G. & M. Paul Limited
Registered number: 02940967
Annual report and consolidated financial statements
For the period ended 3 May 2024
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G. & M. PAUL LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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G. & M. PAUL LIMITED
CONTENTS
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Independent Auditor's Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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G. & M. PAUL LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 3 MAY 2024
The Director is pleased to present their Strategic Report for the financial year 23/24.
In line with our plan, the Director believes they have delivered a further realistically successful year against the relentless rise in non milk related costs, such as energy, labour, and interest rates, amongst others.
The Group has focused on the three essentials of high-level supply chain competence, technical investment, and innovation.
The consumers have been cautious in their expenditure in the past 12 months, and the Group's position in the premium sector has had growth limitations, in which we have nonetheless performed well. We believe that period is steadily coming to an end.
Sales at £65.5m are largely in line with 2022/3, with margin too rising slightly to 9.2% as we maintained a tight fiscal control.
Export has continued to provide a growth market, whilst food service has stayed under pressure in these harder times.
The Group have continued to be favoured by premium retailers, and others, wishing to add quality to their offering and changes in the Border operating model have added to our Continental position with several retailers.
The Director is never complacent in examining the challenges that beset the whole trade in dairy.
Prudence is tempered with a willingness to take measured risks and the key metrics of increasing cash, managing prompt cash flow, controlling costs, and sustaining margins in a maelstrom of cost increases are adequately demonstrated in the figures.
Despite continuing rising costs across all suppliers, in particular electricity and minimum wage increases resulting in an increase in administration costs of 17.1%, other costs were tightly monitored and controlled throughout the year which resulted in an operating profit contribution of £1.6m (2.5%) versus the prior year of £1.1m (1.8%).
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G. & M. PAUL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
There is a determination to deliver the appropriate growth in key sectors, in line with our expanded capacity, as our investment plans for 24/25 are rolled out.
Being respectful of the farming community is part of our culture, to ensure makers and milk providers receive adequate rewards to maintain their futures, whilst investing in the trade at production level where appropriate.
There is greater stability forecast in energy and possibly financial costs and the Group will invest a further £1m in a continued drive for both efficiency and a unique offering to the trade.
Exchange rate can be fickle, but the intermediate position to the year end remains favourable and beneficial if we invest in hedging.
Several new and advantageous projects are on the close horizon, and these are forecast to materialise by Autumn 2024 adding substantially to our growth.
The Group remain committed to providing that point of difference, in a crowded and competitive market, and to maintaining the highest principles of integrity, service and engagement whether with suppliers or customers, but also with our valued workforce family where we have so many long service, vastly experienced personnel.
Environmental and social credentials remain high on our agenda whether in supplier understanding, animal welfare, packaging responsibilities or our immediate local social responsibilities.
The board feel the strong governance of the past 3 years has delivered a secure platform for the year ahead growth objectives.
The watch outs are never far away, some predictable others less so.
Base labour costs have risen 23% in 3 years, and this is a lottery in the hands of politicians, and we should anticipate its continuation.
Energy costs have been mitigated but remain far above 21/22 levels and political instability is everywhere.
Declining European milk output in contrast to rising demand must surely see cost increases, albeit, hopefully steady and managed.
The anticipation on finance cost is moderately downwards from a background of a very substantial 2-year increase.
Our business remains omni channel, helping to reduce dependency or vulnerability. Moreover, our strategic agility and pace which is at the core of our solution driven thinking, ensures we remain confident we will minimise damaging risk exposure.
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G. & M. PAUL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
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Financial Key Performance Indicators
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We consider that our key performance indicators are those that communicate the financial performance and strength of the Group, these being Turnover, Operating Profit and the Net Assets position.
Due to the introduction of the Financial Reporting Standard 102 (FRS102), it is a requirement to report the gains/losses arising on the fair value of derivative instruments as part of the Statement of Comprehensive Income.
Due to the volatility and uncertainty in the exchange rate, this number that can have a significant impact on the Profit/(Loss) for the year and so the Operating Profit is viewed as the true measure of performance of the business.
