Company registration number 01580862 (England and Wales)
GLOBAL FOODS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
GLOBAL FOODS LIMITED
COMPANY INFORMATION
DIRECTORS
Nina Ahmad-Vellani
Sophie Kriss
Waheed Ahmed
Mr S Iqbal
Qaiser Aziz
David Davies
Mubarik Ali
COMPANY NUMBER
01580862
REGISTERED OFFICE
1-3 Stadium Close
Penarth Road
Cardiff
CF11 8TS
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
GLOBAL FOODS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 11
Statement of income and retained earnings
12
Balance sheet
13 - 14
Statement of cash flows
15
Notes to the financial statements
16 - 30
GLOBAL FOODS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

PRINCIPAL ACTIVITIES

The principal activity of the company during the year was that of a cash and carry wholesaler.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the business are as follows:

 

The industry is extremely competitive with the market being served by numerous competitors, ranging from national retailers to other independent wholesalers. The company closely monitors its competitors activities and ensures it continues to improve prices and service to customers.

The business will also be impacted by the current economic situation nationally and internationally. Difficulties affecting its customer base may impact on the company. However at this moment in time this does not appear to be the case. The company continues to widen its customer and distribution base.

 

Availability of credit and working capital is essential for the company's financial performance. The company closely manages credit terms to ensure that they are met.

 

The directors feel that the company is in a strong position to face any coming uncertainties that may arise.

REVIEW OF BUSINESS

The directors believe the main performance indicators are turnover and the gross profit margin. Performance of the company was as follows:

2024
2023
£'000
£'000
Turnover
110,787
113,452
Gross profit (%)
9.53%
8.76%
Operating profit
3,098
3,213

Turnover has remained steady and margins have improved, operating profit has fallen slightly.

GLOBAL FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
PROMOTING THE SUCCESS OF THE COMPANY

The directors of the company act in a way that considers and promotes the success of the company in line with the requirements of s172 of the Companies Act 2006.

 

When making decisions, the directors consider all stakeholders and the wider impacts of such decisions,including the impact of the company's operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term. The size of the company enables the directors to regularly consult with other senior managers in the company, aiding in the decision-making process. The company is subject to external audits carried out by third parties. Staff are trained to the latest standards in all aspects of their work and such training is monitored to ensure it is both relevant and current.

 

A number of the management team hold academic and professional qualifications specifically related to the business which the company operates and the directors and a number of the senior Management team hold internationally recognised professional qualifications.

 

The directors recognise the importance of staff engagement in the company, and participates in the decision making processes designed to increase and maintain staff engagement in the company, ultimately improving all aspects interaction within the company.

 

The company continues to hold direct meetings with employees from all areas of the company. As a family run company employees have direct access to the senior management team on a day to day basis.

 

Good working relationships with suppliers are important to the success of the company. The company at all times acts responsibly and ethically in its dealings with suppliers.

On behalf of the board

Mubarik Ali
Director
21 January 2025
GLOBAL FOODS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

RESULTS AND DIVIDENDS

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £660,000. The directors do not recommend payment of a further dividend.

DIRECTORS

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

Nina Ahmad-Vellani
Sophie Kriss
Waheed Ahmed
Mr S Iqbal
Qaiser Aziz
David Davies
Mubarik Ali
FINANCIAL INSTRUMENTS

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

 

In respect of loans these comprise loans from banks. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

 

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

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

FUTURE DEVELOPMENTS

The directors expect the general level of activity to remain consistent with 2023 in the forthcoming year. The directors are looking into ways to expand the cash and carry side for the business which should result in an improvement in gross profit margin.

ENERGY AND CARBON REPORT

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

GLOBAL FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
2,363,418
2,251,329
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
45.00
43.00
- Fuel consumed for owned transport
268.00
280.00
313.00
323.00
Scope 2 - indirect emissions
- Electricity purchased
181.00
168.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
494.00
491.00
Intensity ratio
tCO2e per £m turnover
4.5
4.35
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the recommended ratio for the sector.

