EVOLUTION FOODS LTD
Company registration number 05848642 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
EVOLUTION FOODS LTD
COMPANY INFORMATION
Directors
Mr J R Knott
Mr D C Cooper
Mr M R Bevan
Mr R J Tanner
Mr M S Alexander
Mrs R Owen
Mr S J Hollick
Secretary
Mr J R Knott
Company number
05848642
Registered office
Units 11-14
Hortonwood 32
Telford
Shropshire
TF1 7EU
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
EVOLUTION FOODS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
EVOLUTION FOODS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

The principal activity of the Group continues to be that of the sustainable sourcing and value-added processing of ambient snacks including, but not limited to, nuts, dried fruit, pulses and seeds.

 

Trading profits this year have increased to £1.23m pre-tax (2023 £1.77m) and whilst we work in a very competitive industry we continue to find efficiencies within the business to allow us to grow our margins. Sales for the 12 months ending June 2024 were £101m up from £93m for the year ended June 2023.

Principal risks and uncertainties

The Group operates in a challenging trading environment with the consequential pressure on margins from major retailers, where competitive focus is price-driven. The Group continues to develop new sales channels for added value branded and licensed business in new pack formats, with innovative propositions to meet evolving customer and end consumer needs. At the same time, the Group is striving to improve margin mix and efficiencies as well as making best use of capacity within its production sites. Investment in systems and equipment continues to be made to improve the quality of information and facilitate improvements in efficiency and margin. The Group diligently prepares internal plans and forecasts to underpin its successful ongoing development and growth.

 

The Group deploys an internal risk control framework to ensure focus is given throughout the business to review risks and agree mitigation plans. The Group utilises a set of well-established operational procedures and protocols to deliver effective risk management. The Group undertakes detailed business risk assessments to strengthen further risk management procedures and to support business continuity planning.


The Group uses a range of financial instruments, with the principal aims of the Group's financial risk management policy being to monitor and address the risks arising from the Group's external and internal funding requirements, to optimise net interest cost after tax and to manage financial risk arising from the international business of the Group, principally interest rate and currency risk.

 

The Group operates internationally, giving rise to exposure from changes in foreign exchange rates, particularly the US Dollar and to a lesser extent, the Euro.

 

The Group minimises its exposure to adverse raw material price changes by entering into forward purchase contracts to cover known customer requirements

 

The more significant risks and uncertainties faced by the Group, which are faced by the rest of the food manufacturing industry, are customer retention, food scares, margins and profitability, availability and quality of raw materials and competition. These risks are considered inherent in the sector in which the Group operates and are therefore accepted as such.

Development and performance

We continue to make major investments in the Group to build on synergies and to realise the benefits to our major customers of our combined capabilities. We are now 24 months into a 36-month plan to modernize our business and allow us to be the best in our industry.

 

The business has successfully commissioned  new roasting site and a chocolate facility that will make significant contribution to the business

 

The Group continues to work on hedging its forward currency risks to ensure little impact is made on the profit on the Group.

 

For the remainder of 2024, despite continuing challenging trading conditions, the Group expects to improve its profit with acquisition integration synergies and growth opportunities being realised, building on its reputation for dependability, service, and innovative solutions.

EVOLUTION FOODS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

The Group uses a range of key performance indicators to monitor the performance of the business on an ongoing basis.

 

30 Jun 2024

30 Jun 2023

 

Financial

 

 

Turnover (£M)

101

93

Gross Profit Margin

11.10%

8.47%

Operating profit (£000)

2,696

2,781

Profit before tax (£000)

1,231

1,770

On behalf of the board

Mr J R Knott
Director
6 December 2024
EVOLUTION FOODS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities
The principal activity of the company continued to be that of sale of retail packed fruit and nuts.
Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,071,000. 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:

Mr J R Knott
Mr D C Cooper
Mr M R Bevan
Mr R J Tanner
Mr M S Alexander
Mrs R Owen
Ms F Akalin McGee
(Resigned 8 November 2024)
Mr S J Hollick
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through an internal employee committee forum, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through the forum which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Auditor

In accordance with the company's articles, a resolution proposing that Dyke Yaxley Limited be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of review of business, principal risks and uncertainties and developments and performance.true

EVOLUTION FOODS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
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 J R Knott
Director
6 December 2024
EVOLUTION FOODS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

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.

