FOOD HUB LIMITED
COMPANY INFORMATION
Directors
A Mula
Food Hub Group Ltd
Company number
10619783
Registered office
55A Duke Street
Stoke-on-Trent
ST4 3NR
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
FOOD HUB LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
FOOD HUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present the strategic report for the year ended 31 July 2023.

Review of the business

This is the third year of trading as Food Hub Limited. Revenue grew by 10% to £37.7m (2022, £34.2m), following revenue growth of 4% in FY22 and this growth trajectory has continued into FY24.

Pre-tax profit was £1.2m (2022, £1.9m) as our cost base increased with growing revenues. During the second half of FY23 we carried out a cost review, the benefits of which will be seen in our FY24 results.

We continued to invest in our customer offering, in customer services, marketing and development of our platform, working on industry leading features such as group ordering and advance ordering which are now operational and are of particular benefit to friend groups and offices and businesses placing larger or timed orders.

Food Hub Limited is the largest part of the Food Hub Group which operates internationally and processes more than 30 million online customer orders per year in the UK.

Principal risks and uncertainties

The company’s operations expose it to a variety of financial risks. Financial instrument risks are detailed in the directors' report.

Key performance indicators

The company is monitored through the financial KPIs of Revenue, Operating Profit, Order Numbers, Gross Transaction Value and Average Order Numbers.

Stakeholder engagement

The directors are aware that strategic decisions have long term implications for the business and all stakeholders and these implications are carefully assessed.

 

This statement provides details of how the director has engaged with and has considered the interests of the following key stakeholder groups:

 

Employees

The director recognises the importance of our employees and the company aims to be a responsible employer in relation to the pay and benefits our employees receive. We are an ethical employer and employment is based upon a person’s ability to work and not on the basis of race, individual characteristics, creed or political opinion. It is the company’s policy to offer equal opportunities to disabled persons.

 

The CEO regularly visits our sites worldwide and communication with the employees takes the form of Town Hall meetings with open Q&A sessions, and regular email updates on developments.

 

Clients

Customer satisfaction is very important to the company and we monitor continuously CSAT scores and relevant customer response metrics. We have a large customer service operation with a focus on responding quickly and efficiently to any customer queries or issues.

 

Community and the environment

We engage with the local communities in the areas we operate in a number of different ways, including sponsorship of local football teams. We recognise that our activities have an impact on the environment and are committed to introduce further measures to reduce our carbon footprint.

- 1 -
FOOD HUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

On behalf of the board

A Mula
Director
15 October 2024
- 2 -
FOOD HUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the company is to provide a comprehensive online food ordering portal that connects customers with local restaurants, takeaways, and cafes, while also offering a selection of related hardware.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Mula
Food Hub Group Ltd
Financial instruments

Financial risks include cashflow, interest rate movements and foreign currency exchange risks. We mitigate against these risks as follows:

 

Cashflow risk

We have in place a rolling weekly cashflow forecast which is reviewed by the board each week.

 

Interest rate risk

We have one bank loan which is on a variable rate. We consider the interest charge to be sufficiently covered by profits of the company.

 

Foreign currency risks

We monitor exchange rates regularly for the currencies used by the company.

Future developments

The company is part of the Food Hub Group which has an overall strategic objective for growth and we continue to look for appropriate acquisitions both in the UK and internationally.

Auditor

The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. The auditor, Cooper Parry Group Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

- 3 -
FOOD HUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
Statement of directors' responsibilities

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

 

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

 

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
A Mula
Director
15 October 2024
- 4 -
FOOD HUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FOOD HUB LIMITED
Opinion
- 5 -

We have audited the financial statements of Food Hub Limited (the 'company') for the year ended 31 July 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Opinions on other matters prescribed by the Companies Act 2006

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

FOOD HUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FOOD HUB LIMITED (CONTINUED)
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor'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.

Extent to which the audit was considered capable of detecting irregularities including fraud

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

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, we considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

- 6 -
FOOD HUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FOOD HUB LIMITED (CONTINUED)

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the Financial Statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation in all relevant jurisdictions where the company operates.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the Financial Statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

 

In addition to the above, our procedures to respond to risks identified included the following:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than

the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Ryan Wear BSc ACA
Senior Statutory Auditor
For and on behalf of Cooper Parry Group Limited
16 October 2024
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
- 7 -
FOOD HUB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
2023
2022
Notes
£
£
Turnover
3
37,732,436
34,187,461
Cost of sales
(1,288,205)
(1,291,943)
Gross profit
36,444,231
32,895,518
Distribution costs
(419,729)
(489,457)
Administrative expenses
(34,401,159)
(30,313,330)
Other operating income
-
0
219,619
Operating profit
4
1,623,343
2,312,350
Interest receivable and similar income
29
2
Interest payable and similar expenses
7
(424,198)
(424,160)
Profit before taxation
1,199,174
1,888,192
Tax on profit
8
(308,438)
(350,306)
Profit for the financial year
890,736
1,537,886

The profit and loss account has been prepared on the basis that all operations are continuing operations.

