Company registration number 01599755 (England and Wales)
SUPREME PETFOODS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 JULY 2024
SUPREME PETFOODS LIMITED
COMPANY INFORMATION
Directors
Mr C Childs
Ms C J Hamblion
Mr T H Kier
Mr M P Russell
Company number
01599755
Registered office
Stone Street
Hadleigh
Ipswich
IP7 6DN
Auditor
Streets Audit LLP
c/o The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE
SUPREME PETFOODS 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
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 27
SUPREME PETFOODS 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.

SUPREME PETFOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 2 -
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.

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

2,411,294

1,023,888

 

On behalf of the board

Mr C Childs
Director
11 October 2024
SUPREME PETFOODS 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 continued to be that of the manufacture and sale of premium small animal food and treats.

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.

Directors

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

Mr C Childs
Ms C J Hamblion
Mr T H Kier
Mr M P Russell
Statement of disclosure to auditor

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

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 PETFOODS 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

SUPREME PETFOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPREME PETFOODS LIMITED
- 5 -
Opinion

We have audited the financial statements of Supreme Petfoods Limited (the 'company') for the year ended 28 July 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

SUPREME PETFOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPREME PETFOODS LIMITED (CONTINUED)
- 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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 PETFOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPREME PETFOODS LIMITED (CONTINUED)
- 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
Senior Statutory Auditor
For and on behalf of Streets Audit LLP
11 October 2024
Chartered Accountants
Statutory Auditor
c/o The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE
SUPREME PETFOODS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
28,207,619
27,513,597
Cost of sales
(13,662,349)
(15,124,628)
Gross profit
14,545,270
12,388,969
Distribution costs
(3,117,001)
(3,767,104)
Administrative expenses
(9,016,975)
(7,597,977)
Operating profit
4
2,411,294
1,023,888
Interest receivable and similar income
7
8,538
92
Interest payable and similar expenses
8
(11,487)
(9,289)
Profit before taxation
2,408,345
1,014,691
Tax on profit
9
(595,907)
(242,690)
Profit for the financial year
1,812,438
772,001

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

SUPREME PETFOODS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 JULY 2024
- 9 -
2024
2023
£
£
Profit for the year
1,812,438
772,001
Other comprehensive income
Tax relating to other comprehensive income
-
0
7,000
Total comprehensive income for the year
1,812,438
779,001
SUPREME PETFOODS LIMITED
BALANCE SHEET
AS AT
28 JULY 2024
28 July 2024
- 10 -
28 July 2024
30 July 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,521,695
6,120,758
Investments
12
1
1
6,521,696
6,120,759
Current assets
Stocks
14
2,095,497
1,894,720
Debtors
15
4,226,217
3,915,113
Cash at bank and in hand
1,746,223
956,275
8,067,937
6,766,108
Creditors: amounts falling due within one year
16
(5,095,135)
(4,486,983)
Net current assets
2,972,802
2,279,125
Total assets less current liabilities
9,494,498
8,399,884
Provisions for liabilities
Deferred tax liability
18
139,233
336,000
(139,233)
(336,000)
Net assets
9,355,265
8,063,884
Capital and reserves
Called up share capital
20
3,375,390
3,375,390
Revaluation reserve
1,564,262
1,564,262
Profit and loss reserves
4,415,613
3,124,232
Total equity
9,355,265
8,063,884

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:
Mr C  Childs
Director
Company registration number 01599755 (England and Wales)
SUPREME PETFOODS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 JULY 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
3,375,390
1,557,262
2,544,424
7,477,076
Year ended 30 July 2023:
Profit
-
-
772,001
772,001
Other comprehensive income:
Tax relating to other comprehensive income
-
7,000
-
0
7,000
Total comprehensive income
-
7,000
772,001
779,001
Dividends
10
-
-
(185,193)
(185,193)
Transfers
-
-
0
(7,000)
(7,000)
Balance at 30 July 2023
3,375,390
1,564,262
3,124,232
8,063,884
Year ended 28 July 2024:
Profit and total comprehensive income
-
-
1,812,438
1,812,438
Dividends
10
-
-
(521,057)
(521,057)
Balance at 28 July 2024
3,375,390
1,564,262
4,415,613
9,355,265
SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 JULY 2024
- 12 -
1
Accounting policies
Company information

Supreme Petfoods Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stone Street, Hadleigh, Ipswich, IP7 6DN.

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.

