Company Registration No. 09954873 (England and Wales)
Philip Dennis Foodservice (Holdings) Limited
Annual report and
group financial statements
for the period ended 27 January 2024
Philip Dennis Foodservice (Holdings) Limited
Company information
Directors
John Dennis
Christopher Dennis
Peter Dennis
Elizabeth Dennis
Secretary
Elizabeth Dennis
Company number
09954873
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 (Holdings) Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 9
Income statement
10
Group statement of financial position
11 - 12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
Philip Dennis Foodservice (Holdings) 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 group'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
10,147
7,986
The directors are pleased with the overall performance of the group 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 group 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 group 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 (Holdings) 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

John Dennis
Director
28 October 2024
Philip Dennis Foodservice (Holdings) 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 is that of a holding company. The principal activity of the group is the distribution of catering foods.

Results and dividends

The results for the period are set out on page 10.

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

Directors

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

John Dennis
Christopher Dennis
Peter Dennis
Elizabeth Dennis
Financial instruments

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 group 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

The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Philip Dennis Foodservice (Holdings) Limited
Directors' report (continued)
For the period ended 27 January 2024
4
Energy and carbon report
2024
Energy consumption
kWh
Aggregate of energy consumption in the year
- Electricity purchased
3,538,563
3,538,563
2024
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
- Fuel consumed for owned transport
1,340.70
1,340.70
Scope 2 - indirect emissions
- Electricity purchased
732.73
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
Total gross emissions
2,073.43
Intensity ratio
kg CO2e per £000 turnover
0.0487
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in kg CO2e per £000 of turnover. This ratio is deemed appropriate for the group.

Measures taken to improve energy efficiency

As a business Philip Dennis strive to improve energy efficiencies and our effect on the environment, using renewable energy as much as possible. This now includes solar installations on three of our four sites and a designated wind turbine at our site in North Devon. Renewable energy is something we are passionate about as a business and will continue to implement this as we grow.

 

To establish our energy usage, we were able to gather accurate readings from our energy meters and fuel tanks. These meters are integrated with an online portal that allows us to monitor live data and energy usage within the business. CO2 Conversion was calculated using the recognised methodology based on Greenhouse gas reporting: conversion factors from the Department for Business, Energy and Industrial Strategy.

 

 

Philip Dennis Foodservice (Holdings) Limited
Directors' report (continued)
For the period ended 27 January 2024
5
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup 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 group.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
John Dennis
Director
28 October 2024
Philip Dennis Foodservice (Holdings) Limited
Independent auditor's report
To the members of Philip Dennis Foodservice (Holdings) Limited
6
Opinion

We have audited the financial statements of Philip Dennis Foodservice (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 27 January 2024 which comprise the group income statement, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 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 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 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 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 included in the annual report other than the financial statements and our auditor's report 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.

 

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

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 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 directors either intend to liquidate the parent 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 (Holdings) Limited
Independent auditor's report (continued)
To the members of Philip Dennis Foodservice (Holdings) Limited
8

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 group and parent 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 group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent 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 group and parent company financial statement disclosures. We reviewed the parent 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 parent 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.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

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 (Holdings) Limited
Independent auditor's report (continued)
To the members of Philip Dennis Foodservice (Holdings) Limited
9

