Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true185192falsefood processing and salesfalsefalse2023-01-01 08715531 2023-01-01 2023-12-31 08715531 2022-01-01 2022-12-31 08715531 2023-12-31 08715531 2022-12-31 08715531 2023-01-01 08715531 2022-01-01 08715531 1 2023-01-01 2023-12-31 08715531 1 2022-01-01 2022-12-31 08715531 2 2023-01-01 2023-12-31 08715531 2 2022-01-01 2022-12-31 08715531 4 2023-01-01 2023-12-31 08715531 4 2022-01-01 2022-12-31 08715531 5 2023-01-01 2023-12-31 08715531 5 2022-01-01 2022-12-31 08715531 6 2023-01-01 2023-12-31 08715531 6 2022-01-01 2022-12-31 08715531 7 2023-01-01 2023-12-31 08715531 7 2022-01-01 2022-12-31 08715531 d:Director1 2023-01-01 2023-12-31 08715531 d:Director2 2023-01-01 2023-12-31 08715531 d:Director3 2023-01-01 2023-12-31 08715531 d:Director4 2023-01-01 2023-12-31 08715531 d:RegisteredOffice 2023-01-01 2023-12-31 08715531 e:Buildings e:ShortLeaseholdAssets 2023-01-01 2023-12-31 08715531 e:Buildings e:ShortLeaseholdAssets 2023-12-31 08715531 e:Buildings e:ShortLeaseholdAssets 2022-12-31 08715531 e:PlantMachinery 2023-01-01 2023-12-31 08715531 e:PlantMachinery 2023-12-31 08715531 e:PlantMachinery 2022-12-31 08715531 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 08715531 e:MotorVehicles 2023-01-01 2023-12-31 08715531 e:MotorVehicles 2023-12-31 08715531 e:MotorVehicles 2022-12-31 08715531 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 08715531 e:FurnitureFittings 2023-01-01 2023-12-31 08715531 e:FurnitureFittings 2023-12-31 08715531 e:FurnitureFittings 2022-12-31 08715531 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 08715531 e:ComputerEquipment 2023-01-01 2023-12-31 08715531 e:ComputerEquipment 2023-12-31 08715531 e:ComputerEquipment 2022-12-31 08715531 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 08715531 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 08715531 e:Goodwill 2023-01-01 2023-12-31 08715531 e:Goodwill 2023-12-31 08715531 e:Goodwill 2022-12-31 08715531 e:CurrentFinancialInstruments 2023-12-31 08715531 e:CurrentFinancialInstruments 2022-12-31 08715531 e:CurrentFinancialInstruments 1 2023-12-31 08715531 e:CurrentFinancialInstruments 1 2022-12-31 08715531 e:Non-currentFinancialInstruments 2023-12-31 08715531 e:Non-currentFinancialInstruments 2022-12-31 08715531 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 08715531 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 08715531 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-12-31 08715531 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-12-31 08715531 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2023-12-31 08715531 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-12-31 08715531 e:UKTax 2023-01-01 2023-12-31 08715531 e:UKTax 2022-01-01 2022-12-31 08715531 e:ShareCapital 2023-12-31 08715531 e:ShareCapital 2022-12-31 08715531 e:ShareCapital 2022-01-01 08715531 e:RevaluationReserve 2023-01-01 2023-12-31 08715531 e:RevaluationReserve 2023-12-31 08715531 e:RevaluationReserve 2 2023-01-01 2023-12-31 08715531 e:RevaluationReserve 2022-01-01 2022-12-31 08715531 e:RevaluationReserve 2022-12-31 08715531 e:RevaluationReserve 2022-01-01 08715531 e:RevaluationReserve 2 2022-01-01 2022-12-31 08715531 e:OtherMiscellaneousReserve 2023-01-01 2023-12-31 08715531 e:OtherMiscellaneousReserve 2023-12-31 08715531 e:OtherMiscellaneousReserve 2 2023-01-01 2023-12-31 08715531 e:OtherMiscellaneousReserve 2022-01-01 2022-12-31 08715531 e:OtherMiscellaneousReserve 2022-12-31 08715531 e:OtherMiscellaneousReserve 2022-01-01 08715531 e:OtherMiscellaneousReserve 2 2022-01-01 2022-12-31 08715531 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 08715531 e:RetainedEarningsAccumulatedLosses 2023-12-31 08715531 e:RetainedEarningsAccumulatedLosses 2 2023-01-01 2023-12-31 08715531 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 08715531 e:RetainedEarningsAccumulatedLosses 2022-12-31 08715531 e:RetainedEarningsAccumulatedLosses 2022-01-01 08715531 e:RetainedEarningsAccumulatedLosses 2 2022-01-01 2022-12-31 08715531 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 08715531 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 08715531 e:RetirementBenefitObligationsDeferredTax 2023-12-31 08715531 e:RetirementBenefitObligationsDeferredTax 2022-12-31 08715531 d:OrdinaryShareClass1 2023-01-01 2023-12-31 08715531 d:OrdinaryShareClass1 2023-12-31 08715531 d:OrdinaryShareClass1 2022-12-31 08715531 d:FRS102 2023-01-01 2023-12-31 08715531 d:Audited 2023-01-01 2023-12-31 08715531 d:FullAccounts 2023-01-01 2023-12-31 08715531 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 08715531 e:Subsidiary1 2023-01-01 2023-12-31 08715531 e:Subsidiary1 1 2023-01-01 2023-12-31 08715531 e:Subsidiary2 2023-01-01 2023-12-31 08715531 e:Subsidiary2 1 2023-01-01 2023-12-31 08715531 e:WithinOneYear 2023-12-31 08715531 e:WithinOneYear 2022-12-31 08715531 e:BetweenOneFiveYears 2023-12-31 08715531 e:BetweenOneFiveYears 2022-12-31 08715531 e:HirePurchaseContracts e:WithinOneYear 2023-12-31 08715531 e:HirePurchaseContracts e:WithinOneYear 2022-12-31 08715531 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-12-31 08715531 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-12-31 08715531 5 2023-01-01 2023-12-31 08715531 6 2023-01-01 2023-12-31 08715531 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-12-31 08715531 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2022-12-31 08715531 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-12-31 08715531 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2022-12-31 08715531 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2023-12-31 08715531 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2022-12-31 08715531 e:LeasedAssetsHeldAsLessee 2023-12-31 08715531 e:LeasedAssetsHeldAsLessee 2022-12-31 08715531 e:Goodwill e:OwnedIntangibleAssets 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure


