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COMPANY REGISTRATION NUMBER: 05180274
MHP Food UK Ltd
Financial Statements
For the year ended
31 December 2023
MHP Food UK Ltd
Financial Statements
Year ended 31 December 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Director's report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
10
Statement of financial position
11
Notes to the financial statements
13
MHP Food UK Ltd
Officers and Professional Advisers
Director
M J Wickens
Registered office
3 Mill Race
Lemsford Mill
Welwyn Garden City
Hertfordshire
England
AL8 7TW
Auditor
Streets Audit LLP
Chartered accountants & statutory auditor
Building 15, Gateway 1000
Arlington Business Park
Stevenage
Hertfordshire
SG1 2FP
MHP Food UK Ltd
Strategic Report
Year ended 31 December 2023
We aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face. The company's core operations are that of selling poultry into the UK fast food and wholesale supply chain. Operation Performance and Key Performance Indicators The director considers the key performance indicators (KPI's) of the company to be turnover, gross margin and net profit. The company reported turnover in the year 2023 of £38.3m (2022: £29m) and a gross margin of 8.3% resulting in a profit before tax of £0.2m (2022: loss £1.7m). The company purchases almost all the goods from the group companies. Cost of goods are effected by the situation in Ukraine and increased transportation costs. The company further is wholly reliant on group for support for which the director has obtained for the current year also. The directors best expectation is that the support is in place for the foreseeable future and they are monitoring the situation regularly. The company further is wholly reliant on group for support for which the director has obtained for the current year also. The directors best expectation is that the support is in place for the foreseeable future and they are monitoring the situation regularly. MHP Group's management has developed a contingency plan to ensure that the company meets its commitments. Such measures have already been taken in 2023, including an increase in the level of stocks in the UK, which covers 2 months of market demand for goods. Principal Risks and Uncertainties The company's principal financial instruments comprise cash and various items, such as trade debtors and trade creditors, which arise directly from its operations. The main purpose of these financial instruments is to provide finance for the group's operations. A principal financial instrument to the company is the amounts owed to group undertakings which is a significant value each year. The group facility is provided by group so the company can meet its day to day funding requirements. The existence of these financial instruments exposes the group to a number of financial risks. The main risks arising from the group's financial risks are credit risk and liquidity risk. The director reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. Credit risk The company seeks to manage its credit risk by dealing with established customers or otherwise checking the credit-worthiness of new customers, establishing clear contractual relationships with those customers and by identifying and addressing any credit issues arising in a timely manner. Liquidity risk The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by overdraft facilities. The main functional currency of the business is Sterling. The company does purchase goods from overseas and therefore there is a currency risk involved. The liquidity risk is further being managed through group support. Food regulation risk The company is exposed food regulation risk owing to the nature of the business and sector it operates in. The company seeks to manage this risk through internal expertise and external consultants where deemed necessary. The company is further members of the BFFF, INTSA and IMTA which allow for regular updates on any changes and guidance on the regulations. Outlook The company continues to grow across its core operation. The director will continue to react to market conditions whilst managing the risks noted above. The director continues to monitor the situation in Ukraine both in relation to supply chain and group support.
This report was approved by the board of directors on 20 December 2024 and signed on behalf of the board by:
M J Wickens
Director
Registered office:
3 Mill Race
Lemsford Mill
Welwyn Garden City
Hertfordshire
England
AL8 7TW
MHP Food UK Ltd
Director's Report
Year ended 31 December 2023
The director presents his report and the financial statements of the company for the year ended 31 December 2023 .
Director
The director who served the company during the year was as follows:
M J Wickens
Dividends
The director does not recommend the payment of a dividend.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 director is 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. He is 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 20 December 2024 and signed on behalf of the board by:
M J Wickens
Director
Registered office:
3 Mill Race
Lemsford Mill
Welwyn Garden City
Hertfordshire
England
AL8 7TW
MHP Food UK Ltd
Independent Auditor's Report to the Members of MHP Food UK Ltd
Year ended 31 December 2023
Opinion
We have audited the financial statements of MHP Food UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
Material uncertainty related to going concern
We draw your attention to the fact that the company is part of a group which has been adversely affected by the war in Ukraine and there is risk of further disruption to the company. These conditions indicate that a material uncertainty exists over the company's ability to continue as a going concern as the company is reliant on group support and is supplied products from other group companies. Our opinion is not modified in respect of this matter, however we draw your attention to the notes to the financial statements and the directors assessment of 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.