EVOLUTION FOODS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EVOLUTION FOODS LTD
- 6 -
Opinion

We have audited the financial statements of Evolution Foods Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, 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, the company 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 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:

EVOLUTION FOODS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOLUTION FOODS LTD
- 7 -
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.

EVOLUTION FOODS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EVOLUTION FOODS LTD
- 8 -

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, health and safety regulations including the Global Standard for Food Safety Issue 8: February 2019, the Companies Act 2006, General Data Protection Regulation(GDPR) and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, inspection of minutes of board meetings held during the year as well as audit reports obtained from the relevant bodies, including the Sedex report.

 

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.

 

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.

Elwyn Turner FCA (Senior Statutory Auditor)
For and on behalf of Dyke Yaxley Limited
12 December 2024
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
EVOLUTION FOODS LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
101,331,422
93,409,984
Cost of sales
(90,086,485)
(85,493,540)
Gross profit
11,244,937
7,916,444
Administrative expenses
(8,549,208)
(5,135,796)
Operating profit
4
2,695,729
2,780,648
Interest receivable and similar income
8
3,804
4,838
Interest payable and similar expenses
9
(1,468,537)
(1,015,387)
Profit before taxation
1,230,996
1,770,099
Tax on profit
10
(73,835)
(425,594)
Profit for the financial year
1,157,161
1,344,505
Profit for the financial year is all attributable to the owners of the parent company.

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

EVOLUTION FOODS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
£
£
Profit for the year
1,157,161
1,344,505
Other comprehensive income
Revaluation of tangible fixed assets
70,000
148,315
Total comprehensive income for the year
1,227,161
1,492,820
Total comprehensive income for the year is all attributable to the owners of the parent company.
EVOLUTION FOODS LTD
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,704,456
5,320,780
Current assets
Stocks
15
12,476,919
15,102,501
Debtors
16
23,336,581
19,357,144
Cash at bank and in hand
919,999
707,549
36,733,499
35,167,194
Creditors: amounts falling due within one year
17
(33,466,323)
(30,744,910)
Net current assets
3,267,176
4,422,284
Total assets less current liabilities
11,971,632
9,743,064
Creditors: amounts falling due after more than one year
18
(2,772,226)
(899,405)
Provisions for liabilities
Deferred tax liability
22
913,051
713,465
(913,051)
(713,465)
Net assets
8,286,355
8,130,194
Capital and reserves
Called up share capital
24
209
209
Share premium account
7,072
7,072
Revaluation reserve
1,066,580
996,580
Profit and loss reserves
7,212,494
7,126,333
Total equity
8,286,355
8,130,194
The financial statements were approved by the board of directors and authorised for issue on 6 December 2024 and are signed on its behalf by:
06 December 2024
Mr J R Knott
Director
Company registration number 05848642 (England and Wales)
EVOLUTION FOODS LTD
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,338,794
3,308,427
Investments
13
100
100
3,338,894
3,308,527
Current assets
Stocks
15
12,476,919
15,102,501
Debtors
16
32,526,297
22,909,319
Cash at bank and in hand
899,249
677,658
45,902,465
38,689,478
Creditors: amounts falling due within one year
17
(33,145,780)
(30,421,771)
Net current assets
12,756,685
8,267,707
Total assets less current liabilities
16,095,579
11,576,234
Creditors: amounts falling due after more than one year
18
(2,772,226)
(899,405)
Provisions for liabilities
Deferred tax liability
22
208,734
233,377
(208,734)
(233,377)
Net assets
13,114,619
10,443,452
Capital and reserves
Called up share capital
24
209
209
Share premium account
7,072
7,072
Revaluation reserve
1,066,580
996,580
Profit and loss reserves
12,040,758
9,439,591
Total equity
13,114,619
10,443,452

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 £3,672,167 (2023 - £3,281,702 profit).