Registered number: 08715531












BRITISH PREMIUM MEATS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

BRITISH PREMIUM MEATS LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 4
Directors' report
 
5
Directors' responsibilities statement
 
6
Independent auditor's report
 
7 - 10
Profit and loss account
 
11
Statement of comprehensive income
 
12
Balance sheet
 
13
Statement of changes in equity
 
14
Statement of cash flows
 
15
Notes to the financial statements
 
16 - 33


 

BRITISH PREMIUM MEATS LIMITED
 
COMPANY INFORMATION


Directors
Mr G Hutchinson 
Mr M A Hutchinson 
Mr M Hutchinson 
Mr R J Hutchinson 




Registered number
08715531



Registered office
16 Great Queen Street
Covent Garden

London

WC2B 5AH




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

BRITISH PREMIUM MEATS LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The principal activity of the company continued to be that of food processing and sales.

Business review
 
The Directors are satisfied to report a profitable 2023 building on a strong 2022 which was a return to operating profit for the company, following two very difficult years as the company faced the challenge of Covid. The company has continued to grow its underlying business despite these difficult years and is now excellently placed to grow in 2024 and beyond.

The company operates in the food processing sector, supplying a wide range of customers from local authorities to hotel chains and restaurants across the whole of England. Despite this challenging environment the company has grown its underlying customer base and is in its strongest position ever to grow in future periods.

During 2023 whilst the company was able to continue to grow turnover and protect gross margin, the company suffered increases in administrative and distribution costs due to the period of high inflation suffered by the UK economy. The company sought to pass on price increases to customers responsibly during this period and suffered a reduced net profit margin as a result. 

