REGISTERED NUMBER: |
STAPLES (VEGETABLES) LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5 APRIL 2024 |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
(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: |
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 £ |
The total distribution of dividends for the year ended 5 April 2024 will be £ |
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. |
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: |
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. |
for and on behalf of |
(Statutory Auditor) |
Rollestone House |
Bridge Street |
Horncastle |
Lincolnshire |
LN9 5HZ |
STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587) |
INCOME STATEMENT |
FOR THE YEAR ENDED 5 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
REVENUE |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
(1,028,861 | ) | (1,506,676 | ) |
Other operating income |
OPERATING PROFIT | 3 |
Interest receivable and similar income |
2,558,089 | 1,608,407 |
Interest payable and similar expenses | 4 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 5 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 5 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
STAPLES (VEGETABLES) LIMITED (REGISTERED NUMBER: 00504587) |
STATEMENT OF FINANCIAL POSITION |
5 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 7 |
CURRENT ASSETS |
Inventories | 8 |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 11 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 5 April 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 5 April 2024 |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 1,259,000 |
Amount withdrawn by directors | (1,259,000 | ) | (1,636 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 975,667 | (6,252,635 | ) |
Cash and cash equivalents at end of year | 2 | ( |
) |
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 |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 337,834 | 270,289 |
Finance income | (136,010 | ) | (5,342 | ) |
5,666,088 | 5,082,149 |
Decrease/(increase) in inventories | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 | ( |
) | ( |
) |
(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 | ( |
) | ( |
) |
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 | ( |
) | (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 |
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 |
Tenants fixtures | - |
Plant and equipment, etc | - |
Tractors, trailers and vehicles | - |
Office equipment | - |
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 |
Social security costs |
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 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
3. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation of tangible fixed assets |
- owned by the company | 2,330,301 | 2,512,952 |
- held under finance leases & hire purchase contracts | 862,374 | 905,872 |
Auditors remuneration | 9,600 | 8,800 |
Auditors remuneration for non audit services | 13,217 | 11,356 |
Hire of machinery | 128,622 | 71,854 |
Currency exchange (gain)/loss | (26,973 | ) | (55,481 |
Directors' benefits in kind | 17,821 | 22,690 |
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 |
Loan interest |
Hire purchase |
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 |
R&D tax claim | (1,618,895 | ) | - |
Total current tax | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
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 |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 5 April 2024 |
DEPRECIATION |
At 6 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 5 April 2024 |
NET BOOK VALUE |
At 5 April 2024 |
At 5 April 2023 |
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 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 44 | 44 |
Corporation tax |
VAT |
Prepayments and accrued income |
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) |
Hire purchase contracts (see note 13) |
Trade creditors |
Social security and other taxes |
Other creditors |
S Farms Limited | 18,780 | 18,255 |
Directors' current accounts | 2 | 1,259,002 |
Accruals and deferred income |
Deferred government grants |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 13) |
Deferred government grants |
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 |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
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 |
Between one and five years |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 2,336,714 | 2,745,925 |
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 |
Charge to Income Statement during year |
Balance at 5 April 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
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 |
Profit for the year |
Dividends | ( |
) |
At 5 April 2024 |
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 |
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. |