The financial statements were approved by the board of directors and authorised for issue on 6 December 2024 and are signed on its behalf by:
06 December 2024
Mr J R Knott
Director
Company registration number 05848642 (England and Wales)
EVOLUTION FOODS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
209
7,072
848,265
6,556,328
7,411,874
Year ended 30 June 2023:
Profit for the year
-
-
-
1,344,505
1,344,505
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
148,315
-
148,315
Total comprehensive income
-
-
148,315
1,344,505
1,492,820
Dividends
11
-
-
-
(774,500)
(774,500)
Balance at 30 June 2023
209
7,072
996,580
7,126,333
8,130,194
Year ended 30 June 2024:
Profit for the year
-
-
-
1,157,161
1,157,161
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
70,000
-
70,000
Total comprehensive income
-
-
70,000
1,157,161
1,227,161
Dividends
11
-
-
-
(1,071,000)
(1,071,000)
Balance at 30 June 2024
209
7,072
1,066,580
7,212,494
8,286,355
EVOLUTION FOODS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
209
7,072
848,265
6,932,389
7,787,935
Year ended 30 June 2023:
Profit for the year
-
-
-
3,281,702
3,281,702
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
148,315
-
148,315
Total comprehensive income
-
-
148,315
3,281,702
3,430,017
Dividends
11
-
-
-
(774,500)
(774,500)
Balance at 30 June 2023
209
7,072
996,580
9,439,591
10,443,452
Year ended 30 June 2024:
Profit for the year
-
-
-
3,672,167
3,672,167
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
70,000
-
70,000
Total comprehensive income
-
-
70,000
3,672,167
3,742,167
Dividends
11
-
-
-
(1,071,000)
(1,071,000)
Balance at 30 June 2024
209
7,072
1,066,580
12,040,758
13,114,619
EVOLUTION FOODS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
4,286,525
687,021
Interest paid
(1,468,537)
(1,015,387)
Income taxes (paid)/refunded
(128,426)
73,350
Net cash inflow/(outflow) from operating activities
2,689,562
(255,016)
Investing activities
Purchase of tangible fixed assets
(4,261,750)
(1,075,500)
Proceeds from disposal of tangible fixed assets
20,196
10,601
Interest received
3,804
4,838
Net cash used in investing activities
(4,237,750)
(1,060,061)
Financing activities
Proceeds from new bank loans
-
1,648,691
Repayment of bank loans
427,328
-
Payment of finance leases obligations
2,404,310
-
Dividends paid to equity shareholders
(1,071,000)
(774,500)
Net cash generated from financing activities
1,760,638
874,191
Net increase/(decrease) in cash and cash equivalents
212,450
(440,886)
Cash and cash equivalents at beginning of year
707,549
1,148,435
Cash and cash equivalents at end of year
919,999
707,549
EVOLUTION FOODS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
299,076
(177,571)
Interest paid
(1,468,537)
(1,015,387)
Income taxes (paid)/refunded
(128,426)
73,802
Net cash outflow from operating activities
(1,297,887)
(1,119,156)
Investing activities
Purchase of tangible fixed assets
(251,064)
(229,107)
Proceeds from disposal of tangible fixed assets
6,196
3,600
Interest received
3,708
4,838
Net cash used in investing activities
(241,160)
(220,669)
Financing activities
Proceeds from new bank loans
-
1,648,691
Repayment of bank loans
427,328
-
Payment of finance leases obligations
2,404,310
-
Dividends paid to equity shareholders
(1,071,000)
(774,500)
Net cash generated from financing activities
1,760,638
874,191
Net increase/(decrease) in cash and cash equivalents
221,591
(465,634)
Cash and cash equivalents at beginning of year
677,658
1,143,292
Cash and cash equivalents at end of year
899,249
677,658
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
1
Accounting policies
Company information

Evolution Foods Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Units 11-14, Hortonwood 32, Telford, Shropshire, TF1 7EU.

 

The group consists of Evolution Foods Ltd 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 £.

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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Evolution Foods Ltd together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 June 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.

1.4
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.

EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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 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.

1.6
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.

Tangible fixed assets, excluding freehold land and buildings, are stated at cost less depreciation. The company's policy is to regularly revalue freehold land and buildings. Depreciation is provided on other assets at the following rates:

Land and buildings Freehold
Land nil, freehold buildings 2% on cost
Plant and machinery
12.5/25% on cost
Fixtures, fittings & equipment
10/25% on cost
Motor vehicles
12.5/25% on cost

Assets in the course of construction are not depreciated until the asset is completed and in use.

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.

1.7
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, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

1.8
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.

EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.9
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.

Work in progress is valued at cost on a batch basis and does not include overheads or labour costs.