The key financial indicators for the Director is:
Summary of Key Performance Indicators
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Operating Profit (pre-exceptional items)
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EBITDA (pre-exceptional items)
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Share-based payments
The Business entered into an EMI (Enterprise Management Investment) scheme in 2017 and subsequent years whereby share options were granted in the Company to the senior management team of its subsidiary Bradbury & Son (Buxton) Limited in order to reward employees for their commitment to the business.
Under the accounting standard FRS102 section 26 - share based payments, it is a requirement for the financial statements to reflect the fair value of the options at the grant date over the vesting period.
As the scheme has matured over the years and the value of this has grown management have deemed it appropriate to recognise the impact of the shared based scheme in the financial statements and it is shown as an exceptional item in the financial year ended 3 May 2024 and as a restatement to the prior period financial statements.
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G. & M. PAUL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
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Directors' statement of compliance with duty to promote the success of the Group under section 172
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Directors' Duties
The Director of the Group, as with all UK companies, must act in the way he/she considers, in good faith, would be most likely to promote the success of the Group for the benefit of its members, and in doing so have regard (amongst other matters) to:
a. The likely consequences of any decision in the long term;
b. The interests of the Group's employees;
c. The need to foster the Group's business relationships with suppliers, customers and others;
d. The impact of the Group's operations on the community and the environment;
e. The desirability of the Group maintaining a reputation for high standards of business conduct; and
f. The need to act fairly between members of the Group.
The following paragraphs summarise how the Director fulfils his duty to promote the success of the Group:
Our people and values
We are both proud and protective of the culture we have sought to develop within the Group.
Aside from the statutory legal requirements and agency governance we believe we go above and beyond always to learn, adapt, and deliver a working environment that is first of all safe, but also nurtures talent and behaviour that is evident to all who visit us.
Internal communication passes all relevant information and a voluntary internal team from all departments meet regularly to engage in pursuing and projecting all staff matters.
Our employees are fundamental to the delivery of our business goals. For our business to succeed we need to manage our people’s performance, develop, and nurture talent and listen and act on employee feedback. We have a comprehensive appraisal, people development and employee survey processes in place to meet these needs.
Implementation of this policy is through encouraging employee involvement through effective communications, which include an induction process for new employees, team briefings, weekly newsletters, and a company intranet.
The health, safety and well-being of our employees is one of our primary considerations in the way we do business, reinforced through management performance objectives and visual notice boards, and displays across all our operating sites. The Group has a health and safety manager who regularly reviews the processes and procedures across the site, holds regular health and safety meetings, which includes participation of employees.
The Group has also invested in leadership training for its managers to embed performance and embed values.
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G. & M. PAUL LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
Business Relationships
The Director is committed to seek value in mutually beneficial partnerships, providing prosperity for all involved.
The strategy of the Group is to target organic growth, driven by cross-selling and up-selling products to existing customers, alongside the development of new customers and market territories.
To do this, we have a dedicated sales team who focus on developing and maintaining strong customer relationships, investing time in developing existing products or developing new products to meet the customer needs.
We value all our suppliers, many of whom we have been in partnership with for over 10 years and commit to engaging responsibly and fairly. It is the policy of the Group to pay suppliers promptly to agreed terms.
Community and Environment
The Group recognises their responsibility to act sustainably and to play their part in protecting and enhancing the global environment.
The Group participates in waste reduction and local recycling schemes and is registered with Wastepack Limited in seeking reduction of packaging waste and a member of a CCL (Climate Charge Levy Scheme) where it seeks to target improvements in energy efficiency and reduction of the businesses’ carbon footprint.
Shareholders
The Principal Shareholder is a Director on both Bradbury & Son (Buxton) Limited and G. & M. Paul Limited. The strategy and objectives of the Group are deployed through the Group via the annual budget setting process and mid-term plan, which seek to align the goals of Bradbury & Son (Buxton) Limited to those of the Group to ultimately promote the long-term growth and success of the business.
This report was approved by the board and signed on its behalf.
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G. & M. PAUL LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 3 MAY 2024
The Director presents his report and the financial statements for the period ended 3 May 2024.
Director's responsibilities statement
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The Director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the Director is required to:
∙select suitable accounting policies for the Group's and Parent Company financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Parent Company will continue in business.
