Central Food Service Ltd
Annual report and financial statements
For the year ended 31 January 2024
Central Food Service Ltd
Company information
Directors
Mr K O Noori
Mr W K Noori
Ms S V Noori
Secretary
Mr W K Noori
Company number
02820272
Registered office
Units 1-5 Unicorn Industrial Estate
Davenport Street
Longport
Stoke on Trent
Staffordshire
ST6 4RB
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Central Food Service Ltd
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Notes to the financial statements
11 - 23
Central Food Service Ltd
Strategic report
For the year ended 31 January 2024
- 1 -

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

Principal activities

The principal activity of the company continued to be that of catering for the Quick Service Restaurant outlets as well as serving many other food service wholesalers within the food service sector.

Review of the business

The UK food service sector continues to be a very competitive environment where there have been many new market entrants, intensifying the competition.

We were able to increase the number of active customers within its client list and in turn achieve an increase in sales turnover from £37.6m to £40.1m.

As a family run business, we rely heavily on relationships with both its customers and suppliers respectively. The market place has proved very challenging with different micro and macro factors impacting performance.

We have continued our expansion in terms of obtaining customers and increasing our market share. We have been very conscious throughout the period to absorb as many increases as possible in order to remain competitive and continue our market share expansion.

Principal risks and uncertainties

The commercial risks of the company are that it may hold unprofitable contracts or face bad debts. Trade debtors are managed by credit and cash flow risk policies concerning the credit offered to customers as well as regular monitoring of amounts outstanding. Central Food Service recently undertook debtor insurance in order to safeguard itself from this potential risk.

The business ensures a fast stock turnover figure whilst maintaining debtor days to the set terms, thus emphasising a solid cash flow. Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.

A further risk for Central Food Service is the current economic climate with so much uncertainty in the market. The fluctuation of the Pound against the Euro poses a big question over what was a very stable supply chain, with prices and availability now becoming volatile.

Development and performance

As a business we are looking to continue our growth. We have recently invested significantly in rebuilding our distribution warehouse and re-building the foundations of our infrastructure. The investment will facilitate what we envision to be ten years future growth and enable us to significantly increase our turnover and market footprint.

We have also improved our operational system where our drivers are all equipped with tablets whereby they are able to print receipts on demand and make live changes to invoices whilst on the road.

We will be looking over the financial year to increase our gross and net profit margins. We will do this through better negotiating and sharing price increases as the trends are proving unsustainable in absorbing additional costs.

In the coming year, we do not know how the government guidelines will affect our trading performance. The upcoming budget casts uncertainty on the value of the pound which in turns casts doubt on the impact on the costs of goods moving forward, which is key to our business.

Central Food Service Ltd
Strategic report (continued)
For the year ended 31 January 2024
- 2 -
Key performance indicators

During the financial period ending 31st January 2024, we were satisfied with the businesses performance achieving sales of £40,128,233 (2023: £37,566,755), which in turn reflects a growth of £2,561,478 (2023: £4,970,165) equating to a percentage growth of 6.8% (2023: 15.2%).

The business uses sales and gross profit margins as the main performance indicators. The business has recorded a gross profit margin of 10.8% (2023: 12.0%).

The decrease in gross profit margin was mainly due to the cost of living crisis and the company making the decision to absorb the costs rather than pass them on to the customer base.

Other information and explanations

Employees

The company's employment policy is to provide equal opportunity to all current and prospective employees without any discrimination. We provide a work environment in which all individuals are treated fairly with respect.

Corporate social responsibility

The company recognises its responsibilities in terms of equality and human rights towards its employees and individuals involved with the company. We ensure to give ethical considerations in supplier and employee selection and partnership. As a business, we continually monitor our codes in respect of employee welfare and respect for the community. The company is aware of its environmental responsibilities, and operates best practices to fulfil these.

On behalf of the board

Mr K O Noori
Director
17 October 2024
Central Food Service Ltd
Directors' report
For the year ended 31 January 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £625,000. 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 K O Noori
Mr W K Noori
Ms S V Noori
Statement of directors' responsibilities

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

 

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

 

 

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

Central Food Service Ltd
Directors' report (continued)
For the year ended 31 January 2024
- 4 -
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 K O Noori
Director
17 October 2024
Central Food Service Ltd
Independent auditor's report
To the member of Central Food Service Ltd
- 5 -
Opinion

We have audited the financial statements of Central Food Service Ltd (the 'company') for the year ended 31 January 2024 which comprise the statement of income and retained earnings, the statement of financial position 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.

Central Food Service Ltd
Independent auditor's report (continued)
To the member of Central Food Service Ltd
- 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.

