REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Audited Financial Statements |
for the Year Ended 31 May 2024 |
for |
I H Foods Limited |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Audited Financial Statements |
for the Year Ended 31 May 2024 |
for |
I H Foods Limited |
I H Foods Limited (Registered number: 02712857) |
Contents of the Financial Statements |
for the Year Ended 31 May 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 4 |
Report of the Independent Auditors | 5 |
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 |
I H Foods Limited |
Company Information |
for the Year Ended 31 May 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountant & Statutory Auditor |
Suite 631, Linen Hall |
162-168 Regent Street |
London |
W1B 5TG |
I H Foods Limited (Registered number: 02712857) |
Strategic Report |
for the Year Ended 31 May 2024 |
REVIEW OF BUSINESS |
The principal activity of the company in the year under review was that of frozen and fresh vegetables and fruits processors as well as raw meat processing for food manufacturers and caterers. |
The purpose of the review of business is to provide information on the company's strategy and objectives, the market in which it operates and a review of progress during the period. It includes an analysis of key performance indicators and an assessment of the key risks and uncertainties facing the company. |
The financial results for the year and the financial position at the year-end were as shown in the company's income statement on page 9 and the statement of financial position on page 11 respectively. |
The turnover decreased by 4.60% year on year with gross profit margin remaining broadly unchanged, This coupled with an inflationary increase in administrative expenses resulted in the operating profits of £38,181 (2023: £309,230). |
The directors are confident that as a result of both quality of its products and its deep long-standing relationships with customers and suppliers that it is well positioned to continue to grow and expand. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Commercial and market |
The company has identified a number of key risk areas. These include the loss of revenue growth as well as the detrimental impact on the profit margins; due to events such as raw produce cost fluctuations, increasing labour costs, competitive actions by competitors along with the potential inability to adjust prices charged to customers. To mitigate these, the company works closely with its suppliers and customers in order to manage and mitigate such risks. |
The company considers the ever-changing regulations in the food industry for operational and technical compliance, specifically in the areas of employment, health and safety, emissions and effluent, to be one of the commercial risks that the company faces. These are managed effectively with the company operating strict quality control procedures and disciplines to reduce the level of risk encountered. |
Other risks within this heading is product risks. The company handles raw meat and vegetable which are perishable with short life span. The company also operates strict quality control procedures and disciplines to protect its raw produce. |
Financial |
The company faces a number of financial risks which include the liquidity risk and credit rating risk. These risks are not considered significant as the company does not rely on external bank borrowings to finance its operations. |
Other risks and uncertainties within this heading are failures in internal control systems and IT systems. A failure in these systems could have a significant impact on the business. The directors have controls in place to maintain and regularly update the efficiency and smooth running of these systems. |
I H Foods Limited (Registered number: 02712857) |
Strategic Report |
for the Year Ended 31 May 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES - CONTINUED |
Human resources |
The company is aware that achieving of its business objectives and performances is heavily relied on the contributions made by its employees. Procedures and policies are in place to attract, train and retain the employees with the necessary skills and capabilities levels to succeed in achieving its goals. Many of the employees have been with the company for a number of years and the company both values and benefits from this loyalty. |
Key performance indicators |
Turnover growth and increase operating margin remain the key performance indicators for the company which the directors regularly monitor against the budget and comparative period. |
2024 | 2023 |
Turnover | £32,620,961 | £34,192,751 |
Gross profit | £2,050,967 | £2,179,705 |
Gross profit margin | 6.29% | 6.37% |
Operating profit/(loss) | £38,181 | £309,230 |
Operating margin | 0.12% | 0.90% |
The directors believe that other key performance indicators for the company are not necessary or appropriate for an understanding of the performance, development or position of the business.The performance itself has been commented upon above. |
Future developments |
The directors are confident that going forward the company will continue to be be successful in its strategic long term objective of achieving a stronger and profitable growth in the company's core activities and gaining market share in the food industry whilst continuing to provide improved quality and value of the products. |
ON BEHALF OF THE BOARD: |
I H Foods Limited (Registered number: 02712857) |
Directors' Report |
for the Year Ended 31 May 2024 |
The directors present their report with the financial statements of the company for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of frozen and fresh vegetables and fruits processors as well as raw meat processing for food manufacturers and caterers. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 May 2024 was £nil (2023: £950,000). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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; |
