Company registration number 06276496 (England and Wales)
SUPREME PET FOOD HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 JULY 2024
SUPREME PET FOOD HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr M T R Betley
Mr C Childs
Mr T H Kier
Company number
06276496
Registered office
Supreme Petfoods Limited
Stone Street
Hadleigh
Ipswich
Suffolk
IP7 6DN
Auditor
Streets Audit LLP
c/o The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE
SUPREME PET FOOD HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
SUPREME PET FOOD HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 JULY 2024
- 1 -

The directors present the strategic report for the year ended 28 July 2024.

Review of the business

The principal activity of the company during the year was to manufacture and sell premium small animal food and treats. During the year, the company achieved an increase in sales to £28,207,619 (2023: £27,513,596) a 2.5 % increase in a tighter market. The Company has continued to focus on growing sales from both of its brands in all markets whilst working hard to contain its costs throughout the organisation. It has continued to build its brands in the UK, USA and EU as well as other international markets. Gross margins have increased due to sales growth and management of costs. The resulting gross profit was £14,545,271 (2023: £12,388,967). As a result of the hard work in managing costs and increasing productivity operating profits rose to £2,411,294 (2023 £1,023,854).

Shareholder funds total £9,355,265 (2023: £8,063,884). Bank balances have increased at the year-end position to £1,746,223 (2023: £761,193) and the directors consider adequate finance is available to take advantage of business opportunities as they arise.

Trade debtors and trade creditors have continued to be well managed despite the increase in activity in the period.

The company invested in fixed assets totalling £617,311 within the accounting period to increase the efficiency of the business. The company purchased the freehold of one of the factories, which had been previously leased and further costs were incurred making additional improvements to the factory that was purchased last year.

The Directors continue to be proactive in areas where sales can be further improved; finding additional ways to promote the brand globally and for systems to be implemented or improved to deliver profits.

The company is continually assessing its performance and product lines and seeks to take advantage of technological improvements to improve efficiency and productivity whilst maintaining the highest level of quality.

Environmental – The company will continue to minimise the environmental impact from its operations by reducing CO2 and using recycled materials where possible. Palm oil is not used within any of our product ranges and the company is pleased that more than 85% of its packaging is recyclable with the remainder starting its transition. The company is also looking at ways to further reduce its energy use. The new site acquired in 2023 is significantly reducing the number of lorry miles required in the manufacture of our products, which has reduced our products delivery emissions.

The directors anticipate continued profitability in the foreseeable future.

Principal risks and uncertainties

Supply side risks have been mitigated to a reasonable extent with the third site being fully operational albeit some products have still not transitioned to the new site. Risks and uncertainties affecting the company include the volatility of raw material and packaging costs. Supreme is committed to ensuring the high standard of quality of our products which can limit supply options. Shipping and transport availability and cost has been a major challenge within the period, and this is expected to remain challenging into the following year.

It is anticipated that sales growth will be challenging in the coming year as the full effects of the post pandemic correction flow through all markets.

The combined impact of inflation on the supply side of the business and a tight labour market added inflationary pressures to business. Plans to mitigate any risks have been considered with action plans in place to manage some of the risks.

The company has invested in its team of key employees to ensure that staff retention is maintained as this will help achieve efficiencies and future objectives.

There is a continual exposure to foreign exchange from both suppliers and customers. The directors seek to offset foreign exchange risk if possible within the group.

SUPREME PET FOOD HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 2 -
Key performance indicators

The key performance indicators are as follows:

 

2024

2023

 

£

£

Turnover

28,207,619

27,513,597

Gross Profit

14,545,270

12,388,969

Gross Profit %

51.6%

45.0%

Operating Profit

2,453,139

1,067,513

 

 

On behalf of the board

Mr C Childs
Director
11 October 2024
SUPREME PET FOOD HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 JULY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 28 July 2024.

Principal activities

The principal activity of the company and group continued to be that of manufacturing, sale and distribution of high quality small animal pet foods and bedding. The principle activity of Supreme Pet Foods Holdings Limited is that of a holding company.

