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REGISTERED NUMBER: 00504587 (England and Wales)












STAPLES (VEGETABLES) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2024






STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 9

Other Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 15


STAPLES (VEGETABLES) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 5 APRIL 2024







DIRECTORS: V Read
G Read
Mrs J Read



SECRETARY: V Read



REGISTERED OFFICE: Station Farm
Station Road
Sibsey
Boston
Lincolnshire
PE22 0SE



REGISTERED NUMBER: 00504587 (England and Wales)



SENIOR STATUTORY AUDITOR: Nicola Michelle Lenton FCCA



AUDITORS: Dexter & Sharpe Audit Services Ltd
(Statutory Auditor)
Rollestone House
Bridge Street
Horncastle
Lincolnshire
LN9 5HZ

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

STRATEGIC REPORT
FOR THE YEAR ENDED 5 APRIL 2024


The directors present their strategic report for the year ended 5 April 2024.

The principal activity of the company in the year under review was that of the processing, marketing and distribution of vegetables.

REVIEW OF BUSINESS
The results for the year ended 05 April 2024 and the financial position of the company at 05 April 2024 are as shown on the financial statements.

Given the non-complex nature of the company and its business, this review is considered to be balanced and comprehensive, having regard to the size of the company. The review also considers any risks or uncertainties faced by the company.

The directors are satisfied with the results for the year.
Turnover for the year totalled £151m compared to £131m for the previous year ended 05 April 2023 - a rise of 15.1%.
Net profit for the year, after Corporation Tax refund, was £3,271,706 (Year ended 05 April 2023 £1,103,035).
Dividends voted in the year were £700,525 (2023 £1,010,758).

The company continues to develop and invest in the latest equipment and technologies to improve efficiency and productivity. Total capital spend in the year on plant, machinery and vehicles amounted to £3m.

KEY PERFORMANCE INDICATORS
The key financial performance indicators are as follows:
- The gross profit percentage achieved in the year was 11.6% compared to 12.3% in the year to 5 April 2023.
- The net profit percentage is 1.5% slightly up from the 1.0% in the previous year.
- The net return on equity for the year is 19.1% compared to 9.1% for the year ended 5 April 2023.

The only non-financial indicator considered to be relevant is as follows:
- The average monthly number of employees has remained constant at 1,250 compared to 1,211 for the previous year.

OUTLOOK
The directors believe that the company's balance sheet provides a strong capital base for further sustainable growth alongside long-term security.

The UK Budget, delivered in October 2024, will have an impact on the company's future employment costs due to the rise in Employers National Insurance Contributions from April 2025. At the same time, further significant uplifts in the National Living Wage and National Minimum Wage rates will see employment costs increasing. The company is budgeting for these rises for 2025-26.

PRINCIPAL RISKS AND UNCERTAINTIES
The nature of the industry in which the company operates means that climate unpredictability will always provide uncertainties in produce yield, quality and ultimately price achieved. The company manages this unpredictability through a network of vegetable suppliers worldwide to ensure constant availability and options.

There is a risk of the loss of key customer accounts. The company manages its key accounts to ensure that there is not a dependency upon one particular customer or product. The company has an excellent reputation and dialogue with its customers and this relationship also seeks to minimise any significant pricing fluctuations.

The company is at risk of currency fluctuations. The company manages this risk by monitoring exchange rates and planning ahead for material foreign currency requirements.

The company has to also continually plan ahead for any labour cost increases as a result of Government policy and rises in the National Living Wage and National Minimum Wage.

The company is at risk of rising borrowing costs with the interest rate increases being applied by the Bank of England.


STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

STRATEGIC REPORT
FOR THE YEAR ENDED 5 APRIL 2024

SECTION 172(1) STATEMENT
Section 172 of the Companies Act 2006 requires the directors of the company to act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, have regard to:
- the likely consequences of any decision long-term;
- the interest of the company's employees;
- the need to foster the company's business relationships with suppliers, customers and others;
- the impact of the company's operations on the community and the environment;
- the desirability of the company maintaining a reputation for high standards of business conduct, and
- the need to act fairly as between members of the company.

Promoting the company's success for its members and long term strategy
The company is managed by the directors, Vernon Read and George Read.