- | 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. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Garside and Co. Limited, 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 |
I H Foods Limited |
Opinion |
We have audited the financial statements of I H Foods Limited (the 'company') for the year ended 31 May 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 31 May 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 Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
I H Foods Limited |
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 Directors' Report. |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
Report of the Independent Auditors to the Members of |
I H Foods Limited |
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: |
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: |
Identifying and responding to risks of material misstatement due to fraud |
As required by auditing standards, and taking into account possible pressures to meet profit targets and our overall |
knowledge of the control environment, we performed procedures to address the risks of management override of |
controls and the risk of fraudulent revenue recognition, the risk that those in charge with management may be in a |
position to make inappropriate accounting entries and the risk of bias in accounting estimates and judgements such as |
the valuation of fixed assets and financial instruments and depreciation policies. |
To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could |
indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. We communicated |
identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. |
Our risk assessment procedures included: |
- Enquiring of those charged with management and inspection of key papers as to the policies and procedures to |
prevent and detect fraud, including the process for engaging management to identify fraud risks specific to the entity's |
sector, as well as whether they have knowledge of any actual, suspected, or alleged fraud; |
- Reviewing internal risk assessment reports; |
- Considering management's incentives and opportunities for fraudulent manipulation of the financial statements; |
- Assessing significant accounting estimates for bias; and |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments |
for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of |
business. |
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations |
We considered the extent to which non-compliance might have a material effect on the financial statements. We also |
considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act |
2006 and FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland. |
The entity is subject to laws and regulations that directly affect the financial statements including financial reporting |
legislation, taxation legislation (payroll taxes), and pension legislation and we assessed the extent of compliance with |
these laws and regulations as part of our procedures on the related financial statements items. |
Although the entity is unregulated, our assessment of risks involved gaining an understanding of the control |
environment including the entity's procedures for complying with laws and related regulatory requirements. We |
communicated identified laws and regulations throughout our team and remained alert to any indications of |
non-compliance throughout the audit. |
Our procedures included: |
- Discussion with those in charge with management, and from inspection of the entity's regulatory and legal |
correspondence; |
- Discussion with those charged with management the policies and procedures regarding compliance with laws and |
regulations; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with |
applicable laws and regulations; and |
- Enquiry of management, those charged with governance around actual and potential litigation and claims. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances |
Report of the Independent Auditors to the Members of |
I H Foods Limited |
of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the |
financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not |
detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional |
misrepresentations, or through collusion. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
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. |
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 a Report of the Auditors 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. |
and on behalf of |
Chartered Accountant & Statutory Auditor |
Suite 631, Linen Hall |
162-168 Regent Street |
London |
W1B 5TG |
I H Foods Limited (Registered number: 02712857) |
Income Statement |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
9,855 | 282,522 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
41,506 | 310,539 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
I H Foods Limited (Registered number: 02712857) |
Other Comprehensive Income |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
I H Foods Limited (Registered number: 02712857) |
Statement of Financial Position |
31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
I H Foods Limited (Registered number: 02712857) |
Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 May 2024 |
I H Foods Limited (Registered number: 02712857) |
Statement of Cash Flows |
for the Year Ended 31 May 2024 |
31.5.24 | 31.5.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Taxation | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest hire purchase payments | ( |
) | ( |
) |
Repayment of hire purchase agreements | ( |
) | ( |
) |
Hire purchase loan granted |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | - | 250,000 |
Amount withdrawn by directors | (290,000 | ) | - |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
642,397 |
Cash and cash equivalents at end of year | 2 | 727,302 | 470,892 |
I H Foods Limited (Registered number: 02712857) |
Notes to the Statement of Cash Flows |
for the Year Ended 31 May 2024 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
31.5.24 | 31.5.23 |
£ | £ |
Profit for the financial year |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 2,011 | 1,340 |
