Company Registration No. 00571334 (England and Wales)
Philip Dennis Foodservice Limited
Annual report and financial statements
for the period ended 27 January 2024
Philip Dennis Foodservice Limited
Company information
Directors
Christopher Dennis
Peter Dennis
Stephen Carr
Company number
00571334
Registered office
Mullacott Industrial Estate
Ilfracombe
N Devon
EX34 8PL
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Philip Dennis Foodservice Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 28
Philip Dennis Foodservice Limited
Strategic report
For the period ended 27 January 2024
1

The directors present the strategic report for the 52 weeks period of trading ended 27 January 2024. The comparative period was the 52 weeks period of trading ended 28 January 2023.

Fair review of the business

The company's key financial and other performance indicators during the period were as follows:

Unit
2024
2023
Turnover
£000
42,586
41,922
Gross margin
%
23
25
Operating margin
%
7
9
Net assets
£000
10,593
8,336
The directors are pleased with the overall performance of the company which saw a £0.6m increase on Turnover.
Gross margin has decreased from 25% to 23% due to pressure from the wider markets and the effects of the economy.
Operating margin has decreased by 2% as overhead costs have risen throughout the year due largely to the changes within the economy. Overheads are being heavily monitored to ensure where possible costs are kept to a minimum.
The upturn in performance has allowed the company to increase its net asset position by £2.2m as the business looks to continue growth and operational improvements.
Principal risks and uncertainties

The key risks faced by the company are margin pressure due to the highly competitive marketplace and increasing costs throughout all aspects of the business. This has been counteracted through the management of direct costs and putting in place fix term contracts across utilities. The group has an agreement for the supply of electricity through an on-site wind turbine and solar panels. Margin will be addressed, where possible, by negotiating fixed prices with suppliers and maximising volume discounts.

Investments

Significant Investment has been made in future proofing the business through the development of our CRM, enabling efficiencies to also be achieved and further improvements to our e-commerce.

Philip Dennis Foodservice Limited
Strategic report (continued)
For the period ended 27 January 2024
2
Section 172 statement

The directors are fully aware of their responsibility to promote the success of the Company in accordance with section 172 of the Companies Act 2006. The board regularly reviews our principal stakeholders and considers the needs and priorities of each stakeholder group during its discussions and as part of its decision making.

 

Employees are a valued and integral part of the business, salaries are reviewed annually to ensure a fair market rate is being paid. Employees are encouraged to further develop through in house training and site visits to better understand the needs of the business’ outside of their departments. External training is also provided for development of employees and investment into their future role within the business.

 

The company places considerable value in its business relations, ensuring customers and suppliers are treated as partners, understanding that if their business succeeds, so do we. The board seeks to improve this through innovation, reducing the amount of time spent processing and increasing the level of service provided to customers and suppliers.

 

Throughout the business the directors seek sustainability, limiting its environmental impact through the continued development of renewable energy sources and working closely with customers and suppliers to act responsibly whilst supporting the communities we work in.

 

The directors desire to preserve the reputation and high standards of the company involve maintaining good relations with our bank to source funding. Allowing the continued development, innovation and growth within the business, whilst keeping future costs under control, and in turn improving future returns.

 

 

On behalf of the board

Stephen Carr
Director
28 October 2024
Philip Dennis Foodservice Limited
Directors' report
For the period ended 27 January 2024
3

The directors present their annual report and financial statements for the 52 week period of trading ended 27 January 2024.

Principal activities

The principal activity of the company continued to be that of was the distribution of catering food.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Christopher Dennis
Peter Dennis
Stephen Carr
Financial instruments
Financial risk management objectives & policies

The businesses principal financial instruments comprise bank balances, trade debtors, trade creditors and bank loans. The main financial risks that arise from day-to-day activities are discussed below.

Liquidity risk

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Trade creditors are paid within agreed terms subject to disputes.