Strategic decisions are based on long-term objectives. The long term strategy is investment in the very latest technology and equipment. The company is proud to have created a unique integrated production system delivering the highest efficiency and lowest risk in the industry.

The company always looks to the future in pioneering product development, meeting customer needs through consumer and market insight.

The directors are minded to always act in good faith to promote the success of the company and to act fairly in respect of (and for the benefit of) the shareholders of the company.

Employees
The Directors recognise that management and employees are core to the success of the business. The Directors ensure that company decision making incorporates ideas and opinions from the workforce. The company places significant importance on the health, safety and wellbeing of employees.

The company encourages diversity within its workforce.

Our customers and suppliers
The Directors and senior management team oversee the relationships with key suppliers and customers.

The company's customers are predominantly the major UK supermarkets. Key to these relationships is quality of product, service and availability to meet demand throughout the year.

The company views the relationship with its suppliers as vital to the on-going success of the company. The company always seeks to be transparent and fair with suppliers and build loyal and stable working relationships. There are many businesses, both locally and nationally, that have had a mutually beneficial working relationship with the company for more than 30 years.

Our community and the environment
The company is based in Lincolnshire. The company has supported many local and community projects in recent years and is a significant employer within the local area.

The company, alongside the associated farming company, Staples Brothers Limited, has a policy for sustainable food and farming as evidenced through its membership of many environmental and ethical assurance schemes.

The company is supplied with site electricity by its associated company, Staples Brothers Limited, via an anaerobic digester plant at both the Wrangle and Sibsey processing sites. The plant is run on out of specification vegetables and maize silage. The companies are self-sufficient in generating their own electricity.

The company offers a cycle to work scheme for employees.

High standards of business conduct
The directors operate the business in a responsible manner, with regard to maintaining high standards of business conduct, reputation and governance, that is expected given the size of the company.


STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

STRATEGIC REPORT
FOR THE YEAR ENDED 5 APRIL 2024

FINANCIAL INSTRUMENTS, RISKS AND THEIR MANAGEMENT
The business's principal financial instruments comprise trade debtors, bank current account, bank invoice financing, trade creditors and finance agreements. The main purpose of these instruments is to finance the operations of the company.

Trade debtors are managed for credit and cash flow risk by policies in place to determine credit limits offered to customers and a daily monitoring of amounts outstanding for age and limits. Trade debtors included in the balance sheet are net of allowances for bad or doubtful debts.

Trade creditors liquidity risk is managed by ensuring there are sufficient funds available to meet amounts falling due.

The company uses finance agreements to fund large fixed asset acquisitions. The liquidity risk in respect of these agreements is managed by ensuring that there are sufficient funds available to meet the repayments when due.

The directors consider that adequate finance is in place to take advantage of any business opportunities that may arise and consider that the company is in a strong position with regard to market share.

MODERN SLAVERY AND HUMAN TRAFFICKING
The company is committed to driving out evidence of modern-day slavery and human trafficking from the industry and will ensure that industry leading targets are set, achieved and maintained.

Only by utilising a combined approach, can the industry stamp out modern day slavery. The Directors, management team and employees of the company are fully supportive of the Modern Slavery Act 2015 and will ensure they maintain this approach to achieve the target of 100% compliance.

The company's full statement on modern slavery and human trafficking is available on its website: www.staplesvegetables.co.uk

ON BEHALF OF THE BOARD:





V Read - Director


3 January 2025

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 5 APRIL 2024


The directors present their report with the financial statements of the company for the year ended 5 April 2024.

DIVIDENDS
An interim dividend of £175 per share was paid on the Ordinary £1 shares on 17 July 2023. No dividends were paid on any other classes of shares.

The total distribution of dividends for the year ended 5 April 2024 will be £ 700,525 .

RESEARCH AND DEVELOPMENT
The company continues to explore and invest in research and development projects including pioneering product development and automation of production processes.

FUTURE DEVELOPMENTS
Through on-going investment in the latest technologies and practices the company will continue to structure and systemise all aspects of the vegetable processing cycle to ensure that it always meets its primary commitment to the customer - produce of the highest possible quality, freshness, availability and value.