- 8 -
FOOD HUB LIMITED
BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
2,801,354
3,238,565
Negative goodwill
9
(2,246,327)
(2,567,231)
Net goodwill
555,027
671,334
Other intangible assets
9
221,730
254,440
Total intangible assets
776,757
925,774
Tangible assets
10
2,936,846
4,883,605
Investments
11
2
2
3,713,605
5,809,381
Current assets
Stocks
13
280,217
650,959
Debtors
14
10,550,212
6,663,953
Cash at bank and in hand
366,154
1,903,323
11,196,583
9,218,235
Creditors: amounts falling due within one year
15
(4,344,595)
(3,955,948)
Net current assets
6,851,988
5,262,287
Total assets less current liabilities
10,565,593
11,071,668
Creditors: amounts falling due after more than one year
16
(1,940,145)
(3,251,289)
Provisions for liabilities
Deferred tax liability
18
-
0
85,667
-
(85,667)
Net assets
8,625,448
7,734,712
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
8,625,348
7,734,612
Total equity
8,625,448
7,734,712
- 9 -
FOOD HUB LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023
31 July 2023
The financial statements were approved by the board of directors and authorised for issue on 15 October 2024 and are signed on its behalf by:
A Mula
Director
Company registration number 10619783 (England and Wales)
- 10 -
FOOD HUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2021
100
6,196,726
6,196,826
Year ended 31 July 2022:
Profit and total comprehensive income
-
1,537,886
1,537,886
Balance at 31 July 2022
100
7,734,612
7,734,712
Year ended 31 July 2023:
Profit and total comprehensive income
-
890,736
890,736
Balance at 31 July 2023
100
8,625,348
8,625,448
- 11 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
Company information

Food Hub Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55A Duke Street, Stoke-on-Trent, ST4 3NR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Food Hub Group Limited. These consolidated financial statements are available from its registered office, 55a Duke Street, Stoke On Trent, England, ST4 3NR.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
- 12 -

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods and services is recognised when the significant risks and rewards of ownership of the goods and services have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

Negative goodwill arising on the acquisition of subsidiary undertakings and representing the excess of the fair value of the identifiable net assets acquired over consideration, is written back to the profit and loss account to match the recovery of the identifiable non-monetary assets acquired.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Other intangibles
10 year straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
20% straight line
Computers
25% straight line
Motor vehicles
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

- 13 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
1.8
Impairment of fixed assets
- 14 -

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
Classification of financial liabilities

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

- 15 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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. 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.

Useful economic life of tangible and intangible assets

The annual depreciation change for tangible and intangible assets is sensitive to changes in the estimated useful economics lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. They are amended where necessary to reflect current estimates.

- 16 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
779,104
1,424,342
Sale of services
36,953,332
32,763,119
37,732,436
34,187,461
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
37,663,212
34,060,700
European
69,045
44,334
Rest of the world
179
82,427
37,732,436
34,187,461
2023
2022
£
£
Other revenue
Interest income
29
2
Grants received
-
219,619
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(30,852)
45,348
Government grants
-
(219,619)
Fees payable to the company's auditor for the audit of the company's financial statements
33,000
33,000
Depreciation of owned tangible fixed assets
3,460,567
3,569,880
Loss/(profit) on disposal of tangible fixed assets
10,511
(5,513)
Amortisation of intangible assets
149,017
149,017
Operating lease charges
192,329
285,800
- 17 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Admin & support
100
77
Directors
1
1
Total
101
78

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,310,795
2,077,762
Social security costs
331,493
215,325
Pension costs
67,476
29,877
3,709,764
2,322,964
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
0
59,583
Company pension contributions to defined contribution schemes
-
1,361
-
0
60,944
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
345,805
374,685
Other interest
78,393
49,475
424,198
424,160
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
525,425
546,121
- 18 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
8
Taxation
(Continued)
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(216,987)
(195,815)
Total tax charge
308,438
350,306

