Financial Statements
Foodpac Ingredients Limited
For the year ended 31 December 2023
Registered number: 10970923
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Foodpac Ingredients Limited
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Company Information
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Airfield Industrial Estate
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Grant Thornton Business Advisory Services Limited
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Foodpac Ingredients Limited
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Contents
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Notes to the Financial Statements
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Foodpac Ingredients Limited
Registered number:10970923
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Balance Sheet
As at 31 December 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Page 1
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Foodpac Ingredients Limited
Registered number:10970923
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Balance Sheet (continued)
As at 31 December 2023
The Company's financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS102 Section 1A - Small Entities. The Directors have taken advantage of the exemptions contained in s444(1) of the Companies Act 2006 from filing the Director's Report and the profit and loss account.
The directors consider that the Company is entitled to exemption from the requirement to have an audit under section 477 of the Companies Act 2006 and members have not required the company to obtain and audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and for preparing financial statements which give me a true and fair view of the state of affairs of the Company as at 31 December 2023 and for its loss for the year in accordance with the requirements of sections 394 and 395 of the Act and otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The financial statements were approved and authorised for issue by the directors and were signed on its behalf by:
The notes on pages 3 to 9 form part of these financial statements.
Page 2
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Foodpac Ingredients Limited
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Notes to the Financial Statements
For the year ended 31 December 2023
Foodpac Ingredients Limited is a private company limited by shares and incorporated in the United Kingdom. Its registered office is Unit 14, Brome Industrial Park, Airfield Industrial Estate, Eye, Suffolk, IP23 7HN.
The principal activity of the company is the manufacturing of homogenized food preparations and dietetic food.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Sterling (£).
The following principal accounting policies have been applied:
After reviewing the company's projections and financial support provided, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
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Foreign currency translation
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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.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Page 3
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Foodpac Ingredients Limited
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Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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.
Revenue is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. This is usually at the point that the customer has signed for delivery of the goods.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
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.
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.
Page 4
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Foodpac Ingredients Limited
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Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
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.
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.
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Cash and cash equivalents
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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.
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 5
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Foodpac Ingredients Limited
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Notes to the Financial Statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Ordinary shares are classified as equity. Incremental cost directly attributable to the issue of ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.
All administration expenses are reconised in the Statement of Income and Retained Earnings on the accruals basis.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The directors consider the accounting estimates and assumptions below to be its critical accounting estimates and judgements:
Going Concern
The directors have prepared budgets and cash flows and obtained parent company financial support for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company's ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.
Impairment of Trade Debtors
The company trades with a varied number of customers on credit terms. Some debts due will not be paid through the default of a small number of customers. The company uses estimates based on historical experience and current information in determining the level of debts for which an impairment charge is required. The total amount of trade debtors, net of impairment, is £100,907 (2022: £201,121).
Impairment of Stocks
The company holds stocks net of provision amounting to £111,191 (2022: £66,577) at the financial year end date. The directors are of the view that an adequate charge has been made to reflect the possibility of stocks being sold at less than cost. However, this estimate is subject to inherent uncertainty. The impairment of stock at 31 December 2023 was £6,000 (2022: £6,000).
Useful Lives of Tangible Assets
The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives, management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial period. The net book value of Tangible Fixed Assets subject to depreciation at the financial year end date was £9,341 (2022: £14,033).
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The average monthly number of employees, including directors, during the year was 3 (2022 - 3).
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Page 6
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Foodpac Ingredients Limited
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Notes to the Financial Statements
For the year ended 31 December 2023
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Charge for the year on owned assets
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Finished goods and goods for resale
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Prepayments and accrued income
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Page 7
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Foodpac Ingredients Limited
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Notes to the Financial Statements
For the year ended 31 December 2023
7.Debtors (continued)
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Trade creditors are payable at various dates over the coming months in accordance with the supplier's usual and customary credit terms.
Corporation tax and other taxes including social insurance are repayable at various dates over the coming months in accordance with the applicable statutory provisions
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Allotted, called up and fully paid
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90 (2022 - 90) Ordinary shares shares of £1.00 each
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Share capital
Called-up share capital represents the nominal value of shares that have been issued.
Profit and loss account
Profit and loss account includes all current and prior period retained profits and losses.
Page 8
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Foodpac Ingredients Limited
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Notes to the Financial Statements
For the year ended 31 December 2023
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company. The pension cost charged to the profit and loss account for the period was £1,160 (2022; £1,123) in respect of directors and £430 (2022; £555) in respect of employees. Contributions totaling £352 (2022; £303) were payable to the fund at the balance sheet date.
The company is subject to an operating lease commitment as follows: Less than one year £2,000 (2022; £12,000) and between 2-5 years £NIL (2022; £2,000).
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Related party transactions
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During the period, the company received monies in the amount of £84,562 (2022: £45,620) from its parent company, Key Ingredients Europe Limited, an Irish incorporated company which has its registered office at Unit A3 and A4, Annacotty Business Park, Annacotty, Co. Limerick. A balance of £382,263 (2022: £294,267) was due to Key Ingredients Europe Limited at the period end date in respect of the intercompany loan and supplier balance respectively.
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Post balance sheet events
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There have been no significant events affecting the company since the year end.
Comparative information has been reclassified where necessary to conform to current financial year presentation.
The company is controlled by its parent company, Key Ingredients Europe Limited, an Irish incorporated company which has its registered office at Unit A3 and A4, Annacotty Business Park, Annacotty, Co. Limerick and is also involved in the manufacturing of homogenized food preparations and dietetic food.
Page 9
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