Results and dividends

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

Ordinary dividends were paid amounting to £521,057. The directors do not recommend payment of a further dividend.

No preference 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:

Mr M T R Betley
Mr C Childs
Mr T H Kier
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 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr C Childs
Director
11 October 2024
SUPREME PET FOOD HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 JULY 2024
- 4 -

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 group and company, and of the profit or loss of the group 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 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. They are 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.

SUPREME PET FOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPREME PET FOOD HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Supreme Pet Food Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 July 2024 which comprise the group profit and loss account, 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 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 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 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.

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

Opinions on other matters prescribed by the Companies Act 2006

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

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 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 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 directors either intend to liquidate the parent 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and United Kingdom Generally Accepted Accounting Practice. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

SUPREME PET FOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPREME PET FOOD HOLDINGS LIMITED
- 7 -

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 might be fundamental to the company and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Health and safety legislation, Employment legislation, and Safe and Local Supplier Approved Regulations (SALSA).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management.

Our audit procedures to respond to these risks included enquiries of management, about their own identification and assessment of the risks of irregularities, sample testing and obtaining supporting documentation to conclude on the correct treatment of overriders within the accounts. In addition we completed a review of the journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with SALSA and the reading of meeting minutes with senior management.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Michael Greene BSc FCCA
For and on behalf of
11 October 2024
Streets Audit LLP
Chartered Accountants
Statutory Auditor
c/o The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE
SUPREME PET FOOD HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
28,207,618
27,513,597
Cost of sales
(13,662,349)
(15,124,628)
Gross profit
14,545,269
12,388,969
Distribution costs
(3,117,001)
(3,767,104)
Administrative expenses
(8,975,129)
(7,550,626)
Operating profit
4
2,453,139
1,071,239
Interest receivable and similar income
8
8,538
92
Interest payable and similar expenses
9
(11,487)
(9,289)
Profit before taxation
2,450,190
1,062,042
Tax on profit
10
(608,372)
(242,690)
Profit for the financial year
23
1,841,818
819,352
Profit for the financial year is all attributable to the owners of the parent company.
SUPREME PET FOOD HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 JULY 2024
- 9 -
2024
2023
£
£
Profit for the year
1,841,818
819,352
Other comprehensive income
Cash flow hedges gain arising in the year
-
0
-
0
Tax relating to other comprehensive income
-
0
7,000
Total comprehensive income for the year
1,841,818
826,352
Total comprehensive income for the year is all attributable to the owners of the parent company.
SUPREME PET FOOD HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
28 JULY 2024
28 July 2024
- 10 -
28 July 2024
30 July 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
6,521,782
6,120,845
Current assets
Stocks
16
2,095,497
1,894,720
Debtors
17
4,070,376
3,733,957
Cash at bank and in hand
1,863,594
1,077,113
8,029,467
6,705,790
Creditors: amounts falling due within one year
18
(4,625,087)
(4,024,467)
Net current assets
3,404,380
2,681,323
Total assets less current liabilities
9,926,162
8,802,168
Provisions for liabilities
Deferred tax liability
20
139,233
336,000
(139,233)
(336,000)
Net assets
9,786,929
8,466,168
Capital and reserves
Called up share capital
22
2,405,234
2,405,234
Share premium account
23
232,257
232,257
Revaluation reserve
23
1,564,262
1,564,262
Profit and loss reserves
23
5,585,176
4,264,415
Total equity
9,786,929
8,466,168

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 11 October 2024 and are signed on its behalf by:
11 October 2024
Mr C  Childs
Director
Company registration number 06276496 (England and Wales)
SUPREME PET FOOD HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 28 JULY 2024
28 July 2024
- 11 -
28 July 2024
30 July 2023
Notes
£
£
£
£
Fixed assets
Investments
13
2,814,203
2,814,203
Current assets
-
-
Creditors: amounts falling due within one year
18
(176,370)
(176,370)
Net current liabilities
(176,370)
(176,370)
Net assets
2,637,833
2,637,833
Capital and reserves
Called up share capital
22
2,405,234
2,405,234
Share premium account
23
232,257
232,257
Profit and loss reserves
23
342
342
Total equity
2,637,833
2,637,833