1.10
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.

1.11
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.

1.12
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.

1.13
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.

EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
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.

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, except for stock which is recorded at the forward rate as set out in the forward exchange contracts applicable. 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.

EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
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.

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.

Impairment of amount owed by connected company

The amount owed by Evolution Home & Leisure has been impaired based on an estimation of the recoverable amount.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sales
101,331,422
93,409,984
2024
2023
£
£
Turnover analysed by geographical market
UK
94,108,689
85,952,195
Europe
7,143,681
7,399,991
Rest of World
79,052
57,798
101,331,422
93,409,984
2024
2023
£
£
Other revenue
Interest income
3,804
4,838
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(106,370)
602,454
Depreciation of owned tangible fixed assets
862,742
728,219
Loss on disposal of tangible fixed assets
65,136
5,940
Operating lease charges
275,751
217,953
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
16,000
16,000
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
Production
303
263
-
-
Administration
41
38
41
38
Total
344
301
41
38

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
9,000,670
7,583,940
1,686,365
1,017,539
Social security costs
790,739
704,261
191,094
255,930
Pension costs
254,220
176,823
129,263
87,979
10,045,629
8,465,024
2,006,722
1,361,448
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
496,006
477,926
Company pension contributions to defined contribution schemes
65,633
55,173
561,639
533,099
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
154,330
167,482
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
96
-
0
Other interest income
3,708
4,838
Total income
3,804
4,838
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
96
-
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,468,537
1,015,387
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
88,528
255,942
Adjustments in respect of prior periods
(214,279)
(78,162)
Total current tax
(125,751)
177,780
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
2024
2023
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
199,586
247,814
Total tax charge
73,835
425,594

The charge for the year can be reconciled to the profit per the profit and loss account as follows:

2024
2023
£
£
Profit before taxation
1,230,996
1,770,099
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
307,749
442,525
Tax effect of expenses that are not deductible in determining taxable profit
619,240
8,612
Unutilised tax losses carried forward
1,409,165
-
0
Adjustments in respect of prior years
-
0
452
Group relief
(1,409,141)
-
0
Permanent capital allowances in excess of depreciation
(838,485)
(138,950)
Under/(over) provided in prior years
(214,279)
(78,614)
Deferred tax adjustments in respect of prior years
199,586
247,814
Change in rate of corporation tax
-
0
(56,245)
Taxation charge
73,835
425,594
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,071,000
774,500
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
12
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2023
2,100,000
4,559,268
2,001,377
53,243
8,713,888
Additions
-
0
3,999,151
251,064
11,535
4,261,750
Disposals
-
0
(454,024)
(67,286)
-
0
(521,310)
Revaluation
70,000
-
0
-
0
-
0
70,000
At 30 June 2024
2,170,000
8,104,395
2,185,155
64,778
12,524,328
Depreciation and impairment
At 1 July 2023
-
0
2,558,821
792,950
41,337
3,393,108
Depreciation charged in the year
-
0
570,708
284,794
7,240
862,742
Eliminated in respect of disposals
-
0
(374,595)
(61,383)
-
0
(435,978)
At 30 June 2024
-
0
2,754,934
1,016,361
48,577
3,819,872
Carrying amount
At 30 June 2024
2,170,000
5,349,461
1,168,794
16,201
8,704,456
At 30 June 2023
2,100,000
2,000,447
1,208,427
11,906
5,320,780
Company
Land and buildings Freehold
Fixtures, fittings & equipment
Total
£
£
£
Cost or valuation
At 1 July 2023
2,100,000
2,001,377
4,101,377
Additions
-
0
251,064
251,064
Disposals
-
0
(67,286)
(67,286)
Revaluation
70,000
-
0
70,000
At 30 June 2024
2,170,000
2,185,155
4,355,155
Depreciation and impairment
At 1 July 2023
-
0
792,950
792,950
Depreciation charged in the year
-
0
284,794
284,794
Eliminated in respect of disposals
-
0
(61,383)
(61,383)
At 30 June 2024
-
0
1,016,361
1,016,361
Carrying amount
At 30 June 2024
2,170,000
1,168,794
3,338,794
At 30 June 2023
2,100,000
1,208,427
3,308,427
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 26 -

The carrying value of land and buildings includes £310,000 land which is not depreciated.

