Company registration number 06846055 (England and Wales)
SMITHFIELD POULTRY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
SMITHFIELD POULTRY LIMITED
COMPANY INFORMATION
Directors
D N Murray
M T Grady
Mr T Habib
Miss D S Walker
Company number
06846055
Registered office
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
Auditor
Sumer Auditco Limited
The Beehive
City Place
Gatwick
RH6 0PA
Business address
Kings Park 300
Mosley Road
Trafford Park
Manchester
M17 1QA
Bankers
NatWest
35 King William Street
Blackburn
Lancashire
BB1 7DL
Solicitors
Slater Heelis LLP
86 Deansgate
Manchester
M3 2ER
SMITHFIELD POULTRY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 30
SMITHFIELD POULTRY LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The principal activity of the business is the processing of high quality value-added chicken meat products, focusing on our core markets of UK manufacturers for the retail ready meal industry, deli, food to go and pastry products.

The business has all accreditations necessary for its preeminent position to successfully service its targeted supply chains. These include BRC, Red Tractor, and all necessary major retailer approvals. Building on last year, we have continued to make significant capital investments in machinery, systems and our people. The investments to date have been centred around strategic initiatives to focus on production capacity and operational performance, to drive profitable growth whilst ensuring an outstanding food safety culture and an enhanced welfare and health and safety environment for our colleagues.

The Directors are pleased with the financial and operational performance of the business. Current global economic challenges have had a significant impact on supply chains and have resulted in unprecedented inflationary pressures across raw material input supply costs, energy and fuel costs, and salaries and wages. Despite this the business has been able to drive improved profitability through efficiency gains arising from investment in capacity and the focus on operational performance and control of costs. The business has continued to provide its customers with outstanding customer service in the supply of value-add solutions with exceptional levels of quality and product integrity. This delivery performance has enhanced business reputation and it’s key relationships with both customers and suppliers.

Looking forwards towards 2024/​25 we continue to focus on delivering to our clear strategic plan to drive profitable growth and to seek continuous improvement in capacity and operational efficiency for the benefit of our customers and other stakeholders. The business continues to develop under the new ownership structure with investment available to undertake further improvements in the organisational structure and systems to enhance our high quality skill base and to unlock further commercial and strategic opportunities. In the short to medium term this will likely add cost into the business with the full benefits of this investment beginning to be experienced in the medium to long term.

The business has now been working for over a year under our new ownership structure which has maintained our agile approach to opportunities as they arise. The new structure affords greater investment as required quickly which has allowed the business to accelerate development in key areas.

As directors, we will continue to review business performance and work to optimise performance in all areas. The business will continue to focus investment in areas which help drive further efficiency and improve profitability, building on the gains already delivered in the last two years.

Principal risks and uncertainties

The directors have considered the exposure of the company to risks. The principal risks are liquidity risk, interest rate risk and credit risk. The company manages its cash and borrowing requirements centrally in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid reserves to meet the operating needs of the business.

The company is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and asset financing facilities. The company does not use any interest rate derivatives to manage this risk and, as such, no hedge accounting is applied.

 

In terms of the credit risk any investments made by the company of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures and all trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary, in addition all trade debtors are insured.

 

SMITHFIELD POULTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Development and performance

Financial performance after the balance sheet date has continued to remain strong showing continuing profitability. This together with the strong net assets position of the company demonstrates that the company is in a strong financial position and has the ability to both invest in the company's future and commit to future customer projects.

Over the next 12 months the Directors forecast an increase in turnover as we continue to see commercial benefits resulting from the acquisition made by YPM Holdings on the 13th March 2023.

 

Key performance indicators

The Directors consider sales growth and gross profit margin to be KPI’s.

Both sales and gross profit margin growth was achieved during the reporting period. The Directors will continue to monitor all core KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.

 

Future developments

The Directors are focused on investing in the business to increase sales and maintain profitability along with reducing waste and meeting high environmental standards. The current strategy is proving to be very successful and the directors expect further commercial success in the future, with a plan to continue to invest in the business into 2024/25.