The company has made a gross profit of £8,630,743 in 2023 (2022 - £8,126,408), a profit before tax of £236,019 (2022: £682,161) and EBITDA of £1,603,392 (2022: £1,866,214). These results reflect the growth in business for the company against a backdrop of increased administrative costs.

The Directors are therefore pleased the company has continued to show it is robust to the challenges and expect profitability to improve in 2024 and in future periods.

The company continued to invest in its infrastructure in 2023, it continued the development of an expanded processing and storage facility as well as a new IT system to improve traceability at its headquarters in Welwyn Garden City. This continued investment will enable the business to fulfil orders to customers more efficiently across a significantly wider geographical focus, and has led to the Company adding national, as well as regional, accounts with larger customer groups. Turnover is expected to increase from 2024 onwards in line with the long term strategic plan for the business and further growth is planned for future periods. The business also intends to develop new complementary products and provide these to existing customers, further increasing turnover. 

Page 2

 

BRITISH PREMIUM MEATS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
As for many businesses of a similar size, the business environment in which the company operates continues to be challenging in the current economic climate. We are subject to our customer's demands to deliver a cost effective and quality service on a continuous basis. The key risks are decreased customer demand and increased raw material costs. With these risks and uncertainties in mind, the company is constantly developing ways to further improve its service and offering, in order to reduce its exposure and to maintain customer relationships.
Treasury operations and financial instruments
The company's principal financial instruments include financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. Company facilities include cash, invoice discounting, term loans, asset finance and director loans.  
Interest rate risk
The company is exposed to interest rate risk on some of its hire purchase contracts, on which interest is charged at a variable rate. The company is exposed to interest rate risk on amounts owed to directors. Despite these amounts being interest free, the discounting of the balance is impacted by fluctuations to the base rate. The company manages its mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
Cost inflation
The company is exposed to inflationary pressures on stock in the market. In order to mitigate the impact of this the directors are working closely with suppliers and monitoring logistics in order to improve efficiencies and maximise opportunities to make the most of working capital.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that reflect the financial performance and strength of the company: being turnover, gross profit margin and net profit margin (before taxation).

The turnover of the company for the period was £37,443,738 which was 4% higher than the previous year, as a result of increased customer numbers. The gross profit margin and net profit margin of the company were 23% (2022: 22.6%) and 0.2% (2022: 1.8%) for the year, which are in line with expectations for gross profit and lower than expected for net profit. However the directors accepted the lower net profit margin as price increases were passed on slowly in the high inflationary environment.

Page 3

 

BRITISH PREMIUM MEATS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


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



Mr M Hutchinson
Director

Date: 11 October 2024

Page 4

 

BRITISH PREMIUM MEATS 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.

Results and dividends

The loss for the year, after taxation, amounted to £59,172 (2022:profit £360,712).

A dividend of £120,000 (2022 - £Nil) was declared in the financial year. 

Directors

The directors who served during the year were:

Mr G Hutchinson 
Mr M A Hutchinson 
Mr M Hutchinson 
Mr R J Hutchinson 

Future developments

The future developments of the company will be influenced by the need to respond to various economic changes. However, following the development of increased production capacity over the preceding years, the long-term strategic plan of the directors is to continue to focus on expanding their customer range within existing, and also new, regions for the business. 

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors which were
made during the year and remain in force at the date of this report.

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

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





Mr M Hutchinson
Director

Date: 11 October 2024

Page 5

 

BRITISH PREMIUM MEATS LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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.

Page 6

 

BRITISH PREMIUM MEATS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRITISH PREMIUM MEATS LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion


We have audited the financial statements of British Premium Meats Limited (the 'company') for the year ended 31 December 2023, which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 auditor's report thereon.  The directors are responsible for the other information contained within the annual report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 7

 

BRITISH PREMIUM MEATS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRITISH PREMIUM MEATS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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 6, 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 8

 

BRITISH PREMIUM MEATS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRITISH PREMIUM MEATS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor's 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:
 
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the wholesale sector; 
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 and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and relevant regulators.

