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Registration number: 01208669

Lubna Foods Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2024

 

Lubna Foods Limited

Contents

Strategic Report

1

Directors' Report

2

Statement of Directors' Responsibilities

3

Independent Auditor's Report

4 to 6

Profit and Loss Account and Statement of Retained Earnings

7

Balance Sheet

8

Notes to the Financial Statements

9 to 22

 

Lubna Foods Limited

Strategic Report for the Year Ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

Principal activity

The principal activity of the company is the wholesale of food and provisions.

Fair review of the business

Turnover has increased from the previous year by 13.76% (2023 -12.4%), attributable predominantly to the global inflationary pressures which has blighted the world economy.

The gross profit margin has been maintained at 12.70% (2023 – 12.05%).

The directors consider the year end position satisfactory.

Principal risks and uncertainties

The risk and concerns relating to trading arrangements affecting businesses is primarily attributable to the ongoing worldwide military conflicts namely the Ukraine- Russian and Middle Eastern wars, resulting in escalating Import costs thereby impacting the business with price increases. The trajectory of price inflation seems to be abating and the process of deflation has begun which should bring back price certainty within the market.

In view of the impending tax rises which shall effect the whole economy, our long established relationship with our customers should hold us in good stead in terms of maintaining and increasing our share of the market. The historical association with our regular suppliers ensures that the supply chain remains consistent irrespective of any legislative changes on the importation of certain products and political uncertainties.

The company has bank borrowings and is therefore exposed to interest rate risk.

Approved and authorised by the Board on 4 October 2024 and signed on its behalf by:
 

.........................................
Mr A Ali Ibn Ebrahim
Director

 

Lubna Foods Limited

Directors' Report for the Year Ended 30 April 2024

The directors present their report and the financial statements for the year ended 30 April 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr A Ali Ibn Ebrahim

Mr A A Patel

Mr E I Patel

Mr A G Patel

Information included in the Strategic Report

All items required under Sch. 7 of Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the directors’ report are set out in the strategic report in accordance with s.414C(11) CA 2006.

Objectives and policies

Our principal objective is to maximise shareholder returns by ensuring reasonable dividend pay outs on an annual basis and increasing the company's net asset position.

In order to facilitate such an environment, we present to our customers, competitively priced products of the highest quality which in the present climate will enable us to increase our turnover and also achieve expected margins. Simultaneously by keeping a control on our overheads and other expenses our long-term aim can be achieved thereby enabling the Company to reduce its overall borrowings.

We keep monitoring key performance indicators to help us achieve our objectives, but we do not feel it appropriate to present this here so as to not prejudice our competitive position.

The directors believe that further performance indicators are not necessary or appropriate for an understanding of the development, performance, or position of the company, and that the indicators identified are used by the board to monitor performance.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 4 October 2024 and signed on its behalf by:
 

.........................................
Mr A Ali Ibn Ebrahim
Director

 

Lubna Foods Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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.

 

Lubna Foods Limited

Independent Auditor's Report to the Members of Lubna Foods Limited

Opinion

We have audited the financial statements of Lubna Foods Limited (the 'company') for the year ended 30 April 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, 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 30 April 2024 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Lubna Foods Limited

Independent Auditor's Report to the Members of Lubna Foods Limited

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 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.

Auditor Responsibilities for the audit of the financial statements

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

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

In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the closing stock valuation and cash reconciliations.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We then performed audit procedures after consideration of the above risks which included the following:

obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of stock;

a review of i) the procedures in place surrounding cash income, and ii) the till sales reconciliation to monies banked;

 

Lubna Foods Limited

Independent Auditor's Report to the Members of Lubna Foods Limited

enquiring of management concerning actual and potential litigation and claims;

reviewing correspondence with HMRC and the company’s legal advisors;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

reading minutes of meetings of those charged with governance; and;

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, 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.