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £521,057 (2023 - £185,193 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 11 October 2024 and are signed on its behalf by:
11 October 2024
Mr C  Childs
Director
Company registration number 06276496 (England and Wales)
SUPREME PET FOOD HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 JULY 2024
- 12 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 August 2022
2,405,234
232,257
1,557,262
3,637,256
7,832,009
Year ended 30 July 2023:
Profit for the year
-
-
-
819,352
819,352
Other comprehensive income:
Tax relating to other comprehensive income
-
-
7,000
-
0
7,000
Total comprehensive income
-
-
7,000
819,352
826,352
Dividends
11
-
-
-
(185,193)
(185,193)
Transfers
-
-
-
(7,000)
(7,000)
Balance at 30 July 2023
2,405,234
232,257
1,564,262
4,264,415
8,466,168
Year ended 28 July 2024:
Profit and total comprehensive income
-
-
-
1,841,818
1,841,818
Dividends
11
-
-
-
(521,057)
(521,057)
Balance at 28 July 2024
2,405,234
232,257
1,564,262
5,585,176
9,786,929
SUPREME PET FOOD HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 JULY 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
2,405,234
232,257
342
2,637,833
Year ended 30 July 2023:
Profit and total comprehensive income for the year
-
-
185,193
185,193
Dividends
11
-
-
(185,193)
(185,193)
Balance at 30 July 2023
2,405,234
232,257
342
2,637,833
Year ended 28 July 2024:
Profit and total comprehensive income
-
-
521,057
521,057
Dividends
11
-
-
(521,057)
(521,057)
Balance at 28 July 2024
2,405,234
232,257
342
2,637,833
SUPREME PET FOOD HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 JULY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,300,040
1,859,623
Interest paid
(11,487)
(9,289)
Income taxes paid
(173,347)
(289,571)
Net cash inflow from operating activities
2,115,206
1,560,763
Investing activities
Purchase of tangible fixed assets
(617,311)
(3,668,418)
Interest received
8,538
92
Net cash used in investing activities
(608,773)
(3,668,326)
Financing activities
Repayment of borrowings
(195,082)
195,082
Dividends paid to equity shareholders
(521,057)
(185,193)
Net cash (used in)/generated from financing activities
(716,139)
9,889
Net increase/(decrease) in cash and cash equivalents
790,294
(2,097,674)
Cash and cash equivalents at beginning of year
1,077,113
3,170,874
Effect of foreign exchange rates
(3,813)
3,913
Cash and cash equivalents at end of year
1,863,594
1,077,113
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 JULY 2024
- 15 -
1
Accounting policies
Company information

Supreme Pet Food Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Supreme Petfoods Limited, Stone Street, Hadleigh, Ipswich, Suffolk, IP7 6DN.

 

The group consists of Supreme Pet Food Holdings Limited 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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:

 

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Supreme Pet Food Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 28 July 2024. 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

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 17 -

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
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:

Freehold land and buildings
3% Straight line
Leasehold land and buildings
Straight line over the term of the lease
Plant and equipment
10% - 20% straight line over 23 years
Fixtures and fittings
20% - 25% straight line
Computers
33.3% straight line
Motor vehicles
25% 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.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 18 -

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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 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.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 19 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

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.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
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.

1.14
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 leased asset are consumed.

1.17
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.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of Freehold Property

The Directors have considered the value of Freehold Property held during the year and deem there to be no movement in the valuation for the year ended 28 July 2024.

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.

Credit Insurance Provision

The provision included within the financial statements for credit insurance is an estimated provided by the directors based on a current market value of insurance.

