Company registration number 12740854 (England and Wales)
FOOD HUB GROUP LTD
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
FOOD HUB GROUP LTD
COMPANY INFORMATION
Director
A Mula
Company number
12740854
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 GROUP LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
FOOD HUB GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The director presents the strategic report for the year ended 31 July 2023.

Review of the business

This is the third annual report as Food Hub Group.

Group revenue grew by 13% to £39.7m (2022, £35.0m), following revenue growth of 5% in FY22 and this growth trajectory has continued into FY24.

Pre-tax profit was £121k (2022, £1.0m) 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.

In September 2022 we purchased 90% of the share capital of NYC Mobile Group Inc. (t/a Orders2Me), a food ordering platform based in New York and continue to pursue growth both in the UK and internationally.

Principal risks and uncertainties

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

Key performance indicators

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

Stakeholder engagement

The director is 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 group 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 group’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 group 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 sponsorships and charitable donations. We recognise that our activities have an impact on the environment and are committed to introduce further measures to reduce our carbon footprint.

FOOD HUB GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -

On behalf of the board

A Mula
Director
15 October 2024
FOOD HUB GROUP LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the company is that of a management and holding company.

 

The principal activity of the group 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 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

A Mula
J Stark
(Resigned 6 December 2022)
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 ongoing profits of the group.

 

Foreign currency risks

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

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Future developments

The group has an overall strategic objective for growth and we continue to look for appropriate acquisitions both in the UK and internationally.

FOOD HUB GROUP LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 4 -
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.

Energy and carbon report

Statement of carbon emissions in compliance with Streamlined Energy and Carbon Reporting (SECR).

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
109,925
135,915
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
24.28
10.74
- Fuel consumed for owned transport
145.40
25.99
169.68
36.73
Scope 2 - indirect emissions
- Electricity purchased
11.86
9.88
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
181.54
46.61
Intensity ratio
Kg C02e per sq ft
4.53
1.21
Quantification and reporting methodology

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’ issued by DEFRA, using DEFRA's 2022 and 2023 conversion factors as appropriate. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in KG CO2e per sq ft, the recommended ratio for the sector.

FOOD HUB GROUP LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 5 -
Measures taken to improve energy efficiency

There are a number of actions we have taken to ensure we are energy efficient which include the below.

 

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and 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 auditor of the company is unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as director in order to make himself aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
A Mula
Director
15 October 2024
FOOD HUB GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FOOD HUB GROUP LTD
- 6 -
Opinion

We have audited the financial statements of Food Hub Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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 director 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 director is 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.

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 GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FOOD HUB GROUP LTD
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has 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, 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 area: 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.

FOOD HUB GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FOOD HUB GROUP LTD
- 8 -