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
2,170,000
2,100,000
2,170,000
2,100,000

Land and buildings with a carrying amount of £2,170,000 were revalued at 25 March 2024 by Andrew Dixon & Company RICS, 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 for similar properties.

 

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amount would be approximately £1,084,881 (£1,103,420 - 2023) being cost £1,151,735 (£1,151,735 - 2023) less accumulated depreciation £66,85448,315 - 2023).

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
100
100

The subsidiary company Evopack Limited (company number 07427304) was exempt from audit under section 479A of the Companies Act 2006 for the year ended 30 June 2023.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
100
Carrying amount
At 30 June 2024
100
At 30 June 2023
100
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Evopack Limited
Units 11-12, Hortonwood 32, Telford, Shropshire, TF1 7EU, United Kingdom
Ordinary
100.00
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
7,236,517
7,682,556
7,236,517
7,682,556
Work in progress
1,025,296
1,603,100
1,025,296
1,603,100
Finished goods and goods for resale
4,215,106
5,816,845
4,215,106
5,816,845
12,476,919
15,102,501
12,476,919
15,102,501
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
16,849,679
13,783,937
16,849,679
13,783,937
Unpaid share capital
100
100
-
0
-
0
Corporation tax recoverable
217,987
131,224
217,987
131,224
Amounts owed by group undertakings
-
-
9,282,197
4,078,912
Other debtors
2,576,903
4,314,763
2,548,148
3,835,201
Prepayments and accrued income
3,691,912
1,127,120
3,628,286
1,080,045
23,336,581
19,357,144
32,526,297
22,909,319
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
18,125,627
17,541,882
18,125,627
17,541,882
Obligations under finance leases
20
375,072
-
0
375,072
-
0
Trade creditors
13,600,958
12,317,226
13,512,320
12,206,089
Corporation tax payable
88,528
255,942
88,528
255,942
Other taxation and social security
212,083
204,434
43,685
39,922
Other creditors
851,582
193,540
794,285
148,550
Accruals and deferred income
212,473
231,886
206,263
229,386
33,466,323
30,744,910
33,145,780
30,421,771
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
742,988
899,405
742,988
899,405
Obligations under finance leases
20
2,029,238
-
0
2,029,238
-
0
2,772,226
899,405
2,772,226
899,405
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
18,868,615
18,441,287
18,868,615
18,441,287
Payable within one year
18,125,627
17,541,882
18,125,627
17,541,882
Payable after one year
742,988
899,405
742,988
899,405

Included within bank loans is a liability of £18,019,510 (2023: £17,463,683) for invoice discounting and importing. This liability is secured by a fixed and floating charge over the assets of the company. The bank loan of £849,105 (2023: £977,604) is secured over the property.

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
375,072
-
0
375,072
-
0
In two to five years
2,029,238
-
0
2,029,238
-
0
2,404,310
-
2,404,310
-

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

The hire purchase liability is secured over the fixed assets they relate to.

EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
21
Forward exchange contracts

The company enters into forward exchange contract to hedge specific forecast transactions. At the balance sheet date the company had entered into forward exchange contracts to buy and sell US Dollars and Euros.

 

Currency    Principal amount     Average committed    Contracted value     

£             Rate         (USD)        

USD        14,123,890        1.2744      18,000,000    

22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
ACAs
913,051
713,465
Liabilities
Liabilities
2024
2023
Company
£
£
ACAs
208,734
233,377
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
713,465
233,377
Credit to profit or loss
(24,643)
(24,643)
Liability at 30 June 2024
688,822
208,734

The deferred tax liability set out above is expected to reverse within the next 36 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
254,220
176,823

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.

EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
200
200
200
200
Ordinary B shares of £1 each
2
2
2
2
Ordinary C shares of £1 each
2
2
2
2
Ordinary D share of £1 each
1
1
1
1
Ordinary E shares of £1 each
4
4
4
4
209
209
209
209

Voting rights

All shares rank equally for voting purposes. On a show of hands each member has one vote and on a poll each member has one vote per share held.

Dividend rights

Dividends may be paid to the holders of one or more classes of shares to the exclusion of the others or to all classes of shares, in each case at the same or differing rates, as determined by ordinary resolution or resolution of the directors.

Rights to capital

Each share ranks equally for any distribution made on a winding up.