Stock Valuation

The stock valuation includes transport, material and other directly attributable costs that have been incurred in bringing the stock to its present location.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
8,538
92
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
94,468
101,871
Depreciation of owned tangible fixed assets
216,374
163,988
Operating lease charges
109,205
115,489
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 23 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries and the group
17,500
15,475
For other services
All other non-audit services
-
4,985
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
89
74
-
-
Sales
7
8
-
-
Admin
16
14
-
-
Total
112
96
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,523,681
3,111,018
-
0
-
0
Social security costs
375,926
334,317
-
-
Pension costs
173,940
184,746
-
0
-
0
4,073,547
3,630,081
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
319,794
254,189
Company pension contributions to defined contribution schemes
20,325
19,155
340,119
273,344
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
7
Directors' remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
270,611
207,207
Company pension contributions to defined contribution schemes
20,325
19,155
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,538
20
Other interest income
-
72
Total income
8,538
92
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,538
20
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
11,487
9,289
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
801,413
41,690
Deferred tax
Origination and reversal of timing differences
(196,767)
201,000
Foreign exchange differences
3,726
-
0
Total deferred tax
(193,041)
201,000
Total tax charge
608,372
242,690
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
10
Taxation
(Continued)
- 25 -

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:

2024
2023
£
£
Profit before taxation
2,450,190
1,062,042
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
612,548
201,080
Tax effect of expenses that are not deductible in determining taxable profit
2,059
6,835
Adjustments in respect of prior years
158,635
-
0
Effect of change in corporation tax rate
-
44,771
Permanent capital allowances in excess of depreciation
-
0
(9,175)
Under/(over) provided in prior years
-
0
289
Deferred tax adjustments in respect of prior years
(167,580)
1,495
Fixed asset difference
1,048
(2,605)
Other Adjustments
1,662
-
0
Taxation charge
608,372
242,690

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
(7,000)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
521,057
185,193
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 31 July 2023
2,297,484
3,105,631
3,201,323
75,589
119,373
15,230
8,814,630
Additions
546,000
-
0
63,073
682
7,556
-
0
617,311
At 28 July 2024
2,843,484
3,105,631
3,264,396
76,271
126,929
15,230
9,431,941
Depreciation and impairment
At 31 July 2023
76,727
253,074
2,204,132
33,948
110,674
15,230
2,693,785
Depreciation charged in the year
29,678
31,563
138,269
10,550
6,314
-
0
216,374
At 28 July 2024
106,405
284,637
2,342,401
44,498
116,988
15,230
2,910,159
Carrying amount
At 28 July 2024
2,737,079
2,820,994
921,995
31,773
9,941
-
0
6,521,782
At 30 July 2023
2,220,757
2,852,557
997,191
41,641
8,699
-
0
6,120,845
The company had no tangible fixed assets at 28 July 2024 or 30 July 2023.
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 27 -

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
2,737,079
2,220,757
-
0
-
0
Long leasehold
2,820,994
2,967,524
-
0
-
0
5,558,073
5,188,281
-
-

Land and buildings were revalued on the basis of market value on 25 May 2021 by J Haywood Smith MRICS of Beane Wass and Box, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards. The valuation method used was the Investment Method which capitalises the estimated net rental value of the property at a market yield, which is driven by the security and growth of that income.

The Directors consider there has been no material movement in the valuation at 28 July 2024.

 

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Group
Cost
1,149,536
1,149,536
Accumulated depreciation
(591,081)
(573,865)
Carrying value
558,455
575,671
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
2,814,203
2,814,203
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 31 July 2023 and 28 July 2024
2,814,203
Carrying amount
At 28 July 2024
2,814,203
At 30 July 2023
2,814,203
14
Subsidiaries

Details of the company's subsidiaries at 28 July 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Supreme Petfoods Limited
England & Wales
Pet food manufacturer and distributor
GBP 1 Ordinary
100.00
-
Supreme Pet Products Inc
USA
Dormant
USD 1 Ordinary
100.00
-
Supreme Petfoods BV
Netherlands
Pet food distributor
EUR 1 Ordinary
100.00
-
Supreme Pet Products Limited
England & Wales
Dormant
GBP 1 Ordinary
0
100.00
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,884,546
3,488,309
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
3,998,572
3,962,601
n/a
n/a

