Company registration number 06061061 (England and Wales)
IHP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
IHP LTD
COMPANY INFORMATION
Directors
Mr A Iqbal
Mr P Winson
Company number
06061061
Registered office
3rd Floor
Great Titchfield House
14-18 Great Titchfield Street
London
W1W 8BD
Auditor
Sam Rogoff & Co Ltd
3rd Floor
Great Titchfield House
14-18 Great Titchfield Street
London
W1W 8BD
Business address
Bell Farm
Shantock Hall Lane
Bovingdon
Herts
HP3 0NQ
IHP LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
IHP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 28 February 2024.
The members of the company are also members of the company's management. There is neither an expectation that this situation will change in the near future nor the intention to change this situation. The directors have prepared this report in the knowledge that the company's members are fully informed of the company's development and performance, principal risks and uncertainties and matters of strategic importance.
Review of the business
The principal activity of the company is the processing and manufacture of poultry products. There have not been any significant changes in the company's principal activities in the period under review or post year end.
The company's trading performance in the year ended 28 February 2024 has seen strong growth in turnover from the prior year and an increase in the Gross Profit margin.
Overall, the company has achieved a profit before tax of £3,177,309 compared to £2,919,698 in the previous year, an increase of 8.8%, which the directors are satisfied with given the increase in turnover.
Principal risks and uncertainties
The principal risks and uncertainties faced by the company are common to those faced by other businesses operating in the poultry processing industry. The key risk factor continues to be the cost and availability of poultry which can be affected by the market price for the end product, the price of feed, weather conditions, and any poultry disease outbreaks. The directors closely monitor these factors to help mitigate the risk and are confident that the company is well placed for the next financial year. Control measures are in place and can be implemented to try and minimise the risk of contamination and spread of Coronavirus should there be a further outbreak.
Key performance indicators
KPIs relevant for the company have been calculated as follows:
28.02.2024 28.02.2023
£000s £000s
Sales 76,850 75,289
Gross Profit 6,362 5,243
Operating profit/(loss) 3,227 2,965
Profit/(loss) before tax 3,177 2,919
Future Prospects
The company is still in the process of expanding operations by continuing the redevelopment works at Cotes Farm that was acquired in September 2021. Construction is underway to develop new Broiler Houses at the site, two of which are now in use.
The directors consider the future prospects of the company to be promising due to the strong levels of growth and are actively looking to increase efficiencies, invest and expand operations further.
Mr A Iqbal
Director
26 November 2024
IHP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 28 February 2024.
A fair review of the business, the principal risks and uncertainties, key performance indicators and the future prospects of the company are disclosed in the Strategic Report.
Principal activities
The principal activity of the company continued to be that of the processing and manufacture of poultry products.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £360,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Iqbal
Mr P Winson
Auditor
In accordance with the company's articles, a resolution proposing that Sam Rogoff & Co Ltd be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors confirm that so far as they are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the company’s auditors are unaware. They have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Under Companies Act 2006, s454, on a voluntary basis, the directors can amend these financial statements if they subsequently prove to be defective.
IHP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 important events affecting the company which have occurred since the end of the financial year and likely future developments in the business of the company.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A Iqbal
Director
26 November 2024
IHP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IHP LTD
- 4 -
Opinion
We have audited the financial statements of IHP Ltd (the 'company') for the year ended 28 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 28 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
IHP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IHP LTD (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as considerations as to where and how fraud may occur in the entity.
Based on our understanding of the company and the industry, we identified that key legislation includes the Companies Act 2006, UK Financial reporting standards, UK tax legislation, distributable profits legislation, Food Standards legislation, and Health and Safety legislation. We discussed with the directors their policies and procedures regarding compliance with laws and regulations.
We considered the extent to which non-compliance might have a material effect on the financial statements and the audit team was alert to any indicators of non-compliance. We did not identify any instances of actual or suspected non-compliance.