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. 
 
Page 9

 

BRITISH PREMIUM MEATS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BRITISH PREMIUM MEATS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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 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 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.





Daniel Burke (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
11 October 2024
Page 10

 

BRITISH PREMIUM MEATS LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
37,443,738
35,981,243

Cost of sales
  
(28,812,995)
(27,854,835)

Gross profit
  
8,630,743
8,126,408

Distribution costs
  
(4,774,233)
(4,333,756)

Administrative expenses
  
(3,431,944)
(2,915,091)

Operating profit
 5 
424,566
877,561

Interest payable and similar expenses
 8 
(188,547)
(195,400)

Profit before taxation
  
236,019
682,161

Tax on profit
 9 
(295,191)
(321,449)

(Loss)/profit for the financial year
  
(59,172)
360,712

There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly, no statement of other comprehensive income has been presented.

Page 11

 

BRITISH PREMIUM MEATS LIMITED

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£


(Loss)/profit for the financial year

  

(59,172)
360,712


Revaluation of tangible fixed assets
 22 
-
916,017

Other comprehensive income for the year
  
-
916,017

Total comprehensive income for the year
  
(59,172)
1,276,729

The notes on pages 16 to 33 form part of these financial statements.

Page 12


 
REGISTERED NUMBER:08715531
BRITISH PREMIUM MEATS LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible fixed assets
 11 
-
458,333

Tangible fixed assets
 12 
3,085,524
3,030,311

Investments
 13 
200
-

  
3,085,724
3,488,644

Current assets
  

Stocks
 14 
595,866
641,067

Debtors: Amounts falling due within one year
 15 
9,938,999
9,563,167

Cash at bank and in hand
  
142,738
178,554

  
10,677,603
10,382,788

Total assets
  
 
 
13,763,327
 
 
13,871,432


Capital and reserves
  

Called up share capital 
 21 
200
200

Revaluation reserve
 22 
603,325
916,017

Other reserves
 22 
438,220
417,153

Profit and loss account
 22 
(236,195)
(369,715)

Total capital and reserves
  
805,550
963,655

Provisions for liabilities
 20 
444,108
303,779

Creditors: Amounts falling due within one year
 16 
11,049,941
10,734,001

Creditors: Amounts falling due after more than one year
 17 
1,463,728
1,869,997

Total equity and liabilities
  
13,763,327
13,871,432


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




Mr M Hutchinson
Director

Date: 11 October 2024

The notes on pages 16 to 33 form part of these financial statements.

Page 13

 

BRITISH PREMIUM MEATS LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Revaluation reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
200
-
346,512
(730,427)
(383,715)



Profit for the year
-
-
-
360,712
360,712

Surplus on revaluation of motor vehicles
-
916,017
-
-
916,017

Capital contribution
-
-
70,641
-
70,641



At 1 January 2023
200
916,017
417,153
(369,715)
963,655



Loss for the year
-
-
-
(59,172)
(59,172)

Dividends: Equity capital
-
-
-
(120,000)
(120,000)

Transfer between reserves
-
(312,692)
-
312,692
-

Capital contribution
-
-
21,067
-
21,067


At 31 December 2023
200
603,325
438,220
(236,195)
805,550


Page 14

 

BRITISH PREMIUM MEATS LIMITED

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(59,172)
360,712

Adjustments for:

Amortisation of intangible assets
458,333
500,000

Depreciation of tangible assets
696,693
540,033

Profit/(loss) on disposal of tangible assets
23,800
(51,380)

Interest paid
188,547
195,400

Taxation charge
295,191
321,449

Decrease/(increase) in stocks
45,201
(284,233)

(Increase) in debtors
(375,833)
(2,359,822)

(Decrease)/increase in creditors
(412,228)
1,875,084

Corporation tax (paid)/received
(6,567)
-

Net cash generated from operating activities

853,965
1,097,243


Cash flows from investing activities

Purchase of tangible fixed assets
(775,705)
(272,694)

Sale of tangible fixed assets
-
51,380

HP interest paid
(38,093)
(40,806)

