Caseware UK (AP4) 2023.0.135 2023.0.135 2024-06-012024-05-292024-05-292024-06-012024-06-012023-05-28false920959falsefalsefalse SC097725 2023-05-28 2024-06-01 SC097725 2022-05-29 2023-05-27 SC097725 2024-06-01 SC097725 2023-05-27 SC097725 2022-05-29 SC097725 1 2023-05-28 2024-06-01 SC097725 d:CompanySecretary1 2023-05-28 2024-06-01 SC097725 d:Director1 2023-05-28 2024-06-01 SC097725 d:Director2 2023-05-28 2024-06-01 SC097725 d:Director3 2023-05-28 2024-06-01 SC097725 d:Director4 2023-05-28 2024-06-01 SC097725 d:Director5 2023-05-28 2024-06-01 SC097725 d:Director6 2023-05-28 2024-06-01 SC097725 d:Director6 2024-06-01 SC097725 d:Director7 2023-05-28 2024-06-01 SC097725 d:Director8 2023-05-28 2024-06-01 SC097725 d:Director8 2024-06-01 SC097725 d:Director9 2023-05-28 2024-06-01 SC097725 d:Director9 2024-06-01 SC097725 d:RegisteredOffice 2023-05-28 2024-06-01 SC097725 d:Agent1 2023-05-28 2024-06-01 SC097725 c:Buildings 2023-05-28 2024-06-01 SC097725 c:Buildings 2024-06-01 SC097725 c:Buildings 2023-05-27 SC097725 c:Buildings c:OwnedOrFreeholdAssets 2023-05-28 2024-06-01 SC097725 c:Buildings c:LeasedAssetsHeldAsLessee 2023-05-28 2024-06-01 SC097725 c:Buildings c:LongLeaseholdAssets 2023-05-28 2024-06-01 SC097725 c:PlantMachinery 2023-05-28 2024-06-01 SC097725 c:PlantMachinery 2024-06-01 SC097725 c:PlantMachinery 2023-05-27 SC097725 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-05-28 2024-06-01 SC097725 c:PlantMachinery c:LeasedAssetsHeldAsLessee 2023-05-28 2024-06-01 SC097725 c:OwnedOrFreeholdAssets 2023-05-28 2024-06-01 SC097725 c:LeasedAssetsHeldAsLessee 2023-05-28 2024-06-01 SC097725 c:Goodwill 2023-05-28 2024-06-01 SC097725 c:CurrentFinancialInstruments 2024-06-01 SC097725 c:CurrentFinancialInstruments 2023-05-27 SC097725 c:Non-currentFinancialInstruments 2024-06-01 SC097725 c:Non-currentFinancialInstruments 2023-05-27 SC097725 c:CurrentFinancialInstruments c:WithinOneYear 2024-06-01 SC097725 c:CurrentFinancialInstruments c:WithinOneYear 2023-05-27 SC097725 c:Non-currentFinancialInstruments c:AfterOneYear 2024-06-01 SC097725 c:Non-currentFinancialInstruments c:AfterOneYear 2023-05-27 SC097725 c:ShareCapital 2024-06-01 SC097725 c:ShareCapital 2023-05-27 SC097725 c:ShareCapital 2022-05-29 SC097725 c:RetainedEarningsAccumulatedLosses 2023-05-28 2024-06-01 SC097725 c:RetainedEarningsAccumulatedLosses 2024-06-01 SC097725 c:RetainedEarningsAccumulatedLosses 2022-05-29 2023-05-27 SC097725 c:RetainedEarningsAccumulatedLosses 2023-05-27 SC097725 c:RetainedEarningsAccumulatedLosses 2022-05-29 SC097725 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-06-01 SC097725 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-05-27 SC097725 c:AcceleratedTaxDepreciationDeferredTax 2024-06-01 SC097725 c:AcceleratedTaxDepreciationDeferredTax 2023-05-27 SC097725 d:OrdinaryShareClass1 2023-05-28 2024-06-01 SC097725 d:OrdinaryShareClass1 2024-06-01 SC097725 d:OrdinaryShareClass1 2023-05-27 SC097725 d:FRS102 2023-05-28 2024-06-01 SC097725 d:Audited 2023-05-28 2024-06-01 SC097725 d:FullAccounts 2023-05-28 2024-06-01 SC097725 d:PrivateLimitedCompanyLtd 2023-05-28 2024-06-01 SC097725 c:Subsidiary1 2023-05-28 2024-06-01 SC097725 c:Subsidiary1 1 2023-05-28 2024-06-01 SC097725 c:Subsidiary2 2023-05-28 2024-06-01 SC097725 c:Subsidiary2 1 2023-05-28 2024-06-01 SC097725 c:Subsidiary3 2023-05-28 2024-06-01 SC097725 c:Subsidiary3 1 2023-05-28 2024-06-01 SC097725 c:Subsidiary4 2023-05-28 2024-06-01 SC097725 c:Subsidiary4 1 2023-05-28 2024-06-01 SC097725 c:WithinOneYear 2024-06-01 SC097725 c:WithinOneYear 2023-05-27 SC097725 c:BetweenOneFiveYears 2024-06-01 SC097725 c:BetweenOneFiveYears 2023-05-27 SC097725 c:HirePurchaseContracts c:WithinOneYear 2024-06-01 SC097725 c:HirePurchaseContracts c:WithinOneYear 2023-05-27 SC097725 c:HirePurchaseContracts c:BetweenOneFiveYears 2024-06-01 SC097725 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-05-27 SC097725 d:Consolidated 2024-06-01 SC097725 d:ConsolidatedGroupCompanyAccounts 2023-05-28 2024-06-01 SC097725 2 2023-05-28 2024-06-01 SC097725 6 2023-05-28 2024-06-01 SC097725 14 2023-05-28 2024-06-01 SC097725 e:PoundSterling 2023-05-28 2024-06-01 iso4217:GBP xbrli:shares xbrli:pure
Registered number: SC097725