GLOBAL FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
Measures taken to improve energy efficiency

Energy Efficiency Improvements

Global Foods is committed to year on year improvements in its operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years.

 

Measures ongoing and undertaken through FY2024:

 

Solar PV Generation

Global Foods has continued to self generate a proportion of electricity that is used on site through solar panels. In FY22/23 this scheme has generated ~80,000 kWh which has mostly been used on site within the period. This reduces Global Foods’ Scope 2 emissions generated from electricity and its reliance on national grid supplied electricity.

 

Measures prioritised for implementation in FY2025:

 

Switching HGVs to Electric

Global Foods plans to transition its heavy goods vehicles (HGVs) fleet from diesel to electric in FY2025. If feasible, all delivery lorries will be replaced with electric alternatives. This switch will reduce Scope 1 transport emissions, cut fuel costs, and support the company’s sustainability goals.

 

Company Car Fleet Becoming Electric

Although the transition to electric cars for the company fleet has been delayed, the company remains committed to electrifying its fleet, including delivery lorries, when feasible. This will continue Global Food’s trend of lowering Scope 1 transportation emissions, following the replacement of most of their pump trucks and forklifts in FY2024.

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

In preparing these financial statements, the directors are required to:

GLOBAL FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -

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.

STRATEGIC REPORT

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 I set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

STATEMENT OF DISCLOSURE TO AUDITOR

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

On behalf of the board
Mubarik Ali
Director
21 January 2025
GLOBAL FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL FOODS LIMITED
- 7 -
Opinion

We have audited the financial statements of Global Foods Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

GLOBAL FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL FOODS LIMITED (CONTINUED)
- 8 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

GLOBAL FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL FOODS LIMITED (CONTINUED)
- 9 -
Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
GLOBAL FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL FOODS LIMITED (CONTINUED)
- 10 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

GLOBAL FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL FOODS LIMITED (CONTINUED)
- 11 -
Ataf Salim
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
22 January 2025
GLOBAL FOODS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
TURNOVER
3
110,787,494
113,451,798
Cost of sales
(100,227,529)
(103,513,281)
GROSS PROFIT
10,559,965
9,938,517
Administrative expenses
(7,461,971)
(6,725,232)
OPERATING PROFIT
4
3,097,994
3,213,285
Interest receivable and similar income
8
9,964
111
Interest payable and similar expenses
9
(39,349)
(18,649)
PROFIT BEFORE TAXATION
3,068,609
3,194,747
Tax on profit
10
(777,621)
(629,681)
PROFIT FOR THE FINANCIAL YEAR
2,290,988
2,565,066
Retained earnings brought forward
15,631,943
13,850,877
Dividends
11
(660,000)
(784,000)
Retained earnings carried forward
17,262,931
15,631,943