Central Food Service Ltd
Independent auditor's report (continued)
To the member of Central Food Service Ltd
- 7 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Central Food Service Ltd
Independent auditor's report (continued)
To the member of Central Food Service Ltd
- 8 -

 

 

 

 

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
17 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Central Food Service Ltd
Statement of income and retained earnings
For the year ended 31 January 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
40,128,233
37,566,755
Cost of sales
(35,807,736)
(33,049,181)
Gross profit
4,320,497
4,517,574
Distribution costs
(1,385,054)
(1,392,373)
Administrative expenses
(1,754,599)
(1,879,093)
Other operating income
21,629
19,301
Operating profit
4
1,202,473
1,265,409
Interest receivable and similar income
7
2,191
6,943
Interest payable and similar expenses
8
(6,811)
(16,000)
Other gains and losses
9
-
(163,335)
Profit before taxation
1,197,853
1,093,017
Tax on profit
10
(326,986)
(203,807)
Profit for the financial year
870,867
889,210
Retained earnings brought forward
2,875,156
2,724,446
Dividends
11
(625,000)
(738,500)
Retained earnings carried forward
3,121,023
2,875,156
Central Food Service Ltd
Statement of financial position
As at 31 January 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,542,386
2,634,125
Current assets
Stocks
14
2,248,088
2,169,276
Debtors
15
2,285,877
2,260,699
Investments
16
-
0
163,871
Cash at bank and in hand
2,878,832
1,211,078
7,412,797
5,804,924
Creditors: amounts falling due within one year
17
(6,272,235)
(4,871,011)
Net current assets
1,140,562
933,913
Total assets less current liabilities
3,682,948
3,568,038
Creditors: amounts falling due after more than one year
18
(416,925)
(547,882)
Provisions for liabilities
Deferred tax liability
20
144,500
144,500
(144,500)
(144,500)
Net assets
3,121,523
2,875,656
Capital and reserves
Called up share capital
23
500
500
Profit and loss reserves
24
3,121,023
2,875,156
Total equity
3,121,523
2,875,656

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 17 October 2024 and are signed on its behalf by:
Mr K O Noori
Director
Company registration number 02820272 (England and Wales)
Central Food Service Ltd
Notes to the financial statements
For the year ended 31 January 2024
- 11 -
1
Accounting policies
Company information

Central Food Service Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Units 1-5 Unicorn Industrial Estate, Davenport Street, Longport, Stoke on Trent, Staffordshire, ST6 4RB.

1.1
Accounting convention

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

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

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

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

 

 

The financial statements of the company are consolidated in the financial statements of Noori Holdings Limited. These consolidated financial statements are available from its registered office, Unit 1-5 Davenport Street, Stoke-on-Trent, ST6 4RB.

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 and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch 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, net of depreciation and any impairment losses.

Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 12 -

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

Freehold land and buildings
No depreciation charged
Leasehold land and buildings
10% on cost
Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance

No depreciation has been charged on freehold buildings as the directors are of the opinion that the residual value of the freehold buildings is not materially different to the fair value. An annual impairment review is carried out on all properties and the directors are of the opinion that the market value of the freehold land and buildings in its entirety after provision for impairments is in excess of the net book value as at 31st January 2024.

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
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).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

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 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 in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
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.

1.7
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.

Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position 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.

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.

Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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 income statement 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.

Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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

1.12
Retirement benefits

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

1.13
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.

1.14
Government grants

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

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2
Judgements and key sources of estimation uncertainty

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

 

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

 

Key sources of estimation uncertainty

 

The directors consider that there are no key estimates or assumptions used in preparing the financial statements.

Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
40,128,233
37,566,755
2024
2023
£
£
Other revenue
Interest income
2,191
6,943
Grants received
21,629
19,301
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(21,629)
(19,301)
Fees payable to the company's auditor for the audit of the company's financial statements
22,575
17,500
Depreciation of owned tangible fixed assets
154,233
156,412
Operating lease charges
191,267
152,232
5
Employees

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

2024
2023
Number
Number
Production staff
43
49
Delivery staff
18
17
Admin staff
24
23
Directors
3
3
Total
88
92
Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,384,441
2,316,395
Social security costs
8,769
6,991
Pension costs
31,331
26,883
2,424,541
2,350,269
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
88,355
76,005
Company pension contributions to defined contribution schemes
2,062
1,719
90,417
77,724

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

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,191
6,943
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
6,811
15,309
Other interest
-
0
691
6,811
16,000
9
Other gains and losses
2024
2023
£
£
Other gains and losses
-
(163,335)
Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 18 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
326,986
211,408
Adjustments in respect of prior periods
-
0
(69,322)
Total current tax
326,986
142,086
Deferred tax
Origination and reversal of timing differences
-
0
61,721
Total tax charge
326,986
203,807

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
1,197,853
1,093,017
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
299,463
207,673
Tax effect of expenses that are not deductible in determining taxable profit
12,986
61,838
Effect of change in corporation tax rate
(1,707)
34,682
Permanent capital allowances in excess of depreciation
-
0
(28,635)
Depreciation on assets not qualifying for tax allowances
16,244
7,334
Under/(over) provided in prior years
-
0
(69,322)
Enhanced capital allowances
-
0
(9,763)
Taxation charge for the year
326,986
203,807
11
Dividends
2024
2023
£
£
Interim paid
625,000
738,500
Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 19 -
12
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 February 2023
2,163,711
812,716
541,266
148,096
3,665,789
Additions
465
1,748
57,017
3,264
62,494
At 31 January 2024
2,164,176
814,464
598,283
151,360
3,728,283
Depreciation and impairment
At 1 February 2023
-
0
660,668
303,154
67,842
1,031,664
Depreciation charged in the year
-
0
82,241
55,631
16,361
154,233
At 31 January 2024
-
0
742,909
358,785
84,203
1,185,897
Carrying amount
At 31 January 2024
2,164,176
71,555
239,498
67,157
2,542,386
At 31 January 2023
2,163,711
152,048
238,112
80,254
2,634,125
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
163,871
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,248,088
2,169,276
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,766,288
1,725,711
Amounts owed by group undertakings
13,886
1,818
Other debtors
505,703
533,170
2,285,877
2,260,699
Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 20 -
16
Current asset investments
2024
2023
£
£
Unlisted investments
-
0
163,871
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
117,136
287,755
Trade creditors
3,786,379
3,033,268
Amounts owed to group undertakings
1,803,200
1,300,000
Corporation tax
226,986
142,636
Other taxation and social security
41,863
34,858
Government grants
21
9,877
12,587
Other creditors
238,804
8,528
Accruals and deferred income
47,990
51,379
6,272,235
4,871,011
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
19
358,485
475,621
Government grants
21
58,440
72,261
416,925
547,882

The bank loans are secured by a fixed and floating charge over the assets of the company.

Amounts included above which fall due after five years are as follows:
Payable by instalments
100,932
103,123
Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 21 -
19
Loans and overdrafts
2024
2023
£
£
Bank loans
475,621
763,376
Payable within one year
117,136
287,755
Payable after one year
358,485
475,621

The bank loans are secured by a fixed and floating charge over the assets of the company.

Included in bank loans payable after one year is a fixed rate loan of £252,500 with interest charged at a rate of 3.7%, repayable by monthly instalments of £1,944. The loan is to be fully repaid by 28th November 2033.

20
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
144,500
144,500
There were no deferred tax movements in the year.
21
Government grants
2024
2023
£
£
Arising from government grants
68,317
84,848
Included in the financial statements as follows:
Current liabilities
9,877
12,587
Non-current liabilities
58,440
72,261
68,317
84,848
Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 22 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
31,331
26,883

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. Contributions totalling £2,973 (2023 - £1,431) were payable to the fund at the balance sheet date and are included in creditors.

23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
500
500
500

Each ordinary share has full voting rights, full dividend rights, is non-redeemable and has no right to participate in a distribution of capital, except on winding up.

24
Profit and loss reserves

Profit and loss reserves represents the accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.

25
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
193,702
217,968
Between two and five years
471,823
450,835
In over five years
20,942
18,000
686,467
686,803
26
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Central Food Service Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2024
26
Related party transactions
(Continued)
- 23 -

Other transactions with related parties

During the year the company purchased items from related parties of £9,296 (2023 - £48,476).

 

During the year the company paid rent to one of the directors and to a close family member of £27,192 (2023 - £26,400).

 

During the prior year a director purchased a fixed asset from the company for £7,000. No such transactions have taken place during the current year.

 

During the year the company also paid a total of £13,267 (2023 - £12,757) to close family members of key management personnel.

Loans to related parties

At the year end, total amounts owing from a group company that is not wholly owned totalled £9,608 (2023 - £1,818). This balance is interest free, unsecured and repayable on demand.

 

During the year, the company also made advances to a related party totalling £95,349. No repayments of this balance have been made during the year. These advances are interest free, unsecured and repayable on demand. This balance is recorded within other debtors.

27
Directors' transactions

The advance is unsecured, repayable on demand and interest is charged at HMRC's official rate of interest per annum, where the balance exceeds £10,000.

 

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr K O Noori -
2.25
106,384
86,382
2,317
(67,689)
127,394
Mr W K Noori -
2.25
334,439
104,289
6,635
(257,062)
188,301
440,823
190,671
8,952
(324,751)
315,695
28
Ultimate parent company

The ultimate parent undertaking is Noori Holdings Limited, a company registered in England and Wales. Copies of Noori Holdings Limited accounts can be obtained from its registered office, Units 1-5, Unicorn Industrial Estate, Davenport Street, Longport, Stoke-on-Trent, Staffordshire, ST6 4RB.

Mr W K Noori, the director, controls the company as a result of holding 70% of the issued share capital of the ultimate parent company, Noori Holdings Limited.

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