 

 

On behalf of the board

Mr T Habib
Director
18 November 2024
SMITHFIELD POULTRY LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the Period ended 31 December 2023.

Principal activities
The principal activity of the group is that of meat and poultry processors.
Results and dividends

The results for the Period are set out on page 9.

Ordinary dividends were paid amounting to £1,649,972. The directors do not recommend payment of a further dividend.

Directors

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

D N Murray
M T Grady
Mr T Habib
Miss D S Walker
Auditor

Sumer Auditco Limited were appointed as auditor of the company following the transfer of the audit business from Cowgill Holloway LLP, and are deemed to be reappointed under section 487 (2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

SMITHFIELD POULTRY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
Key events

On 13 March 2023, YPM Holdings Limited acquired all the share capital of Smithfield Poultry Ltd and its subsidiaries Smithfield Murray Holdings and Smithfield Murray Limited using funds managed by Endless LLP. The YPM Group is a multi-protein supplier of value-add products with a focus on exceptional product quality and integrity and outstanding customer service. The acquisition of Smithfield Poultry Ltd adds poultry to the Group’s product offering and will help accelerate the Group’s continued development as the UK’s leading ingredients partner across all key proteins.

On behalf of the board
Mr T Habib
Director
18 November 2024
SMITHFIELD POULTRY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SMITHFIELD POULTRY LIMITED
- 5 -
Opinion

We have audited the financial statements of Smithfield Poultry Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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:

SMITHFIELD POULTRY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMITHFIELD POULTRY LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

SMITHFIELD POULTRY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMITHFIELD POULTRY LIMITED
- 7 -

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws related to health and safety, health and hygiene, food safety and employment.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

 

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

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

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.

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 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.

SMITHFIELD POULTRY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMITHFIELD POULTRY LIMITED
- 8 -
Stuart Stead (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
18 November 2024
Chartered Accountants
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
SMITHFIELD POULTRY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Period
Year
ended
ended
31 December
1 April
2023
2023
Notes
£
£
Turnover
3
38,482,345
48,483,022
Cost of sales
(30,165,990)
(39,408,768)
Gross profit
8,316,355
9,074,254
Distribution costs
(959,878)
(1,236,279)
Administrative expenses
(2,276,817)
(2,562,035)
Other operating income
70,166
117,384
Operating profit
4
5,149,826
5,393,324
Interest receivable and similar income
8
34,770
10,421
Interest payable and similar expenses
9
(7,258)
(36,999)
Profit before taxation
5,177,338
5,366,746
Tax on profit
10
(1,294,164)
(1,023,380)
Profit for the financial Period
3,883,174
4,343,366
Profit for the financial Period is all attributable to the owners of the parent company.
Total comprehensive income for the Period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SMITHFIELD POULTRY LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
31 December 2023
1 April 2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
370,000
-
0
Tangible assets
13
1,295,037
1,244,382
1,665,037
1,244,382
Current assets
Stocks
16
549,530
711,916
Debtors
17
9,558,081
7,309,302
Cash at bank and in hand
4,244,824
3,255,929
14,352,435
11,277,147
Creditors: amounts falling due within one year
18
(6,406,304)
(5,047,121)
Net current assets
7,946,131
6,230,026
Total assets less current liabilities
9,611,168
7,474,408
Creditors: amounts falling due after more than one year
19
(34,617)
(145,100)
Provisions for liabilities
Deferred tax liability
21
260,775
246,734
(260,775)
(246,734)
Net assets
9,315,776
7,082,574
Capital and reserves
Called up share capital
23
259,212
259,212
Profit and loss reserves
9,056,564
6,823,362
Total equity
9,315,776
7,082,574

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
18 November 2024
Mr T Habib
Director
Company registration number 06846055 (England and Wales)
SMITHFIELD POULTRY LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
31 December 2023
1 April 2023
Notes
£
£
£
£
Fixed assets
Investments
14
1,749,860
1,749,860
Current assets
Debtors
17
150,002
150,002
Creditors: amounts falling due within one year
18
(1,640,650)
(1,640,650)
Net current liabilities
(1,490,648)
(1,490,648)
Net assets
259,212
259,212
Capital and reserves
Called up share capital
23
259,212
259,212

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,649,972 (2023 - £105,303 profit).