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 director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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 director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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. 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental, health and safety legislation and the Foods Standard Agency; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.
Jonathan Day
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered accountants & statutory auditor
Building 15, Gateway 1000
Arlington Business Park
Stevenage
Hertfordshire
SG1 2FP
20 December 2024
MHP Food UK Ltd
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
38,320,065
29,045,294
Cost of sales
35,191,459
28,832,715
-------------
-------------
Gross profit
3,128,606
212,579
Distribution costs
1,008,210
1,148,256
Administrative expenses
1,925,877
711,883
------------
------------
Operating profit/(loss)
5
194,519
( 1,647,560)
Interest payable and similar expenses
9
7,836
------------
------------
Profit/(loss) before taxation
194,519
( 1,655,396)
Tax on profit/(loss)
10
( 13,554)
---------
------------
Profit/(loss) for the financial year and total comprehensive income
208,073
( 1,655,396)
---------
------------
Retained losses at the start of the year
( 1,758,605)
( 103,209)
------------
------------
Retained losses at the end of the year
( 1,550,532)
( 1,758,605)
------------
------------
All the activities of the company are from continuing operations.
MHP Food UK Ltd
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Intangible assets
11
663
Tangible assets
12
345,349
55,633
---------
--------
346,012
55,633
Current assets
Stocks
13
9,527,570
5,645,587
Debtors
14
5,966,291
5,278,411
Cash at bank and in hand
3,023,362
1,111,193
-------------
-------------
18,517,223
12,035,191
Creditors: amounts falling due within one year
15
20,413,765
13,849,427
-------------
-------------
Net current liabilities
1,896,542
1,814,236
------------
------------
Total assets less current liabilities
( 1,550,530)
( 1,758,603)
------------
------------
Net liabilities
( 1,550,530)
( 1,758,603)
------------
------------
MHP Food UK Ltd
Statement of Financial Position (continued)
31 December 2023
2023
2022
Note
£
£
£
Capital and reserves
Called up share capital
17
2
2
Profit and loss account
18
( 1,550,532)
( 1,758,605)
------------
------------
Shareholders deficit
( 1,550,530)
( 1,758,603)
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 20 December 2024 , and are signed on behalf of the board by:
M J Wickens
Director
Company registration number: 05180274
MHP Food UK Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3 Mill Race, Lemsford Mill, Welwyn Garden City, Hertfordshire, AL8 7TW, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
Going concern
The company has reported a profit before tax of £194,519 for the year which is in line with the director's expectations. The director has received support from its parent undertaking with the extension of group loans which at the balance sheet date stood at £19.8m and the company continues to be supplied products from other group companies. The director has also received assurances that support will continue for a period of at least 12 months from the signing of the financial statements. This support is not legally binding. The group is based in Ukraine and has been experiencing significant disruption following the invasion by Russia. The company and group have however continued to trade since the war commenced. The director is mindful there may be further uncertainty and disruption because of the war but the situation is being monitored closely along with the potential impact on business. For these reasons, the financial statements have been prepared on a going concern basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of MHP SE which can be obtained from the company site. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (e) No disclosure has been given for the aggregate remuneration of key management personnel.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The company has not got any material key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment in the year.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied, stated net of discounts and of Value Added Tax.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Computer software
-
33 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property
-
Over the remaining life of the lease
Equipment
-
20 % straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. The company takes an average cost of freight and carriage in getting stock to it's current location and condition.
