains and losses net of dividends paid and other adjustments. 


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £206,366 (2022: £33,548). Contributions totalling £74,447 (2022: £nil) were payable to the fund at the balance sheet date.

Page 24

 
Delamere Dairy Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 December 2023

23.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
84,194
65,896

Later than 1 year and not later than 5 years
153,625
72,515

Later than 5 years
55,000
-

292,819
138,411


24.


Related party transactions

The Directors of the Company have chosen not to disclose transactions entered into between wholly owned group undertakings, as permitted by FRS 102 paragraph 33.1A.
Transactions during the year and outstanding balances with related parties were as follows:


2023
2022
£
£

Purchases from related parties
(4,690,977)
(6,343,830)
Sales to related parties
57,343
17,361
Debtor balances owed by related parties at 31 December
2,088
70,000
Creditor balances owed to related parties at 31 December
(309,259)
(491,125)
Donations made to related parties
215,439
108,342

Donations include £215,439 (2022: £108,342) paid to Delamere Dairy Foundation, a charity for which two of the Company's directors act as Trustees.


25.


Controlling party

The company is a subsidiary of Delamere Dairy Holdings Limited, which is the ultimate parent company incorporated in England and Wales. 
The largest and smallest group in which the results of the Company are consolidated is that headed by Delamere Dairy Holdings Limited. The consolidated accounts of this company are publicly available and may be obtained from the Registrar of Companies.
The Company is considered to be under the control of E J Salt by virtue of his majority shareholding in the parent company.

 
Page 25