IRIS Accounts Production v24.3.0.553 03262617 Board of Directors 1.3.23 29.2.24 29.2.24 true false true true false false false true false Ordinary 1.00000 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REGISTERED NUMBER: 03262617 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 29 February 2024

for

Newberry International Produce Ltd

Newberry International Produce Ltd (Registered number: 03262617)

Contents of the Financial Statements
for the year ended 29 February 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss Account 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


Newberry International Produce Ltd

Company Information
for the year ended 29 February 2024







Directors: Mrs G L Taylor
S Taylor
L K Rowley



Registered office: Hazel Park
Dymock Road
Ledbury
HR8 2JQ



Registered number: 03262617 (England and Wales)



Senior statutory auditor: Russell John Spencer



Auditors: Acre Accountancy Limited
Statutory Auditor
Certified Accountants
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

Newberry International Produce Ltd (Registered number: 03262617)

Strategic Report
for the year ended 29 February 2024


The directors present their strategic report for the year ended 29 February 2024.

Review of business
The directors are pleased to report sales growth of 4% to £47m in the year, achieved from the ongoing development of UK and international markets. Margins recovered after the particularly challenging trading conditions experienced in the previous financial year, resulting in an improvement in Gross Profit to £7.58m.

The company continued to invest in its long term growth plans, particularly in the areas of personnel and physical infrastructure in the UK. The results of the investment in recent years saw operating profit improve to £5.1m for the year.

The balance sheet has continued to be strengthened from the retained profits with net assets improving to £6.2m.

Principal risks and uncertainties
The principal risks faced by the business continue to be the supply of quality produce, exposure to foreign exchange movements and capacity risk. These are being addressed as follows:
- Produce risks are managed through carrying increased stock in key product categories and entering into medium term agreements with the company's global supplier network;
- Foreign currency exposure is managed through entry into forward hedging products; and
- Medium term capacity risk is addressed through the development of a new operating site in the UK which came on line in 2024.

Section 172(1) statement
The Directors of the Company are required by Section 172 of the Companies Act 2006 to act in a way that promotes the success of the Company for the benefit of stakeholders as a whole and in doing so, they must also have regard to wider expectations of responsible business behaviour, specifically:

(a) the likely consequences of any decision in the long term;
(b) the interests of the Company's people;
(c) the need to foster the Company's business relationships with suppliers, customers and others;
(d) the impact of the Company's operations on the community and the environment;
(e) the desirability of the Company maintaining a reputation for high standards of business conduct; and
(f) the need to act fairly between members of the Company.

The Shareholders who are also Directors of the company, understand the importance of engagement with its key stakeholders as only in this way can it truly understand their needs and concerns to support its decision making, and the likely impact of those decisions on each stakeholder group. The Company uses a variety of methods to engage, both formally and informally, believing that much can be gained from personal interaction.

The Directors consider they have fulfilled their duty in respect of Section 172, both individually and collectively, and that it has acted in the way it considers would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1) (a) to (f) of the Act) in the decisions taken during the year ended 29 February 2024.

Key performance indicators
The company monitors a range of KPIs covering financial performance, working capital management, technical, health and safety, customer complaints and environmental matters.

In June 2024 Newberry was awarded the highest achievable AA quality rating from the British Retail Consortium for its new site at Ledbury, reflecting the focus on quality assurance and food safety throughout the business.


Newberry International Produce Ltd (Registered number: 03262617)

Strategic Report
for the year ended 29 February 2024

Future developments
The directors consider the Business well placed for further expansion over coming years with the new production facility at Ledbury now operational following substantial investment over recent years. Future performance is largely underpinned by contracted revenues with key customers through to 2026.

On behalf of the board:





Mrs G L Taylor - Director


26 November 2024

Newberry International Produce Ltd (Registered number: 03262617)

Report of the Directors
for the year ended 29 February 2024


The directors present their report with the financial statements of the company for the year ended 29 February 2024.

Principal activity
The principal activity of the company in the year under review was that of trading of fruit and vegetable products.