The Director is responsible for keeping adequate accounting records that are sufficient to show and explain the Group and Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation and minority interests, amounted to £434,740 (2023 - £638,778).
Dividends paid for the year ended 30 April 2024 were £Nil (2023 - £Nil).
The Director who served during the period was:
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G. & M. PAUL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
We remain alert to the rapidly changing landscape and will adapt quickly as matters emerge.
Already the investments, developments and strategic route map is powering our growth into 2024/25 and continued success is already being delivered, through what has surely been one of the greatest challenges of this century.
A prudent approach has been taken to Christmas, based on the triple threats of labour challenges, inflationary impacts and the less predictable behaviours of a consumer under economic stress, with volumes of single issue activity severely curtailed
The Group has prepared a fully costed recession plan, as an adjunct to its post COVID recovery plan which may now take a slower time to implement, and has no known concerns about continuing strongly in 24-25.
The Director considers that, based upon the information available, financial projections and the existence of debt facilities available, the Group will have adequate resources to continue in operational existence for the foreseeable future (being at least 12 months from the approval of these accounts) and consider it appropriate to adopt the going concern basis in preparing the financial statements.
Research and development activities
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The Group has and continues to invest in Research and Development, with the aim of further developing its product and systems. The constant drive for enhanced product and process both in the factory and at our customers continues to drive our research, development and innovation functions as they are key to the long term success of the business, enabling customers to create value from our products.
The financial risks which the Group is exposed to are credit risk, liquidity risk and market risk. The Group's exposure to risk and its objectives, policies and processes for managing risk and the methods used for measuring risk have not changed since the prior year.
Credit risk is the risk that financial loss arises from the failure of a customer or counterparty to meet its obligations under a contract. Such credit risk is measured and controlled through regular review of the credit ratings assigned to the counterparties by credit rating agencies, and by having insurance cover in place over a number of customer balances.
Liquidity risk is the risk that the Group will not have sufficient funds to meet the obligations or commitments arising from its business operations and its financial liabilities. The Director approves a liquidity framework within which the business operates. Performance against this framework is actively monitored and reported monthly.
Market risk is the risk that movements in market rates, including foreign exchange rates, interest rates and inflation will affect the Company's results. The management of market risk is undertaken within risk limits approved by the board. The Group uses forward currency contracts to mitigate against the movement in foreign exchange rates.
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G. & M. PAUL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
The Group is committed to encouraging employee involvement throughout the business. Employees are kept well informed of the performance and objectives of the Group.
The Director and senior management are regularly on-site and discuss with employees matters of current interest and concern to the business.
The Group is committed to an active Equal Opportunities Policy to ensure that job applicants and employees are treated fairly and without favour or prejudice. The Group is committed to applying this policy throughout all areas of employment, recruitment, selection, training, development and promotion.
No job applicant or employee will receive less favourable treatment on the grounds of race, colour, nationality, ethnic or national origin, sex, marital status, sexual orientation, disability, political opinion or affiliation, age, religion or belief.
It is the Group's policy that people with disabilities should have full and fair consideration for all vacancies. The Group will endeavour to retain employees in the workforce if they become disabled during their employment.
Greenhouse gas emissions, energy consumption and energy efficiency action
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The Group is required to report its annual greenhouse gas emissions pursuant to the Directors’ Report and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (“Regulations”). The 2018 regulations, known as Streamlined Energy and Carbon Reporting (SECR) came in to effect on 1 April 2019 and the Company is required to report the emissions and energy consumption for this year to 30 April 2024 to coincide with the financial reporting period.
We all share the responsibility for protecting and enhancing the environment that we live and work in, whilst reducing the natural resources. So far, the Group has introduced LED lighting across the site and a power factor correction unit to reduce energy.
During FY24 the Group introduced an Environmental manager into the business to review all areas of waste management and drive energy efficiency initiatives throughout the business.
The Group is also reviewing solar panels and voltage optimisation to reduce energy further.