DIRECTORS
The directors shown below have held office during the whole of the period from 6 April 2023 to the date of this report.

V Read
G Read
Mrs J Read

EMPLOYEES
It is the company's policy to ensure the training, career development and promotion of all disabled employees, to give full and fair consideration to employment applications from disabled persons and to ensure the continued employment and training of employees who become disabled.

It is also the company's policy to systematically inform and consult with employees or their representatives on a regular basis to ensure the employees views are taken into account in making any decisions that may affect them.

STREAMLINED ENERGY AND CARBON REPORTING
The company is a subsidiary of S Farms Limited.

The company is consolidated into the group accounts of S Farms Limited to 05 April 2024 (company number 13179690) who provide an energy and carbon report for the whole group, including the associated company, Staples Brothers Limited. Staples (Vegetables) Limited is not required to report individually on its carbon emissions, energy consumption and its measures taken to improve energy efficiency in the accounting period.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 5 APRIL 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Dexter & Sharpe Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





V Read - Director


3 January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STAPLES (VEGETABLES) LIMITED


Opinion
We have audited the financial statements of Staples (Vegetables) Limited (the 'company') for the year ended 5 April 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 5 April 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STAPLES (VEGETABLES) LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have enquired of those charged with governance around actual and potential litigation and claims.
We have reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
We have enquired of staff engaged in the completion of VAT, tax and compliance work to identify any instances of non compliance with laws and regulations.
We have audited the risk of management override of controls including review of journal entries and large or unusual transactions, evaluating the business rationale of any significant transactions outside the course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.




Nicola Michelle Lenton FCCA (Senior Statutory Auditor)
for and on behalf of Dexter & Sharpe Audit Services Ltd
(Statutory Auditor)
Rollestone House
Bridge Street
Horncastle
Lincolnshire
LN9 5HZ

3 January 2025

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

INCOME STATEMENT
FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
Notes £    £   

REVENUE 151,372,411 131,473,014

Cost of sales (133,865,216 ) (115,361,631 )
GROSS PROFIT 17,507,195 16,111,383

Distribution costs (13,233,586 ) (13,322,905 )
Administrative expenses (5,302,470 ) (4,295,154 )
(1,028,861 ) (1,506,676 )

Other operating income 3,450,940 3,109,741
OPERATING PROFIT 3 2,422,079 1,603,065

Interest receivable and similar income 136,010 5,342
2,558,089 1,608,407

Interest payable and similar expenses 4 (337,834 ) (270,289 )
PROFIT BEFORE TAXATION 2,220,255 1,338,118

Tax on profit 5 1,051,451 (235,083 )
PROFIT FOR THE FINANCIAL YEAR 3,271,706 1,103,035

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 3,271,706 1,103,035


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,271,706

1,103,035

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

STATEMENT OF FINANCIAL POSITION
5 APRIL 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 7 15,083,282 15,471,349

CURRENT ASSETS
Inventories 8 2,244,453 2,619,684
Debtors 9 23,758,320 17,605,055
Cash at bank and in hand 2,603,807 5,315,597
28,606,580 25,540,336
CREDITORS
Amounts falling due within one year 10 24,322,382 24,496,036
NET CURRENT ASSETS 4,284,198 1,044,300
TOTAL ASSETS LESS CURRENT
LIABILITIES

19,367,480

16,515,649

CREDITORS
Amounts falling due after more than one year 11 (991,311 ) (1,241,652 )

PROVISIONS FOR LIABILITIES 16 (1,225,517 ) (694,526 )
NET ASSETS 17,150,652 14,579,471

CAPITAL AND RESERVES
Called up share capital 17 4,003 4,003
Retained earnings 18 17,146,649 14,575,468
SHAREHOLDERS' FUNDS 17,150,652 14,579,471

The financial statements were approved by the Board of Directors and authorised for issue on 3 January 2025 and were signed on its behalf by:





V Read - Director


STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 5 APRIL 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 6 April 2022 4,003 14,483,191 14,487,194

Changes in equity
Dividends - (1,010,758 ) (1,010,758 )
Total comprehensive income - 1,103,035 1,103,035
Balance at 5 April 2023 4,003 14,575,468 14,579,471