Finance income | (3,325 | ) | (1,309 | ) |
Taxation |
154,250 | 429,809 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(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 31 May 2024 |
31.5.24 | 1.6.23 |
£ | £ |
Cash and cash equivalents | 727,302 | 470,892 |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 470,892 | 642,397 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.23 | Cash flow | At 31.5.24 |
£ | £ | £ |
Net cash |
Cash at bank | 470,892 | 256,410 | 727,302 |
470,892 | 727,302 |
Total | 470,892 | 256,410 | 727,302 |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements |
for the Year Ended 31 May 2024 |
1. | STATUTORY INFORMATION |
I H Foods Limited ( the "Company") is a company limited by shares and incorporated and domiciled in United Kingdom. The company registered number is 02712857 and its registered office is 353 Uxbridge Road, Southall, Middlesex UB1 3EJ. The principal activity of the company in the year under review was that of frozen and fresh vegetables and fruits processors as well as raw meat processing for food manufacturers and caterers. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the company have been prepared in accordance with "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
The financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities measured at fair value through the income statement. |
Going Concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods. |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially recorded at cost, and are subsequently stated at cost less any accumulative depreciation and impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Leasehold land and buildings | Over the life of the lease |
Plant and machinery | 15% on cost |
Fixtures, fittings & equipment | 15% on cost |
Motor vehicles | 25% on reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the income statement, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Produce and other consumable stocks and spare parts stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each statement of financial position date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its net realisable value and/or replacement cost. The impairment loss is recognised immediately in the income statement. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Creditors |
Trade and other creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Provisions |
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised. |
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable. |
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the income statement so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of leased asset and recognised on a straight line basis over the lease term. |
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed. |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
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. |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Pensions and retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
Related party transactions |
The company discloses transactions with related parties which are not wholly owned with the same group. It does not disclose transactions with its parent or with members of the same group that are wholly owned. |
Distributions to equity holders |
Dividends and any other distributions to the company's shareholders are recognised as a liability in the period in which the dividends or other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity. |
3. | TURNOVER |
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
31.5.24 | 31.5.23 |
£ | £ |
Wages and salaries | 2,394,621 | 2,477,784 |
Social security costs | 196,242 | 197,682 |
Other pension costs | 47,474 | 48,721 |
2,638,337 | 2,724,186 |
The average number of employees during the year was as follows: |
31.5.24 | 31.5.23 |
Administration | 12 | 11 |
Production | 93 | 106 |
105 | 117 |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
5. | DIRECTORS' EMOLUMENTS |
31.5.24 | 31.5.23 |
£ | £ |
Directors' remuneration | 132,000 | 132,000 |
132,000 | 132,000 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.5.24 | 31.5.23 |
£ | £ |
Hire of plant and machinery |
Rent |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.24 | 31.5.23 |
£ | £ |
Hire purchase interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
9. | DIVIDENDS |
31.5.24 | 31.5.23 |
£ | £ |
Final |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
10. | TANGIBLE FIXED ASSETS |
Fixtures, |
fittings |
Land and | Plant and | and | Motor |
Buildings | machinery | equipment | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 June 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
11. | STOCKS |
31.5.24 | 31.5.23 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
VAT | 92,601 | 118,567 |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Salaries and wages payable | 30,455 | 59,671 |
Other creditors |
Obligations under HP contracts | 9,279 | 27,837 |
Directors' current accounts | - | 290,000 |
Accrued expenses |
I H Foods Limited (Registered number: 02712857) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.5.24 | 31.5.23 |
£ | £ |
Obligations under HP contracts | - | 9,279 |
Deferred tax | 49,141 | 57,639 |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.5.24 | 31.5.23 |
£ | £ |
Within one year |
Between one and five years |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.5.24 | 31.5.23 |
value: | £ | £ |
Ordinary shares | £1 | 2 | 2 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 June 2023 |
Profit for the year |
At 31 May 2024 |
18. | RELATED PARTY DISCLOSURES |
The company has lease and rental agreements for premises in which a director of the company has an interest. The rental amounts paid during the year amounted to £571,000 (2023: £571,000). |
19. | ULTIMATE CONTROLLING PARTY |
The parent undertaking is IH Holdings Limited, a company incorporated in England and Wales. Copies of the consolidated financial statements are publicly available from the registered office, 353 Uxbridge Road, Southall, Middlesex UB1 3EJ. |