 

The liquidity risk arising from overdraft facilities is managed against anticipated cash inflow from operations based on the plan for the financial year and seasonal trends observed in previous years.

 

The liquidity risk in respect of bank loans is managed by ensuring there are sufficient funds available to meet repayment commitments as and when they contractually fall due.

Interest rate risk

The company is exposed to interest rate risk due to variable rates of interest on its borrowing.

Credit risk

Trade debtors are managed in respect of credit risk by using policies derived to accommodate customer needs but also to avoid ageing debts and irrecoverable debt. There is no significant concentration of credit risk, with exposure spread over a large number of counterparties.

Auditor

Saffery LLP have expressed their willingness to continue in office.

Energy and carbon report

The energy and carbon reporting disclosures have been prepared on a consolidated basis and can be found in the accounts of the parent company, Philip Dennis Foodservice (Holdings) Limited.

Philip Dennis Foodservice Limited
Directors' report (continued)
For the period ended 27 January 2024
4
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 group'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. It has done so in respect of further information on future developments and business relationships for the company.

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.

On behalf of the board
Stephen Carr
Director
28 October 2024
Philip Dennis Foodservice Limited
Independent auditor's report
To the members of Philip Dennis Foodservice Limited
5
Opinion

We have audited the financial statements of Philip Dennis Foodservice Limited (the 'company') for the period ended 27 January 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Philip Dennis Foodservice Limited
Independent auditor's report (continued)
To the members of Philip Dennis Foodservice Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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.

Philip Dennis Foodservice Limited
Independent auditor's report (continued)
To the members of Philip Dennis Foodservice Limited
7

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Philip Dennis Foodservice Limited
Independent auditor's report (continued)
To the members of Philip Dennis Foodservice Limited
8

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Sedgwick
Senior Statutory Auditor
For and on behalf of Saffery LLP
28 October 2024
Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Philip Dennis Foodservice Limited
Income statement
For the period ended 27 January 2024
9
Period
Period
ended
ended
27 January
28 January
2024
2023
Notes
£
£
Turnover
3
42,586,337
41,921,718
Cost of sales
(32,702,202)
(31,341,371)
Gross profit
9,884,135
10,580,347
Administrative expenses
(6,984,164)
(6,757,903)
Operating profit
5
2,899,971
3,822,444
Interest receivable and similar income
8
42,497
-
0
Interest payable and similar expenses
9
(262,874)
(166,867)
Other gains and losses
10
(898,793)
-
Profit before taxation
1,780,801
3,655,577
Tax on profit
11
(903,355)
(1,213,533)
Profit for the financial period
877,446
2,442,044

The income statement has been prepared on the basis that all operations are continuing operations.