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

GLOBAL FOODS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 13 -
2024
2023
Notes
£
£
FIXED ASSETS
Tangible assets
12
2,953,349
3,073,868
Investments
13
100
100
2,953,449
3,073,968
CURRENT ASSETS
Stocks
15
15,155,772
14,523,219
Debtors
16
5,242,497
5,373,554
Cash at bank and in hand
8,859,289
4,813,661
29,257,558
24,710,434
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
17
(14,810,336)
(11,586,429)
NET CURRENT ASSETS
14,447,222
13,124,005
TOTAL ASSETS LESS CURRENT LIABILITIES
17,400,671
16,197,973
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
18
-
(412,840)
PROVISIONS FOR LIABILITIES
Deferred tax liability
21
(137,640)
(153,090)
NET ASSETS
17,263,031
15,632,043
CAPITAL AND RESERVES
Called up share capital
23
80
80
Capital redemption reserve
24
20
20
Profit and loss reserves
17,262,931
15,631,943
TOTAL EQUITY
17,263,031
15,632,043
GLOBAL FOODS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 21 January 2025 and are signed on its behalf by:
Mubarik Ali
Director
Company registration number 01580862 (England and Wales)
GLOBAL FOODS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
2024
2023
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
2,290,988
2,565,066
Adjustments for:
Taxation charged
777,621
629,681
Finance costs
39,349
18,649
Investment income
(9,964)
(111)
Loss on disposal of tangible fixed assets
618
123
Depreciation and impairment of tangible fixed assets
150,196
153,249
Movements in working capital:
Increase in stocks
(632,553)
(774,386)
Decrease/(increase) in debtors
131,057
(416,228)
Increase/(decrease) in creditors
3,362,798
(347,427)
Cash generated from operations
6,110,110
1,828,616
Interest received
9,964
111
Interest paid
(39,349)
(18,649)
Income taxes paid
(873,400)
(437,769)
Net cash inflow from operating activities
5,207,325
1,372,309
INVESTING ACTIVITIES
Purchase of tangible fixed assets
(31,196)
(142,369)
Proceeds from disposal of tangible fixed assets
901
235
Net cash used in investing activities
(30,295)
(142,134)
FINANCING ACTIVITIES
Repayment of bank loans
(462,272)
(33,560)
Payment of finance leases obligations
(9,130)
(27,842)
Dividends paid
(660,000)
(784,000)
Net cash used in financing activities
(1,131,402)
(845,402)
NET INCREASE IN CASH AND CASH EQUIVALENTS
4,045,628
384,773
Cash and cash equivalents at beginning of year
4,813,661
4,428,888
CASH AND CASH EQUIVALENTS AT END OF YEAR
8,859,289
4,813,661
GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
1
ACCOUNTING POLICIES
Company information

Global Foods Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1-3 Stadium Close, Penarth Road, Cardiff, CF11 8TS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The entity has taken advantage of the exemption from preparing consolidated financial statements contained in Section 402 of the Companies Act 2006 on the basis that its subsidiaries are excluded from consolidation on the grounds that their inclusion is not material for the purpose of giving a true and fair view.

1.2
Going concern

Atruet 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
ACCOUNTING POLICIES
(Continued)
- 17 -

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:

Freehold land and buildings
2% straight line on buildings. Freehold land is not depreciated
Fixtures and fittings
15% reducing balance
Motor vehicles
25% reducing balance

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

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.8
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

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

 

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

Derecognition of financial assets

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

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
ACCOUNTING POLICIES
(Continued)
- 19 -
Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
ACCOUNTING POLICIES
(Continued)
- 21 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets

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

Key sources of estimation uncertainty

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

Stock

Stock is assessed for evidence of obsolescence and a provision is made against any items unlikely to be sold for less than cost.

3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
110,787,494
113,451,798
GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
TURNOVER AND OTHER REVENUE
(Continued)
- 22 -
2024
2023
£
£
Other revenue
Interest income
9,964
111
4
OPERATING PROFIT
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
150,196
153,249
Loss on disposal of tangible fixed assets
618
123
Impairment of trade debtors
45,982
118,895
Operating lease charges
73,376
67,405
5
AUDITOR'S REMUNERATION
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,350
11,000
For other services
Taxation compliance services
1,150
1,125
All other non-audit services
8,229
3,942
9,379
5,067
GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
6
EMPLOYEES

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

2024
2023
Number
Number
Administrative staff
13
13
Management staff
6
6
Sales and delivery staff
103
100
Total
122
119

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,825,894
4,365,169
Social security costs
507,356
461,339
Pension costs
86,775
76,989
5,420,025
4,903,497
7
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
767,837
722,681
Company pension contributions to defined contribution schemes
7,136
6,606
774,973
729,287

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
DIRECTORS' REMUNERATION
(Continued)
- 24 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
243,678
123,325
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Interest on bank deposits
9,964
111
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
9,964
111
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
16,565
17,943
Other finance costs:
Interest on finance leases and hire purchase contracts
254
706
Other interest
22,530
-
0
39,349
18,649
10
TAXATION
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
793,071
623,400
GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
TAXATION
2024
2023
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
(15,450)
6,281
Total tax charge
777,621
629,681

