REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
ATKINS AND POTTS LIMITED |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
ATKINS AND POTTS LIMITED |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 29 February 2024 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Balance Sheet | 4 |
Notes to the Financial Statements | 6 |
ATKINS AND POTTS LIMITED |
COMPANY INFORMATION |
For The Year Ended 29 February 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Certified Accountants |
1 Carnegie Road |
Newbury |
Berkshire |
RG14 5DJ |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
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 food manufacturing and distribution. |
REVIEW OF BUSINESS |
At the time of submitting the Year Ended February 2024 accounts, we had successfully operated at our new facility since March 2024. Our management accounts for the 8 months to the end of October 2024 report turnover growth and profitability. |
The Year End February 2024 accounts reflected the costs and exceptional expenses associated with moving a food manufacturing facility to a new site. The 2023/24 financial year tested the business on many levels as we: |
* | Moved all our production operations to a new site between mid-2023 and January 2024; |
* | Re-integrated outsourced storage and distribution functions into our new site and operations; |
* | Bought in new business for the future; |
* | Completed dilapidations and handed back the old site; |
* | Reacted to extreme levels of inflationary pressures across all input costs; and |
* | Ran our old site inefficiently for 6 months of 2023. Our site move was delayed 6 months but we had secured new business which we honored despite the old site being out of capacity. |
While it was financially tough, we demonstrated resilience and adaptability. |
During 2024/25 we have started to benefit from our new AA grade BRC production facility. The new site is delivering productivity gains and has significant capacity for growth. |
We have also acquired new customers due to our reputation for producing high quality natural products which are mass hand-made and without compromise. Our own brands, and our own label customer brands, also have strong customer relationships and strong market positions. |
As a result, our 2024/25 results and forecasts are for profitable growth. |
While we have shown separately on the Profit and Loss statement direct costs related to our Site Move and Old Site Dilapidation Costs, we have not separated out the many costs contained in overheads which were indirectly Site Move related, including: |
* | Interest costs related to borrowing costs to fund the move & to purchase new plant and equipment. These costs were higher than planned due to higher inflation. |
* | Overhead costs incurred when not producing, or only partially producing, over 3 months; |
* | Senior Staff costs over the 6 months prior to the move when their time was split between daily operations and move planning; |
* | Equipment failures during the first months of operation which impacted productivity. |
In addition, we had extraordinarily high raw material and packaging costs due to stock write-offs resulting from: |
* | Packaging failures which meant high levels of stock were written off. These issues have been resolved. |
* | Poor finished stock rotation at an external storage provider who experienced difficulties. Since the move we control of our stock and have returned to our previous low levels of stock write offs. |
* | Distractions of the site move [both leading up to, and during, the move] resulted in stock production errors. Again, since the move, we have returned to our historic low levels of stock write-offs due to production issues. |
Sales were also impacted by the site move for our own brands. We did not build enough stock to cover the move delay and experienced a slower re-start than anticipated. Our strong, long-term customer relationships, have meant we have started to capture back lost sales in 2024. |
We are now moving forward positively having successfully settled into the new site and we are operating profitably. |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
REPORT OF THE DIRECTORS |
For The Year Ended 29 February 2024 |
Our strength is in offering premium authentic products which are natural and minimally processed. We are well positioned for growth and we now have a new site with capacity to accelerate our growth. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
BALANCE SHEET |
29 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks |
Debtors | 5 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
BALANCE SHEET - continued |
29 February 2024 |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 29 February 2024 |
1. | STATUTORY INFORMATION |
Atkins and Potts Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 05040867 and its registered office address is Unit C Kennetside, Off Bone Lane, Newbury, Berkshire, RG14 5PX. |
The presentation currency of the financial statements is the Pound Sterling (£) rounded to the nearest pound. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from the sale of finished goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase of raw materials and packaging, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. Income received from Research and Development tax credit applications is accounted for on a receipts basis. |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Overall risk to operations |
The conflict in Ukraine, the reducing crop yields as result of climate change, and financial instability driving unprecedented inflation has had a significant impact on the availability and supply of raw materials. The Company has taken measures to mitigate the supply issues but an element of disruption is expected. |
The Company has determined that these events are non-adjusting post balance sheet events. Accordingly, the financial position as at, and results of the operations for, the year ended 29 February 2024 have not been adjusted to reflect their impact. The duration and impact of disruption remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Company for future periods. |
Going Concern |
The company obtains it's day to day working capital from the bank facility, with long term funding being provided by third party institutions. In addition to this the directors have invested in the company and also support the working capital as required. The directors have confirmed that they will only seek repayment of the loan shown as due after more than one year, when the working capital position of the company allows. |
On this basis the accounts have been prepared on the going concern basis. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Computer |
leasehold | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 March 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 29 February 2024 |
4. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Short | Plant and | Computer |
leasehold | machinery | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2023 |
Additions | 177,694 |
Transfer to ownership | - | (52,225 | ) | (2,800 | ) | (55,025 | ) |
At 29 February 2024 | 177,694 |
DEPRECIATION |
At 1 March 2023 | - |
Charge for year | 2,962 |
Transfer to ownership | - | (39,832 | ) | (2,136 | ) | (41,968 | ) |
At 29 February 2024 | 2,962 |
NET BOOK VALUE |
At 29 February 2024 | 174,732 |
At 28 February 2023 | - |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts |
Other loans |
Hire purchase contracts |
Trade creditors |
Social security and other taxes |
Other creditors |
Directors' current accounts | 22,577 | 20,022 |
Accrued expenses |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Other loans - 1-2 years |
Other loans - 2-5 years |
Hire purchase contracts |
Directors current account NY | 148,638 | - |
Directors current account RY | 148,638 | - |
ATKINS AND POTTS LIMITED (REGISTERED NUMBER: 05040867) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 29 February 2024 |
8. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdraft | - | 707 |
Commercial finance | 462,790 | 477,299 |
Lloyds Bank Commercial Finance Ltd has registered a fixed and floating charge covering all the property or undertaking of the company. |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 452,000 | 300,000 |
152,000 Ordinary shares of £1 were issued during the year |
10. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date, included within other creditors, unpaid contributions of £20,586 (2023 - £5,708) were due to the fund. |
11. | OTHER FINANCIAL COMMITMENTS |
At 28 February 2024, the company had total commitments under non-cancellable operating leases which are not included in the balance sheet of £1,369,475 (2023 £153,621) |
12. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 29 February 2024 and 28 February 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |