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REGISTERED NUMBER: 11668292 (England and Wales)












Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 January 2024

for

Millbrook Dairy Company Ltd

Millbrook Dairy Company Ltd (Registered number: 11668292)

Contents of the Financial Statements
for the Year Ended 31 January 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 10

Balance Sheet 11

Cash Flow Statement 12

Notes to the Financial Statements 13


Millbrook Dairy Company Ltd

Company Information
for the Year Ended 31 January 2024







DIRECTORS: Mr K L C Beer
Mr D G Evans
Mrs K J Evans
Mrs L Beer
Ms T M E Pollard



REGISTERED OFFICE: 69 High Street
Bideford
Devon
EX39 2AT



REGISTERED NUMBER: 11668292 (England and Wales)



AUDITORS: Sumer Auditco Ltd
Statutory Auditors
69 High Street
Bideford
Devon
EX39 2AT



BUSINESS ADDRESS: Caddsdown Business Support Centre
Caddsdown Industrial Park
Bideford
Devon
EX39 3DX

Millbrook Dairy Company Ltd (Registered number: 11668292)

Strategic Report
for the Year Ended 31 January 2024


The directors present their strategic report for the year ended 31 January 2024.

Millbrook Dairy Company Limited was founded by David Evans and Kevin Beer in January 2019. The business, despite Covid and the market turmoil created by the war in Ukraine, rapidly developed into a stable and successful operation. Recognising an opportunity in a market that had undergone significant consolidation, it positioned itself as a prominent and trusted player in the dairy industry, servicing manufacturing, foodservice, wholesale, retail and export sectors with a range of bulk and specialist dairy products.

REVIEW OF BUSINESS
The Board is satisfied with the results for the year ended 31 January 2024 in what was a challenging period for the company and the wider dairy market. During the period rising inflation and interest rates had an impact on demand for dairy products, this coupled with high milk and commodity prices at the start of 2023 forced markets to stall and prices fall rapidly creating difficult trading conditions. This led the company to decide to focus more on the UK market and reduce its presence in Europe. Overall, the company's deep understanding of dairy markets and its dynamic approach enabled it to successfully negotiate the changing situation and deliver a profit for the year. The company's profit before taxation was £792,647 (2023 : £1,214,109) with the decrease mainly a function of a super profit in the previous year where astute buying ahead of a rising market had delivered a significant result for the company.

PRINCIPAL RISKS AND UNCERTAINTIES
The company has established an effective risk management policy which covers all areas of the business risk. The Board and Management teams exercise financial and business control through the production of monthly management accounts, cash flow forecasting and stringent credit control. The company is committed to continuously improve its customer service, its ability to be flexible and its quality systems. The significant investment of a bespoke ERP system was initiated and implemented in the period. This new technology provided the business with a secure operating platform to enable greater control of inventory, customer and supplier relationship management, logistics management and accounting operations, controls and reporting. The ERP system further enhances the company's capability and resilience for the future and creates scope for incremental growth.

The key risks to the business continue to be fluctuating market conditions, consumer demand and geopolitical volatility. The company seeks to mitigate the effects of these risks via the constant monitoring of market conditions and influences, as well as striving for operational efficiency and maintaining a dynamic fleet of foot ethos.

FUTURE DEVELOPMENTS
The company's activities will be unchanged for the coming year. Dairy Market prices are expected to recover over the next period, and supply is expected to be restricted. As post Brexit free trade agreements begin to crystallise, and GBP strengthens, the UK should expect to see an increase in imported dairy commodities. This creates new opportunities for UK dairy traders. Millbrook Dairy Company is well positioned to capitalise on new supply routes.