Emissions data in tonnes of CO2e for 2024 is provided in the below table:
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Emission of Carbon dioxide equivalent from the purchase of electricity
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Energy consumption used to calculate the above emissions
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GHG Emissions relating to Company cars
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tCO2e per £1,000 turnover
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G. & M. PAUL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
Matters covered in the Group Strategic Report
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Certain information not shown in the Director's Report is shown in the Strategic Report on pages 1 - 5 instead in accordance with Section 414C(11) of the Companies Act 2006. This includes a business review, future developments and principal risks and uncertainties.
Disclosure of information to auditor
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The Director at the time when this Director's Report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and
∙he has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 16 October 2024 and signed on its behalf.
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G. & M. PAUL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G. & M. PAUL LIMITED
Opinion
We have audited the financial statements of G. & M. Paul Limited (the ‘Parent Company’) and its subsidiaries (the 'Group') for the period ended 3 May 2024 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:
∙give a true and fair view of the state of the Group's and Parent Company’s affairs as at 3 May 2024 and of the Group's profit for the period then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and Parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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G. & M. PAUL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G. & M. PAUL LIMITED
Other information (continued)
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Group and Parent Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the Parent Company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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G. & M. PAUL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G. & M. PAUL LIMITED
Responsibilities of Director
As explained more fully in the Director's Responsibilities Statement set out on page 6, the Director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the Group and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director intends either to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the Group and Parent Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, data protection act.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
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G. & M. PAUL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF G. & M. PAUL LIMITED
In addition, we evaluated the Director's and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to, revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the Director and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit 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.
Ashley Barraclough (Senior Statutory Auditor)
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
3 Wellington Place
Leeds
LS1 4AP
16 October 2024
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G. & M. PAUL LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 3 MAY 2024
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Operating profit before exceptional items
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Interest payable and similar expenses
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Profit/(loss) arising on fair value of derivative instruments
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Profit for the financial period
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Foreign exchange movement
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Total comprehensive income for the period
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Profit for the period attributable to:
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Non-controlling interests
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Owners of the parent Company
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Total comprehensive income for the period attributable to:
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Owners of the parent Company
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There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.
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The notes on pages 24 to 52 form part of these financial statements.
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G. & M. PAUL LIMITED
REGISTERED NUMBER: 02940967
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 3 MAY 2024
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Debtors: amounts falling due within one year
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Creditors: amounts due within one year
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Total assets less current liabilities
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Creditors: amounts due > than one year
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Provisions for liabilities
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Capital redemption reserve
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Equity attributable to owners of the parent Company
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Non-controlling interests
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G. & M. PAUL LIMITED
REGISTERED NUMBER: 02940967
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 3 MAY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 October 2024.
The notes on pages 24 to 52 form part of these financial statements.
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G. & M. PAUL LIMITED
REGISTERED NUMBER: 02940967
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 3 MAY 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Capital redemption reserve
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- 17 -
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G. & M. PAUL LIMITED
REGISTERED NUMBER: 02940967
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 3 MAY 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Company for the year was £21,764 (2023 loss - £53,468).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 October 2024.
The notes on pages 24 to 52 form part of these financial statements.
- 18 -
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G. & M. PAUL LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 3 MAY 2024
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Capital redemption reserve
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Equity attributable
to owners of parent Company
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Non-
controlling interests
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At 1 May 2023 (as restated)
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Comprehensive income for the period
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Foreign exchange movement
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Total comprehensive income for the period
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Contributions by and distributions to owners
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The notes on pages 24 to 52 form part of these financial statements.
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- 19 -
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G. & M. PAUL LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2023
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Capital redemption reserve
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Share based payment reserve
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Equity attributable to owners of parent Company
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Non- controlling interests
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At 1 May 2022 (as previously stated)
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Prior year adjustment - correction of share based payments
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At 1 May 2022 (as restated)
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Comprehensive income for the year
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Profit for the year (as restated)
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Foreign exchange movement
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Total comprehensive income for the year (as restated)
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Contributions by and distributions to owners
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Share-based payments (as restated)
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The notes on pages 24 to 52 form part of these financial statements.