The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
18 November 2024
Mr T Habib
Director
Company registration number 06846055 (England and Wales)
SMITHFIELD POULTRY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 2 April 2022
259,212
2,585,299
2,844,511
Year ended 1 April 2023:
Profit and total comprehensive income
-
4,343,366
4,343,366
Dividends
11
-
(105,303)
(105,303)
Balance at 1 April 2023
259,212
6,823,362
7,082,574
Period ended 31 December 2023:
Profit and total comprehensive income
-
3,883,174
3,883,174
Dividends
11
-
(1,649,972)
(1,649,972)
Balance at 31 December 2023
259,212
9,056,564
9,315,776
SMITHFIELD POULTRY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 2 April 2022
259,212
-
0
259,212
Year ended 1 April 2023:
Profit and total comprehensive income for the year
-
105,303
105,303
Dividends
11
-
(105,303)
(105,303)
Balance at 1 April 2023
259,212
-
0
259,212
Period ended 31 December 2023:
Profit and total comprehensive income
-
1,649,972
1,649,972
Dividends
11
-
(1,649,972)
(1,649,972)
Balance at 31 December 2023
259,212
-
0
259,212
SMITHFIELD POULTRY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
3,847,712
3,861,671
Interest paid
(7,258)
(36,999)
Income taxes paid
(297,293)
(193,881)
Net cash inflow from operating activities
3,543,161
3,630,791
Investing activities
Purchase of intangible assets
(400,000)
-
Purchase of tangible fixed assets
(378,089)
(249,370)
Proceeds from disposal of tangible fixed assets
-
4,000
Repayment of loans
4,013
(4,013)
Interest received
34,770
10,421
Net cash used in investing activities
(739,306)
(238,962)
Financing activities
Payment of finance leases obligations
(164,988)
(355,556)
Dividends paid to equity shareholders
(1,649,972)
(105,303)
Net cash used in financing activities
(1,814,960)
(460,859)
Net increase in cash and cash equivalents
988,895
2,930,970
Cash and cash equivalents at beginning of Period
3,255,929
324,959
Cash and cash equivalents at end of Period
4,244,824
3,255,929
SMITHFIELD POULTRY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 15 -
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
-
0
-
0
Investing activities
Dividends received
1,649,972
105,303
Net cash generated from investing activities
1,649,972
105,303
Financing activities
Dividends paid to equity shareholders
(1,649,972)
(105,303)
Net cash used in financing activities
(1,649,972)
(105,303)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of Period
-
0
-
0
Cash and cash equivalents at end of Period
-
0
-
0
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Smithfield Poultry Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Regency House, 45-51 Chorley New Road, Bolton, Lancashire, BL1 4QR.

 

The immediate group consists of Smithfield Poultry Limited and all of its subsidiaries.

1.1
Reporting period

These financial statements represent a shortened period for the nine months to December 2023. The accounting reference date has been changed to align the year end with the other group companies. Therefore, the comparative amounts presented in the financial statements, including the related notes, are not entirely comparable.

1.2
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.

1.3
Business combinations

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

 

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

1.4
Basis of consolidation

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

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover arises wholly from activities within the United Kingdom.

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.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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 following bases:

Leasehold improvements
Equally over the lease term
Plant and machinery
20% / 30% straight line p.a.
Fixtures, fittings & equipment
20% straight line p.a.
Motor vehicles
25% straight line p.a.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

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

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

SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

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

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is recognised in respect of all timing differences which have originated but not reversed at the balance sheet date. Timing differences are differences between taxable profits and the results as stated in the financial statements which arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

 

A net deferred tax asset is regarded as recoverable and therefore recognised only when it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences can be deducted.

 

Deferred tax is measured at the average tax rates which are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws which have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non - discounted basis.

1.14
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16
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 leased asset are consumed.

1.17
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.