Net cash from investing activities

(813,798)
(262,120)

Cash flows from financing activities

Repayment of loans
(200,000)
(200,000)

Advancement/(repayment) of finance leases
250,199
(433,321)

Loans repaid to directors
(316,491)
(371,105)

Movements on invoice discounting
460,763
(18,304)

Dividends paid
(120,000)
-

Interest paid
(150,454)
(154,594)

Net cash used in financing activities
(75,983)
(1,177,324)

Net (decrease) in cash and cash equivalents
(35,816)
(342,201)

Cash and cash equivalents at beginning of year
178,554
520,755

Cash and cash equivalents at the end of year
142,738
178,554


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
142,738
178,554

142,738
178,554


Page 15

 

BRITISH PREMIUM MEATS LIMITED

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

1.


General information

British Premium Meats Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office is 16 Great Queen Street, Covent Garden, London, WC2B 5AH, and the principal place of business is 32 Hyde Way, Welwyn Garden City, Hertfordshire, AL7 3UQ.
The financial statements are presented in Sterling (£), which is the functional currency of the company.
Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Consolidation

The company holds a 100% stake in two dormant subsidiary companies and is exempt from the requirement to prepare consolidated financial statements by virtue of Sections 402 and 405(2) of the Companies Act 2006, as these dormant subsidiaries are not material for the purpose of giving a true and fair view. These financial statements therefore present information about the company as an individual undertaking and not about its group.

 
2.3

Going concern

During the year ended 31 December 2023, the company made a profit before taxation of £0.23m (2022: £0.68m); with EBITDA of £1,579,592 (2022: £1,917,594). Profitability and EBITDA are attributable to trading levels returning to pre-pandemic levels, with turnover increasing from £36m in 2022 to £37.4m in 2023. The company was in a net current liability position of £0.48m at the year end (2022: £0.35m). The company's profit and loss reserves are still in deficit at £0.24m, improving from £0.37m in 2022.
The company had cash at bank at year end of £0.14m (2022: £0.18m), plus further facilities at its disposal. The facilities comprise: an invoice discounting agreement, asset financing agreements, term loans and director loans. Management accounts up to 31 August 2024 are showing an EBITDA of £443,427. In addition, the company has prepared detailed cash flow forecasts and projections through to October 2025. The forecasts show a modest increase in revenue, and EBITDA and profitability running slightly ahead of results achieved in the last two years. The forecast revenue allows for customer churn and the securing of new customers. The forecasts show that the business has sufficient headroom within its facilities, providing mitigation for downside scenarios. In addition, the directors remain focused on cost controls in delivering the forecasts in the year ahead.
Based on these forecasts, facilities, and making other relevant enquiries, the directors have a reasonable expectation that the company will have sufficient resources to meet its obligations as they fall due for a period of at least twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 16

 

BRITISH PREMIUM MEATS 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.

 
2.5

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 profit and loss account 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.

 The estimated useful lives range as follows:

Goodwill
-
10
years

Having considered the long term relationships with its customers, the Directors believe that 10 years useful life of goodwill is reasonable.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Revalued tangible fixed assets are stated at revalued amounts less accumulated depreciation. 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 17

 

BRITISH PREMIUM MEATS LIMITED

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

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

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:

Short-term leasehold property
-
10%
straight line
Plant and machinery
-
10%
straight line
Motor vehicles
-
14%
straight line
Fixtures and fittings
-
20%
straight line
Computer equipment
-
20%
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 (see note 2.7).

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

 
2.7

Revaluation of tangible fixed assets

Motor vehicles are revalued with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using the fair value at balance sheet date. All assets within that particular class are revalued when such an exercise is conducted.
Fair values are determined from market based appraisals by the directors of the company. A revaluation of motor vehicles does not occur unless the fair value at the balance sheet date can be measured reliably.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.8

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.

 
2.9

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Page 18

 

BRITISH PREMIUM MEATS LIMITED

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

2.Accounting policies (continued)

 
2.10

Finance costs

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

 
2.11

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.

 
2.12

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.


