Company registration number 11014011 (England and Wales)
HARTLEYS FOOD HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
HARTLEYS FOOD HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr W T Hartley
Mr T E Verity
Mrs E A Verity
Mr J Hartley
Secretary
Mrs E A Verity
Company number
11014011
Registered office
Roth Hill Lane
Thorganby
York
YO19 6DJ
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
HARTLEYS FOOD HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 29
HARTLEYS FOOD HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Principal Activity

The principal activity of the group continues to be that of arable farming combined with freezing and processing of vegetables.

Business model

The group has two distinct business functions:

 

Vegetable Processing and Ingredient Suppliers; where the business model is to provide our customers with the safest ingredients of the highest quality; this is achieved by making it our job to understand the customers' processes and needs by forming strategic alliances and working very closely with them.

 

Pea Growing; where the business model is to rent land under a one year licence which is then utilised by the company to grow a single crop of peas which is processed through its own factory.

 

We strive to provide the highest level of service to our suppliers and customers through the provision of exceptional industry based technical expertise which is applied to understanding our supplier processes and promoting improvement in supplier practices to meet customer demands.

 

We operate in the UK and Europe supplying produce to manufacturers in the food industry, food service and retail customers.

 

Relationships with our suppliers and customers are seen as paramount in order to ensure our mutual businesses thrive, grow and continue to work together in the future.

Business review and results

Turnover increased during the year under review, to £18.8m (2023 - £18.2m) which is due to stronger demand from Customers; Gross margins rose from 19.6% to 20.2%. These factors have produced profits which are above targets and the previous period. The pre-tax profit was £654k (2023 - £633k).

 

The group continues to invest, spending £539k (2023 - £531k) on capital equipment during the year. This expenditure has been funded from cash flow.

 

Net dividends of £nil (2023 - £nil) were made during the period, we have decided to maintain this policy for the foreseeable future.

 

We feel we are in a good position at the year end which will allow us to capitalise based on our forward strategy which amongst others is to further integrate more of the supply chain into our business. After two better years we are now looking to improve the foundations of our business with increased capital expenditure planned for 2025 which will help provide a great platform to take the business forward over the coming years.

HARTLEYS FOOD HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators

The group adopts a variety of key performance indicators (KPI’s) to monitor its performance. The principal KPI’s are sales and margin reports and weekly profit and loss accounts. The group holds weekly management meetings at which the performance of each department is discussed and any issues are highlighted and measures put in place to remedy them, with progress being reported at subsequent meetings.

 

2024

£

2023

£

2022

£

2021

£

Turnover

18,887,937

18,212,942

16,267,320

15,615,173

Gross Profit

3,821,232

3,573,282

2,453,311

2,850,924

Operating Profit

1,318,976

1,196,567

85,706

583,494

Profit/(Loss) for the period

687,089

611,953

(307,174)

203,888

In order to meet its aim of delivering to customer expectations the company reviews complaints weekly and fully investigates the origin of the issue raised.

The use of these KPI’s enables management to ensure that service levels are maintained and that profitability is monitored and reasons for fluctuations are understood and remedial action can be taken where necessary.

Principal risks and uncertainties

The group is subject to global weather conditions and their effect on crop harvests and commodity prices. This risk is mitigated by forward contracting many of our supply and sale contracts back to back and dual sourcing from distinct geographical areas where appropriate.

The group is also subject to exchange rate fluctuations which are mitigated by fixing foreign exchange contracts at the time supply deals are contracted to remove the risk.

Interest rates represent a further risk which is managed via the use of tight working capital management.

Future developments

The group operates in a very competitive market which means in order to succeed the group must maintain a tight cost base and offer a point of difference to our customers. Accordingly the board believes that whilst customers and suppliers will continue to apply margin pressure this will be mitigated by our strategic relationships. The current swing in market trends towards vegetarian, organic and product provenance is seen as a strong opportunity and fits with our vision and market focus.

With an ever increasing worldwide population the range and volume of food requirements continues to rise. The board is striving to capitalise on this opportunity by sourcing new and exciting products.

