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REGISTERED NUMBER: 01860326 (England and Wales)















Q.K. COLD STORES (MARSTON) LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


Q.K. COLD STORES (MARSTON) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J Queally
M Crowley
M Queally
L Queally
I Queally



SECRETARY: J A Daly



REGISTERED OFFICE: Toll Bar Road
Marston
Grantham
Lincolnshire
NG32 2HT



REGISTERED NUMBER: 01860326 (England and Wales)



SENIOR STATUTORY AUDITOR: Theo Banos BA FCA



AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
3 Castlegate
Grantham
Lincolnshire
NG31 6SF

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The results for the period and financial position of the company are shown in the annexed financial statements.

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in context of the risks and uncertainties we face.

The company continues to trade as a cold store, providing facilities for the storage and distribution of a variety of frozen food products.

The company has seen an increase in revenue of £874k.

At the end of the financial year the company was in a strong financial position with net assets of £6.4m (2022: £5.4m).

DEVELOPMENT AND PERFORMANCE
The company continues to review the market places it operates within and places effort in areas with the most potential.

The business is focussed on servicing local food producers who particularly value location, the benefits of reliable short lead times and the ability to provide cold storage ancillary services.

Competition in the food storage sector remains competitive, with price and location lead competition. Accordingly, the company's growth plans, as in past years, are based on growth in its ancillary services.

KEY PERFORMANCE INDICATORS
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, those being turnover, gross margin and net profit.

In the period turnover has increased by 7.5% from £11.6m to £12.5m.

Gross profit has increased by 26.4% from £4.16m to £5.25m, representing 42% of turnover (2022 - 36%).

Profit before tax has increased from a loss before tax of £274k to a profit before tax of £1,349k.

PRINCIPAL RISKS AND UNCERTAINTIES FROM A LOSS BEFORE TAX OF
As for many businesses of our size, the business environment in which we operate continues to be challenging.

Despite the challenging market place and economic climate our ability to offer and deliver a high level of service has enabled the company to continue to move forward. We have and are still continuing to develop additional facilities and services to complement our existing business.

The trading performance of the business is not affected by foreign exchange currency fluctuations. However, Sterling / Euro currency movements by way of unrealised gains and losses are accounted for on the company funding at each period end.

ON BEHALF OF THE BOARD:





M Queally - Director


7 September 2024

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of cold store facilities.

DIVIDENDS
No dividends declared.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J Queally
M Crowley
M Queally
L Queally
I Queally

Other changes in directors holding office are as follows:

P Queally - deceased 19 August 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





M Queally - Director


7 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
Q.K. COLD STORES (MARSTON) LIMITED

Opinion
We have audited the financial statements of Q.K. Cold Stores (Marston) Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 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:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
Q.K. COLD STORES (MARSTON) LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with the directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and group management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: European Food regulations, Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and group management and inspection.This inspection included a review of the external food safety audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company’s employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
Q.K. COLD STORES (MARSTON) LIMITED


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 a Report of the Auditors 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.




Theo Banos BA FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
3 Castlegate
Grantham
Lincolnshire
NG31 6SF

27 October 2024

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

REVENUE 3 12,478,663 11,604,704

Cost of sales 7,225,420 7,448,788
GROSS PROFIT 5,253,243 4,155,916

Administrative expenses 3,731,635 3,636,231
OPERATING PROFIT 5 1,521,608 519,685

Bad debt 6 - 727,934
1,521,608 (208,249 )

Interest receivable and similar income 46,615 3,512
1,568,223 (204,737 )

Interest payable and similar expenses 7 219,108 69,669
PROFIT/(LOSS) BEFORE TAXATION 1,349,115 (274,406 )

Tax on profit/(loss) 8 347,629 (126,539 )
PROFIT/(LOSS) FOR THE FINANCIAL YEAR 1,001,486 (147,867 )

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 1,001,486 (147,867 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,001,486 (147,867 )

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 9 6,876,679 7,077,756

CURRENT ASSETS
Debtors 10 1,914,816 2,441,997
Cash at bank 2,833,148 1,632,977
4,747,964 4,074,974
CREDITORS
Amounts falling due within one year 11 1,408,660 1,960,862
NET CURRENT ASSETS 3,339,304 2,114,112
TOTAL ASSETS LESS CURRENT LIABILITIES 10,215,983 9,191,868