Use of our report

This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent 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
Chartered Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Philip Dennis Foodservice (Holdings) Limited
Group income statement
For the period ended 27 January 2024
10
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
(7,108,669)
(6,873,008)
Operating profit
4
2,775,466
3,707,339
Interest receivable and similar income
7
42,497
-
0
Interest payable and similar expenses
8
(262,874)
(166,867)
Other gains and losses
9
(898,793)
-
Profit before taxation
1,656,296
3,540,472
Tax on profit
10
(874,579)
(1,184,757)
Profit for the financial period
781,717
2,355,715
Profit for the financial period is all attributable to the owners of the parent company.
Philip Dennis Foodservice (Holdings) Limited
Group statement of financial position
As at 27 January 2024
11
27 January 2024
28 January 2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
239,798
354,903
Other intangible assets
12
1,497,427
1,257,943
Total intangible assets
1,737,225
1,612,846
Tangible assets
13
10,831,232
10,027,480
12,568,457
11,640,326
Current assets
Stocks
15
3,448,823
3,597,882
Debtors
16
4,110,574
3,928,646
Cash at bank and in hand
2,025
1,865
7,561,422
7,528,393
Creditors: amounts falling due within one year
17
(4,873,757)
(4,734,346)
Net current assets
2,687,665
2,794,047
Total assets less current liabilities
15,256,122
14,434,373
Creditors: amounts falling due after more than one year
18
(2,753,509)
(4,674,159)
Provisions for liabilities
Provisions
21
465,000
465,000
Deferred tax liability
22
1,890,545
1,309,354
(2,355,545)
(1,774,354)
Net assets
10,147,068
7,985,860
Capital and reserves
Called up share capital
24
950
950
Revaluation reserve
2,637,520
1,253,722
Capital redemption reserve
1,600,000
1,600,000
Other reserves
3,124,102
3,124,102
Profit and loss reserves
2,784,496
2,007,086
Total equity
10,147,068
7,985,860
Philip Dennis Foodservice (Holdings) Limited
Group statement of financial position (continued)
As at 27 January 2024
12
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:
28 October 2024
John Dennis
Director
Company Registration No. 09954873 (England and Wales)
Philip Dennis Foodservice (Holdings) Limited
Company statement of financial position
As at 27 January 2024
27 January 2024
13
27 January 2024
28 January 2023
Notes
£
£
£
£
Fixed assets
Investments
14
5,360,213
5,360,213
Current assets
Debtors
16
22,519
22,519
Cash at bank and in hand
1,002
1,002
23,521
23,521
Creditors: amounts falling due within one year
17
(649,526)
(640,126)
Net current liabilities
(626,005)
(616,605)
Net assets
4,734,208
4,743,608
Capital and reserves
Called up share capital
24
950
950
Capital redemption reserve
1,600,000
1,600,000
Other reserves
3,124,102
3,124,102
Profit and loss reserves
9,156
18,556
Total equity
4,734,208
4,743,608

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £9,400 (2023 - £1,600,000 profit).

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:
28 October 2024
John Dennis
Director
Company Registration No. 09954873 (England and Wales)
Philip Dennis Foodservice (Holdings) Limited
Group statement of changes in equity
For the period ended 27 January 2024
14
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 30 January 2022
1,600,950
1,327,038
-
0
3,124,102
1,184,055
7,236,145
Period ended 28 January 2023:
Profit and total comprehensive income
-
-
-
-
2,355,715
2,355,715
Dividends
11
-
-
-
-
(6,000)
(6,000)
Redemption of shares
24
(1,600,000)
-
1,600,000
-
(1,600,000)
(1,600,000)
Transfers
-
(73,316)
-
-
73,316
-
Balance at 28 January 2023
950
1,253,722
1,600,000
3,124,102
2,007,086
7,985,860
Period ended 27 January 2024:
Profit for the period
-
-
-
-
781,717
781,717
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
-
-
781,717
2,161,208
Transfers
-
4,307
-
-
(4,307)
-
Balance at 27 January 2024
950
2,637,520
1,600,000
3,124,102
2,784,496
10,147,068
Philip Dennis Foodservice (Holdings) Limited
Company statement of changes in equity
For the period ended 27 January 2024
15
Share capital
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 30 January 2022
1,600,950
-
0
3,124,102
24,556
4,749,608
Period ended 28 January 2023:
Profit and total comprehensive income for the period
-
-
-
1,600,000
1,600,000
Dividends
11
-
-
-
(6,000)
(6,000)
Redemption of shares
24
(1,600,000)
1,600,000
-
(1,600,000)
(1,600,000)
Balance at 28 January 2023
950
1,600,000
3,124,102
18,556
4,743,608
Period ended 27 January 2024:
Loss and total comprehensive income for the period
-
-
-
(9,400)
(9,400)
Balance at 27 January 2024
950
1,600,000
3,124,102
9,156
4,734,208
Philip Dennis Foodservice (Holdings) Limited
Group statement of cash flows
For the period ended 27 January 2024
16
27 January
28 January
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
4,091,035
2,609,750
Interest paid
(262,874)
(166,867)
Income taxes paid
(1,016,227)
(39,064)
Net cash inflow from operating activities
2,811,934
2,403,819
Investing activities
Purchase of intangible assets
(256,909)
(117,907)
Purchase of tangible fixed assets
(1,010,101)
(2,813,589)
Proceeds on disposal of tangible fixed assets
29,484
40,420
Interest received
42,497
-
0
Net cash used in investing activities
(1,195,029)
(2,891,076)
Financing activities
Redemption of shares
-
0
(1,600,000)
Repayment of borrowings
-
(273,000)
Proceeds of new bank loans
-
1,609,391
Repayment of bank loans
(1,490,000)
(276,944)
Payment of finance leases obligations
(685,429)
(165,843)
Dividends paid to equity shareholders
-
(6,000)
Net cash used in financing activities
(2,175,429)
(712,396)
Net decrease in cash and cash equivalents
(558,524)
(1,199,653)
Cash and cash equivalents at beginning of period
(303,604)
896,049
Cash and cash equivalents at end of period
(862,128)
(303,604)
Relating to:
Cash at bank and in hand
2,025
1,865
Bank overdrafts included in creditors payable within one year
(864,153)
(305,469)
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements
For the period ended 27 January 2024
17
1
Accounting policies
Company information