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- 20 -
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G. & M. PAUL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 3 MAY 2024
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Capital redemption reserve
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Share based payment reserve
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At 1 May 2022 (as previously stated)
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Prior year adjustment - correction of share-based payments
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At 1 May 2022 (as restated)
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Comprehensive income for the year
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Total comprehensive income for the year
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Contributions by and distributions to owners
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Share-based payments (as restated)
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At 1 May 2023 (as restated)
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Comprehensive income for the year
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Total comprehensive loss for the year
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Contributions by and distributions to owners
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The notes on pages 24 to 52 form part of these financial statements.
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- 21 -
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G. & M. PAUL LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 3 MAY 2024
Cash flows from operating activities
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Profit for the financial period
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Amortisation of intangible assets
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Decrease/(increase) in stocks
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(Decrease)/increase in creditors
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Movement in financial instruments
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Share-based payment expense
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Purchase of share in associates
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Net cash from investing activities
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- 22 -
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G. & M. PAUL LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 3 MAY 2024
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Cash flows from financing activities
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Repayment of/new finance leases
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Movements on invoice discounting
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Net cash used in financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at beginning of period
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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The notes on pages 24 to 52 form part of these financial statements.
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- 23 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
G. & M. Paul Limited (the 'Company') is a private company, limited by shares, and incorporated in the United Kingdom, registered number 02940967. The address of the registered office is Myrefield House Lee Lane, Millhouse Green, Sheffield, S36 9NN. The address of the Group's principal place of business is Staden Business Park, Staden Lane, Buxton, SK17 9RZ.
The principal activity of the Group is that of the wholesale of dairy products.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The financial statements have been prepared up to and including 3 May 2024.
The following principal accounting policies have been applied:
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Financial reporting standard 102 - reduced disclosure exemptions
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The Parent Company has taken advantage of the following disclosure exemptions in preparing these
financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in
the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
- 24 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
We remain alert to the rapidly changing landscape and will adapt quickly as matters emerge.
Already the investments, developments and strategic route map is powering our growth into 2024/25 and continued success is already being delivered, through what has surely been one of the greatest challenges of this century.
A prudent approach has been taken to Christmas, based on the triple threats of labour challenges, inflationary impacts and the less predictable behaviours of a consumer under economic stress, with volumes of single issue activity severely curtailed
The Group has prepared a fully costed recession plan, as an adjunct to its post COVID recovery plan which may now take a slower time to implement, and has no known concerns about continuing strongly in 24-25.
The Director considers that, based upon the information available, financial projections and the existence of debt facilities available, the Group will have adequate resources to continue in operational existence for the foreseeable future (being at least 12 months from the approval of these accounts) and consider it appropriate to adopt the going concern basis in preparing the financial statements.
- 25 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP, rounded to the nearest £.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
- 26 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
- 27 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Research and development tax credits are recognised on an accruals basis.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.
- 28 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing balance method.
Depreciation is provided on the following basis:
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10 years from commencement of the lease agreement
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10% Reducing balance basis
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25% Reducing balance basis
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10 - 25% on Reducing balance basis
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
- 29 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Income Statement includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in Statement of Comprehensive Income.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
- 30 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Group 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 Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
- 31 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
- 32 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The critical judgements that the Director has made in the process of applying the Group's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the Director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairment identified during the current financial year.
Key sources of estimation uncertainty
The Director does not believe there are any key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Analysis of turnover by country of destination:
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Insurance claims receivable
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- 33 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
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See note 29 for further details on the share-based payments.
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The operating profit is stated after charging/(crediting):
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Other operating lease rentals
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Defined contribution pension scheme
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Loss on disposal of fixed assets
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Fees payable to the Group's auditor for the audit of the Group's annual financial statements
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Fees payable to the Group's auditor in respect of:
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Taxation compliance services
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All non-audit services not included above
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- 34 -
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G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
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Staff costs, including Director's remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the Director, during the period was as follows:
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Sales, administration and management
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Group contributions to defined contribution pension schemes
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During the period retirement benefits were accruing to no Directors (2023 - 1) in respect of defined contribution pension schemes.