2
Judgements and key sources of estimation uncertainty

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

 

The 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 estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic life

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets, which are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2023
£
£
Turnover analysed by class of business
Meat and poultry sales
38,482,345
48,483,022
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2023
£
£
Turnover analysed by geographical market
United Kingdom
38,482,345
48,483,022
2023
2023
£
£
Other revenue
Interest income
34,770
10,421
4
Operating profit
2023
2023
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange gains
-
(4,811)
Depreciation of owned tangible fixed assets
327,434
473,117
Profit on disposal of tangible fixed assets
-
(1,139)
Amortisation of intangible assets
30,000
-
Operating lease charges
146,930
115,758
5
Auditor's remuneration
2023
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
22,500
22,500
6
Employees

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

Group
Company
2023
2023
2023
2023
Number
Number
Number
Number
Directors
6
4
4
2
105
123
-
-
Total
111
127
4
2
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2023
2023
2023
£
£
£
£
Wages and salaries
2,081,331
2,755,607
-
0
-
0
Social security costs
495,793
260,556
-
-
Pension costs
46,695
55,685
-
0
-
0
2,623,819
3,071,848
-
0
-
0
7
Directors' remuneration
2023
2023
£
£
Remuneration for qualifying services
135,692
22,947

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2023
£
£
Interest income
Interest on bank deposits
34,770
6,968
Other interest income
-
3,453
Total income
34,770
10,421
2023
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
34,770
6,968
9
Interest payable and similar expenses
2023
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
(145)
18,836
Other finance costs:
Interest on finance leases and hire purchase contracts
7,403
18,163
Total finance costs
7,258
36,999
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 24 -
10
Taxation
2023
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,280,123
1,064,709
Deferred tax
Origination and reversal of timing differences
14,041
(41,329)
Total tax charge
1,294,164
1,023,380

The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:

2023
2023
£
£
Profit before taxation
5,177,338
5,366,746
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,294,335
1,019,682
Tax effect of expenses that are not deductible in determining taxable profit
10,843
23,567
Effect of change in corporation tax rate
-
(9,920)
Permanent capital allowances in excess of depreciation
-
0
(9,949)
Deferred tax adjustments in respect of prior years
(7,833)
-
0
319
-
0
Deferred tax not recognised
(3,500)
-
Taxation charge
1,294,164
1,023,380
11
Dividends
2023
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,649,972
105,303
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 25 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 2 April 2023
189,517
Additions
400,000
At 31 December 2023
589,517
Amortisation and impairment
At 2 April 2023
189,517
Amortisation charged for the Period
30,000
At 31 December 2023
219,517
Carrying amount
At 31 December 2023
370,000
At 1 April 2023
-
0
The company had no intangible fixed assets at 31 December 2023 or 1 April 2023.
13
Tangible fixed assets
Group
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 2 April 2023
614,670
1,750,413
253,780
35,980
2,654,843
Additions
-
0
332,271
45,818
-
0
378,089
At 31 December 2023
614,670
2,082,684
299,598
35,980
3,032,932
Depreciation and impairment
At 2 April 2023
514,720
727,449
151,686
16,606
1,410,461
Depreciation charged in the Period
19,990
272,722
27,976
6,746
327,434
At 31 December 2023
534,710
1,000,171
179,662
23,352
1,737,895
Carrying amount
At 31 December 2023
79,960
1,082,513
119,936
12,628
1,295,037
At 1 April 2023
99,950
1,022,964
102,094
19,374
1,244,382
The company had no tangible fixed assets at 31 December 2023 or 1 April 2023.
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2023
2023
2023
£
£
£
£
Plant and machinery
429,434
557,249
-
0
-
0
14
Fixed asset investments
Group
Company
2023
2023
2023
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,749,860
1,749,860
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 2 April 2023 and 31 December 2023
1,749,860
Carrying amount
At 31 December 2023
1,749,860
At 1 April 2023
1,749,860
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Smithfield Murray Holdings Ltd
1
Ordinary
100.00
-
Smithfield Murray Ltd
1
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Fourth Floor, Unit 5B, The Parklands, Bolton. BL6 4SD
16
Stocks
Group
Company
2023
2023
2023
2023
£
£
£
£
Finished goods and goods for resale
549,530
711,916
-
0
-
0
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 27 -
17
Debtors
Group
Company
2023
2023
2023
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,819,832
6,689,292
-
0
-
0
Unpaid share capital
2
2
2
2
Amounts owed by group undertakings
1,500,000
346,043
150,000
150,000
Other debtors
75,442
54,592
-
0
-
0
Prepayments and accrued income
162,805
219,373
-
0
-
0
9,558,081
7,309,302
150,002
150,002
18
Creditors: amounts falling due within one year
Group
Company
2023
2023
2023
2023
Notes
£
£
£
£
Obligations under finance leases
20
174,317
228,822
-
0
-
0
Trade creditors
3,467,231
3,326,451
-
0
-
0
Amounts owed to group undertakings
220,633
-
0
1,640,650
1,640,650
Corporation tax payable
2,047,539
1,064,709
-
0
-
0
Other taxation and social security
84,286
65,046
-
-
Other creditors
61,356
51,250
-
0
-
0
Accruals and deferred income
350,942
310,843
-
0
-
0
6,406,304
5,047,121
1,640,650
1,640,650
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
2023
2023
Notes
£
£
£
£
Obligations under finance leases
20
34,617
145,100
-
0
-
0