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 29 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
462,133
781,838
-
-
Work in progress
67,822
-
-
-
Finished goods and goods for resale
1,565,542
1,112,882
-
0
-
0
2,095,497
1,894,720
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,881,788
3,492,863
-
0
-
0
Corporation tax recoverable
-
0
51,863
-
0
-
0
Other debtors
20,529
9,594
-
0
-
0
Prepayments and accrued income
168,059
179,637
-
0
-
0
4,070,376
3,733,957
-
-
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
19
-
0
195,082
-
0
-
0
Trade creditors
2,382,758
2,590,644
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
176,370
176,370
Corporation tax payable
587,893
7,964
-
0
-
0
Other taxation and social security
38,622
53,902
-
-
Other creditors
5,262
(501)
-
0
-
0
Accruals and deferred income
1,610,552
1,177,376
-
0
-
0
4,625,087
4,024,467
176,370
176,370
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 30 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
-
0
195,082
-
0
-
0
Payable within one year
-
0
195,082
-
0
-
0

Other loans consist of amounts advanced from debt factoring, the amount advanced is secured by a fixed floating charge over all property, including attached fixtures, and undertakings of the company.

20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
95,651
275,000
Tax losses
2,544
-
Revaluations
60,721
61,000
Provision
(19,683)
-
139,233
336,000
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 31 July 2023
336,000
-
Credit to profit or loss
(196,767)
-
Liability at 28 July 2024
139,233
-

The deferred tax liability set out above is expected to reverse within 12 months in relation to provision and accelerated capital allowances. Amounts relating to revalued properties will reverse when sold.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 31 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
173,940
184,746

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.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 32 -
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
298,440
29,844
29,844
29,844
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference Shares of £1 each
2,375,390
2,375,390
2,375,390
2,375,390
Preference shares classified as equity
2,375,390
2,375,390
Total equity share capital
2,405,234
2,405,234

The preference shares do not carry any voting rights nor do they carry the right to a mandatory dividend.

 

In the event of winding up of the company, the preference shares have first rights for repayment at their par value.

 

Thereafter, the remaining assets and retained profits of the company will be distributed amongst the holders of the ordinary shares.

 

Subject to the Companies Act 2006, the Preference Shares shall be redeemed in full at any time by the directors giving notice of the redemption to the holder.

23
Reserves
Revaluation reserve

The revaluation reserve include unrecognised gains on freehold property when comparing the carrying net book value to the estimated market value.

 

The deferred tax associated with this gain is also carried within the revaluation reserve.

SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 33 -
24
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
2024
2023
2024
2023
£
£
£
£
Within one year
53,161
81,609
-
-
Between two and five years
136,874
136,614
-
-
In over five years
3,450,000
3,480,000
-
-
3,640,035
3,698,223
-
-

Included within the lease commitments of over five years the following amounts are considered payable within 5-25 years £600,000 and over 25 years £2,850,000.

25
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,841,818
819,352
Adjustments for:
Taxation charged
608,372
242,690
Finance costs
11,487
9,289
Investment income
(8,538)
(92)
Depreciation and impairment of tangible fixed assets
216,374
163,988
Foreign exchange gains on cash equivalents
3,813
(3,725)
Movements in working capital:
(Increase)/decrease in stocks
(200,777)
738,661
Increase in debtors
(388,282)
(294,078)
Increase in creditors
215,773
183,538
Cash generated from operations
2,300,040
1,859,623
SUPREME PET FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 34 -
26
Analysis of changes in net funds - group
31 July 2023
Cash flows
Exchange rate movements
28 July 2024
£
£
£
£
Cash at bank and in hand
1,077,113
790,294
(3,813)
1,863,594
Borrowings excluding overdrafts
(195,082)
195,082
-
-
882,031
985,376
(3,813)
1,863,594
2024-07-282023-07-31falseCCH SoftwareCCH Accounts Production 2024.200Mr M T R BetleyMr C ChildsMr T H KierMs Claire  HamblionMr M P 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