Rights of redemption

No shares are redeemable.

25
Operating lease commitments
Lessee

The operating leases represent leases of ten years to third parties in respect of the premises from which it operates. There are also leases for vehicles which are normally over 3 to 5 years.

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
335,826
283,500
335,826
278,580
Between two and five years
895,933
762,262
895,933
762,262
In over five years
796,000
894,834
796,000
894,834
2,027,759
1,940,596
2,027,759
1,935,676
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
843,297
1,961,499
843,297
1,961,499
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
27
Related party transactions

Evolution Foods Limited:

During the year, the company paid consultancy fees to Shooting Fish BWI Limited, a company controlled by a director, of £243,252 (2023: £ £127,467). The balance due to Shooting Fish BWI Limited as at 30 June 2024 was £59,636 (2023: £nil).

 

During the year, the company purchased goods from Evolution Foods International (Pty) Ltd, a company controlled by two directors, of £1,489,840 (2023: £1,786,097). The balance due to Evolution Foods International (Pty) Ltd as at 30 June 2024 was £200,766 (2022: £nil).

 

Natural Selection Foods Limited is a company controlled by four directors of the company, the company sold goods amounting to £4,486,024 (2023: £1,523,855) to Natural Selection Foods Limited during the year. The balance due from Natural Selection Foods Limited as at 30 June 2024 was £2,200,169 (2023: £1,925,750), which relates to goods sold as well as re-charges of costs.

 

Evolution Home and Leisure Limited is a company controlled by three directors of the company. The company recharged costs amounting to £2,383,405 to Evolution Home and Leisure Limited during the year. The balance due from Evolution Home and Leisure Limited as at 30 June 2024 was £1,536,817 (2023: £1,208,466), which relates to re-charges of costs.

 

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

 

Evopack Limited:

Natural Selection Foods Limited is a company which shares two directors of the company. Sales amounting to £41,624 (2023: £16,272) was made to Natural Selection Foods Limited and the balance due from the company as at 30 June 2024 was £nil (2023: £439,412).

 

Evolution Home and Leisure Limited is a company which shares all three directors of the company. Sales amounting to £380 (2023: £16,272) was made to Evolution Home and Leisure Limited and the balance due from the company as at 30 June 2024 was £nil (2023: £751).

 

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,157,161
1,344,505
Adjustments for:
Taxation charged
73,835
425,594
Finance costs
1,468,537
1,015,387
Investment income
(3,804)
(4,838)
Loss on disposal of tangible fixed assets
65,136
5,940
Depreciation and impairment of tangible fixed assets
862,742
728,219
Impairment of connected company balance
2,367,000
-
Movements in working capital:
Decrease in stocks
2,625,582
649,982
Increase in debtors
(3,892,674)
(2,617,279)
Increase/(decrease) in creditors
1,930,010
(860,489)
Cash generated from operations
6,653,525
687,021
29
Cash generated from/(absorbed by) operations - company
2024
2023
£
£
Profit for the year after tax
3,672,167
3,281,702
Adjustments for:
Taxation (credited)/charged
(150,394)
230,548
Finance costs
1,468,537
1,015,387
Investment income
(3,708)
(4,838)
(Gain)/loss on disposal of tangible fixed assets
(293)
346
Depreciation and impairment of tangible fixed assets
284,794
284,977
Impairment of connected company balance
2,367,000
-
Movements in working capital:
Decrease in stocks
2,625,582
649,982
Increase in debtors
(9,530,215)
(4,655,338)
Increase/(decrease) in creditors
1,932,606
(980,337)
Cash generated from/(absorbed by) operations
2,666,076
(177,571)
EVOLUTION FOODS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 34 -
30
Analysis of changes in net debt - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
707,549
212,450
919,999
Borrowings excluding overdrafts
(18,441,287)
(427,328)
(18,868,615)
Obligations under finance leases
-
(2,404,310)
(2,404,310)
(17,733,738)
(2,619,188)
(20,352,926)
31
Analysis of changes in net debt - company
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
677,658
221,591
899,249
Borrowings excluding overdrafts
(18,441,287)
(427,328)
(18,868,615)
Obligations under finance leases
-
(2,404,310)
(2,404,310)
(17,763,629)
(2,610,047)
(20,373,676)
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