Philip Dennis Foodservice (Holdings) Limited (“the company”) is a private limited company 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 £.

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.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Philip Dennis Foodservice (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 27 January 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Philip Dennis Foodservice Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Philip Dennis Foodservice Limited. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
18
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Reporting period

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

1.5
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.

1.6
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.

1.7
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

1.8
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
1.9
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.

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
19

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
Fixtures and fittings
10% to 33% on cost
Plant and computers
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 recognised in the income statement.

1.10
Fixed asset investments

Equity investments are measured at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.11
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.12
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 (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
20
1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 group 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 group after deducting all of its liabilities.

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
21
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 group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
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 group’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 (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
1
Accounting policies (continued)
22
1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.

1.18
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.

1.19
Retirement benefits

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

1.20
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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’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 group 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 group 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.

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
23
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
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
132,530
136,886
Operating lease charges
146,850
138,417
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
4,900
Audit of the financial statements of the company's subsidiaries
25,700
25,100
30,700
30,000
For other services
Taxation compliance services
3,380
4,650
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
24
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
77
79
-
-
Administration and support
40
52
2
2
Distribution
62
60
-
-
Total
179
191
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,333,987
5,174,656
9,400
-
0
Social security costs
500,643
523,138
-
-
Pension costs
148,727
130,430
-
0
-
0
5,983,357
5,828,224
9,400
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
42,497
-
8
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
Total finance costs
262,874
166,867
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
25
9
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.

10
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
Deferred tax
Origination and reversal of timing differences
121,360
363,254
Changes in tax rates
-
0
123,800
Total deferred tax
121,360
487,054
Total tax charge
874,579
1,184,757

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
1,656,296
3,540,472
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
398,010
672,690
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
13,742
116,894
Permanent capital allowances in excess of depreciation
252,144
47,278
Deferred tax adjustments in respect of prior years
226,972
319,284
(459,831)
-
0
Taxation charge
874,579
1,184,757
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
10
Taxation (continued)
26

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
-
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
-
6,000
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 29 January 2023
1,151,045
1,279,724
2,430,769
Additions
-
0
256,909
256,909
At 27 January 2024
1,151,045
1,536,633
2,687,678
Amortisation and impairment
At 29 January 2023
796,142
21,781
817,923
Amortisation charged for the period
115,105
17,425
132,530
At 27 January 2024
911,247
39,206
950,453
Carrying amount
At 27 January 2024
239,798
1,497,427
1,737,225
At 28 January 2023
354,903
1,257,943
1,612,846
The company had no intangible fixed assets at 27 January 2024 or 28 January 2023.

Included within software is £1,279,724 (2023: £1,187,224) in respect of assets under construction on which no amortisation has been charged.

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
27
13
Tangible fixed assets
Group
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.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and computers
21,629
39,953
-
0
-
0
Motor vehicles
1,429,642
1,852,231
-
0
-
0
1,451,271
1,892,184
-
-
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
13
Tangible fixed assets (continued)
28

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.

Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
5,879,404
5,859,612
-
-
Accumulated depreciation
(797,656)
(790,049)
-
-
Carrying value
5,081,748
5,069,563
-
-

The revaluation surplus is disclosed within the Statement of Changes In Equity and is shown net of the corresponding deferred tax liability.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
27
-
0
-
0
5,360,213
5,360,213
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 29 January 2023 and 27 January 2024
5,360,213
Carrying amount
At 27 January 2024
5,360,213
At 28 January 2023
5,360,213
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
3,448,823
3,597,882
-
0
-
0
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
29
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,205,930
2,657,565
22,519
22,519
Other debtors
1,190,872
689,568
-
0
-
0
Prepayments and accrued income
713,772
581,513
-
0
-
0
4,110,574
3,928,646
22,519
22,519
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,304,157
745,473
-
0
-
0
Obligations under finance leases
20
432,307
687,086
-
0
-
0
Trade creditors
1,448,845
1,191,929
15,723
15,723
Amounts owed to group undertakings
-
0
-
0
622,526
613,126
Corporation tax payable
403,380
666,388
-
0
-
0
Other taxation and social security
111,569
117,533
-
-
Other creditors
11,277
11,277
11,277
11,277
Accruals and deferred income
1,162,222
1,314,660
-
0
-
0
4,873,757
4,734,346
649,526
640,126
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
2,308,277
3,798,277
-
0
-
0
Obligations under finance leases
20
445,232
875,882
-
0
-
0
2,753,509
4,674,159
-
-
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
30
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,748,281
4,238,281
-
0
-
0
Bank overdrafts
864,153
305,469
-
0
-
0
3,612,434
4,543,750
-
-
Payable within one year
1,304,157
745,473
-
0
-
0
Payable after one year
2,308,277
3,798,277
-
0
-
0

Bank borrowings consist of one bank loans. 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 and 2% per annum above base rate.

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
432,307
687,086
-
0
-
0
In two to five years
445,232
875,882
-
0
-
0
877,539
1,562,968
-
-

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

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
31
21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Dilapidations
465,000
465,000
-
-
Movements on provisions:
Dilapidations
Group
£
At 29 January 2023 and 27 January 2024
465,000

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

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
32
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,890,545
1,309,354
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the period:
£
£
Liability at 29 January 2023
1,309,354
-
Charge to profit or loss
121,360
-
Charge to other comprehensive income
459,831
-
Liability at 27 January 2024
1,890,545
-

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%.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
148,727
130,430

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
33
24
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
950 Ordinary shares of £1 each
950
950

The preference shares were fully redeemed by the company during the period. Upon cancellation of the shares, a transfer was made to a capital redemption reserve.

 

Each ordinary share entitles the holder to one voting right and an equal share of distributions upon winding up.

25
Operating lease commitments
Lessee

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

Group
Company
2024
2023
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

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
79,590
-
-
Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
34
27
Subsidiaries

Details of the company's subsidiaries at 27 January 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Philip Dennis Foodservice Limited
1
Food wholesale
Ordinary
100
0

Registered office addresses (all UK unless otherwise indicated):

1
Mullacott Industrial Estate, Ilfracombe, North Devon, EX34 8PL
28
Related party transactions

Summary of transactions with entities with joint control

A related company with common directors provides electricity to the group. During the year the group made purchases of £117,702 (2023: £111,452) from this related company. The group also recharges costs to the related company and total recharges in the year were £17,493 (2023: £16,654). During the year the group 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 group. 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 group 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).

Philip Dennis Foodservice (Holdings) Limited
Notes to the financial statements (continued)
For the period ended 27 January 2024
35
29
Cash generated from group operations
2024
2023
£
£
Profit for the period after tax
781,717
2,355,715
Adjustments for:
Taxation charged
874,579
1,184,757
Finance costs
262,874
166,867
Investment income
(42,497)
-
0
Loss/(gain) on disposal of tangible fixed assets
3,217
(24,385)
Amortisation and impairment of intangible assets
132,530
136,886
Depreciation and impairment of tangible fixed assets
1,114,177
1,113,716
Other gains and losses
898,793
-
Movements in working capital:
Decrease/(increase) in stocks
149,059
(1,155,173)
Increase in debtors
(181,928)
(748,179)
Increase/(decrease) in creditors
98,514
(420,454)
Cash generated from operations
4,091,035
2,609,750
30
Analysis of changes in net debt - group
29 January 2023
Cash flows
27 January 2024
£
£
£
Cash at bank and in hand
1,865
160
2,025
Bank overdrafts
(305,469)
(558,684)
(864,153)
(303,604)
(558,524)
(862,128)
Borrowings excluding overdrafts
(4,238,281)
1,490,000
(2,748,281)
Obligations under finance leases
(1,562,968)
685,429
(877,539)
(6,104,853)
1,616,905
(4,487,948)
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