Changes in equity
Dividends - (700,525 ) (700,525 )
Total comprehensive income - 3,271,706 3,271,706
Balance at 5 April 2024 4,003 17,146,649 17,150,652

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 138,511 11,155,681
Interest paid (274,276 ) (157,224 )
Interest element of hire purchase payments paid (100,379 ) (76,244 )
Tax paid 7,034 (129,212 )
Net cash from operating activities (229,110 ) 10,793,001

Cash flows from investing activities
Purchase of tangible fixed assets (1,775,616 ) (1,342,097 )
Sale of tangible fixed assets 387,984 185,351
Interest received 136,010 5,342
Net cash from investing activities (1,251,622 ) (1,151,404 )

Cash flows from financing activities
Capital repayments in year (1,877,521 ) (2,659,901 )
Amount introduced by directors - 1,259,000
Amount withdrawn by directors (1,259,000 ) (1,636 )
Equity dividends paid (700,525 ) (1,010,758 )
Net cash from financing activities (3,837,046 ) (2,413,295 )

(Decrease)/increase in cash and cash equivalents (5,317,778 ) 7,228,302
Cash and cash equivalents at beginning of year 2 975,667 (6,252,635 )

Cash and cash equivalents at end of year 2 (4,342,111 ) 975,667

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 5 APRIL 2024


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

2024 2023
£    £   
Profit before taxation 2,220,255 1,338,118
Depreciation charges 3,196,663 3,418,824
Loss on disposal of fixed assets 47,346 60,260
Finance costs 337,834 270,289
Finance income (136,010 ) (5,342 )
5,666,088 5,082,149
Decrease/(increase) in inventories 375,231 (170,105 )
Increase in trade and other debtors (4,577,857 ) (1,132,433 )
(Decrease)/increase in trade and other creditors (1,324,951 ) 7,376,070
Cash generated from operations 138,511 11,155,681

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 5 April 2024
5.4.24 6.4.23
£    £   
Cash and cash equivalents 2,603,807 5,315,597
Bank overdrafts (6,945,918 ) (4,339,930 )
(4,342,111 ) 975,667
Year ended 5 April 2023
5.4.23 6.4.22
£    £   
Cash and cash equivalents 5,315,597 190,748
Bank overdrafts (4,339,930 ) (6,443,383 )
975,667 (6,252,635 )


3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 6.4.23 Cash flow changes At 5.4.24
£    £    £    £   
Net cash
Cash at bank
and in hand 5,315,597 (2,711,790 ) 2,603,807
Bank overdrafts (4,339,930 ) (2,605,988 ) (6,945,918 )
975,667 (5,317,778 ) (4,342,111 )
Debt
Finance leases (2,745,925 ) 1,877,521 (1,468,310 ) (2,336,714 )
(2,745,925 ) 1,877,521 (1,468,310 ) (2,336,714 )
Total (1,770,258 ) (3,440,257 ) (1,468,310 ) (6,678,825 )

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2024


1. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Tenants fixtures - 10% on reducing balance
Plant and equipment, etc - 20% on reducing balance
Tractors, trailers and vehicles - 25% on reducing balance and 20% on reducing balance
Office equipment - 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets and depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme The Staples 1993 Pension Fund, and the pension charge represents the amounts payable by the company to the fund in respect of the year.

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 5 APRIL 2024


1. ACCOUNTING POLICIES - continued

Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

Grants and contributions
Grants receivable in respect of tangible fixed assets are treated as deferred income which is credited to the profit and loss account over the estimated economic lives of the related assets. Grants receivable in respect of profit and loss expenditure are credited to the expenditure heading concerned in the year of receipt.

2. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 40,428,748 36,462,833
Social security costs 3,577,094 3,438,440
44,005,842 39,901,273

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

Processing and distribution 1,204 1,169
Sales and marketing 4 4
Office and administration 42 38
1,250 1,211

2024 2023
£    £   
Directors' remuneration - 480,000

3. OPERATING PROFIT

The operating profit is stated after charging:


2024 2023
£ £
Depreciation of tangible fixed assets
- owned by the company2,330,3012,512,952
- held under finance leases & hire purchase contracts862,374905,872
Auditors remuneration9,6008,800
Auditors remuneration for non audit services13,21711,356
Hire of machinery128,62271,854
Currency exchange (gain)/loss(26,973)(55,481

Directors' benefits in kind17,82122,690
Directors' pension contributions--

During the period retirement benefits were accruing for 2 directors (2023 - 2) in respect of Money Purchase Pension Schemes.