2.13

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. 
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances 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 debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other creditors and bank loans 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 payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

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

Page 19

 

BRITISH PREMIUM MEATS LIMITED

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

2.Accounting policies (continued)




Financial instruments (continued)

Impairment of financial assets
Financial assets 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 profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets and financial liabilities
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) despite having retained some significant risks and rewards of ownership, 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 are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.14

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 20

 

BRITISH PREMIUM MEATS LIMITED

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

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.

 
2.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
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 arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
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.

 
2.17

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 21

 

BRITISH PREMIUM MEATS LIMITED

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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Useful economic lives of goodwill and tangible assets
The annual amortisation and depreciation charges for goodwill and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 10 and 11 for the net carrying amount of goodwill and tangible assets, and note 2.4 and 2.5 for the useful economic lives for each class of assets.
Inventory provisioning
The company’s products are perishable items. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the inventory, management considers the nature and condition of the stocks, as well as applying assumptions around anticipated saleability of finished goods based on the risk of stock obsolescence.
Bad debt provision
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Loan discounting
The directors of the company advanced a loan to British Premium Meats Limited in 2021 which has a balance outstanding of £1.2m at 31 December 2023 (2022: £1.6m) on which no interest is charged. The loan has been treated under the amortised cost method and discounted to the net present value of the loan. The directors have estimated the repayment profile of the loan based on the loan's subordination to the company's bank finance, and have used their judgment to assess an applicable interest rate, which takes into account this subordination and an additional risk premium as a consequence. 


4.


Turnover

The total turnover for the company has been derived from its principal activity wholly undertaken within the United Kingdom for this and the preceding period.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
696,693
540,034

Amortisation of intangible assets, including goodwill
458,333
500,000

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
28,000
28,000

Fees payable to the Company's auditor and its associates for non-audit services
35,528
67,151

Defined contribution pension cost
108,736
97,160

Other operating lease rentals
469,511
391,205

Page 22

 

BRITISH PREMIUM MEATS LIMITED

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

6.


Employees

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


2023
2022
£
£

Wages and salaries
6,724,825
6,146,054

Social security costs
706,096
697,635

Staff private health insurance
36,876
38,889

Cost of defined contribution scheme
108,736
97,160

7,576,533
6,979,738


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


        2023
        2022
            No.
            No.







Administration
12
12



Meat processing
79
77



Distribution
90
84



Sales
11
12

192
185


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
220,401
408,420

Company contributions to defined contribution pension schemes
1,118
5,285

221,519
413,705


During the year retirement benefits were accruing to 4 directors (2022 -4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £53,507 (2022 -£162,004).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £280 (2022 -£2,312).

There was no key management personnel remuneration in the current or preceding period apart from the Directors' emoluments detailed above.

Page 23

 

BRITISH PREMIUM MEATS LIMITED

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

8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
44,110
33,185

Other loan interest payable
106,193
102,058

Finance leases and hire purchase contracts
38,093
40,806

Other interest payable
151
19,351

188,547
195,400


9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
154,862
6,567


Total current tax
154,862
6,567

Deferred tax


Origination and reversal of timing differences
138,999
(28,904)

Tax losses utilised/(carried forward)
-
344,217

Short term timing differences
1,330
(431)

Total deferred tax
140,329
314,882


Taxation on profit on ordinary activities
295,191
321,449
Page 24

 

BRITISH PREMIUM MEATS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
9.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 25% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
236,019
682,161


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 -19%)
59,005
129,611

Effects of:


Non-tax deductible amortisation of goodwill and impairment
114,583
95,000

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
26,548
3,491

Capital allowances for year in excess of depreciation
-
31,988

Ineligible assets on which no deferred tax is calculated
98,846
314,882

Impact due to change of UK tax
(9,741)
-

Book loss on disposal of fixed assets
5,950
(9,762)

Utilisation of tax losses
-
(243,761)

Total tax charge for the year
295,191
321,449


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

2023
2022
£
£


Dividends declared on ordinary shares
120,000
-

The company had sufficient distributable reserves at the time the dividend was paid in March 2023. The directors anticipate that the deficit shown on the profit and loss reserves as at 31 December 2023 will be made good in the post year end period.  