We also obtained an understanding of the legal and regulatory frameworks the company operates in, focussing 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 and tax legislation in all relevant jurisdictions where the group 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 group’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
FOOD HUB GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
39,719,904
35,019,537
Cost of sales
(1,553,653)
(1,368,302)
Gross profit
38,166,251
33,651,235
Distribution costs
(1,369,191)
(579,002)
Administrative expenses
(36,255,079)
(31,589,708)
Other operating income
4,200
219,619
Operating profit
5
546,181
1,702,144
Interest receivable and similar income
9
9,421
4,498
Interest payable and similar expenses
10
(435,017)
(432,842)
Amounts written off investments
11
-
(231,775)
Profit before taxation
120,585
1,042,025
Tax on profit
12
(571,322)
(363,470)
(Loss)/profit for the financial year
26
(450,737)
678,555
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(452,586)
678,555
- Non-controlling interests
1,849
-
(450,737)
678,555
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(452,586)
678,555
- Non-controlling interests
1,849
-
(450,737)
678,555
FOOD HUB GROUP LTD
GROUP BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
6,815,527
5,087,534
Negative goodwill
13
(2,246,427)
(2,567,331)
Net goodwill
4,569,100
2,520,203
Other intangible assets
13
601,581
747,437
Total intangible assets
5,170,681
3,267,640
Tangible assets
14
3,534,705
5,857,489
8,705,386
9,125,129
Current assets
Stocks
18
478,348
650,959
Debtors
19
4,818,479
3,246,745
Cash at bank and in hand
1,897,803
3,688,009
7,194,630
7,585,713
Creditors: amounts falling due within one year
20
(7,672,569)
(6,627,943)
Net current (liabilities)/assets
(477,939)
957,770
Total assets less current liabilities
8,227,447
10,082,899
Creditors: amounts falling due after more than one year
21
(1,940,145)
(3,251,289)
Provisions for liabilities
Deferred tax liability
23
-
0
95,415
-
(95,415)
Net assets
6,287,302
6,736,195
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
26
6,283,509
6,736,095
Equity attributable to owners of the parent company
6,283,609
6,736,195
Non-controlling interests
3,693
-
6,287,302
6,736,195
FOOD HUB GROUP LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2023
31 July 2023
- 11 -
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:
15 October 2024
A Mula
Director
Company registration number 12740854 (England and Wales)
FOOD HUB GROUP LTD
COMPANY BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
283,506
401,654
Tangible assets
14
63,396
76,371
Investments
15
3,469,583
3,469,583
3,816,485
3,947,608
Current assets
Debtors
19
3,605,027
1,320,386
Cash at bank and in hand
344,281
1,361,770
3,949,308
2,682,156
Creditors: amounts falling due within one year
20
(9,182,630)
(6,695,515)
Net current liabilities
(5,233,322)
(4,013,359)
Total assets less current liabilities
(1,416,837)
(65,751)
Provisions for liabilities
Deferred tax liability
23
-
0
9,748
-
(9,748)
Net liabilities
(1,416,837)
(75,499)
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
26
(1,416,937)
(75,599)
Total equity
(1,416,837)
(75,499)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,341,338 (2022 - £148,681 loss).

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:
15 October 2024
A Mula
Director
Company registration number 12740854 (England and Wales)
FOOD HUB GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 August 2021
100
6,057,540
6,057,640
-
6,057,640
Year ended 31 July 2022:
Profit and total comprehensive income
-
678,555
678,555
-
678,555
Balance at 31 July 2022
100
6,736,095
6,736,195
-
0
6,736,195
Year ended 31 July 2023:
Loss and total comprehensive income
-
(452,586)
(452,586)
1,849
(450,737)
Acquisition of subsidiary
-
-
-
1,844
1,844
Balance at 31 July 2023
100
6,283,509
6,283,609
3,693
6,287,302
FOOD HUB GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2021
100
73,082
73,182
Year ended 31 July 2022:
Loss and total comprehensive income for the year
-
(148,681)
(148,681)
Balance at 31 July 2022
100
(75,599)
(75,499)
Year ended 31 July 2023:
Profit and total comprehensive income
-
(1,341,338)
(1,341,338)
Balance at 31 July 2023
100
(1,416,937)
(1,416,837)
FOOD HUB GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
5,500,425
3,950,693
Interest paid
(435,017)
(432,842)
Income taxes paid
(1,154,690)
-
0
Net cash inflow from operating activities
3,910,718
3,517,851
Investing activities
Purchase of intangible assets
(7,365)
(55,173)
Purchase of tangible fixed assets
(1,564,489)
(2,185,136)
Proceeds from disposal of tangible fixed assets
28,772
16,421
Purchase of subsidiaries, net of cash acquired
(2,602,944)
68,766
Interest received
9,421
4,498
Net cash used in investing activities
(4,136,605)
(2,150,624)
Financing activities
Repayment of bank loans
(1,080,650)
(808,860)
(Loans advanced)/Repayment of other loans
(483,669)
1,100
Net cash used in financing activities
(1,564,319)
(807,760)
Net (decrease)/increase in cash and cash equivalents
(1,790,206)
559,467
Cash and cash equivalents at beginning of year
3,688,009
3,128,542
Cash and cash equivalents at end of year
1,897,803
3,688,009
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 16 -
1
Accounting policies
Company information

Food Hub Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 55A Duke Street, Stoke-on-Trent, ST4 3NR.

 

The group consists of Food Hub Group Ltd and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Food Hub Group Ltd together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

Notwithstanding net current liabilities of £5,233,322 in the company and £477,939 in the group, at the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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 is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 10 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.

FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
1.7
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:

Software
3 - 5 year straight line
Other intangibles
10 year straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:

Plant and equipment
25 - 33% straight line
Fixtures and fittings
20% straight line
Computers
25 - 33% 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 recognised in the profit and loss account.

1.9
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

1.11
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.

1.12
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.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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.

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 group after deducting all of its liabilities.

FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 20 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

1.19
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 group’s accounting policies, the director is 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.

FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
782,491
1,424,340
Sale of services
38,937,413
33,595,197
39,719,904
35,019,537
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
37,576,396
34,189,975
Europe
69,045
-
Rest of the World
2,074,463
829,562
39,719,904
35,019,537
2023
2022
£
£
Other revenue
Interest income
9,421
4,498
Grants received
-
219,619
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional loan write off
122,875
674,133
122,875
674,133
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
4
Exceptional item
(Continued)
- 23 -

During the prior year the group advanced funds to Omnipay Ltd of £300,000 which were written off as an irrecoverable exceptional item within administrative expenses. Further loans of £374,133 were advanced to a joint venture, ForoPay International GmbH. These were considered irrecoverable and were written off in full during the year ended 31 July 2022.

 

During the year, £122,875 due from ForoPay International GmbH was written off as an irrecoverable exceptional item within administrative expenses. A balance of £nil (2022: £nil) was due from the company at the year end.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(18,819)
(219,963)
Government grants
-
(219,619)
Depreciation of owned tangible fixed assets
3,848,599
3,750,397
Loss/(profit) on disposal of tangible fixed assets
9,902
(6,588)
Amortisation of intangible assets
718,505
583,571
Operating lease charges
1,343,832
1,272,651
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the group and company
22,000
22,000
Audit of the financial statements of the company's subsidiaries
33,000
40,878
55,000
62,878
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Admin & Support
908
901
39
44
Directors
1
1
1
1
Total
909
902
40
45
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
7
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
15,195,243
12,167,217
2,858,146
2,797,571
Social security costs
667,664
554,976
336,171
326,849
Pension costs
135,033
106,044
67,557
37,531
15,997,940
12,828,237
3,261,874
3,161,951
8
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
300,127
359,500
Company pension contributions to defined contribution schemes
3,075
3,074
303,202
362,574
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
197,628
202,500
Company pension contributions to defined contribution schemes
-
1,471
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
9,421
4,498
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
356,624
383,367
Other interest
78,393
49,475
Total finance costs
435,017
432,842
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
11
Amounts written off investments
2023
2022
£
£
Amounts written back to/(written off) investments held at fair value
-
(231,775)

Amounts written off in the prior year relate to the impairment of investment in a joint venture, ForoPay International GmbH, that is considered irrecoverable.

12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
537,040
677,186
Foreign current tax on profits for the current period
264,119
(121,055)
Total current tax
801,159
556,131
Deferred tax
Origination and reversal of timing differences
(229,837)
(192,661)
Total tax charge
571,322
363,470