On behalf of the board

Mr T E Verity
Director
21 January 2025
HARTLEYS FOOD HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company is that of a holding company, leasing assets to the subsidiary. The company also generates power through an anaerobic digestion unit.

 

The principal activity of the group continues to be that of arable farming combined with freezing and processing of vegetables.

Results and dividends

The results for the year are set out on page 8.

The directors do not recommend payment of a dividend.

Directors

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

Mr W T Hartley
Mr T E Verity
Mrs E A Verity
Mr J Hartley
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr T E Verity
Director
21 January 2025
HARTLEYS FOOD HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HARTLEYS FOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARTLEYS FOOD HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Hartleys Food Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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 group's and parent 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 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:

HARTLEYS FOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARTLEYS FOOD HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent 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.

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.

HARTLEYS FOOD HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARTLEYS FOOD HOLDINGS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  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.

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.

Chris Woodroffe (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
21 January 2025
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
HARTLEYS FOOD HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
18,887,937
18,212,942
Cost of sales
(15,066,705)
(14,639,660)
Gross profit
3,821,232
3,573,282
Administrative expenses
(2,524,201)
(2,395,485)
Other operating income
21,945
18,770
Operating profit
4
1,318,976
1,196,567
Interest payable and similar expenses
7
(665,087)
(563,414)
Profit before taxation
653,889
633,153
Tax on profit
8
33,200
(21,200)
Profit for the financial year
687,089
611,953
Total comprehensive income for the year is all attributable to the owners of the parent company.

The group statement of comprehensive income has been prepared on the basis that all operations are continuing.

HARTLEYS FOOD HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
8,141,505
8,574,423
Current assets
Stocks
11
7,232,902
5,971,912
Debtors
12
3,348,594
3,870,182
Cash at bank and in hand
46,061
376,034
10,627,557
10,218,128
Creditors: amounts falling due within one year
15
(7,892,234)
(7,830,423)
Net current assets
2,735,323
2,387,705
Total assets less current liabilities
10,876,828
10,962,128
Creditors: amounts falling due after more than one year
16
(4,647,540)
(5,443,729)
Provisions for liabilities
Deferred tax liability
17
45,000
21,200
(45,000)
(21,200)
Net assets
6,184,288
5,497,199
Capital and reserves
Called up share capital
19
100,000
100,000
Revaluation reserve
1,483,020
1,483,020
Profit and loss reserves
4,601,268
3,914,179
Total equity
6,184,288
5,497,199
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:
21 January 2025
Mr T E Verity
Director
Company registration number 11014011 (England and Wales)
HARTLEYS FOOD HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
4,226,761
4,346,408
Investments
10
100,000
100,000
4,326,761
4,446,408
Current assets
Stocks
11
13,986
-
Debtors
12
5,510
-
0
Cash at bank and in hand
45
45
19,541
45
Creditors: amounts falling due within one year
15
(973,253)
(567,313)
Net current liabilities
(953,712)
(567,268)
Total assets less current liabilities
3,373,049
3,879,140
Creditors: amounts falling due after more than one year
16
(3,314,632)
(3,887,443)
Provisions for liabilities
Deferred tax liability
17
45,000
21,200
(45,000)
(21,200)
Net assets/(liabilities)
13,417
(29,503)
Capital and reserves
Called up share capital
19
100,000
100,000
Profit and loss reserves
(86,583)
(129,503)
Total equity
13,417
(29,503)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £42,920 (2023 - £113,760 profit).