Dividends
Interim dividends of £1895.13 (2023 £1,123.59 )per share were declared by the directors.

The total distribution of dividends for the year ended 29 February 2024 was £506,000 (2023 £300,000).

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

Mrs G L Taylor
S Taylor
L K Rowley

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;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-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.

Newberry International Produce Ltd (Registered number: 03262617)

Report of the Directors
for the year ended 29 February 2024


Auditors
The auditors, Acre Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





Mrs G L Taylor - Director


26 November 2024

Report of the Independent Auditors to the Members of
Newberry International Produce Ltd


Opinion
We have audited the financial statements of Newberry International Produce Ltd (the 'company') for the year ended 29 February 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 29 February 2024 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.

Report of the Independent Auditors to the Members of
Newberry International Produce Ltd


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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 enquired with management about the legal framework that the company operates in. We also enquired about the risk of fraud and whether they were aware of any instances of fraud.

We communicated the outcome of this risk assessment with the audit team and planned our audit work accordingly. Our work in these areas is limited to analytical procedures and inspection of relevant documentation. Where a breach of operational regulations is not disclosed to us, or it is not evident from documentation that we receive during the audit, an audit will not detect that breach.

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
Newberry International Produce Ltd


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.




Russell John Spencer (Senior Statutory Auditor)
for and on behalf of Acre Accountancy Limited
Statutory Auditor
Certified Accountants
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

26 November 2024

Newberry International Produce Ltd (Registered number: 03262617)

Profit and Loss Account
for the year ended 29 February 2024

2024 2023
Notes £    £   

TURNOVER 47,043,448 45,340,641

Cost of sales (39,460,400 ) (41,861,484 )
GROSS PROFIT 7,583,048 3,479,157

Administrative expenses (2,468,170 ) (2,339,913 )
5,114,878 1,139,244

Other operating income - 1,561
OPERATING PROFIT 5 5,114,878 1,140,805

Interest receivable and similar income 17,500 5,915
5,132,378 1,146,720

Interest payable and similar expenses 6 (901,536 ) (576,303 )
PROFIT BEFORE TAXATION 4,230,842 570,417

Tax on profit 7 (1,007,673 ) (83,831 )
PROFIT FOR THE FINANCIAL YEAR 3,223,169 486,586

Newberry International Produce Ltd (Registered number: 03262617)

Other Comprehensive Income
for the year ended 29 February 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 3,223,169 486,586


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

3,223,169

486,586

Newberry International Produce Ltd (Registered number: 03262617)

Balance Sheet
29 February 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 9 11,183,980 4,639,521
Investments 10 28,557 85,672
11,212,537 4,725,193

CURRENT ASSETS
Stocks 11 6,856,025 9,471,711
Debtors 12 5,364,355 6,226,158
Cash at bank 571,567 2,155,161
12,791,947 17,853,030
CREDITORS
Amounts falling due within one year 13 (11,895,545 ) (14,281,301 )
NET CURRENT ASSETS 896,402 3,571,729
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,108,939

8,296,922

CREDITORS
Amounts falling due after more than one
year

14

(4,641,352

)

(4,606,433

)

PROVISIONS FOR LIABILITIES 18 (1,300,011 ) (240,082 )
NET ASSETS 6,167,576 3,450,407

CAPITAL AND RESERVES
Called up share capital 19 267 267
Share premium 20 289,765 289,765
Capital redemption reserve 20 1,084 1,084
Retained earnings 20 5,876,460 3,159,291
SHAREHOLDERS' FUNDS 6,167,576 3,450,407

The financial statements were approved by the Board of Directors and authorised for issue on 26 November 2024 and were signed on its behalf by:





Mrs G L Taylor - Director


Newberry International Produce Ltd (Registered number: 03262617)

Statement of Changes in Equity
for the year ended 29 February 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 March 2022 267 2,972,705 289,765 1,084 3,263,821

Changes in equity
Dividends - (300,000 ) - - (300,000 )
Total comprehensive income - 486,586 - - 486,586
Balance at 28 February 2023 267 3,159,291 289,765 1,084 3,450,407