All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 auditor's 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Mark Wilcock FCA (Senior Statutory Auditor)
For and on behalf of Watson Buckle Limited,
Statutory Auditors & Chartered Accountants
Bradford

4 October 2024

 

Lubna Foods Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 April 2024

Note

2024
£

2023
£

Turnover

3

28,819,881

25,334,813

Cost of sales

 

(25,159,672)

(22,281,496)

Gross profit

 

3,660,209

3,053,317

Administrative expenses

 

(2,360,183)

(1,974,915)

Other operating income

26,250

26,250

Operating profit

4

1,326,276

1,104,652

Other interest receivable and similar income

16,302

1,478

Interest payable and similar charges

6

(141,398)

(99,784)

 

(125,096)

(98,306)

Profit before tax

 

1,201,180

1,006,346

Taxation

10

(302,710)

(184,022)

Profit for the financial year

 

898,470

822,324

Retained earnings brought forward

 

1,989,476

1,217,152

Dividends paid

 

(50,000)

(50,000)

Retained earnings carried forward

 

2,837,946

1,989,476

 

Lubna Foods Limited

(Registration number: 01208669)
Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

           

Fixed assets

   

 

Intangible assets

11

 

-

 

-

Tangible assets

12

 

1,129,880

 

1,071,846

Other financial assets

13

 

15,000

 

15,000

   

1,144,880

 

1,086,846

Current assets

   

 

Stocks

14

4,063,645

 

3,864,934

 

Debtors

15

1,124,489

 

1,457,474

 

Cash at bank and in hand

 

673,706

 

800,268

 

 

5,861,840

 

6,122,676

 

Creditors: Amounts falling due within one year

16

(3,954,774)

 

(4,901,965)

 

Net current assets

   

1,907,066

 

1,220,711

Total assets less current liabilities

   

3,051,946

 

2,307,557

Creditors: Amounts falling due after more than one year

16

 

(55,000)

 

(160,081)

Provisions for liabilities

19

 

(149,000)

 

(148,000)

Net assets

   

2,847,946

 

1,999,476

Capital and reserves

   

 

Called up share capital

10,000

 

10,000

 

Retained earnings

22

2,837,946

 

1,989,476

 

Shareholders' funds

   

2,847,946

 

1,999,476

Approved and authorised by the Board on 4 October 2024 and signed on its behalf by:
 

.........................................
Mr A Ali Ibn Ebrahim
Director

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
164 Garnett Street
Bradford
West Yorkshire
BD3 9HA

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were 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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's functional and presentation currency is pound sterling.

Summary of disclosure exemptions

The company has taken advantage of the exemption to disclose transactions with key management personnel and the exemption to prepare Statement of Cash Flows in accordance with Financial Reporting Standard 102 Section 1.12.

The company has taken advantage of the exemption under Financial Reporting Standard 102 Section 33 Related Party Disclosures from disclosing transactions and balances with fellow group undertakings that are wholly owned.

Name of parent of group

These financial statements are consolidated in the financial statements of Lubna Holdings Limited.

The financial statements of Lubna Holdings Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Key sources of estimation uncertainty

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
The carrying amount is £1,129,880 (2023 -£1,071,846).

Stock provision
The company makes an estimate of the recoverability of the cost of stock. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.
The carrying amount is £4,063,645 (2023 -£3,864,934).

Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
The carrying amount is £1,045,744 (2023 -£1,311,177).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably and (d) it is probable that future economic benefits will flow to the entity.

Government grants

Grants are measured at the fair value of the asset received or receivable.

Grants relating to assets have been recognised in income on a systematic basis over the expected useful life of the asset.

Grants relating to revenue shall be recognised in income on a systematic basis over the periods in which the entity
recognises the related costs for which the grant is intended to compensate.