Page 25

 

BRITISH PREMIUM MEATS LIMITED

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

11.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
5,000,000



At 31 December 2023

5,000,000



Amortisation


At 1 January 2023
4,541,667


Charge for the year on owned assets
458,333



At 31 December 2023

5,000,000



Net book value



At 31 December 2023
-



At 31 December 2022
458,333

The intangible asset relates solely to goodwill acquired on the purchase by the company of the trade and assets from the partnership, British Premium Meats, on 01 December 2013. The carrying value is £Nil. (2022: £458,333) at the reporting date. 



Page 26

 

BRITISH PREMIUM MEATS LIMITED

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

12.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
13,643
2,343,236
1,231,688
120,684
254,890
3,964,141


Additions
2,238
112,504
583,927
12,347
64,689
775,705


Disposals
-
-
(113,996)
-
-
(113,996)



At 31 December 2023

15,881
2,455,740
1,701,619
133,031
319,579
4,625,850



Depreciation


At 1 January 2023
5,797
652,292
125,723
91,299
58,719
933,830


Charge for the year on owned assets
1,494
226,862
407,656
9,063
51,617
696,692


Disposals
-
-
(90,196)
-
-
(90,196)



At 31 December 2023

7,291
879,154
443,183
100,362
110,336
1,540,326



Net book value



At 31 December 2023
8,590
1,576,586
1,258,436
32,669
209,243
3,085,524



At 31 December 2022
7,846
1,690,944
1,105,965
29,385
196,171
3,030,311

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
134,539
134,539

Motor vehicles
14,731
14,731

Furniture, fittings and equipment
74,147
76,882

223,417
226,152

Page 27

 

BRITISH PREMIUM MEATS LIMITED

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

13.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


Additions
200



At 31 December 2023
200





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Class of shares

Holding

British Premium Meatless Limited
Ordinary
100%
British Premium Sausages Limited
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 for the dormant subsidiary undertakings was as follows:

Name
Aggregate of share capital and reserves
£

British Premium Meatless Limited
100

British Premium Sausages Limited
100

Both of these subsidiary undertakings are dormant with their registered office being 16 Great Queen Street, Covent Garden, London, WC2B 5AH.


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
595,866
641,067


There is no significant difference between the replacement cost of the stock and its carrying amount.

Page 28

 

BRITISH PREMIUM MEATS LIMITED

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

15.


Debtors

2023
2022
£
£


Trade debtors
9,354,002
9,026,966

Other debtors
351,555
299,395

Prepayments and accrued income
233,442
236,806

9,938,999
9,563,167



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
200,000
200,000

Trade creditors
2,880,410
3,475,947

Corporation tax
157,912
9,617

Other taxation and social security
167,733
145,461

Obligations under finance lease and hire purchase contracts
342,693
216,907

Proceeds of factored debts
3,718,027
3,257,264

Other creditors
346,495
528,645

Accruals and deferred income
3,236,671
2,900,160

11,049,941
10,734,001


The factored debts shown above totalling £3,718,027 (2022: £3,257,264) are personally guaranteed by the Directors, and are secured by a fixed and floating charge against the assets of the company.
Net obligations of £342,693 (2022: £216,907) under finance leases and hire purchase contracts are secured over the assets to which they relate.

Page 29

 

BRITISH PREMIUM MEATS LIMITED

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

17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
291,667
491,667

Net obligations under finance leases and hire purchase contracts
455,375
330,962

Other creditors
716,686
1,047,368

1,463,728
1,869,997


Net obligations of £455,375 (2022: £330,962) under finance leases and hire purchase contracts are secured over the assets to which they relate.
Other creditors shown above relates to an interest free loan provided to the company by the directors. The original interest free loan amount of £1,600,000 has been discounted over the term of the loan to its net present value using an interest rate of 8.93% (2022: 7.93%), with the residual allocated to capital contributions in equity. Total repayments for the year amounted to £400,000 (2022: £0), and the balance at year end was £1,029.949 (2022: £1,344,823), which is reflected in both short and long term creditors. 
This loan has been subordinated to the bank as security for loans advanced to the company. The total loan balance due to the bank at year end was £491,667 (2022: £691,667), which is reflected in both short and long term creditors. The loan subordination was removed as security by the bank during the 2024 financial year end.