In consideration of the extent to which the financial statements might be materially misstated we identified that the principal risk related to management bias affecting accounting estimates. Accordingly, we carried out audit procedures including enquiry and challenge of management estimates, testing the appropriateness of entries in the nominal ledger, and the performance of analytical procedures.
There are inherent limitations in the audit procedures carried out, and any irregularities arising from fraud may be inherently more difficult to detect than those resulting from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
IHP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IHP LTD (CONTINUED)
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Emily Brown
Senior Statutory Auditor
For and on behalf of Sam Rogoff & Co Ltd
26 November 2024
Chartered Accountants
Statutory Auditor
3rd Floor
Great Titchfield House
14-18 Great Titchfield Street
London
W1W 8BD
IHP LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
76,850,023
75,289,482
Cost of sales
(70,487,186)
(70,045,662)
Gross profit
6,362,837
5,243,820
Administrative expenses
(3,194,346)
(2,271,897)
Other operating income/(expenses)
59,145
(6,329)
Operating profit
4
3,227,636
2,965,594
Interest receivable and similar income
8
259
Interest payable and similar expenses
9
(50,586)
(45,896)
Profit before taxation
3,177,309
2,919,698
Tax on profit
10
(306,605)
(680,129)
Profit for the financial year
2,870,704
2,239,569
The profit and loss account has been prepared on the basis that all operations are continuing operations.
IHP LTD
BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,169,953
3,713,446
Investment properties
14
828,160
785,963
4,998,113
4,499,409
Current assets
Stocks
15
1,506,787
1,142,353
Debtors
16
12,384,768
8,368,608
Cash at bank and in hand
1,845,753
1,659,333
15,737,308
11,170,294
Creditors: amounts falling due within one year
17
(10,448,064)
(7,842,231)
Net current assets
5,289,244
3,328,063
Total assets less current liabilities
10,287,357
7,827,472
Creditors: amounts falling due after more than one year
18
(303,525)
(337,081)
Provisions for liabilities
(361,846)
(379,109)
Net assets
9,621,986
7,111,282
Capital and reserves
Called up share capital
23
2
2
Profit and loss reserves
9,621,984
7,111,280
Total equity
9,621,986
7,111,282
The financial statements were approved by the board of directors and authorised for issue on 26 November 2024 and are signed on its behalf by:
Mr A Iqbal
Director
Company Registration No. 06061061
IHP LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
2
5,396,711
5,396,713
Year ended 28 February 2023:
Profit and total comprehensive income
-
2,239,569
2,239,569
Dividends
12
-
(525,000)
(525,000)
Balance at 28 February 2023
2
7,111,280
7,111,282
Year ended 28 February 2024:
Profit and total comprehensive income
-
2,870,704
2,870,704
Dividends
12
-
(360,000)
(360,000)
Balance at 28 February 2024
2
9,621,984
9,621,986
IHP LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,558,055
1,554,214
Interest paid
(50,586)
(45,896)
Net cash inflow from operating activities
1,507,469
1,508,318
Investing activities
Purchase of tangible fixed assets
(2,077,437)
(1,404,958)
Proceeds from disposal of tangible fixed assets
1,035,337
Purchase of investment property
(42,197)
(785,963)
Interest received
259
Net cash used in investing activities
(1,084,038)
(2,190,921)
Financing activities
Payment of finance leases obligations
122,989
186,782
Dividends paid
(360,000)
(525,000)
Net cash used in financing activities
(237,011)
(338,218)
Net increase/(decrease) in cash and cash equivalents
186,420
(1,020,821)
Cash and cash equivalents at beginning of year
1,659,333
2,680,154
Cash and cash equivalents at end of year
1,845,753
1,659,333
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information
IHP Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Great Titchfield House, 14-18 Great Titchfield Street, London, W1W 8BD.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods, being Poultry, 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 (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the bases below.
The company has assets under construction totalling £214k at the year-end date. No depreciation will be charged until the asset is brought into use.