KETTLE PRODUCE LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

 
KETTLE PRODUCE LIMITED
 

COMPANY INFORMATION


Directors
S J McIntyre 
E A Waugh 
T J Milne 
P M Whyte 
J Horsburgh 
C MacGregor (resigned 29 September 2023)
D J Campbell 
H Brierley (appointed 22 November 2023)
A Devine (appointed 29 May 2024)




Company secretary
E A Waugh



Registered number
SC097725



Registered office
Balmalcolm Farm

Cupar

Fife

KY15 7TJ




Independent auditors
Sumer Auditco Limited
Chartered Accountants & Statutory Auditors

14 City Quay

Dundee

DD1 3JA




Bankers
Bank of Scotland
The Cross

Cupar

Fife

KY15 4BP





 
KETTLE PRODUCE LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 7
Independent Auditors' Report
8 - 11
Consolidated Statement of Comprehensive Income
12
Consolidated Statement of Financial Position
13
Company Statement of Financial Position
14
Consolidated Statement of Changes in Equity
15
Company Statement of Changes in Equity
16
Consolidated Statement of Cash Flows
17 - 18
Consolidated Analysis of Net Debt
19
Notes to the Financial Statements
20 - 43


 
KETTLE PRODUCE LIMITED
 

GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 1 JUNE 2024

Introduction
 
The Company is registered in Scotland under registration number SC097725. Kettle Produce Limited is the ultimate parent company of the Group.

Business review
 
The Group statement of comprehensive income for the year is set out on page 12.
After several years of difficult trading, the Board has implemented various successful initiatives to return the business to sustainable profit.  
Further opportunities arose during the year after extreme weather conditions resulted in supply shortages in some areas of the market in which we operate. This allowed the business to increase sales volumes at the same time as there was market wide sales price inflation.
As the end of the financial year approached and the new growing season began, it was evident that the cold spring weather would affect the availability of early crops. Now in the main season, the Board is satisfied that performance in the new financial year will be in line with the budget; however, action will be required to mitigate the increased labour costs due to changes in the National Living Wage and National Insurance.

Principal risks and uncertainties
 
The Group is reliant on a limited number of customers for supply agreements which are subject to periodic competitive tender. Renewal of these agreements is uncertain and is based on financial and performance criteria. 
The quality and availability of fresh produce is weather dependant. Adverse conditions can have a material effect on the Group's costs. 
The Group imports a significant proportion of its raw materials from out with the UK. Movements in exchange rates can have a  material impact on costs as well as the increased administration costs assocaited with the non-UK supply chain. 

Financial key performance indicators
 
The Group is monitored using a number of financial KPI's including sales, gross margin, and overhead expenditure along with a number of other departmental performance indicators. Key non-financial performance measures are also used including health and safety and environmental performance measures.