18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
200,000
200,000


200,000
200,000

Amounts falling due 1-2 years

Bank loans
200,000
200,000


200,000
200,000

Amounts falling due 2-5 years

Bank loans
91,667
291,667


91,667
291,667


491,667
691,667


Page 30

 

BRITISH PREMIUM MEATS LIMITED

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

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
342,693
216,907

Between 1-5 years
455,375
330,962

798,068
547,869


20.


Deferred taxation




2023


£






At beginning of year
(303,779)


Charged to profit or loss
(140,329)



At end of year
(444,108)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(445,690)
(306,691)

Unpaid pension
1,582
2,912

(444,108)
(303,779)


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



200 (2022 -200) Ordinary shares of £1.00 each
200
200


Page 31

 

BRITISH PREMIUM MEATS LIMITED

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

22.


Reserves

Revaluation reserve

The revaluation reserve relates to the revaluation of the company's motor vehicles, net of deferred tax. The reserve is not distributable.

Other reserves

Other reserves consists of a capital contribution recognised upon the issue of an interest-free loan by the directors to the company that has been discounted in accordance with FRS 102. The value of the total discount over the expected repayment period of the loan has been recognised upon the issue of the loan as a capital contribution.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


23.


Revaluation reserve for tangible fixed assets

In 2022 a revaluation reserve was created from the revaluation of a certain of motor vehicles. The excess annual depreciation resulting from this revaluation is being matched by a transfer through reserves in the statement of changes in equity. Accordingly, the company has transferred £312,692 (2022: £Nil), which comprises depreciation on the revalued assets of £288,892 (2022: £Nil) and a loss on disposal on revalued assets of £23,780 (2022: £Nil), from the revaluation reserve to the profit and loss reserve.

24.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

178,554

(35,816)

142,738

Debt due after 1 year

(491,667)

200,000

(291,667)

Debt due within 1 year

(403,743)

203,743

(200,000)

Finance leases

(547,869)

(250,199)

(798,068)


(1,264,725)
117,728
(1,146,997)


25.


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 £108,736 (2022: £97,160). Included in creditors are amounts totalling £6,328 (2022: £11,648) relating to unpaid pension contributions.

Page 32

 

BRITISH PREMIUM MEATS LIMITED

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

26.


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
134,000
204,497

Later than 1 year and not later than 5 years
377,904
200,164

511,904
404,661


27.


Related party transactions

The directors of the company are the partners of Hutchinson Bros (the Partnership). During the year, the partnership paid expenses totalling £10,403 (2022: £21,799) on behalf of the company, charged rent of £255,000 (2022: £255,000) to the company, and received payments of £255,000 (2022: £416,000) from the company.
During the year, the directors withdrew £528,814 (2022: £334,571) from the company and advanced amounts to the company totalling £111,123 (2022: £Nil). At the reporting date, the balance of amounts owed by directors was £203,544 to (2022: £203,742), which are offset against the interest free loans referred to below.
Further to the amounts described above, a loan of £1,200,000 (2022: £1,400,000) was due to the directors. At the balance sheet date this loan is interest-free and is subordinated to the bank, for loan finance included in creditors due within one year and due after more than one year totalling £491,667 ((2022: £691,667). The loan has been discounted to net present value using an interest rate 8.93% (2022: 7.93%), recognising a cumulative amount of £438,220 (2022: £417,153) as capital contributions in equity over the term of the loan. During the year the discounting was partially unwound recognising £106,193 (2022: £102,665) in interest paid. At the balance sheet date the loan had a balance carried forward of £1,029,949 (2022: £1,344,822) included in short and long term creditors.


28.


Controlling party

There was no ultimate controlling party in the current and preceding period.

 
Page 33