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- 35 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
Interest payable and similar expenses
|
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Finance leases and hire purchase contracts
|
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(Loss)/profit arising on fair value of derivative instruments
|
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Current tax on profits for the year
|
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
|
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Adjustments in respect of prior periods
|
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Taxation on profit on ordinary activities
|
|
|
- 36 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
13.Taxation (continued)
|
Factors affecting tax charge for the period/year
|
|
The tax assessed for the period/year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19.49%). The differences are explained below:
|
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Profit on ordinary activities before tax
|
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19.49%)
|
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Expenses not deductible for tax purposes
|
|
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|
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Adjustments to deferred tax charge in respect of prior periods
|
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Movement in deferred tax not recognised
|
|
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Other differences leading to an increase/(decrease) in the tax charge
|
|
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|
Remeasurement of deferred tax for changes in rates
|
|
|
|
Total tax charge for the period/year
|
|
|
|
Factors that may affect future tax charges
|
From 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.
The Group has estimated tax losses of £Nil (2023 - £75,911) available to carry forward against future trading profits.
- 37 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
- 38 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
14.Intangible assets (continued)
- 39 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
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Charge for the period on owned assets
|
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Charge for the period on financed assets
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|
- 40 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
15.Tangible fixed assets (continued)
|
Included in freehold property is freehold land of £335,534 (2023 - £335,534) which is not depreciated.
|
|
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
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|
- 41 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
|
Investments in associates
|
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|
Investments in subsidiary companies
|
|
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|
At 1 May 2023 (as previously stated)
|
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|
At 1 May 2023 (as restated)
|
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|
- 42 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
|
|
The following were subsidiary undertakings of the Company:
|
|
|
|
|
|
|
Bradbury & Son (Buxton) Limited
|
Unit 2 Staden Lane, Buxton, Derbyshire, SK17 9RZ
|
|
|
|
Northumberland Cheese Company Limited *
|
Make Me Rich Farm, Blagdon, Seaton Burn, Northumberland, NE13 6BZ
|
|
|
|
Bradburys Cheese Pty Limited *
|
Co Mazars (NSW) Pty Limited
PO Box 1994
North Sydney NSW 2059
|
|
|
|
Bradburys Cheese EU Limited *
|
102 Ard Bán, Muff Lifford Donegal Ireland F93 V326
|
|
|
|
*held indirectly
On 10th March 2023 Bradbury Cheese (EU) Limited was newly incorporated as a 100% subsidiary of Bradbury & Sons (Buxton) Limited.
Exemption has been taken by Northumberland Cheese Company Limited from the requirements relating to the audit of accounts under Section 479A of the Companies Act 2006.
|
|
|
|
The following were associates of the Company:
|
|
|
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|
|
Fielding Cottage Cheese Limited
|
4b Church Street, Diss, Norfolk, IP22 4DD
|
|
|
|
Yorkshire Pecorino Cheese Limited
|
1 Adel Garth, Leeds, England, LS16 8JU
|
|
|
- 43 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
Raw materials and consumables
|
|
|
|
|
|
Finished goods and goods for resale
|
|
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|
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|
|
The difference between purchase price or production cost of stocks and their replacement cost is not material.
|
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|
Prepayments and accrued income
|
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|
Financial instruments (note 24)
|
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|
Cash and cash equivalents
|
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|
- 44 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
Creditors: Amounts falling due within one year
|
|
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Amounts owed to group undertakings
|
|
|
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|
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|
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|
|
Other taxation and social security
|
|
|
|
|
|
Obligations under finance lease and hire purchase contracts
|
|
|
|
|
|
Invoice discounting creditor
|
|
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|
|
|
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|
Accruals and deferred income
|
|
|
|
|
|
Financial instruments (note 24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
The bank loan and invoice discounting facility are secured by first legal mortgages over the Group's freehold land and property and by a fixed and floating charge over all current and future assets of the Group. A cross guarantee exists between group companies.
A bank loan relating to a Coronavirus Large Business Interruption Loan was fully repaid during the year.
Amounts owed to group undertakings are interest free, unsecured and repayable on demand.
The hire purchase contract liabilities are secured on the assets to which they relate.
|
- 45 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
Government grants received
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The bank loan is secured by first legal mortgages over the Group's freehold land and property and by a fixed and floating charge over all current and future assets of the Group. A cross guarantee exists between group companies.