Page 1

 
KETTLE PRODUCE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 JUNE 2024

Directors' statement of compliance with duty to promote the success of the Group
 
The Directors of Kettle Produce Limited (KPL) must act in accordance with a set of general duties. These include a duty under Section 172 of the Companies Act to promote the success of the Group and in doing so they must have regard (amongst other things) to the factors summarised below: - 
   a. the likely consequences of any decision in the long term,
   b. the interests of the Group's employees, 
   c. the need to foster the Group's business relationships with suppliers, customers, and others, 
   d. the impact of the Group's operations on the community and the environment, 
   e. the desirability of the Group maintaining a reputation of high standards of a business conduct, and, 
   f. the need to act fairly between members of the Group. 
The Approach 
Values, Vision and Mission:
KPL operates under an aligned set of principles which reflect on how the business operates on a day-to-day basis. These are outlined as follows:-
img7186.png
Strategy:
The directors oversee a structured approach to the development of the Group's strategy, looking at commercial considerations and the development of current and possible future markets. It also takes a long-term perspective on matters such as macro environment change, strategic workforce requirements and the impact of new technology. Long term business planning and key strategic decisions are undertaken in line with the strategy agreed by the Directors. 
High Standard of Business Conduct:
With a focus of engagement in high ethical standards, openness and trust, these values underpin the Group's decision making and define its shared culture. Responsible business conduct is fundamental to the long-term success of the Group. The business does not compromise on this and having the discipline and consistency of this approach is fundamental to defining the Group's reputation.
 
Page 2

 
KETTLE PRODUCE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 JUNE 2024


People:
KPL's ability to deliver on its commitments to customers and sustain business in the long term is highly dependent on the skills and know-how of its workforce. The business's long term operational needs are met through the continual training and development of its staff and also by targeting and attracting new employees. An element of KPL workplace activity is to actively encourage feedback from the employees around what they value most in terms of their working environment and their career development needs.
Diversity and Inclusion:
KPL is committed to being an inclusive organisation with a diverse workforce that reflects the community in which it works. A current priority is to ensure diversity and inclusion is embedded in the very core of its business, in its practices, policies, education and training to ensure all employees are valued and respected.


This report was approved by the board on 15 January 2025 and signed on its behalf.



E A Waugh
Director

Page 3

 
KETTLE PRODUCE LIMITED
 

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 1 JUNE 2024

The directors present their report and the financial statements for the period ended 1 June 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

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


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The Group's principal activities are the growing, processing and packaging of fresh produce for sale to UK based retailers. 

Results and dividends

The profit for the period, after taxation, amounted to £7,350k (2023 - loss £1,891k).

The directors do not propose to pay a dividend in respect of this financial year (2023: £Nil).

Directors

The directors who served during the period were:

S J McIntyre 
E A Waugh 
T J Milne 
P M Whyte 
J Horsburgh 
C MacGregor (resigned 29 September 2023)
D J Campbell 
H Brierley (appointed 22 November 2023)
A Devine (appointed 29 May 2024)

Page 4

 
KETTLE PRODUCE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 JUNE 2024

Financial risk management

The Group has established a risk and financial management framework whose primary objective is to protect the Group from events that hinder the achievement of the Group's performance objectives. The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level.

Future developments

The directors aim to maintain management policies to deliver a stable financial performance in the Group. The trading landscape is dominated by changing consumer buying habits which are influenced by inflationary and cost of living pressures. The directors anticipate that the next financial year will continue to be challenging with significant cost pressures and competitive conditions in the fresh retail market but aim to mitigate by reviewing the business cost structure.

Engagement with employees

Regular management presentations are conducted on an ongoing basis primarily to communicate business updates and take employee questions and feedback.  In addition, the facility has an employee run forum which meets monthly to consider a wide range of employee and community engagement activities.

Engagement with suppliers, customers and others

Engagement with Customers:
 
The KPL commercial team lead the relationship with the customer base centring on regular communication flow (KPL activity/market updates) as well as hosting customers on an ongoing basis within KPL group facility.   
Engagement with Suppliers: 
KPL looks to work with suppliers that embrace standards of ethical behaviour that is consistent with KPL’s own.  The KPL sourcing team lead the relationship with the supplier base centring on regular touchpoints allowing for positive engagement.  Additionally, regular supplier days are organised on site to allow a further exchange of updates and ideas.
Engagement with the Community:
  
KPL proactively considers and reviews the impact it has on the local community and gets involved in local projects.  These have included providing vegetable packs to chosen charities, building associations with local schools, continued sporting sponsorships, as well as other charitable support for local groups and organisations.

Disabled employees

Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and the appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability.

Qualifying third party indemnity provisions

The directors have the benefit of a qualifying third-party indemnity provision as defined by section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The group also purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its directors.