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:
21 January 2025
Mr T E Verity
Director
Company registration number 11014011 (England and Wales)
HARTLEYS FOOD HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
100,000
1,483,020
3,302,226
4,885,246
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
611,953
611,953
Balance at 30 September 2023
100,000
1,483,020
3,914,179
5,497,199
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
687,089
687,089
Balance at 30 September 2024
100,000
1,483,020
4,601,268
6,184,288
HARTLEYS FOOD HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
100,000
(243,263)
(143,263)
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
113,760
113,760
Balance at 30 September 2023
100,000
(129,503)
(29,503)
Year ended 30 September 2024:
Profit and total comprehensive income
-
42,920
42,920
Balance at 30 September 2024
100,000
(86,583)
13,417
HARTLEYS FOOD HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,408,823
1,093,840
Interest paid
(665,087)
(563,414)
Net cash inflow from operating activities
743,736
530,426
Investing activities
Purchase of tangible fixed assets
(539,340)
(490,296)
Proceeds from disposal of tangible fixed assets
8,001
3,333
Net cash used in investing activities
(531,339)
(486,963)
Financing activities
Repayment of bank loans
(185,912)
(163,442)
Payment of finance leases obligations
(181,722)
(283,375)
Net cash used in financing activities
(367,634)
(446,817)
Net decrease in cash and cash equivalents
(155,237)
(403,354)
Cash and cash equivalents at beginning of year
(1,567,519)
(1,164,165)
Cash and cash equivalents at end of year
(1,722,756)
(1,567,519)
Relating to:
Cash at bank and in hand
46,061
376,034
Bank overdrafts included in creditors payable within one year
(1,768,817)
(1,943,553)
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information

Hartleys Food Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Roth Hill Lane, Thorganby, York, YO19 6DJ.

 

The group consists of Hartleys Food Holdings Limited and all of its subsidiaries.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Hartleys Food Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

J.E.Hartley Limited has been included in the group financial statements using the merger method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of J.E.Hartley Limited as if it had always been a subsidary.

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
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.

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), 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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
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.

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
1% to 4% straight line
Plant and equipment
3% to 33% straight line
Motor vehicles
25% straight line

Freehold land is not depreciated.

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 recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -

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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Peas    

The group values its harvested biological assets at fair value less costs to sell, as permitted by section 34 of FRS102. The group's biological assets comprise of peas which it has grown, harvested and frozen.

 

Other 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.

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.

1.9
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.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 group 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.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 accounted for as noted below.

 

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 though 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.

HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.13
Taxation

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

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 group’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 if, and only if, there is 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.

1.14
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.

HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.15
Retirement benefits

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

1.16
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.

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 leased asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
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.

Revaluation of land and buildings

Land and buildings have been revalued to, and are consequently held at, fair value. The properties were revalued during a previous financial year and the carrying value uplifted accordingly. The valuation was made by an independent professional firm on an open market value basis by reference to market evidence of transaction prices for similar properties.

Depreciation

The depreciation policy has been set according to management's experience of the useful lives and residual values of a typical asset in each category, something which is reviewed annually. The depreciation charged during the year was £927,615 (2023 - £921,124) which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Inventory overhead absorption

The group processes bought in raw materials into finished goods. Inventory values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting. Management assign a standard cost per kg of produced product depending on labour intensity and throughput hours. This is amended at the year end based on actual production and actual overhead costs.

Pea inventory valuation

The group values its harvested biological assets at fair value less costs to sell, as permitted by section 34 of FRS102. The group's biological assets comprise of peas which it has grown, harvested and frozen.

 

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

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Factory
18,460,634
17,687,020
Electricity generation
427,303
525,922
18,887,937
18,212,942
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
17,285,539
17,551,862
Rest of Europe
803,138
312,416
Rest of the World
799,260
348,664
18,887,937
18,212,942
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(9,662)
(63,442)
Depreciation of owned tangible fixed assets
855,753
764,838
Depreciation of tangible fixed assets held under finance leases
71,862
156,286
Loss on disposal of tangible fixed assets
36,642
-
Operating lease charges
89,099
98,520
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 group and company
2,800
2,650
Audit of the financial statements of the company's subsidiaries
13,800
13,125
16,600
15,775
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
4
4
4
4
Factory
45
42
-
-
Administration
17
16
-
-
Total
66
62
4
4

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,635,213
2,261,331
42,000
42,000
Social security costs
278,696
246,622
-
-
Pension costs
66,174
59,876
-
0
-
0
2,980,083
2,567,829
42,000
42,000
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
116,893
104,329
Other interest on financial liabilities
267,600
235,200
Interest on finance leases and hire purchase contracts
8,069
11,825
Other interest
272,525
212,060
Total finance costs
665,087
563,414
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(33,200)
21,200