Changes in equity
Dividends - (506,000 ) - - (506,000 )
Total comprehensive income - 3,223,169 - - 3,223,169
Balance at 29 February 2024 267 5,876,460 289,765 1,084 6,167,576

Newberry International Produce Ltd (Registered number: 03262617)

Cash Flow Statement
for the year ended 29 February 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 6,901,350 1,125,741
Interest paid (855,914 ) (552,169 )
Interest element of hire purchase payments
paid

(45,622

)

(24,134

)
Amount received/loaned to joint venture 76,686 (24,596 )
Tax paid (94,484 ) (140,622 )
Government grants - 1,561
Net cash from operating activities 5,982,016 385,781

Cash flows from investing activities
Purchase of tangible fixed assets (6,719,424 ) (864,918 )
Purchase of fixed asset investments - (42,194 )
Sale of tangible fixed assets - 8,000
Sale of fixed asset investments 431,004 -
Interest received 17,500 5,915
Net cash from investing activities (6,270,920 ) (893,197 )

Cash flows from financing activities
New loans in year 750,000 2,490,000
Loan repayments in year (613,796 ) (392,938 )
Capital repayments in year (214,366 ) (140,834 )
Amount introduced by directors 33,290 141,350
Amount withdrawn by directors (33,290 ) (7,380 )
Additional finance lease capital 1,248,966 -
Equity dividends paid (506,000 ) (300,000 )
Net cash from financing activities 664,804 1,790,198

Increase in cash and cash equivalents 375,900 1,282,782
Cash and cash equivalents at beginning of
year

2

(5,023,088

)

(6,305,870

)

Cash and cash equivalents at end of year 2 (4,647,188 ) (5,023,088 )

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Cash Flow Statement
for the year ended 29 February 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 4,230,842 570,417
Depreciation charges 174,965 181,659
Profit on disposal of fixed assets (373,889 ) (8,000 )
Government grants - (1,561 )
Finance costs 901,536 576,303
Finance income (17,500 ) (5,915 )
4,915,954 1,312,903
Decrease/(increase) in stocks 2,615,686 (2,293,052 )
Decrease/(increase) in trade and other debtors 861,665 (587,546 )
(Decrease)/increase in trade and other creditors (1,491,955 ) 2,693,436
Cash generated from operations 6,901,350 1,125,741

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 29 February 2024
29.2.24 1.3.23
£    £   
Cash and cash equivalents 571,567 2,155,161
Bank overdrafts (5,218,755 ) (7,178,249 )
(4,647,188 ) (5,023,088 )
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 2,155,161 956,687
Bank overdrafts (7,178,249 ) (7,262,557 )
(5,023,088 ) (6,305,870 )


Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Cash Flow Statement
for the year ended 29 February 2024


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.3.23 Cash flow At 29.2.24
£    £    £   
Net cash
Cash at bank 2,155,161 (1,583,594 ) 571,567
Bank overdrafts (7,178,249 ) 1,959,494 (5,218,755 )
(5,023,088 ) 375,900 (4,647,188 )
Debt
Finance leases (196,167 ) (1,034,600 ) (1,230,767 )
Debts falling due within 1 year (527,089 ) (922,587 ) (1,449,676 )
Debts falling due after 1 year (4,505,898 ) 786,383 (3,719,515 )
(5,229,154 ) (1,170,804 ) (6,399,958 )
Total (10,252,242 ) (794,904 ) (11,047,146 )

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements
for the year ended 29 February 2024


1. STATUTORY INFORMATION

Newberry International Produce Ltd 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.

2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for sales of good and services in the ordinary course of the business. Turnover is shown net of Value Added Tax, for goods and services provided to customers and recognised upon receipt of delivery.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 15% on cost
Motor vehicles - 20% on cost
Office equipment - 15% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


3. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.