Financial instruments
The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
38,320,065
29,045,294
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit/(loss)
Operating profit or loss is stated after charging:
2023
2022
£
£
Amortisation of intangible assets
107
Depreciation of tangible assets
4,575
3,577
Impairment of trade debtors
3,121
Foreign exchange differences
23,970
58,672
Operating lease charges
798,944
676,381
---------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
19,250
17,500
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2023
2022
No.
No.
Administrative staff
4
4
Management staff
2
2
----
----
6
6
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
896,316
314,093
Social security costs
77,089
36,148
Other pension costs
23,109
13,990
---------
---------
996,514
364,231
---------
---------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
12,582
19,358
--------
--------
The director was paid through group companies in the year.
9. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
7,836
----
-------
10. Tax on profit/(loss)
Major components of tax income
2023
2022
£
£
Current tax:
UK current tax income
( 13,554)
--------
----
Tax on profit/(loss)
( 13,554)
--------
----
Reconciliation of tax income
The tax assessed on the profit/(loss) on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit/(loss) on ordinary activities before taxation
194,519
( 1,655,396)
---------
------------
Profit/(loss) on ordinary activities by rate of tax
59,806
( 314,525)
Utilisation of tax losses
( 59,806)
Unused tax losses
314,525
R&D Tax credit
(13,554)
---------
------------
Tax on profit/(loss)
( 13,554)
---------
------------
11. Intangible assets
Computer software
£
Cost
Additions
770
----
At 31 December 2023
770
----
Amortisation
Charge for the year
107
----
At 31 December 2023
107
----
Carrying amount
At 31 December 2023
663
----
At 31 December 2022
----
12. Tangible assets
Short leasehold property
Equipment
Total
£
£
£
Cost
At 1 January 2023
42,163
17,597
59,760
Additions
152,727
141,564
294,291
---------
---------
---------
At 31 December 2023
194,890
159,161
354,051
---------
---------
---------
Depreciation
At 1 January 2023
1,006
3,121
4,127
Charge for the year
1,884
2,691
4,575
---------
---------
---------
At 31 December 2023
2,890
5,812
8,702
---------
---------
---------
Carrying amount
At 31 December 2023
192,000
153,349
345,349
---------
---------
---------
At 31 December 2022
41,157
14,476
55,633
---------
---------
---------
Capital commitments
2023
2022
£
£
Contracted for but not provided for in the financial statements
11,514
--------
----
13. Stocks
2023
2022
£
£
Finished goods and goods for resale
9,527,570
5,645,587
------------
------------
14. Debtors
2023
2022
£
£
Trade debtors
4,682,915
4,924,999
Prepayments and accrued income
46,124
33,828
Other debtors
1,237,252
319,584
------------
------------
5,966,291
5,278,411
------------
------------
15. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
384,811
144,181
Amounts owed to group undertakings
19,805,919
13,611,255
Accruals and deferred income
197,520
92,799
Social security and other taxes
25,515
Other creditors
1,192
-------------
-------------
20,413,765
13,849,427
-------------
-------------
16. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 23,109 (2022: £ 13,990 ).
17. Called up share capital
Issued and called up
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
2
2
2
2
----
----
----
----
Shares issued and partly paid
2023
2022
No.
£
No.
£
Ordinary shares - £– paid of £ 1 each
2
2
----
----
----
----
18. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
19. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
72,627
77,298
Later than 1 year and not later than 5 years
219,195
281,822
---------
---------
291,822
359,120
---------
---------
20. Related party transactions
The company has taken advantage of the exemption granted under section 33.1A and does not disclose its transactions with members of its group where both party to the transaction is a 100% owned member of the group. There were no other transactions or balances requiring disclosure.
21. Controlling party
The director regards MHP SE, which is incorporated in Cyprus, as the ultimate parent undertaking of MHP Food UK Limited. The group financial statements of this company are publicly available and can be obtained from the companies website https:/mhp.com.ua/en/mhp-se. The companies registered office is 16-18 Zinas Kanther Street, Agia Triada, 3035 Limassol, Cyprus. The group's controlling party is Yurly Kosyuk.