Philip Dennis Foodservice Limited
Statement of comprehensive income
For the period ended 27 January 2024
10
Period
Period
ended
ended
27 January
28 January
2024
2023
£
£
Profit for the period
877,446
2,442,044
Other comprehensive income
Revaluation of tangible fixed assets
1,839,322
-
0
Tax relating to other comprehensive income
(459,831)
-
0
Other comprehensive income for the period
1,379,491
-
0
Total comprehensive income for the period
2,256,937
2,442,044
Philip Dennis Foodservice Limited
Statement of financial position
As at 27 January 2024
11
27 January 2024
28 January 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
1,497,427
1,257,943
Tangible assets
14
10,831,232
10,027,480
12,328,659
11,285,423
Current assets
Stocks
15
3,448,823
3,597,882
Debtors
16
4,710,581
4,519,253
Cash at bank and in hand
1,023
863
8,160,427
8,117,998
Creditors: amounts falling due within one year
17
(4,846,757)
(4,707,346)
Net current assets
3,313,670
3,410,652
Total assets less current liabilities
15,642,329
14,696,075
Creditors: amounts falling due after more than one year
18
(2,753,509)
(4,674,159)
Provisions for liabilities
Provisions
22
465,000
465,000
Deferred tax liability
21
1,830,595
1,220,628
(2,295,595)
(1,685,628)
Net assets
10,593,225
8,336,288
Capital and reserves
Called up share capital
24
105,267
105,267
Revaluation reserve
2,637,520
1,253,722
Capital redemption reserve
10,000
10,000
Profit and loss reserves
7,840,438
6,967,299
Total equity
10,593,225
8,336,288
The financial statements were approved by the board of directors and authorised for issue on 28 October 2024 and are signed on its behalf by:
Stephen Carr
Director
Company Registration No. 00571334
Philip Dennis Foodservice Limited
Statement of changes in equity
For the period ended 27 January 2024
12
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 30 January 2022
105,267
1,327,038
10,000
6,051,939
7,494,244
Period ended 28 January 2023:
Profit and total comprehensive income
-
-
-
2,442,044
2,442,044
Dividends
12
-
-
-
(1,600,000)
(1,600,000)
Transfers
-
(73,316)
-
73,316
-
Balance at 28 January 2023
105,267
1,253,722
10,000
6,967,299
8,336,288
Period ended 27 January 2024:
Profit
-
-
-
877,446
877,446
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,839,322
-
-
1,839,322
Tax relating to other comprehensive income
-
(459,831)
-
-
0
(459,831)
Total comprehensive income
-
1,379,491
-
877,446
2,256,937
Transfers
-
4,307
-
(4,307)
-
Balance at 27 January 2024
105,267
2,637,520
10,000
7,840,438
10,593,225
Philip Dennis Foodservice Limited
Notes to the financial statements
For the period ended 27 January 2024
13
1
Accounting policies
Company information

Philip Dennis Foodservice Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mullacott Industrial Estate, Ilfracombe, N Devon, EX34 8PL.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. 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 Philip Dennis Foodservice (Holdings) Limited. These consolidated financial statements are available from its registered office, Mullacott Industrial Estate, Ilfracombe, Devon EX34 8PL.

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
Reporting period

The period end date has changed to be in line with the company policy to fall on a Saturday. The prior period figures still remain comparable year on year.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which occurs upon delivery of the goods.

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
14
1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
3 years
1.7
Tangible fixed assets

All tangible fixed assets, with the exception of freehold property, are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

 

Freehold property is measured at cost and subsequently measured at its fair value at each reporting period end.

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

Land and Buildings
2% on cost, valuation or over life of lease
Plant and computers
10% to 33% on cost
Fixtures and fittings
10% to 33% on cost
Motor vehicles
12.5% to 33% on cost

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.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

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.

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
15
1.10
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts.

1.11
Financial instruments

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

 

Financial instruments are recognised in the company's 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, 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.

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.

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
16
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
17
1.14
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.18
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.

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
18
2
Critical accounting 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 company has recognised a provision for dilapidations and accruals for overriders in its financial statements which require management to make judgements. This judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other relevant factors.

 

The company adopts the revaluation model for its freehold land and buildings. The directors obtain regular third party property valuations to determine the fair value of these properties as at each reporting period end.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
42,586,337
41,921,718
2024
2023
£
£
Other revenue
Interest income
42,497
-
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
42,586,337
41,921,718
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
25,700
25,100
For other services
Taxation compliance services
3,380
3,300
Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
19
5
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
1,114,177
1,113,716
Loss/(profit) on disposal of tangible fixed assets
3,217
(24,385)
Amortisation of intangible assets
17,425
21,781
Operating lease charges
146,850
138,417
6
Employees

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

2024
2023
Number
Number
Production
77
79
Administration and support
40
50
Distribution
62
60
Total
179
189

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,324,587
5,174,656
Social security costs
500,643
523,138
Pension costs
148,727
130,430
5,973,957
5,828,224
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
188,250
179,224
Company pension contributions to defined contribution schemes
14,330
13,996
202,580
193,220

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
7
Directors' remuneration (continued)
20
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
188,250
n/a
Company pension contributions to defined contribution schemes
14,330
n/a
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
42,497
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
262,874
97,792
Interest on finance leases and hire purchase contracts
-
69,075
262,874
166,867
10
Other gains and losses
2024
2023
£
£
Fair value losses on financial instruments
Amounts written back to fair value through profit or loss
898,793
-
0

The above relates to revaluations below historical cost. The revaluations were performed by BNP Paribas in August 2024.