Forward foreign exchange gains and losses are assessed and provided for at the balance sheet date.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Financial instruments
Financial instruments are classified and accounted for according to the substance of the contractual arrangement. They are classified as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,088,192 1,759,801
Social security costs 164,221 149,656
Other pension costs 210,197 246,477
2,462,610 2,155,934

The average number of employees during the year was as follows:
2024 2023

Directors 3 3
Admin 25 24
Production 44 41
72 68

2024 2023
£    £   
Directors' remuneration 128,960 108,000
Directors' pension contributions to money purchase schemes 179,534 219,974

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 23,050 26,467
Depreciation - owned assets 174,965 181,659
Profit on disposal of fixed assets (373,889 ) (8,000 )
Auditors' remuneration 17,736 9,425
Foreign exchange differences 160,984 108,823

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 763,279 486,812
HMRC interest 4,512 1,116
Mortgage 88,123 64,241
Hire purchase 45,622 24,134
901,536 576,303

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - 94,523
Over/under provision (52,257 ) (21,470 )
Total current tax (52,257 ) 73,053

Deferred tax 1,059,930 10,778
Tax on profit 1,007,673 83,831

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


7. TAXATION - continued

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

2024 2023
£    £   
Profit before tax 4,230,842 570,417
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

1,057,711

108,379

Effects of:
Expenses not deductible for tax purposes 3,198 284
Depreciation in excess of capital allowances 535 2,333
Adjustments to tax charge in respect of previous periods 21,470 (21,470 )
Increasing deferred tax provision rate to 25% - 2,587
Effect of superdeduction claims (4,273 ) (8,282 )
Effect of prior year capital allowances claim rate change 6% 22,505 -
Exempt gain on sale of shares (93,473 ) -
Total tax charge 1,007,673 83,831

8. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 506,000 300,000

The above dividends were paid to the directors of the company.

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


9. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
Cost
At 1 March 2023 3,705,266 84,266 1,779,147
Additions 876,754 - 5,301,364
Reclassification/transfer (148,861 ) - 148,861
At 29 February 2024 4,433,159 84,266 7,229,372
Depreciation
At 1 March 2023 - 78,207 891,372
Charge for year - 2,131 157,641
At 29 February 2024 - 80,338 1,049,013
Net book value
At 29 February 2024 4,433,159 3,928 6,180,359
At 28 February 2023 3,705,266 6,059 887,775

Fixtures
and Motor Office
fittings vehicles equipment Totals
£    £    £    £   
Cost
At 1 March 2023 - 54,640 110,566 5,733,885
Additions 510,264 - 31,042 6,719,424
Reclassification/transfer - - - -
At 29 February 2024 510,264 54,640 141,608 12,453,309
Depreciation
At 1 March 2023 - 50,442 74,343 1,094,364
Charge for year 1,720 2,799 10,674 174,965
At 29 February 2024 1,720 53,241 85,017 1,269,329
Net book value
At 29 February 2024 508,544 1,399 56,591 11,183,980
At 28 February 2023 - 4,198 36,223 4,639,521

Freehold property has not depreciated in the year as it had not been brought into use at the balance sheet date.

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


10. FIXED ASSET INVESTMENTS
Interest
in joint
venture
£   
Cost
At 1 March 2023 85,672
Disposals (57,115 )
At 29 February 2024 28,557
Net book value
At 29 February 2024 28,557
At 28 February 2023 85,672

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Joint venture

Love Life Smoothies & Fruit Solutions S.L.
Registered office: Spain
Nature of business: Wholesale of fruit and vegetables
%
Class of shares: holding
Ordinary 33.33
31/12/23 31/12/22
£    £   
Aggregate capital and reserves 326,841 134,412
Profit for the year 195,889 131,779

During the year the company disposed of 66.67% of the share capital having briefly held 100% as a short term investment and so were not consolidated into group accounts

11. STOCKS
2024 2023
£    £   
Stocks 6,856,025 9,471,711

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,930,342 4,916,206
Amounts owed by joint ventures 58,371 135,059
Other debtors 17,050 18,317
Smootheelicious loan 69,782 73,263
Tax 76,550 -
VAT 1,108,635 899,032
Prepayments 103,625 184,281
5,364,355 6,226,158