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,199,174
1,888,192
Expected tax charge based on the standard rate of corporation tax in the UK of 21.00% (2022: 19.00%)
251,827
358,756
Tax effect of expenses that are not deductible in determining taxable profit
20,938
4,423
Group relief
(40,062)
(40,850)
Permanent capital allowances in excess of depreciation
(43,677)
(73,746)
Depreciation on assets not qualifying for tax allowances
133,080
120,406
Amortisation on assets not qualifying for tax allowances
31,294
28,313
Difference between deferred tax rate and average tax rate
(44,962)
(46,996)
Taxation charge for the year
308,438
350,306
9
Intangible fixed assets
Goodwill
Negative goodwill
Other intangibles
Total
£
£
£
£
Cost
At 1 August 2022 and 31 July 2023
4,112,990
(3,209,041)
319,860
1,223,809
Amortisation and impairment
At 1 August 2022
874,425
(641,810)
65,420
298,035
Amortisation charged for the year
437,211
(320,904)
32,710
149,017
At 31 July 2023
1,311,636
(962,714)
98,130
447,052
Carrying amount
At 31 July 2023
2,801,354
(2,246,327)
221,730
776,757
At 31 July 2022
3,238,565
(2,567,231)
254,440
925,774
- 19 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
10
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2022
105,867
10,964,178
110,519
11,180,564
Additions
14,567
1,349,925
187,990
1,552,482
Disposals
-
0
-
0
(47,620)
(47,620)
At 31 July 2023
120,434
12,314,103
250,889
12,685,426
Depreciation and impairment
At 1 August 2022
30,614
6,240,023
26,322
6,296,959
Depreciation charged in the year
27,079
3,404,189
29,299
3,460,567
Eliminated in respect of disposals
-
0
-
0
(8,946)
(8,946)
At 31 July 2023
57,693
9,644,212
46,675
9,748,580
Carrying amount
At 31 July 2023
62,741
2,669,891
204,214
2,936,846
At 31 July 2022
75,253
4,724,155
84,197
4,883,605
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
2
2
12
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Blazing Marketing Limited
United Kingdom
Ordinary
100.00
UK Tech Limited
United Kingdom
Ordinary
100.00
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
280,217
650,959
- 20 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
387,631
310,059
Amounts owed by group undertakings
8,028,543
5,102,691
Other debtors
1,339,693
1,226,723
Prepayments and accrued income
663,025
24,480
10,418,892
6,663,953
Deferred tax asset (note 18)
131,320
-
0
10,550,212
6,663,953
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
1,170,345
1,080,651
Trade creditors
686,028
242,946
Corporation tax
1,817,025
2,011,442
Other taxation and social security
185,366
124,493
Other creditors
140,804
140,802
Accruals and deferred income
345,027
355,614
4,344,595
3,955,948
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
1,940,145
3,110,489
Other creditors
-
0
140,800
1,940,145
3,251,289
17
Loans and overdrafts
2023
2022
£
£
Bank loans
3,110,490
4,191,140
Payable within one year
1,170,345
1,080,651
Payable after one year
1,940,145
3,110,489

The loan is secured by fixed and floating charges over all the assets of the company.

- 21 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
17
Loans and overdrafts
(Continued)

Bank loans is made up of one CBILS loan amounting to £3,110,490 (2022: £4,191,140). The rate of interest is the higher of 6% above SONIA or 8%. The first 12 months of interest was covered by a Business Interruption Payment ("BIP").

 

The bank loan is repayable by monthly equal instalments and is due to be repaid by January 2026.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
90,017
125,854
-
Short term timing differences
-
(4,350)
5,466
-
-
85,667
131,320
-
2023
Movements in the year:
£
Liability at 1 August 2022
85,667
Credit to profit or loss
(216,987)
Asset at 31 July 2023
(131,320)
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,476
29,877

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
- 22 -
FOOD HUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
40,000
44,520
Between two and five years
121,425
160,000
In over five years
-
0
1,425
161,425
205,945
22
Related party transactions

During the year rent paid and other expenses totalling £194,225 (2022: £93,346) was charged by Mula Estates Ltd, a company with common directorship. A balance of £2,496 (2022: £nil) was due to the company at the year end.

 

Included in other debtors is a loan receivable of £706,140 (2022: £706,140) that is due from A Mula, a close family member of a director.

23
Ultimate controlling party

The immediate and ultimate parent company is Food Hub Group Limited, a company registered in England and Wales.

 

The ultimate controlling party of the parent company is A Mula by virtue of his majority shareholding in Food Hub Group Limited.

- 23 -
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