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

2024
2023
£
£
Profit before taxation
3,068,609
3,194,747
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
767,152
798,687
Tax effect of expenses that are not deductible in determining taxable profit
1,739
6,765
Group relief
(686)
(805)
Depreciation on assets not qualifying for tax allowances
9,416
1,147
Effect of the re-measurement of deferred tax following a change of rate
-
0
(176,113)
Taxation charge for the year
777,621
629,681
11
DIVIDENDS
2024
2023
£
£
Final paid
660,000
784,000
GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
12
TANGIBLE FIXED ASSETS
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2023
3,272,924
1,712,874
966,997
5,952,795
Additions
-
0
25,696
5,500
31,196
Disposals
-
0
-
0
(61,923)
(61,923)
At 30 April 2024
3,272,924
1,738,570
910,574
5,922,068
Depreciation and impairment
At 1 May 2023
806,561
1,259,921
812,445
2,878,927
Depreciation charged in the year
41,322
68,616
40,258
150,196
Eliminated in respect of disposals
-
0
-
0
(60,404)
(60,404)
At 30 April 2024
847,883
1,328,537
792,299
2,968,719
Carrying amount
At 30 April 2024
2,425,041
410,033
118,275
2,953,349
At 30 April 2023
2,466,363
452,953
154,552
3,073,868

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

2024
2023
£
£
Motor vehicles
-
0
19,208
13
FIXED ASSET INVESTMENTS
2024
2023
Notes
£
£
Investments in subsidiaries
14
1
1
Other investments
99
99
100
100
Fixed asset investments not carried at market value

Other investments relate to unlisted investments which are held at cost less impairment.

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
14
SUBSIDIARIES

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Global Pantry Limited
1-3 Stadium Close, Penarth Road, Cardiff, CF11 8TS
Ordinary
100.00
15
STOCKS
2024
2023
£
£
Goods for resale
15,155,772
14,523,219
16
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,046,491
5,250,560
Other debtors
53,861
30,000
Prepayments and accrued income
142,145
92,994
5,242,497
5,373,554
17
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
Notes
£
£
Bank loans
19
-
0
49,432
Obligations under finance leases
20
-
0
9,130
Trade creditors
12,834,115
9,928,725
Corporation tax
543,071
623,400
Other taxation and social security
382,997
403,218
Other creditors
739,513
316,647
Accruals and deferred income
310,640
255,877
14,810,336
11,586,429
GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
18
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
Notes
£
£
Bank loans and overdrafts
19
-
0
412,840

 

Amounts included above which fall due after five years are as follows:
Payable by instalments
-
186,070
19
LOANS AND OVERDRAFTS
2024
2023
£
£
Bank loans
-
0
462,272
Payable within one year
-
0
49,432
Payable after one year
-
0
412,840
20
FINANCE LEASE OBLIGATIONS
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
9,374
Less: future finance charges
-
0
(244)
-
0
9,130
GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
21
DEFERRED TAXATION

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
137,640
153,516
Retirement benefit obligations
-
(426)
137,640
153,090
2024
Movements in the year:
£
Liability at 1 May 2023
153,090
Credit to profit or loss
(15,450)
Liability at 30 April 2024
137,640
22
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,775
76,989

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
SHARE CAPITAL
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
80
80
80
80
24
CAPITAL REDEMPTION RESERVE

This reserve records the nominal value of shares that have been repurchased by the company

GLOBAL FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
25
OPERATING LEASE COMMITMENTS
Lessee

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

2024
2023
£
£
Within one year
62,355
-
0
Between two and five years
228,635
-
0
290,990
-
0
26
RELATED PARTY TRANSACTIONS
Balances with related parties
Amounts owed to
related parties
2024
2023
£
£
Director's loan
189,382
316,040
27
ANALYSIS OF CHANGES IN NET FUNDS
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
4,813,661
4,045,628
8,859,289
Borrowings excluding overdrafts
(462,272)
462,272
-
Obligations under finance leases
(9,130)
9,130
-
4,342,259
4,517,030
8,859,289
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