Land and buildings Freehold
5% straight line basis (land not depreciated)
Plant and machinery
25% on reducing Balance
Fixtures, fittings & equipment
25% on reducing Balance
Motor vehicles
25% on reducing Balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
Stock held includes growing chicks placed at growers, finished goods on-site, frozen goods, packaging, and feed.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
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 is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax 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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 balance sheet 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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of judgements and estimation uncertainty
The following judgements, estimates and assumptions which have had the most significant effect on amounts recognised in the financial statements are as follows.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both internal and external sources of information such as experience of recoverability and market conditions. There have been no indicators of impairments identified during the current financial year.
Recoverability of debtors
The company establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability the directors have considered factors such as the aging of the debtors, past experience of recoverability, and the credit profile of the customer.
Determining residual values and useful economic lives of property, plant and equipment
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance.
Stock
Judgement is required to ascertain the value for certain elements of stock. When assessing the valuation the directors consider market conditions and previous experience to ensure held at the lower of cost and net realisable value.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
76,850,023
75,289,482
2024
2023
£
£
Other revenue
Interest income
259
-
All revenue arose within the United Kingdom and is attributable to the principal activity of the company.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(18)
199
Depreciation of owned tangible fixed assets
558,934
537,124
Loss on disposal of tangible fixed assets
26,659
20,040
Cost of stocks recognised as an expense
53,575,236
52,922,343
Operating lease charges
334,246
331,974
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £18 (2023 - £199).
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 company
21,500
16,750
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
18
17
Production
215
192
Total
233
209
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
8,039,768
6,633,108
Social security costs
816,649
694,423
Pension costs
84,040
106,394
8,940,457
7,433,925
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 17 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
556,107
238,260
Company pension contributions to defined contribution schemes
1,237
1,265
557,344
239,525
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
508,621
195,344
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
259
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest and Charges on bank overdrafts and loans
29,007
36,561
Interest on finance leases and hire purchase contracts
21,579
9,335
50,586
45,896
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
391,146
67,278
Adjustments in respect of prior periods
(67,278)
Total current tax
323,868
67,278
Deferred tax
Origination and reversal of timing differences
(17,263)
612,851
Total tax charge
306,605
680,129
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
10
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,177,309
2,919,698
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
794,327
554,743
Tax effect of expenses that are not deductible in determining taxable profit
153,339
110,962
Tax effect of utilisation of tax losses not previously recognised
(432,702)
(408,704)
Change in deferred tax
(17,263)
612,851
Adjustments in respect of prior years
(67,278)
Effect of change in corporation tax rate
(8,139)
Capital allowances in excess of depreciation
(115,679)
(189,723)
Taxation charge for the year
306,605
680,129
11
Development Expenditure (R&D)
The company is in the process of preparing an R&D claim for the 2023 accounting period at the date of signing and this is not reflected in the current year financial statements. The total qualifying expenditure is yet to be confirmed.
12
Dividends
2024
2023
£
£
Interim paid
360,000
525,000
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 19 -
13
Tangible fixed assets
Land and buildings Freehold
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
1,154,651
621,754
4,148,639
106,837
904,103
6,935,984
Additions
935,962
599,052
130,974
13,128
398,321
2,077,437
Disposals
(92,950)
(92,950)
Transfers
(1,006,634)
(1,006,634)
At 28 February 2024
2,090,613
214,172
4,279,613
119,965
1,209,474
7,913,837
Depreciation and impairment
At 1 March 2023
2,781,566
74,670
366,302
3,222,538
Depreciation charged in the year
25,346
364,328
9,311
159,949
558,934
Eliminated in respect of disposals
(37,588)
(37,588)
At 28 February 2024
25,346
3,145,894
83,981
488,663
3,743,884
Carrying amount
At 28 February 2024
2,065,267
214,172
1,133,719
35,984
720,811
4,169,953
At 28 February 2023
1,154,651
621,754
1,367,073
32,167
537,801
3,713,446
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
50,397
67,197
Motor vehicles
563,977
337,057
614,374
404,254
14
Investment property
2024
£
Fair value
At 1 March 2023
785,963
Additions through external acquisition
42,197
At 28 February 2024
828,160
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
14
Investment property
(Continued)
- 20 -
Investment property comprises two residential properties acquired during the year, both of which are held at fair value.