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 5 APRIL 2024


4. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 201,582 157,224
Loan interest 35,873 36,821
Hire purchase 100,379 76,244
337,834 270,289

5. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 36,453 -
R&D tax claim (1,618,895 ) -
Total current tax (1,582,442 ) -

Deferred tax 530,991 235,083
Tax on profit (1,051,451 ) 235,083

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

2024 2023
£    £   
Profit before tax 2,220,255 1,338,118
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

555,064

254,242

Effects of:
Expenses not deductible for tax purposes 4,406 15,914
Income not taxable for tax purposes (671 ) -
Capital allowances in excess of depreciation (504,858 ) (341,932 )
Utilisation of tax losses (24,983 ) -
within lower rate tax band
Grant proceeds on capital items released (313 ) (266 )
Temporary timing differences 526,962 236,683
- short-term compensated
Research and development - tax claim (1,618,895 ) -
adjustment
(Profit)/Loss on disposal of fixed assets 11,837 11,449
Losses carried forward - 58,993
Total tax (credit)/charge (1,051,451 ) 235,083

6. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 700,525 1,010,758

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 5 APRIL 2024


7. PROPERTY, PLANT AND EQUIPMENT
Tractors,
Plant and trailers
Tenants equipment, and Office
fixtures etc vehicles equipment Totals
£    £    £    £    £   
COST
At 6 April 2023 1,179,417 27,790,274 15,915,172 1,727,194 46,612,057
Additions 239,285 1,229,590 1,137,817 637,234 3,243,926
Disposals - (391,473 ) (571,689 ) - (963,162 )
At 5 April 2024 1,418,702 28,628,391 16,481,300 2,364,428 48,892,821
DEPRECIATION
At 6 April 2023 491,749 19,250,371 10,124,971 1,273,617 31,140,708
Charge for year 92,697 1,757,891 1,308,432 37,643 3,196,663
Eliminated on disposal - (90,005 ) (437,827 ) - (527,832 )
At 5 April 2024 584,446 20,918,257 10,995,576 1,311,260 33,809,539
NET BOOK VALUE
At 5 April 2024 834,256 7,710,134 5,485,724 1,053,168 15,083,282
At 5 April 2023 687,668 8,539,903 5,790,201 453,577 15,471,349

The net book value of plant and equipment and tractors, trailers and vehicles includes assets held under finance leases or hire purchase contracts amounting to £3,865,611 (2023 - £4,294,420).

8. INVENTORIES
2024 2023
£    £   
Produce 1,214,195 1,431,306
Containers and fuel 1,030,258 1,188,378
2,244,453 2,619,684

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 20,142,190 15,993,269
Other debtors 904,380 592,899
Directors' current accounts 44 44
Corporation tax 1,639,270 63,862
VAT 740,881 609,228
Prepayments and accrued income 331,555 345,753
23,758,320 17,605,055

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 5 APRIL 2024


10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 12) 6,945,918 4,339,930
Hire purchase contracts (see note 13) 1,355,082 1,515,069
Trade creditors 14,805,230 16,093,762
Social security and other taxes 642,622 686,891
Other creditors 1,490 1,490
S Farms Limited 18,780 18,255
Directors' current accounts 2 1,259,002
Accruals and deferred income 552,141 580,386
Deferred government grants 1,117 1,251
24,322,382 24,496,036

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 13) 981,632 1,230,856
Deferred government grants 9,679 10,796
991,311 1,241,652

12. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 6,945,918 4,339,930

13. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Gross obligations repayable:
Within one year 1,436,595 1,588,252
Between one and five years 1,017,353 1,272,061
2,453,948 2,860,313

Finance charges repayable:
Within one year 81,513 73,183
Between one and five years 35,721 41,205
117,234 114,388

Net obligations repayable:
Within one year 1,355,082 1,515,069
Between one and five years 981,632 1,230,856
2,336,714 2,745,925

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 5 APRIL 2024


13. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 14,533 14,533
Between one and five years 15,017 29,551
29,550 44,084

14. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 6,945,918 4,339,930
Hire purchase contracts 2,336,714 2,745,925
9,282,632 7,085,855

The bank overdraft is secured by an unlimited guarantee and is repayable on demand. Details of other bank security held is detailed in note 19, Contingent Liabilities. The hire purchase contracts are secured on the assets concerned.