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
120,585
1,042,025
Expected tax charge based on the standard rate of corporation tax in the UK of 21.00% (2022: 19.00%)
25,323
197,985
Tax effect of expenses that are not deductible in determining taxable profit
334,364
20,642
Permanent capital allowances in excess of depreciation
(43,883)
(76,625)
Depreciation on assets not qualifying for tax allowances
133,080
120,406
Amortisation on assets not qualifying for tax allowances
126,076
72,542
Difference between deferred tax rate and average tax rate
(47,089)
(46,240)
Effect of loss in foreign subsidiaries not subject to UK corporation tax
43,451
74,760
Taxation charge
571,322
363,470
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 26 -
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Other intangibles
Total
£
£
£
£
£
Cost
At 1 August 2022
6,423,963
(3,209,141)
770,119
319,860
4,304,801
Additions
2,614,181
-
0
7,365
-
0
2,621,546
At 31 July 2023
9,038,144
(3,209,141)
777,484
319,860
6,926,347
Amortisation and impairment
At 1 August 2022
1,336,429
(641,810)
277,122
65,420
1,037,161
Amortisation charged for the year
886,188
(320,904)
120,511
32,710
718,505
At 31 July 2023
2,222,617
(962,714)
397,633
98,130
1,755,666
Carrying amount
At 31 July 2023
6,815,527
(2,246,427)
379,851
221,730
5,170,681
At 31 July 2022
5,087,534
(2,567,331)
492,997
254,440
3,267,640
Company
Software
£
Cost
At 1 August 2022 and 31 July 2023
590,740
Amortisation and impairment
At 1 August 2022
189,086
Amortisation charged for the year
118,148
At 31 July 2023
307,234
Carrying amount
At 31 July 2023
283,506
At 31 July 2022
401,654
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
14
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2022
50,266
240,298
11,866,240
178,339
12,335,143
Additions
6,151
29,017
1,341,331
187,990
1,564,489
Disposals
-
0
-
0
-
0
(47,620)
(47,620)
At 31 July 2023
56,417
269,315
13,207,571
318,709
13,852,012
Depreciation and impairment
At 1 August 2022
1,716
44,385
6,397,794
33,759
6,477,654
Depreciation charged in the year
12,988
65,249
3,728,551
41,811
3,848,599
Eliminated in respect of disposals
-
0
-
0
-
0
(8,946)
(8,946)
At 31 July 2023
14,704
109,634
10,126,345
66,624
10,317,307
Carrying amount
At 31 July 2023
41,713
159,681
3,081,226
252,085
3,534,705
At 31 July 2022
48,550
195,913
5,468,446
144,580
5,857,489
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2022
50,266
1,543
29,145
80,954
Additions
6,151
-
0
-
0
6,151
At 31 July 2023
56,417
1,543
29,145
87,105
Depreciation and impairment
At 1 August 2022
1,716
283
2,584
4,583
Depreciation charged in the year
12,988
309
5,829
19,126
At 31 July 2023
14,704
592
8,413
23,709
Carrying amount
At 31 July 2023
41,713
951
20,732
63,396
At 31 July 2022
48,550
1,260
26,561
76,371
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 28 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
3,469,583
3,469,583
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022 and 31 July 2023
3,469,583
Carrying amount
At 31 July 2023
3,469,583
At 31 July 2022
3,469,583
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 29 -
16
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
Indirect
Food Hub Limited
55a, Duke Street, Stoke-on-Trent, England, ST4 3NR
Ordinary
100.00
-
Food Hub Software Solutions PVT Limited
Block 2, 1/124 Sivaji Garden Mount, Poonamalle Road, Ramapuram Chennai, Tamil Nadu, 600089 India
Ordinary
100.00
-
Food Hub (Aus) PTY Limited
59 Malin Street Kew, Victoria, 3101 Australia
Ordinary
100.00
-
Food Hub LLC
980 Pine Grove Pointe Dr., Roswell, GA, 30075, USA
Ordinary
100.00
-
Blazing Marketing Limited
55a, Duke Street, Stoke-on-Trent, England, ST4 3NR
Ordinary
-
100.00
UK Tech Limited
55a, Duke Street, Stoke-on-Trent, England, ST4 3NR
Ordinary
-
100.00
T2S Software Solutions Private Limited
Block 9a, 1/124 Sivaji Garden Mount, Poonamallee Road, Nandambakkam Chennai, Tamil Nadu, 60089 India
Ordinary
-
100.00
Mobile Foods PTY Ltd
Level 865 York Street, Sydney, New South Wales, 2000 Australia
Ordinary
100.00
-
Food Hub (NZ) Limited
7b Canon Place, Pakuranga Heights, Aukland 2010 NZ
Ordinary
-
100.00
Omnipay Ltd
55a Duke Street Duke Street, Stoke-On-Trent, England, ST4 3NR
Ordinary
100.00
-
NYC Mobile Group Inc.
1724 E 12th St, Brooklyn, New York, NY 11229
Ordinary
-
90.00
17
Joint ventures