11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
753,368
666,239
Adjustments in respect of prior periods
(149)
31,464
Total current tax
753,219
697,703
Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
11
Taxation
2024
2023
£
£ (continued)
21
Deferred tax
Origination and reversal of timing differences
150,136
392,030
Changes in tax rates
-
0
123,800
Total deferred tax
150,136
515,830
Total tax charge
903,355
1,213,533

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,780,801
3,655,577
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
427,929
694,560
Tax effect of expenses that are not deductible in determining taxable profit
217,681
672
Tax effect of income not taxable in determining taxable profit
-
0
(3,525)
Gains not taxable
226,010
-
0
Adjustments in respect of prior years
(149)
31,464
Effect of change in corporation tax rate
14,858
123,800
Group relief
(2,259)
-
0
Permanent capital allowances in excess of depreciation
252,144
47,278
Deferred tax adjustments in respect of prior years
226,972
319,284
Deferred tax related to other comprehensive income
(459,831)
-
0
Taxation charge for the period
903,355
1,213,533

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

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
459,831
-
Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
22
12
Dividends
2024
2023
£
£
Final paid
-
0
1,600,000
Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
23
13
Intangible fixed assets
Software
£
Cost
At 29 January 2023
1,279,724
Additions
256,909
At 27 January 2024
1,536,633
Amortisation and impairment
At 29 January 2023
21,781
Amortisation charged for the period
17,425
At 27 January 2024
39,206
Carrying amount
At 27 January 2024
1,497,427
At 28 January 2023
1,257,943

Included within software is £1,384,686 (2023: £1,187,224) in respect of assets under construction on which no amortisation has been charged.

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
24
14
Tangible fixed assets
Land and Buildings
Fixtures and fittings
Plant and computers
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 29 January 2023
7,365,546
478,729
2,928,052
6,687,224
17,459,551
Additions
484,688
174,034
196,428
154,951
1,010,101
Disposals
-
0
-
0
(30,000)
(322,760)
(352,760)
Revaluation
940,529
-
0
-
0
-
0
940,529
At 27 January 2024
8,790,763
652,763
3,094,480
6,519,415
19,057,421
Depreciation and impairment
At 29 January 2023
936,003
322,145
2,015,061
4,158,862
7,432,071
Depreciation charged in the period
109,011
53,007
270,766
681,393
1,114,177
Eliminated in respect of disposals
-
0
-
0
(30,000)
(290,059)
(320,059)
At 27 January 2024
1,045,014
375,152
2,255,827
4,550,196
8,226,189
Carrying amount
At 27 January 2024
7,745,749
277,611
838,653
1,969,219
10,831,232
At 28 January 2023
6,429,543
156,584
912,991
2,528,362
10,027,480

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and computers
21,629
39,953
Motor vehicles
1,429,642
1,852,231
1,451,271
1,892,184

Land and buildings with a carrying amount of £6,346,908 were revalued in August 2024 by BNP Paribas, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors do not consider there to be a material difference between the value at the period end and that of the valuation date.