15. FINANCIAL INSTRUMENTS

Financial assets and liabilities - forward contracts

On occasions the company enters into foreign currency contracts to mitigate the exchange risk for certain transactions. At 05 April 2024, there were no outstanding contracts.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 1,225,517 694,526

Deferred
tax
£   
Balance at 6 April 2023 694,526
Charge to Income Statement during year 530,991
Balance at 5 April 2024 1,225,517

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
4,003 Ordinary £1 4,003 4,003

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 5 APRIL 2024


18. RESERVES
Retained
earnings
£   

At 6 April 2023 14,575,468
Profit for the year 3,271,706
Dividends (700,525 )
At 5 April 2024 17,146,649

19. CONTINGENT LIABILITIES

On 26 February 2021 HSBC UK Bank plc registered a debenture as security for the payment and discharge of all debt owed to the bank in the form of a fixed charge and a floating charge over all the property or undertaking of the company.

On 08 March 2021 HSBC Invoice Finance (UK) Ltd registered a fixed charge in non-vesting debts and floating charge covering all property or undertaking of the company.

On 18 March 2021 HSBC UK Bank plc registered a legal assignment of rights at Companies House as security for all present and future debts, money and other liabilities.

On 08 January 2024 HSBC UK Bank plc registered a legal assignment of rights at Companies House as security for all present and future debts.

20. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 451,028 890,077

STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 5 APRIL 2024


21. RELATED PARTY DISCLOSURES

The company is associated with its parent company, S Farms Limited. Dividends of £700,525 (2023 - £1,010,757) were voted in the year and a management fee was paid to S Farms Limited of £1,200,000. At the year end the amount of £18,780 (2023 - £18,255) was owing to S Farms Limited.

Staples (Vegetables) Limited trades substantially with Staples Brothers Limited, which is an associated company. During the year produce to the value of £40,549,130 (2023 - £32,937,483) was purchased from Staples Brothers Limited..

In addition, Staples (Vegetables) Limited recharged £3,304,987 (2023 - £2,980,070) in wages costs to Staples Brothers Limited.

Amounts outstanding at the year end were as follows:-
2024 2023
£    £   
Owed by Staples (Vegetables) Limited to Staples Brothers Limited 5,066,443 7,402,508
Owed by Staples Brothers Limited to Staples (Vegetables) Limited 675,998 571,926


During the year the company has also traded with other companies in which the directors hold an individual controlling share interest, as follows:-

Produce purchased from:
2024 2023
£    £   

G-VEG Limited (controlled by G Read) 5,515,540 3,642,326
VER Limited (controlled by V Read) 4,757417 4,202,447

Amounts owed by Staples (Vegetables) at the year end were as follows:-
2024 2023
£    £   
G-VEG Limited (controlled by G Read) 183,360 (265,132 )
VER Limited (controlled by V Read) 546,292 114,211



Included within creditors are loans from the following related parties:
The loans are repayable on demand. 2024 2023
£ £
Due within one year:
Vernon Read - -
George Read 2 1,259,002
2 1,259,002
Interest is accruing on the loan at 1.25% above base rate.


At the year end there was a loan to a director of £44 (2023 - £44l). No interest is accruing on this loan.

22. ULTIMATE CONTROLLING PARTY

The company is controlled by S Farms Limited, a company incorporated in England and Wales, company number 13179690. The registered office of S Farms Limited is Station Farm, Station Road, Sibsey, Boston, Lincs, PE22 OSE.

The ultimate controlling parties are George Read and Vernon Read.

23. ASSOCIATED COMPANIES

The company is associated with Staples Brothers Limited by virtue of both companies having the same parent company.

The company is also associated with its parent company, S Farms Limited.