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 6,668,431 7,705,338
Hire purchase contracts (see note 16) 308,930 95,632
Trade creditors 3,831,152 5,616,967
Tax 24,332 94,523
Social security and other taxes 33,287 36,441
Other creditors 62,952 31,638
Directors' loan accounts 294,976 294,977
Accrued expenses 671,485 405,785
11,895,545 14,281,301

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 15) 3,719,515 4,505,898
Hire purchase contracts (see note 16) 921,837 100,535
4,641,352 4,606,433

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 5,218,755 7,178,249
Bank loans 1,449,676 527,089
6,668,431 7,705,338

Amounts falling due between one and two years:
Bank loans - 1-2 years 742,387 758,191

Amounts falling due between two and five years:
Bank loans - 2-5 years 1,549,500 1,964,148

Amounts falling due in more than five years:

Repayable by instalments
Bank loans payable after more than 5 years
by instalments

1,427,628

1,783,559

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 308,930 95,632
Between one and five years 921,837 100,535
1,230,767 196,167

Non-cancellable operating leases
2024 2023
£    £   
Within one year 46,431 36,411
Between one and five years 190,344 86,792
In more than five years 17,472 -
254,247 123,203

17. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 5,218,755 7,178,249
Bank loans 5,169,191 5,032,987
Hire purchase contracts 1,230,767 196,167
11,618,713 12,407,403

The company's bank borrowings are secured by fixed and floating charges over the assets of the company. There is a right of set-off between the bank overdraft and credit balances held in the same bank. The bank overdraft disclosed above includes £5,218,755 (2023: £7,004,303) in respect of borrowings provided under a confidential invoice discounting facility (that is secured on the trade debtors of the company) and an import finance facility.

The bank also hold an unlimited multilateral guarantee given by the company and Smootheelicious Limited a related company.

Coronavirus Business Interruption Loans were taken out in 2021 with guarantees given by the UK Government under CBILS (The CBILS Guarantee). A further loan was taken out in 2022 under the Recovery Loan Scheme (RLS) which also has guarantees given by the UK government.

Hire purchase creditors are secured on fixed assets to which they relate.

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax - accelerated
capital allowances 1,300,011 240,082
1,300,011 240,082

Deferred
tax
£   
Balance at 1 March 2023 240,082
Provided during year 1,059,929
Balance at 29 February 2024 1,300,011

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
267 Ordinary £1 267 267

20. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 March 2023 3,159,291 289,765 1,084 3,450,140
Profit for the year 3,223,169 3,223,169
Dividends (506,000 ) (506,000 )
At 29 February 2024 5,876,460 289,765 1,084 6,167,309

Newberry International Produce Ltd (Registered number: 03262617)

Notes to the Financial Statements - continued
for the year ended 29 February 2024


21. RELATED PARTY DISCLOSURES

Smootheelicious Limited is a company, the shareholdings in which are the same as for Newberry International Produce Limited.

In addition to transactions and trading balances that are conducted on an arms-length basis, the company has also provided a loan to Smootheelicious Limited that is not subject to interest. The balance as at 29 February 2024 was £69,782 (2023 - £73,263).

Mrs G L Taylor, a director and shareholder Newberry International Produce Limited, has provided a loan to the company during the period. At the year end the amount due from the company was £294,976 (2023: £294,976). There is no interest charged on the loan and the outstanding amount is repayable on demand.

During 2021 Newberry International Produce Limited entered into a Joint Venture and acquired 50% of the share capital of Love Life Smoothies & Fruit Solutions S.L, the remaining 50% was aquired in 2023, but subsequently sold a 66.67% stake in October 2023 . In order to assist with the working capital the company provided a loan to Love Life Smoothies & Fruit Solutions S.L. that is not subject to interest. The balance as at 29th February 2024 was £58,371 (2023 £135,059).The company also supplies Love Life Smoothies & Fruit Solutions S.L. on an arms length basis, as at 29th February 2024 an amount of £90,580 (2023 £72,719) is included in trade debtors in respect of amounts owing to Newberry International Produce Limited.