Millbrook Dairy Company Ltd (Registered number: 11668292)

Strategic Report
for the Year Ended 31 January 2024

KEY PERFORMANCE INDICATORS
The Board focus on a range of key performance indicators (KPIs) to help assess the performance of the company against its primary objectives:

Turnover

Operating profit

Net assets

Net borrowing

The company's turnover decreased to £32,375,707 (2023: £42,367,504) due to a reduction in global dairy commodity prices. Volume through put remained similar to the previous period, % margin increased from 5.27% to 6.25% in 2024. This increase in % margin is due to deliberate small changes in the product mix, increasing the volume of higher margin products. Increased retained earnings and lower costs of goods improved working capital availability and reduced borrowing for the period. The directors have strengthened the team, which has an excellent mix of skills to support our partners in the period ahead.

EMPLOYEES
The company does not engage in or support discriminatory employment practices. Millbrook Dairy Company Ltd is a recognised Disability Confident employer.

MODERN SLAVERY AND HUMAN TRAFFICKING
The company takes seriously the risks of modern slavery and human trafficking within the global supply chain. Working with suppliers, customer and regulatory authorities we support the development of long-term solutions to the challenge of modern slavery and human trafficking. The company has a sound document management system, is audited annually and certified to GFSI standards and is a member of SEDEX (Supplier Ethical Data Exchange). The company's Ethical Trading Policy sets out its commitment to ensuring that the principles of ethical trading are promoted as good practice, and that the company abides by the standards contained in the Ethical Trading Initiative Base Code.

SUSTAINABILITY
The company is committed to behaving in a responsible and accountable manner, working in partnership with colleagues, suppliers, customers and the authorities to ensure we effectively manage the consequences of our actions and mitigate the impact of our activities on the environment, local and global.

SIGNED ON BEHALF OF THE BOARD:





Mr K L C Beer - Director


14 October 2024

Millbrook Dairy Company Ltd (Registered number: 11668292)

Report of the Directors
for the Year Ended 31 January 2024


The directors present their report with the financial statements of the company for the year ended 31 January 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of wholesale of dairy products.

DIVIDENDS
The total distribution of dividends for the year ended 31 January 2024 will be £ 339,778 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report.

Mr K L C Beer
Mr D G Evans
Mrs K J Evans
Mrs L Beer

Other changes in directors holding office are as follows:

Ms T M E Pollard - appointed 7 September 2023

POLITICAL DONATIONS AND EXPENDITURE
During the year the company made charitable contributions totalling £821 (2023 - £2,668).

DISCLOSURE IN THE STRATEGIC REPORT
Particulars of the financial risk management objectives and policies of the company and future developments are set out in the strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Millbrook Dairy Company Ltd (Registered number: 11668292)

Report of the Directors
for the Year Ended 31 January 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

SIGNED ON BEHALF OF THE BOARD:





Mr K L C Beer - Director


14 October 2024

Report of the Independent Auditors to the Members of
Millbrook Dairy Company Ltd


Qualified opinion
We have audited the financial statements of Millbrook Dairy Company Ltd (the 'company') for the year ended 31 January 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement 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, except for the possible effects of the matters described in the Basis for Qualified Opinion section of our report, the accompanying financial statements:

- give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the period 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 qualified opinion
These financial statements are the first to require a statutory audit. As a consequence we were not appointed as auditor of the company until after 31 January 2023 and thus did not observe the counting of physical inventories at the beginning or end of that period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 January 2022 and 31 January 2023, which are included in the balance sheet at £1,337,826 and £2,754,637 respectively, by using other audit procedures. Consequently we were unable to determine whether any adjustment to these amounts were necessary or whether there was any consequential effect on the cost of sales for the year ended 31 January 2024 and also for the year ended 31 January 2023. Our audit opinion on the financial statements for the year ended 31 January 2024 has been modified accordingly.

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

Corresponding figures
The corresponding figures for the year ended 31 January 2023 are unaudited.

Key audit matters
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Report of the Independent Auditors to the Members of
Millbrook Dairy Company Ltd


Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion of our report, we were unable to satisfy ourselves concerning the inventory quantities held at 31 January 2022 and 31 January 2023, which are included in the balance sheet at £1,337,826 and £2,754,637 respectively. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006
These financial statements are the first to require a statutory audit. As a consequence we were not appointed as auditor of the company until after 31 January 2023 and thus did not observe the counting of physical inventories at the beginning of the period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 January 2022 and 31 January 2023, which are included in the balance sheet at £1,337,826 and £2,754,637 respectively, by using other audit procedures.