CREDITORS
Amounts falling due after more than one year 12 (2,800,000 ) (3,150,000 )

PROVISIONS FOR LIABILITIES 17 (968,428 ) (595,799 )
NET ASSETS 6,447,555 5,446,069

CAPITAL AND RESERVES
Called up share capital 18 10,000 10,000
Retained earnings 6,437,555 5,436,069
SHAREHOLDERS' FUNDS 6,447,555 5,446,069

The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2024 and were signed on its behalf by:




M Queally - Director



L Queally - Director


Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 10,000 5,583,936 5,593,936

Changes in equity
Total comprehensive income - (147,867 ) (147,867 )
Balance at 31 December 2022 10,000 5,436,069 5,446,069

Changes in equity
Total comprehensive income - 1,001,486 1,001,486
Balance at 31 December 2023 10,000 6,437,555 6,447,555

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,420,158 1,517,089
Net cash from operating activities 2,420,158 1,517,089

Cash flows from investing activities
Purchase of tangible fixed assets (697,494 ) (2,057,344 )
Unrealised currency gain/(loss) - (8,979 )
Interest received 46,615 3,512
Net cash from investing activities (650,879 ) (2,062,811 )

Cash flows from financing activities
New loans in year - 3,500,000
Loan repayments in year (350,000 ) (2,062,500 )
Bank loan interest (219,108 ) (69,669 )
Net cash from financing activities (569,108 ) 1,367,831

Increase in cash and cash equivalents 1,200,171 822,109
Cash and cash equivalents at beginning of year 2 1,632,977 810,868

Cash and cash equivalents at end of year 2 2,833,148 1,632,977

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023 2022
£    £   
Profit/(loss) before taxation 1,349,115 (274,406 )
Depreciation charges 898,571 836,714
Unrealised currency (gain)/loss - 8,979
Finance costs 219,108 69,669
Finance income (46,615 ) (3,512 )
2,420,179 637,444
Decrease in trade and other debtors 527,181 562,768
(Decrease)/increase in trade and other creditors (527,202 ) 316,877
Cash generated from operations 2,420,158 1,517,089

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 2,833,148 1,632,977
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,632,977 810,868


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 1,632,977 1,200,171 2,833,148
1,632,977 1,200,171 2,833,148
Debt
Debts falling due within 1 year (350,000 ) - (350,000 )
Debts falling due after 1 year (3,150,000 ) 350,000 (2,800,000 )
(3,500,000 ) 350,000 (3,150,000 )
Total (1,867,023 ) 1,550,171 (316,852 )

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Q.K. Cold Stores (Marston) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

(i) Depreciation
Property, plant and equipment are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Revenue
Revenue represents net invoiced sales of goods and services, excluding value added tax.

Receipt, handling and despatch (RHD) charges are recognised on receipt of goods. Storage rental charges are recognised on a weekly basis in arrears for the week in which goods are received and for every week goods are held thereafter.

Property, plant and equipment
Property, plant and equipment is held at cost less depreciation and accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life :

Freehold property-Land nil, Buildings 2.5% on cost
Plant and machinery-15% on reducing balance & 25% straight line

Fixtures, fittings, equipment and vehicles

-
15% to 25% on reducing balance & 15% to 25% straight
line
Computers-20% straight line & 33% straight line

Only proportional amounts have been written off in respect of assets acquired in the period.

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in the income statement, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest.

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. Accounts 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Translation of foreign currencies
Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the statement of financial position date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All exchange adjustments are dealt with through the income statement.

3. REVENUE

The revenue and profit / (loss) before taxation are attributable to the one principal activity of the company.

The company's principal activity was carried on within the United Kingdom.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,473,507 2,500,894
Social security costs 254,636 260,341
Other pension costs 80,846 143,278
2,808,989 2,904,513

The average number of employees during the year was as follows:
2023 2022

Office and management 10 10
Sales and distribution 66 63
76 73

2023 2022
£    £   
Directors' remuneration - -

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 530 1,029
Depreciation - owned assets 898,571 836,715
Auditors' remuneration 15,065 19,100
Unrealised currency (gain)/loss - 8,979

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Bad debt - (727,934 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank and loan interest 219,108 69,669

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Deferred tax 347,629 (126,539 )
Tax on profit/(loss) 347,629 (126,539 )

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit/(loss) before tax 1,349,115 (274,406 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

337,279

(52,137

)

Effects of:
Expenses not deductible for tax purposes 1,396 9,339
Depreciation in excess of capital allowances 32,259 (77,319 )
Other (23,305 ) (6,422 )
Total tax charge/(credit) 347,629 (126,539 )

The expected reversal of deferred tax liabilities is not expected to be significant based on the company's planned levels of capital expenditure.