2024
2023
£
£
Cost
5,879,404
5,859,612
Accumulated depreciation
(797,656)
(790,049)
Carrying value
5,081,748
5,069,563
Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
25
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,448,823
3,597,882
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,183,411
2,635,046
Amounts owed by group undertakings
622,526
613,126
Other debtors
1,190,872
689,568
Prepayments and accrued income
713,772
581,513
4,710,581
4,519,253
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
1,304,157
745,473
Obligations under finance leases
20
432,307
687,086
Trade creditors
1,433,122
1,176,206
Corporation tax
403,380
666,388
Other taxation and social security
111,569
117,533
Accruals and deferred income
1,162,222
1,314,660
4,846,757
4,707,346
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
2,308,277
3,798,277
Obligations under finance leases
20
445,232
875,882
2,753,509
4,674,159
Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
26
19
Loans and overdrafts
2024
2023
£
£
Bank loans
2,748,281
4,238,281
Bank overdrafts
864,153
305,469
3,612,434
4,543,750
Payable within one year
1,304,157
745,473
Payable after one year
2,308,277
3,798,277

Bank borrowings consist of one bank loan. The bank loan is secured by a fixed and floating charge over the company's properties and other fixed assets. The interest rate applied is 2% per annum above base rate.

20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
432,307
687,086
In two to five years
445,232
875,882
877,539
1,562,968

Net obligations under hire purchase agreements are secured by fixed charges over the relevant assets.

21
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
1,830,595
1,220,628
2024
Movements in the period:
£
Liability at 29 January 2023
1,220,628
Charge to profit or loss
150,136
Charge to other comprehensive income
459,831
Liability at 27 January 2024
1,830,595
Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
21
Deferred taxation (continued)
27

The deferred tax balance is expected to reverse, however it is not possible to quantify the expected reversal due to the unknown timing of disposals in respect of certain fixed assets.

 

Finance Bill 2021 increased the rate of corporation tax from 19% to 25% as of 1 April 2023. As this is the substantively enacted rate at the year end, deferred tax has been recorded at 25%.

22
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
465,000
465,000
Movements on provisions:
Dilapidations provision
£
At 29 January 2023 and 27 January 2024
465,000

Dilapidation provisions will be settled upon leaving company premises. There is no definitive date as to when this will arise.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
148,727
130,430
24
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
85,267 Ordinary A shares of £1 each
85,267
85,267
20,000 Ordinary B shares of £1 each
20,000
20,000
105,267
105,267

There are no voting rights attached to the Ordinary B shares. The Ordinary A and Ordinary B shares rank pari passu in all other respects.

Philip Dennis Foodservice Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
28
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
320,491
306,446
Between two and five years
1,115,984
1,080,300
In over five years
175,288
429,753
1,611,763
1,816,499
26
Capital commitments

At the balance sheet date, the company had capital commitments totalling £nil (2023: £79,590).

27
Ultimate controlling party

The company's immediate and ultimate parent is Philip Dennis Foodservice (Holdings) Limited, incorporated in England and Wales. This is the largest and smallest group in which the accounts of this company are consolidated. the registered office of Philip Dennis Foodservice (Holdings) Limited is Mullacott Industrial Estate, Ilfracombe, EX34 8PL.

28
Related party transactions

Summary of transactions with entities with joint control

A related company with common directors provides electricity to the company. During the year Philip Dennis Foodservice Limited made purchases of £117,702 (2023: £111,452) from this related company. Philip Dennis Foodservice Limited also recharges costs to the related company and total recharges in the year were £17,493 (2023: £16,654). During the year Philip Dennis Foodservice Limited advanced £430,000 (2023: £500,000) to the related company. At the balance sheet date the amount due from the related company was £992,652 (2023: £612,033).

 

Another related company a common director provided IT consultancy services to the company. During the year Philip Dennis Foodservice Limited made purchases of £78,332 (2023: £51,279) from this related company. At the balance sheet date £8,022 (2023: £nil) was owed to this company.

 

Summary of transactions with other related parties

The company incurred rent payable of £107,000 (2023: £107,000) in respect of its depot at Ilfracombe and £238,000 (2023: £238,000) in respect to its depot at Oxford, both of which are rented from the Philip Dennis Pension Scheme. At the balance sheet date the amount due to the pension scheme in respect of this was £nil (2023: £nil).

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