Consequently we were unable to determine whether any adjustment to these amounts were necessary or whether there was any consequential effect on the cost of sales for the year ended 31 January 2024 and also for the year ended 31 January 2023. In addition, were any adjustments to the stock balance to be required, the strategic report would also need to be amended.

Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
- the information given in the the Strategic Report and Report of the Directors for the financial period for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, 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 director's report.

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records have been kept.

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:

- returns adequate for our audit have not been received by 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.

Report of the Independent Auditors to the Members of
Millbrook Dairy Company Ltd


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

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

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

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

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. In common with all audits under UK ISAs we are also required to perform specific procedures to respond to the threat of management override. This work included 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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to these laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Health and Safety Act, UK Companies Act and UK tax legislation.

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;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the Company's legal advisors.

We did not identify any key audit matters relating to irregularities, including fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Millbrook Dairy Company Ltd


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Edward Meardon FCA (Senior Statutory Auditor)
for and on behalf of Sumer Auditco Ltd
Statutory Auditors
69 High Street
Bideford
Devon
EX39 2AT

14 October 2024

Millbrook Dairy Company Ltd (Registered number: 11668292)

Statement of Income and Retained Earnings
for the Year Ended 31 January 2024

2024 2023
Notes £    £   

TURNOVER 4 32,375,707 42,367,504

Cost of sales 30,353,374 40,135,123
GROSS PROFIT 2,022,333 2,232,381

Administrative expenses 1,211,583 969,890
OPERATING PROFIT 6 810,750 1,262,491

Interest receivable and similar income 665 -
811,415 1,262,491

Interest payable and similar expenses 8 18,768 48,382
PROFIT BEFORE TAXATION 792,647 1,214,109

Tax on profit 9 196,154 237,331
PROFIT FOR THE FINANCIAL YEAR 596,493 976,778

Retained earnings at beginning of year 1,824,161 1,034,571

Dividends 10 (339,778 ) (187,188 )

RETAINED EARNINGS AT END OF
YEAR

2,080,876

1,824,161

Millbrook Dairy Company Ltd (Registered number: 11668292)

Balance Sheet
31 January 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 25,256 18,033
Investments 12 88 88
25,344 18,121

CURRENT ASSETS
Stocks 13 2,755,037 2,754,637
Debtors 14 3,501,200 4,253,490
Cash at bank and in hand 28,639 57,356
6,284,876 7,065,483
CREDITORS
Amounts falling due within one year 15 4,209,597 5,231,502
NET CURRENT ASSETS 2,075,279 1,833,981
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,100,623

1,852,102

CREDITORS
Amounts falling due after more than one
year

16

(13,333

)

(23,333

)

PROVISIONS FOR LIABILITIES 20 (6,314 ) (4,508 )
NET ASSETS 2,080,976 1,824,261

CAPITAL AND RESERVES
Called up share capital 21 100 100
Retained earnings 22 2,080,876 1,824,161
SHAREHOLDERS' FUNDS 2,080,976 1,824,261

The financial statements were approved by the Board of Directors and authorised for issue on 10 October 2024 and were signed on its behalf by:




Mr K L C Beer - Director



Mr D G Evans - Director


Millbrook Dairy Company Ltd (Registered number: 11668292)

Cash Flow Statement
for the Year Ended 31 January 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 26 624,279 439,168
Interest paid (20,116 ) (36,217 )
Tax paid (421,301 ) -
Net cash from operating activities 182,862 402,951

Cash flows from investing activities
Purchase of tangible fixed assets (14,480 ) (9,226 )
Interest received 665 -
Net cash from investing activities (13,815 ) (9,226 )

Cash flows from financing activities
Loan repayments in year (10,000 ) (10,000 )
Amount introduced by directors 260,236 102,573
Amount withdrawn by directors (123,222 ) (380,000 )
Loan received in year 15,000 -
Equity dividends paid (339,778 ) (187,188 )
Net cash from financing activities (197,764 ) (474,615 )

Decrease in cash and cash equivalents (28,717 ) (80,890 )
Cash and cash equivalents at beginning of
year

27

57,356

138,246

Cash and cash equivalents at end of year 27 28,639 57,356

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements
for the Year Ended 31 January 2024


1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous period, and also have been consistently applied within the same accounts.