Capital costs of £42,197 were incurred during the year, all relating to redevelopment works.
15
Stocks
2024
2023
£
£
Raw materials and consumables
1,158,424
750,595
Finished goods and goods for resale
348,363
391,758
1,506,787
1,142,353
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,413,070
5,650,854
Other debtors
3,370,645
2,085,520
Prepayments and accrued income
381,053
412,234
12,164,768
8,148,608
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
220,000
220,000
Total debtors
12,384,768
8,368,608
Included in other debtors is £220,000 relating to to the rent deposit, recoverable after more than one year.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
281,590
164,559
Trade creditors
7,790,662
6,502,994
Corporation tax
391,146
67,278
Other taxation and social security
(24,783)
(38,825)
Other creditors
105,573
89,214
Accruals and deferred income
1,903,876
1,057,011
10,448,064
7,842,231
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
171,293
165,335
Other creditors
132,232
171,746
303,525
337,081
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
281,590
164,559
In two to five years
171,293
165,335
452,883
329,894
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. The average lease term is typically 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Provisions
There was an ongoing personal injury legal claim against the company, the financial outcome of which could not be reliably estimated at the year-end. However, the claim was later settled in June 2024 and did not impact the going concern status of the company.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
21
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
361,846
379,109
2024
Movements in the year:
£
Liability at 1 March 2023
379,109
Credit to profit or loss
(17,263)
Liability at 28 February 2024
361,846
The deferred tax liability set out above is expected to reverse within 48 months and relates to accelerated capital allowances that are expected to mature within the same period.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,040
106,394
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
23
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary Shares of £1 each
2
2
The company has one class of ordinary shares which carry full voting rights and no right to fixed income.
24
Financial commitments, guarantees and contingent liabilities
The company has assets under construction totalling £214k at the year-end date and has a financial commitment to complete the construction of two further Broiler Houses, one of which is expected to be completed within twelve months of the year-end.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
25
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for use of the site, Bell Farm. Rent payable over the lease term is spread on a straight line basis. Due to the nature of the lease and use of operating equipment rental costs are included within licence fees.
Operating lease payments recognised as an expense in the year totalled £250k.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
250,000
26
Related party transactions
Transactions took place with nine associated company's during the year. A total of £5.2m sales, and £6.4m purchases took place with the related parties during the accounting period. At the year-end, there was an amount of £4.5m owed from the companies which is held within trade and other debtors, and an amount of £819k owing to the companies which is held within trade and other creditors.
All transactions during the reporting period took place on an arms length basis under normal market conditions and are payable under standard trading terms.
£220,000 in relation to the rent deposit remains owing, recoverable over more than one year.
27
Ultimate controlling party
A. Iqbal and M. Tatum are the sole shareholders, both with a 50% holding meaning there is no ultimate controlling party.
IHP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 24 -
28
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,870,704
2,239,569
Adjustments for:
Taxation charged
306,605
680,129
Finance costs
50,586
45,896
Investment income
(259)
Loss on disposal of tangible fixed assets
26,659
20,040
Depreciation and impairment of tangible fixed assets
558,934
537,123
Movements in working capital:
Increase in stocks
(364,434)
(80,779)
Increase in debtors
(4,016,160)
(1,899,473)
Increase in creditors
2,125,420
11,708
Cash generated from operations
1,558,055
1,554,213
29
Analysis of changes in net funds
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
1,659,333
186,420
1,845,753
Obligations under finance leases
(329,894)
(122,989)
(452,883)
1,329,439
63,431
1,392,870
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