These are secured over the company assets.

20
Finance lease obligations
Group
Company
2023
2023
2023
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
174,317
228,822
-
0
-
0
In two to five years
34,617
145,100
-
0
-
0
208,934
373,922
-
-
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
20
Finance lease obligations
(Continued)
- 28 -

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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
2023
2023
Group
£
£
Accelerated capital allowances
261,979
246,734
Short term timing differences
(1,204)
-
260,775
246,734
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the Period:
£
£
Liability at 2 April 2023
246,734
-
Charge to profit or loss
14,041
-
Liability at 31 December 2023
260,775
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2023
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
46,695
55,685

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

23
Share capital
Group and company
2023
2023
2023
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of 1 each
259,212
259,212
259,212
259,212
SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
23
Share capital
(Continued)
- 29 -
24
Operating lease commitments
Lessee

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

Group
Company
2023
2023
2023
2023
£
£
£
£
Within one year
113,484
113,484
-
-
Between two and five years
226,968
312,081
-
-
340,452
425,565
-
-
25
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's loan account
-
2,850
829
(3,772)
(93)
Director's loan account
-
1,163
-
(1,681)
(518)
4,013
829
(5,453)
(611)
26
Controlling party

The immediate parent company is YPM Holdings Limited, a company registered in England and Wales.

 

The ultimate controlling party is Endless LLP, a limited liability partnership registered in England and Wales. Endless LLP is controlled by G Wilson and D Forshaw.

 

The results of the reporting company are included in the consolidated financial statements prepared by YPM Group Limited. The consolidated accounts are available from the registered address of YPM Group Limited, Unit 56, Lidgate Crescent, Langthwaite Grange Industrial Estate, South Kirkby, Pontefract, West Yorkshire, WF9 3NR.

SMITHFIELD POULTRY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 30 -
27
Cash generated from group operations
2023
2023
£
£
Profit for the Period after tax
3,883,174
4,343,366
Adjustments for:
Taxation charged
1,294,164
1,023,380
Finance costs
7,258
36,999
Investment income
(34,770)
(10,421)
Gain on disposal of tangible fixed assets
-
(1,139)
Amortisation and impairment of intangible assets
30,000
-
Depreciation and impairment of tangible fixed assets
327,434
473,117
Movements in working capital:
Decrease/(increase) in stocks
162,386
(10,800)
Increase in debtors
(2,252,792)
(585,858)
Increase/(decrease) in creditors
430,858
(1,406,973)
Cash generated from operations
3,847,712
3,861,671
28
Cash absorbed by operations - company
2023
2023
£
£
Profit for the Period after tax
1,649,972
105,303
Adjustments for:
Investment income
(1,649,972)
(105,303)
Cash absorbed by operations
-
-
29
Analysis of changes in net funds - group
2 April 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,255,929
988,895
4,244,824
Obligations under finance leases
(373,922)
164,988
(208,934)
2,882,007
1,153,883
4,035,890
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