Preparation of consolidated financial statements
The financial statements contain information about Millbrook Dairy Company Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements on the basis that under Section 405 of the Companies Act 2006 its sole subsidiary undertaking can be excluded from consolidation in Companies Act group accounts.

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. As a result of the judgements made actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimated useful lives
In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change is expected useful life of tangible assets.The depreciation charge for the year ended 31 January 2024 was £6,732 (2023 - £4,780).

Stock provision
Where estimated selling price less costs to complete and sell is lower than cost, a stock provision will be recorded. The estimated selling price is determined with reference to market values.There were no stock provisions at 31 January 2024 (2023 - £nil).

Provision for doubtful debts
Where estimated amounts receivable is less than the value of the debt included in the accounts, a provision for doubtful debts will be recorded. There were no provision for bad debts at 31 January 2024 (2023 - £nil).

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 20% straight line
Fixtures and fittings - 20% straight line
Computer equipment - 20% straight line

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

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


3. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial instruments with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

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

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern
Having regard to the company's anticipated future revenues and costs including repayment of debt where appropriate, together with the expected availability of working capital, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


4. TURNOVER

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

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 30,092,865 35,923,807
Europe 2,233,592 6,443,697
Middle East 49,250 -
32,375,707 42,367,504

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 256,271 244,927
Social security costs 30,267 25,653
Other pension costs 246,116 168,711
532,654 439,291

The average number of employees during the year was as follows:
2024 2023

Management 2 2
Sales 2 2
Administration 4 4
Non-Exec directors 2 2
10 10

2024 2023
£    £   
Directors' remuneration 56,837 18,096
Directors' pension contributions to money purchase schemes 213,727 144,854

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 5 4

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


6. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 28,023 20,890
Depreciation - owned assets 6,732 4,780
Loss on disposal of fixed assets 525 -
Foreign exchange differences 17,153 (6,397 )

7. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

15,000

-

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 7,951 4,370
Other interest payable 10,817 44,012
18,768 48,382

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 194,348 230,230

Deferred tax 1,806 7,101
Tax on profit 196,154 237,331

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


9. TAXATION - continued

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

2024 2023
£    £   
Profit before tax 792,647 1,214,109
Profit multiplied by the standard rate of corporation tax in the UK of
24.030% (2023 - 19%)

190,473

230,681

Effects of:
Expenses not deductible for tax purposes 5,696 6,094
Effect of super deductions (85 ) (526 )
Impact of deferred tax provided at 25% 70 1,082
Total tax charge 196,154 237,331

10. DIVIDENDS

Interim dividends of £339,778 (2023 - £187,188) were paid during the year.

11. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 February 2023 10,257 5,165 13,095 28,517
Additions 1,061 350 13,069 14,480
Disposals - - (4,487 ) (4,487 )
At 31 January 2024 11,318 5,515 21,677 38,510
DEPRECIATION
At 1 February 2023 2,747 1,846 5,891 10,484
Charge for year 2,163 1,063 3,506 6,732
Eliminated on disposal - - (3,962 ) (3,962 )
At 31 January 2024 4,910 2,909 5,435 13,254
NET BOOK VALUE
At 31 January 2024 6,408 2,606 16,242 25,256
At 31 January 2023 7,510 3,319 7,204 18,033

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 February 2023
and 31 January 2024 88
NET BOOK VALUE
At 31 January 2024 88
At 31 January 2023 88

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Millbrook Dairy Europe B. V.
Registered office: Netherlands
Nature of business: Wholesale of dairy products
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves 4,290 5,239
(Loss)/profit for the year/period (949 ) 5,151