The hire purchase contract liabilities are secured on the assets to which they relate.
|
|
|
Analysis of the maturity of loans is given below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due 1-2 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
The bank loan is secured by first legal mortgages over the Group's freehold land and property and by a fixed and floating charge over all current and future assets of the Group. A cross guarantee exists between group companies.
A bank loan relating to a Coronavirus Large Business Interruption Loan was fully repaid during the year.
|
- 46 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
Hire purchase and finance leases
|
|
Minimum lease payments under hire purchase fall due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The hire purchase contract liabilities are secured on the assets to which they relate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments measured at fair value through profit or loss held as part of a trading portfolio
|
|
|
|
|
Derivative financial instruments measured at fair value through profit or loss held as part of a trading portfolio comprise forward contracts.
The Derivative financial instruments relate to forward contracts held to hedge against foreign currency contracts between the Company and its customers.
- 47 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
|
|
Fixed asset timing differences
|
|
|
|
|
|
Tax losses carried forward
|
|
|
|
|
|
Short term timing differences
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset - due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 48 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
10,000 (2023 - 10,000) Ordinary shares of £1.00 each
|
|
|
Capital redemption reserve
The capital redemption reserve represents the nominal value of shares repurchased.
Foreign exchange reserve
The foreign exchange reserve represents historical exchange movements on opening balances in the Consolidated Statement of Financial Position.
Share-based payment reserve
Share-based payment reserves represents the fair value of share options which have not yet vested.
Profit & loss account
The profit and loss account represents the cumulative profits and losses of the Company, less dividends declared.
- 49 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of/new finance leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the prior periods G. & M. Paul Limited granted EMI (Enterprise Management Investment) share options to certain employees of Bradbury & Son (Buxton) Limited.
Options are exercisable at a price equal to the estimated fair value of the Group’s shares on the date of grant. If the options remain unexercised after a period of 10 years from the date of grant, the options expire. Options are forfeited if the employee leaves the Group before the options vest.
The Group has recognised an expense of £150,027 (2023 restated: £150,027) related to equity-settled share-based payments.
|
- 50 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
At the 1 May 2022, an adjustment has been made to recognise an expense totalling £317,926 and a corresponding entry to the share based payment reserve of the same amount in respect of the historic accounting of the share-based payments. This has had no impact on the consolidated net assets of G. & M. Paul Limited.
As part of the adjustment G. & M. Paul Limited's individual balance sheet increased its investment in Bradbury & Son (Buxton) Limited by £317,926. This has led to an increase in net assets of the Company from £616,563 to £934,489.
During the financial year ended 30 April 2023, an adjustment has been made to recognise a share-based payment expense in the Consolidated Statement of Comprehensive Income totalling £150,027 and a corresponding entry to the share-based payment reserve of the same amount. This had led to a reduction in consolidated profit from £788,805 to £638,778, There is no change in the Consolidated net assets of the Group.
As part of the adjustment G. & M. Paul Limited Company only financial statements has seen an increase to its investment in Bradbury & Son (Buxton) Limited of £150,027. This has led to an increase in net assets of the same amount.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £160,339 (2023 - £146,068). Contributions totalling £32,578 (2023 - £82,802) were payable to the fund at the reporting date and are included in creditors.
|
Commitments under operating leases
|
|
At 3 May 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
- 51 -
|
G. & M. PAUL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 MAY 2024
|
Related party transactions
|
|
The Company has taken advantage of the exemption in Section 33 of Financial Reporting Standard 102 (Related Party Disclosures) from the requirement to disclose transactions with group companies.
At the year end an amount of £62,461 (2023 - £124,115 owed to) was owed by the Director of the Company. The loan is interest free and repayable on demand.
Total remuneration received by key management personnel amounted to £668,759 (2023 - £785,870).
Rent totaling £56,490 (2023 - £50,850) was paid to the G & M Paul Pension Fund. Amounts due to G & M
Paul Pension Fund at the balance sheet date is £18,540 (2023 - £27,540).
|
The ultimate controlling party is G Paul.
- 52 -
|