A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving
immediate financial support to the entity with no future related costs shall be recognised in income in the period in
which it becomes receivable.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Tax

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

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

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

2% straight line basis

Plant and machinery

5% and 10% straight line basis

Motor vehicles

12.5% straight line basis

Intangible assets

Separately acquired trademarks and licences are shown at historical.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Trademarks

20% straight line basis

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured a fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method.
Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Provisions

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Financial instruments

Financial assets

Basic financial assets, including trade and other receivables, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

28,819,881

25,334,813

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

28,131,250

24,458,949

Europe

122,195

141,233

Rest of world

566,436

734,631

28,819,881

25,334,813

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

120,452

111,405

Amortisation expense

-

274

5

Government grants

During the year the company has recognised government grants of £5,000 (2023 - £5,000) in relation to plant and machinery funding.
During the year the company has recognised government grants of £12,000 (2023 - £12,000) in relation to motor vehicle funding.

The amount of grants recognised in the financial statements was £17,000 (2023 - £17,000).

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

139,117

96,881

Interest on obligations under finance leases and hire purchase contracts

2,281

2,883

Interest expense on other finance liabilities

-

20

141,398

99,784

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,724,024

1,548,739

Social security costs

148,408

128,247

Pension costs, defined contribution scheme

102,962

38,860

1,975,394

1,715,846

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

12

12

Administration and support

15

14

Sales

6

6

Distribution

38

38

71

70

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

165,212

141,750

Contributions paid to money purchase schemes

75,783

12,096

240,995

153,846

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

3

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

16,000

12,400


 

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

303,000

170,000

UK corporation tax adjustment to prior periods

(1,290)

(978)

301,710

169,022

Deferred taxation

Arising from origination and reversal of timing differences

1,000

15,000

Tax expense in the income statement

302,710

184,022

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,201,180

1,006,346

Corporation tax at standard rate

300,295

191,206

Effect of expense not deductible in determining taxable profit (tax loss)

3,847

2,082

(Decrease)/increase in UK and foreign current tax from unrecognised temporary difference from a prior period

(1,432)

606

Decrease from effect of tax incentives

-

(9,872)

Total tax charge

302,710

184,022

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

150,000

Other timing differences

-

(1,000)

-

149,000

2023

Asset
£

Liability
£

Accelerated capital allowances

-

149,000

Other timing differences

-

(1,000)

-

148,000

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £8,000 (2023 - £20,858).

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

11

Intangible assets

Trademarks
 £

Cost or valuation

At 1 May 2023

63,341

At 30 April 2024

63,341

Amortisation

At 1 May 2023

63,341

At 30 April 2024

63,341

Carrying amount

At 30 April 2024

-

At 30 April 2023

-

Pledged as security

Trademarks with a carrying amount of £Nil (2023 - £Nil) has been pledged as security for bank borrowings & overdrafts.

12

Tangible assets

Land and buildings
£

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2023

389,576

1,682,909

234,660

2,307,145

Additions

-

178,486

-

178,486

At 30 April 2024

389,576

1,861,395

234,660

2,485,631

Depreciation

At 1 May 2023

47,472

1,059,016

128,811

1,235,299

Charge for the year

7,792

88,140

24,520

120,452

At 30 April 2024

55,264

1,147,156

153,331

1,355,751

Carrying amount

At 30 April 2024

334,312

714,239

81,329

1,129,880

At 30 April 2023

342,104

623,893

105,849

1,071,846

Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of freehold land and buildings and £334,312 (2023 - £342,104) in respect of short leasehold land and buildings.

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant, machinery and vehicles

77,431

100,002

   

Restriction on title and pledged as security

Land and buildings with a carrying amount of £334,312 (2023 - £342,104) have been pledged as security for bank borrowings & overdrafts.

Plant & machinery with a carrying amount of £714,329 (2023 - £623,893) have been pledged as security for bank borrowings & overdrafts and finance lease liabilities.

Motor vehicles with a carrying amount of £81,329 (2023 - £105,849) have been pledged as security for bank borrowings & overdrafts and finance lease liabilities.