The actual (credit)/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
653,889
633,153
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
163,472
139,294
Tax effect of expenses that are not deductible in determining taxable profit
515
14,443
Tax effect of utilisation of tax losses not previously recognised
(230,850)
(182,711)
Depreciation on assets not qualifying for tax allowances
34,000
23,197
Other tax adjustments
(337)
26,977
Taxation (credit)/charge
(33,200)
21,200
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
9
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 October 2023
3,400,000
13,925,411
95,661
17,421,072
Additions
-
0
501,340
38,000
539,340
Disposals
-
0
(1,334,586)
(24,477)
(1,359,063)
At 30 September 2024
3,400,000
13,092,165
109,184
16,601,349
Depreciation and impairment
At 1 October 2023
408,000
8,401,748
36,901
8,846,649
Depreciation charged in the year
136,000
771,581
20,034
927,615
Eliminated in respect of disposals
-
0
(1,291,575)
(22,845)
(1,314,420)
At 30 September 2024
544,000
7,881,754
34,090
8,459,844
Carrying amount
At 30 September 2024
2,856,000
5,210,411
75,094
8,141,505
At 30 September 2023
2,992,000
5,523,663
58,760
8,574,423
Company
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost or valuation
At 1 October 2023
3,400,000
1,665,289
5,065,289
Additions
-
0
134,393
134,393
At 30 September 2024
3,400,000
1,799,682
5,199,682
Depreciation and impairment
At 1 October 2023
408,000
310,881
718,881
Depreciation charged in the year
136,000
118,040
254,040
At 30 September 2024
544,000
428,921
972,921
Carrying amount
At 30 September 2024
2,856,000
1,370,761
4,226,761
At 30 September 2023
2,992,000
1,354,408
4,346,408
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Tangible fixed assets
(Continued)
- 24 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. Finance leases and hire purchase contracts are secured against the individual assets which they acquired.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
295,447
1,104,840
-
0
-
0

Freehold land and buildings have been pledged to secure borrowings of the company.

Freehold land and buildings were revalued at 30 September 2019 by Bartle & Son, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. At the balance sheet date the directors do not believe that there has been any material movement on this valuation.

If revalued assets were measured using the cost model, the carrying amounts for the group would have been approximately £960,158 (2023 - £1,119,628), being cost of £5,613,484 (2023 - £5,613,484) less depreciation of £4,653,325 (2023 - £4,493,855).

10
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
22
-
0
-
0
100,000
100,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
100,000
Carrying amount
At 30 September 2024
100,000
At 30 September 2023
100,000
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
11
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
233,785
267,719
13,986
-
Finished goods and goods for resale
6,999,117
5,704,193
-
0
-
0
7,232,902
5,971,912
13,986
-
12
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,738,892
3,256,391
-
0
-
0
Other debtors
83,392
81,447
5,510
-
0
Prepayments and accrued income
374,310
437,344
-
0
-
0
3,196,594
3,775,182
5,510
-
Deferred tax asset (note 17)
152,000
95,000
-
0
-
0
3,348,594
3,870,182
5,510
-

£1,867,807 (2023 - £2,587,781) of trade debtors have been pledged as security against an invoice discounting facility as detailed in note 13.

13
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,499,827
1,685,739
-
0
-
0
Bank overdrafts
1,768,817
1,943,553
-
0
-
0
3,268,644
3,629,292
-
-
Payable within one year
1,972,984
2,147,720
-
0
-
0
Payable after one year
1,295,660
1,481,572
-
0
-
0

The bank loan and overdraft are secured by charges over freehold land and buildings with a carrying value of £3,400,000. Interest payable on the bank loan facility is 1.8% above base rate and is fully repayable by 2038.

 

Included within bank overdrafts is an invoice discounting facility with a year end balance of £1,768,817 (2023 - £1,943,553), secured as detailed within note 12.

HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
14
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
68,857
208,536
-
0
-
0
In two to five years
41,160
86,260
-
0
-
0
110,017
294,796
-
-
Less: future finance charges
(8,489)
(11,546)
-
0
-
0
101,528
283,250
-
0
-
0

Finance lease payments represent rentals payable by the group for certain items of plant and equipment and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average remaining lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations under finance leases and hire purchase contracts are secured on the related fixed assets.

15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
13
1,972,984
2,147,720
-
0
-
0
Obligations under finance leases
14
64,280
208,536
-
0
-
0
Trade creditors
4,128,281
3,706,531
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
661,067
264,649
Other taxation and social security
58,619
53,562
-
-
Other creditors
910,583
984,266
294,000
294,000
Accruals and deferred income
757,487
729,808
18,186
8,664
7,892,234
7,830,423
973,253
567,313

Other creditors include amounts due to a company under common control and are unsecured, as disclosed in note 22. These borrowings are repayable over a 5 year term, unsecured and interest is charged at 4%.

16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
13
1,295,660
1,481,572
-
0
-
0
Obligations under finance leases
14
37,248
74,714
-
0
-
0
Other creditors
3,314,632
3,887,443
3,314,632
3,887,443
4,647,540
5,443,729
3,314,632
3,887,443
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
16
Creditors: amounts falling due after more than one year
(Continued)
- 27 -

Other creditors include amounts due to a company under common control and are unsecured, as disclosed in note 22. These borrowings are repayable over a 5 year term, unsecured and interest is charged at 4%.

Amounts included above which fall due after five years are as follows:
Payable by instalments
2,849,743
3,195,221
2,138,632
2,417,443
17
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
45,000
21,200
(640,000)
(646,000)
Tax losses
-
-
792,000
741,000
45,000
21,200
152,000
95,000
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
45,000
21,200
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 October 2023
(73,800)
21,200
(Credit)/charge to profit or loss
(33,200)
23,800
Liability/(Asset) at 30 September 2024
(107,000)
45,000

The deferred tax asset created by the available tax losses is offset against the deferred tax liability created by the accelerated capital allowances as offset is available within the tax computations.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,174
59,876
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
18
Retirement benefit schemes
(Continued)
- 28 -

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
20
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
35,239
51,486
-
-
Between two and five years
106,631
3,601
-
-
141,870
55,087
-
-
21
Related party transactions

Hartley Farming (Yorkshire) Limited advanced £5m in 2020 to Hartleys Food Holdings Limited. During the year further repayments were made were made and the balance at the balance sheet date amounted to £3,314,632 (2023 - £4,181,443), of which £294,000 (2022 - £294,000) was repayable within one year. Interest was paid to Hartley Farming (Yorkshire) Limited on these loans amounting to £267,600 (2023 - £235,200).

 

Total Key Management remuneration amounted to £560,968 (2023 - £544,201).

22
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
J.E.Hartley Limited
Roth Hill Lane, Thorganby, York, YO19 6DJ
Growing, processing and freezing of vegetables
Ordinary
100.00
HARTLEYS FOOD HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
23
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
182,122
159,561

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

24
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
687,089
611,953
Adjustments for:
Taxation (credited)/charged
(33,200)
21,200
Finance costs
665,087
563,414
Loss on disposal of tangible fixed assets
36,642
-
Depreciation and impairment of tangible fixed assets
927,615
921,124
Movements in working capital:
(Increase)/decrease in stocks
(1,260,990)
1,046,450
Decrease/(increase) in debtors
578,588
(1,089,717)
Decrease in creditors
(192,008)
(980,584)
Cash generated from operations
1,408,823
1,093,840
25
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
376,034
(329,973)
46,061
Bank overdrafts
(1,943,553)
174,736
(1,768,817)
(1,567,519)
(155,237)
(1,722,756)
Borrowings excluding overdrafts
(1,685,739)
185,912
(1,499,827)
Obligations under finance leases
(283,250)
181,722
(101,528)
(3,536,508)
212,397
(3,324,111)
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