13. STOCKS
2024 2023
£    £   
Stocks 2,755,037 2,754,637

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,395,764 4,157,756
Other debtors 7,090 11,835
VAT 48,676 17,615
Prepayments and accrued income 49,670 66,284
3,501,200 4,253,490

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 17) 10,000 10,000
Trade creditors 2,457,980 2,867,415
Corporation tax 113,541 340,494
Social security and other taxes - 6,192
Other creditors 1,315,316 1,810,887
Directors' current accounts 139,236 2,222
Accrued expenses 173,524 194,292
4,209,597 5,231,502

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 17) 13,333 23,333

17. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 10,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 10,000 10,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 3,333 13,333

The company had one bank loan during the year which was repayable by monthly instalments. The loan incurs interest at a rate of 2.5% and is due for final repayment on 12 May 2026.

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 25,374 25,233
Between one and five years 30,701 44,873
56,075 70,106

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


19. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Other creditors 1,306,609 1,804,374

The invoice financing creditor is secured by a fixed and floating charge on the property and assets of the company.

20. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 6,314 4,508

Deferred
tax
£   
Balance at 1 February 2023 4,508
Charge to Statement of Comprehensive Income during year 1,806
Balance at 31 January 2024 6,314

Deferred tax is in respect of accelerated capital allowances and is not expected to change significantly in the year to 31 January 2025.

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
25 A £1 25 25
25 B £1 25 25
25 C £1 25 25
25 D £1 25 25
100 100

All shares confer the right to attend at members' meetings and on members' written resolutions, with one vote each on a show of hands and one vote per share on a poll or a written resolution; all shares are eligible for full dividends as declared by the directors and approved by the members, and for interim dividends as declared by the directors; all shares are eligible to be repaid the sums paid up on the share on winding up or other return of capital; and all shares are not redeemable.

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


22. RESERVES
Retained
earnings
£   

At 1 February 2023 1,824,161
Profit for the year 596,493
Dividends (339,778 )
At 31 January 2024 2,080,876

23. PENSION COMMITMENTS

The company provides a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost and charge represents contributions payable by the company to the fund and amounted to £246,116 (2023 - £168,711). At 31 January 2024 contributions amounting to £2,760 (2023 - £2,347) were payable to the fund and were included in creditors.

24. RELATED PARTY DISCLOSURES

During the year, total dividends of £339,778 (2023 - £187,188) were paid to the directors .

Millbrook Dairy Europe B.V., the subsidiary company, charged the company management charges of £121,374 (2023 - £72,040).

The total compensation payable for the period to those individuals whom the director considers to be key management personnel was £328,872 (2023 - £253,119).

25. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr K L C and Mrs L Beer and Mr D G and Mrs K J Evans, who are directors and the shareholders.

26. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 792,647 1,214,109
Depreciation charges 6,732 4,780
Loss on disposal of fixed assets 525 -
Finance costs 18,768 48,382
Finance income (665 ) -
818,007 1,267,271
Increase in stocks (400 ) (1,416,811 )
Decrease/(increase) in trade and other debtors 752,290 (2,511,890 )
(Decrease)/increase in trade and other creditors (945,618 ) 3,100,598
Cash generated from operations 624,279 439,168

Millbrook Dairy Company Ltd (Registered number: 11668292)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024


27. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2024
31.1.24 1.2.23
£    £   
Cash and cash equivalents 28,639 57,356
Year ended 31 January 2023
31.1.23 1.2.22
£    £   
Cash and cash equivalents 57,356 138,246


28. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.2.23 Cash flow At 31.1.24
£    £    £   
Net cash
Cash at bank and in hand 57,356 (28,717 ) 28,639
57,356 (28,717 ) 28,639
Debt
Debts falling due within 1 year (10,000 ) - (10,000 )
Debts falling due after 1 year (23,333 ) 10,000 (13,333 )
(33,333 ) 10,000 (23,333 )
Total 24,023 (18,717 ) 5,306