13

Other financial assets (current and non-current)

£

Non-current financial assets - Non-puttable ordinary shares

Cost as at 1 May 2021

15,000

Cost as at 30 April 2022

15,000

14

Stocks

2024
£

2023
£

Stock held for resale

4,063,645

3,864,934

The carrying amount of stocks pledged as security for liabilities amounted to £4,063,645 (2023 - £3,864,934).

15

Debtors

Current

2024
£

2023
£

Trade debtors

1,045,744

1,311,177

Amounts owed by related parties

-

7,500

Other debtors

12,043

44,731

Prepayments

66,702

94,066

 

1,124,489

1,457,474

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

16

Creditors

2024
£

2023
£

Due within one year

Loans and borrowings

1,251,713

2,399,679

Trade creditors

2,330,242

2,270,893

Social security and other taxes

37,028

26,544

Outstanding defined contribution pension costs

11,317

5,906

Other creditors

241

-

Accruals

124,233

81,943

Corporation tax liability

183,000

100,000

Deferred income

17,000

17,000

3,954,774

4,901,965

Due after one year

Loans and borrowings

-

88,081

Deferred income

55,000

72,000

55,000

160,081

17

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

1,235,047

2,363,869

Hire purchase contracts

16,666

35,810

1,251,713

2,399,679

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

-

71,415

Hire purchase contracts

-

16,666

-

88,081

Bank borrowings

Bank borrowings and overdrafts is denominated in pound sterling. The carrying amount secured at year end is £1,235,047 (2023 - £2,435,284).

The bank borrowings and overdrafts are secured by an unlimited debenture, a fixed and floating charge over the assets of the company, and are repayable on both demand and over a fixed term.

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Hire purchase contracts

Finance lease liabilities is denominated in pound sterling. The carrying amount at year end is £16,666 (2023 - £52,476).

Finance liabilities are secured by a charge over the related assets.

18

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

17,624

37,755

Later than one year and not later than five years

-

17,624

17,624

55,379

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

32,866

33,522

Later than one year and not later than five years

9,524

24,639

42,390

58,161

The amount of non-cancellable operating lease payments recognised as an expense during the year was £84,472 (2023 - £64,775).

19

Provisions for liabilities

Deferred tax
£

At 1 May 2023

148,000

Increase (decrease) in existing provisions

1,000

At 30 April 2024

149,000

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £102,962 (2023 - £38,860).

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

21

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

10,000

10,000

10,000

10,000

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
All shares rank pari passu for income, capital and voting rights.

22

Reserves

Share capital

Represents the nominal value of issued shares.

Profit and loss account

Includes all current and prior periods distributable profits and losses.

23

Related party transactions

Transactions with directors

2024

At 1 May 2023
£

Advances to directors
£

Repayments by director
£

Other payments made to company by director
£

At 30 April 2024
£

Mr A Ali Ibn Ebrahim

Interest free loan

23,085

(21,885)

-

1,200

           
         

 

2023

At 1 May 2022
£

Advances to directors
£

Repayments by director
£

Other payments made to company by director
£

At 30 April 2023
£

Mr A Ali Ibn Ebrahim

Interest free loan

51,500

(51,500)

-

-

           
         

 

Summary of transactions with other related parties

Other related parties are close family members of the directors.
 

 

Lubna Foods Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Income and receivables from related parties

2024

Entities with control, joint control or significant influence
£

Sale of goods

566,436

2023

Entities with control, joint control or significant influence
£

Sale of goods

731,274

Expenditure with and payables to related parties

2024

Entities with joint control or significant influence
£

Other related parties
£

Purchase of goods

52,324

-

Amounts payable to related party

93,175

42,674

2023

Entities with joint control or significant influence
£

Other related parties
£

Purchase of goods

60,144

-

Amounts payable to related party

-

61,687

24

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Lubna Holdings Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Lubna Holdings Limited.