In the 3 March 2021 budget it was announced that the UK tax rate will increase to 25% from 1 April 2023 and this rate was substantively enacted on 24 May 2021. Deferred tax balances at the year-end have been measured at 25%.

9. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
COST
At 1 January 2023 5,033,688 9,185,330 2,985,274 17,204,292
Additions - 255,642 441,854 697,496
Disposals - (240,170 ) (140,774 ) (380,944 )
At 31 December 2023 5,033,688 9,200,802 3,286,354 17,520,844
DEPRECIATION
At 1 January 2023 2,335,708 6,275,227 1,515,601 10,126,536
Charge for year 114,181 466,650 317,740 898,571
Eliminated on disposal - (240,170 ) (140,772 ) (380,942 )
At 31 December 2023 2,449,889 6,501,707 1,692,569 10,644,165
NET BOOK VALUE
At 31 December 2023 2,583,799 2,699,095 1,593,785 6,876,679
At 31 December 2022 2,697,980 2,910,103 1,469,673 7,077,756

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. PROPERTY, PLANT AND EQUIPMENT - continued

Included in cost of land and buildings is freehold land of £ 465,270 (2022 - £ 465,270 ) which is not depreciated.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,638,645 2,249,317
Other debtors 14,150 28,450
Amounts owed by related undertakings 145,809 59,284
Prepayments and accrued income 116,212 104,946
1,914,816 2,441,997

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 350,000 350,000
Trade creditors 165,511 154,805
Amounts owed to related undertakings - 176,863
Social security and other taxes 428,062 297,520
Other creditors 135,626 133,563
Accruals and deferred income 329,461 848,111
1,408,660 1,960,862

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 13) 2,800,000 3,150,000

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loan 350,000 350,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 350,000 350,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 2,450,000 2,800,000

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 141,145 194,843
Between one and five years 116,800 257,457
257,945 452,300

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 3,150,000 3,500,000

The bank loan is secured by a mortgage over the company's property and a floating charge over all the assets.

16. FINANCIAL INSTRUMENTS

The company has the following financial instruments:

2023 2022
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 1,638,645 2,249,317
Other debtors 14,150 28,450
Amounts owed by related undertakings 145,809 59,284

Financial liabilities measured at amortised cost

Bank loans 3,150,000 3,500,000
Trade creditors 165,511 154,805
Amounts owed to related undertakings - 176,863
Other creditors 135,626 133,563

The total interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through profit or loss was £Nil (2022 - £Nil) and £219,108 (2022 - £69,669) respectively.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 817,213 469,584
Other provisions 151,215 126,215
968,428 595,799

Deferred Other
tax provisions
£    £   
Balance at 1 January 2023 469,584 126,215
Provided during year 347,629 25,000
Transfer from/(to) income
statement
Balance at 31 December 2023 817,213 151,215

Other provisions relate to potential insurance claims that may be made against the company and are a result of past events. The level of potential claims are uncertain, so the provision is based on an assessment of each potential claim by the insurance providers.

Q.K. COLD STORES (MARSTON) LIMITED (REGISTERED NUMBER: 01860326)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary £1 10,000 10,000

19. RELATED PARTY DISCLOSURES

Key management personnel

Total remuneration paid to key management personnel was £129,324 (2022 - £100,975).

Other related parties
2023 2022
£    £   
Sales 1,076,181 855,999
Purchases 638,823 140,710
Amount due from related party 145,809 59,284
Amount due to related party - 176,863

Other related parties are entities in which two of the directors have a significant interest. Loans due to/from related parties are unsecured and repayable on demand.

20. ULTIMATE HOLDING COMPANY

The company is a subsidiary undertaking of Q K (Holdings) Limited. The registered office of Q.K. (Holdings) Limited is Toll Bar Road, Marston, Grantham, Lincolnshire, England, NG32 2HT. The group in which the results of the company are consolidated is that headed by Q K (Holdings) Limited. The consolidated financial statements of the group are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ.

The ultimate controlling party is the Queally family.