Details of joint ventures at 31 July 2023 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Indirect
ForoPay International GmbH
Frankfurt a. Main, Germany
Ordinary
-
50.00
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
478,348
650,959
-
0
-
0
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 30 -
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,452,989
1,059,714
310,096
200,000
Corporation tax recoverable
-
0
85,115
-
0
-
0
Amounts owed by group undertakings
-
-
2,400,313
462,612
Other debtors
2,385,815
1,805,503
882,905
547,871
Prepayments and accrued income
845,253
296,413
8,611
109,903
4,684,057
3,246,745
3,601,925
1,320,386
Deferred tax asset (note 23)
134,422
-
0
3,102
-
0
4,818,479
3,246,745
3,605,027
1,320,386
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
1,170,345
1,080,651
-
0
-
0
Trade creditors
2,020,947
1,655,698
919,173
766,245
Amounts owed to group undertakings
-
0
-
0
7,657,123
5,046,064
Corporation tax payable
1,732,437
2,171,083
138,950
159,641
Other taxation and social security
369,075
406,059
333,497
230,146
Other creditors
1,902,505
385,536
-
0
100
Accruals and deferred income
477,260
928,916
133,887
493,319
7,672,569
6,627,943
9,182,630
6,695,515
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
1,940,145
3,110,489
-
0
-
0
Other creditors
-
0
140,800
-
0
-
0
1,940,145
3,251,289
-
-
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 31 -
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
3,110,490
4,191,140
-
0
-
0
Payable within one year
1,170,345
1,080,651
-
0
-
0
Payable after one year
1,940,145
3,110,489
-
0
-
0

The bank loan is secured by fixed and floating charges over the assets of the group.

Bank loans are made up of one CBILS loan amounting to £3,110,490. 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.

23
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
-
103,208
126,688
-
Short term timing differences
-
(7,793)
7,734
-
-
95,415
134,422
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
-
13,191
834
-
Short term timing differences
-
(3,443)
2,268
-
-
9,748
3,102
-
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
23
Deferred taxation
(Continued)
- 32 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 August 2022
95,415
9,748
Credit to profit or loss
(229,837)
(12,850)
Asset at 31 July 2023
(134,422)
(3,102)
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
135,033
106,044

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
26
Reserves
Profit and loss reserves

The profit and loss reserve includes all current and prior period retained profits and losses, less dividends paid.

FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 33 -
27
Acquisition of a business

On 26 September 2022 the group acquired 90% of the issued capital of NYC Mobile Group Inc..

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Trade and other receivables
6,619
-
6,619
Cash and cash equivalents
27,830
-
27,830
Trade and other payables
(16,012)
-
(16,012)
Total identifiable net assets
18,437
-
18,437
Non-controlling interests
(1,844)
Goodwill
2,614,181
Total consideration
2,630,774
The consideration was satisfied by:
£
Cash
2,630,774
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
556,992
Profit after tax
18,861
28
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,441,933
1,321,701
-
-
Between two and five years
2,204,564
4,719,592
-
-
In over five years
-
1,425
-
-
3,646,497
6,042,718
-
-
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 34 -
29
Related party transactions
Transactions with related parties

Omnipay Ltd is a company related by a common shareholder. During the prior year, prior to acquiring the company, the group advanced funds to Omnipay amounting to £nil (2022: £300,000) which were written off as an irrecoverable exceptional item. Further amounts advanced and written off post-acquisition amount to £nil on consolidation. A balance of £nil was due from the company at the year end.

 

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 £111,732 (2022: £100,000) 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.

 

During the year directors fees and other expenses totalling £nil (2022: £102,053) was charged by 4T4 Consult Ltd, a company with common directorship. A balance of £nil (2022: £nil) was due to the company at the year end.

30
Controlling party

The ultimate controlling party is A Mula by virtue of his majority shareholding in the company.

31
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(450,737)
446,780
Adjustments for:
Taxation charged
571,322
363,470
Finance costs
435,017
432,842
Investment income
(9,421)
(4,498)
Loss/(gain) on disposal of tangible fixed assets
9,902
(6,588)
Amortisation and impairment of intangible assets
718,505
583,571
Depreciation and impairment of tangible fixed assets
3,848,599
3,750,397
Other gains and losses
-
231,775
Movements in working capital:
Decrease/(increase) in stocks
172,611
(116,355)
Increase in debtors
(1,032,139)
(418,297)
Increase/(decrease) in creditors
1,236,766
(1,312,404)
Cash generated from operations
5,500,425
3,950,693
FOOD HUB GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 35 -
32
Analysis of changes in net debt - group
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
3,688,009
(1,790,206)
1,897,803
Borrowings excluding overdrafts
(4,191,140)
1,080,650
(3,110,490)
(503,131)
(709,556)
(1,212,687)
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