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

 

 

The financial statements of the company are consolidated in the financial statements of Supreme Pet Food Holdings Limited. These consolidated financial statements are available from its registered office, Stone Street, Hadleigh, Suffolk, IP7 6DN.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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 PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 13 -

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.

1.4
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. Or, 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 credited or charged to profit or loss.

1.5
Fixed asset investments

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

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

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 14 -
1.7
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.

1.8
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.

1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 15 -
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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 16 -
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 company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

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

Deferred tax

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

 

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

SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
1
Accounting policies
(Continued)
- 17 -
1.12
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.

1.13
Retirement benefits

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

1.14
Leases

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

1.15
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

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.

SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
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 estimate 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
87,030
104,030
Fees payable to the company's auditor for the audit of the company's financial statements
17,500
13,475
Depreciation of owned tangible fixed assets
216,374
163,988
Operating lease charges
109,205
111,356
5
Employees

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

2024
2023
Number
Number
Production
89
74
Sales
7
8
Administration
16
14
Total
112
96
SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,523,681
2,973,183
Social security costs
375,926
313,239
Pension costs
173,940
159,930
4,073,547
3,446,352
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
504,217
402,805
Company pension contributions to defined contribution schemes
36,046
33,994
540,263
436,799

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include 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
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,538
20
Other interest income
-
0
72
Total income
8,538
92
SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 20 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
11,487
9,289
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
792,674
41,690
Deferred tax
Origination and reversal of timing differences
(196,767)
201,000
Total tax charge
595,907
242,690

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
2,408,345
1,014,691
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
602,086
192,791
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
-
0
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 differences
1,048
5,684
Other adjustments
(341)
-
0
Taxation charge for the year
595,907
242,690
SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
9
Taxation
(Continued)
- 21 -

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)
10
Dividends
2024
2023
£
£
Final paid
521,057
185,193
SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 22 -
11
Tangible fixed assets
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
74,100
113,715
15,230
8,807,483
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
74,782
121,271
15,230
9,424,794
Depreciation and impairment
At 31 July 2023
76,727
253,074
2,204,132
32,740
104,822
15,230
2,686,725
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
43,290
111,136
15,230
2,903,099
Carrying amount
At 28 July 2024
2,737,079
2,820,994
921,995
31,492
10,135
-
0
6,521,695
At 30 July 2023
2,220,757
2,852,557
997,191
41,360
8,893
-
0
6,120,758
SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 23 -

The carrying value of land and buildings comprises:

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

Included within freehold land and buildings is land of £1,434,000 (2023: £1,350,000) which is not depreciated.

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
£
£
Cost
1,149,536
1,149,536
Accumulated depreciation
(591,081)
(573,865)
Carrying value
558,455
575,671
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1
1
13
Subsidiaries

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

SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
13
Subsidiaries
(Continued)
- 24 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Supreme Pet Products Limited
Stone Street, Hadleigh, Ipswich, IP7 6DN
GBP 1 Ordinary
100.00
14
Stocks
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
2,095,497
1,894,720
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,881,787
3,492,864
Corporation tax recoverable
-
0
51,863
Amounts owed by group undertakings
176,371
176,371
Other debtors
-
0
14,378
Prepayments and accrued income
168,059
179,637
4,226,217
3,915,113
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
17
-
0
195,082
Trade creditors
2,356,195
2,538,980
Amounts owed to group undertakings
509,459
524,147
Corporation tax
585,002
-
0
Other taxation and social security
38,503
46,840
Other creditors
705
1,088
Accruals and deferred income
1,605,271
1,180,846
5,095,135
4,486,983
SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 25 -
17
Loans and overdrafts
2024
2023
£
£
Other loans
-
0
195,082
Payable within one year
-
0
195,082

 

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.

18
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
95,651
275,000
Other
2,544
-
Revaluations
60,721
61,000
Provisions
(19,683)
-
139,233
336,000
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 PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 26 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
173,940
159,930

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

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,375,390
3,375,390
3,375,390
3,375,390
21
Operating lease commitments
Lessee

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

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.

 

SUPREME PETFOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 JULY 2024
- 27 -
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,812,438
772,001
Adjustments for:
Taxation charged
595,907
242,690
Finance costs
11,487
9,289
Investment income
(8,538)
(92)
Depreciation and impairment of tangible fixed assets
216,374
163,988
Movements in working capital:
(Increase)/decrease in stocks
(200,777)
790,524
Increase in debtors
(362,967)
(362,111)
Increase in creditors
218,232
458,314
Cash generated from operations
2,282,156
2,074,603
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