Page 5

 
KETTLE PRODUCE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 JUNE 2024

Going concern

In determining whether the going concern basis of preparation for the financial statements is appropriate the directors have considered the sources of revenue, the ongoing running costs of all aspects of the Group's business and the availability of funding. The directors have prepared a base case cash flow forecast and a severe but plausible downside forecast covering the going concern period and beyond.
The Group currently has an invoice discounting facility with a credit limit which exceeds expected borrowing levels over the going concern period. Due to the seasonality of the Group's business, this facility is required for working capital purposes and the forecasts prepared by the directors indicate that this facility will continue to be required over the going concern period. The existing facility is in place until March 2025 and the directors are confident that this facility will be renewed for an additional 12 month period. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group's greenhouse gas emissions and energy consumption for the period are:





1 June
27 May
2024
2023
      £000
      £000
Scope 1 CO2 emissions (tonnes)

2,860

2,547
 
Scope 2 CO2 emissions (tonnes)

2,874

2,838
 
Total CO2

5,734

5,385
 

Kg of Carbon Dioxide per sales tonne

36.8

34.9
 


 
Energy consumption used to calculate above emissions (Kwh)

14,403,000

14,228,000
 

The electricity used by the business is the main source of our carbon emissions and we continually focus on energy reduction and efficiency projects. In the reporting year our solar panels generated 380,000 Kwh of energy (2023 - 384,000 Kwh), saving 78 tonnes of CO2 (2023 - 79 tonnes).


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 6

 
KETTLE PRODUCE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 JUNE 2024

Post balance sheet events

Details regarding significant events occuring since the balance sheet date are included within the notes to the accounts, where applicable.

Auditors

The auditorsSumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 15 January 2025 and signed on its behalf.
 





E A Waugh
Director

Page 7

 
KETTLE PRODUCE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KETTLE PRODUCE LIMITED
 

Opinion


We have audited the financial statements of Kettle Produce Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 1 June 2024, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 1 June 2024 and of the Group's profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 8

 
KETTLE PRODUCE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KETTLE PRODUCE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9

 
KETTLE PRODUCE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KETTLE PRODUCE LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 10

 
KETTLE PRODUCE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KETTLE PRODUCE LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Douglas Rae (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Chartered Accountants & Statutory Auditors
  
14 City Quay
Dundee
DD1 3JA

21 January 2025
Page 11

 
KETTLE PRODUCE LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 1 JUNE 2024

2024
2023
£000
£000

  

Turnover
 4 
191,336
161,686

Cost of sales
  
(182,576)
(164,334)

Gross profit/(loss)
  
8,760
(2,648)

Other operating income
 5 
105
104

Operating profit/(loss)
 6 
8,865
(2,544)

Share of profit from investments in associates
 15 
267
710

Interest receivable and similar income
 10 
63
1

Interest payable and similar expenses
 11 
(30)
(58)

Profit/(loss) before taxation
  
9,165
(1,891)

Tax on profit/(loss)
 12 
(1,815)
-

Profit/(loss) for the financial period
  
7,350
(1,891)

  

Profit/(loss) for the period attributable to:
  

Owners of the parent Company
  
7,350
(1,891)

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 20 to 43 form part of these financial statements.

Page 12

 
KETTLE PRODUCE LIMITED
REGISTERED NUMBER: SC097725

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 1 JUNE 2024

1 June
27 May
2024
2023
£000
£000

Fixed assets
  

Intangible assets
 13 
-
674

Tangible assets
 14 
13,223
12,014

Investments
 15 
1,706
1,439

  
14,929
14,127

Current assets
  

Stocks
 16 
2,583
3,683

Debtors: amounts falling due within one year
 17 
21,862
21,635

Cash at bank and in hand
  
7,277
542

  
31,722
25,860

Creditors: amounts falling due within one year
 18 
(18,916)
(19,760)

Net current assets
  
 
 
12,806
 
 
6,100

Total assets less current liabilities
  
27,735
20,227

Creditors: amounts falling due after more than one year
 19 
(103)
(182)

Provisions for liabilities
  

Deferred tax
  
(615)
-

Other provisions
 23
(1,299)
(1,677)

  
 
 
(1,914)
 
 
(1,677)

Net assets
  
25,718
18,368


Capital and reserves
  

Called up share capital 
 24 
22
22

Profit and loss account
 25 
25,696
18,346

  
25,718
18,368


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 January 2025.




E A Waugh
Director

The notes on pages 20 to 43 form part of these financial statements.

Page 13

 
KETTLE PRODUCE LIMITED
REGISTERED NUMBER: SC097725

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 1 JUNE 2024

1 June
27 May
2024
2023
£000
£000

Fixed assets
  

Tangible assets
 14 
11,937
11,320

Investments
 15 
6,772
6,772

  
18,709
18,092

Current assets
  

Stocks
 16 
2,411
3,474

Debtors: amounts falling due within one year
 17 
18,439
17,766

Cash at bank and in hand
  
6,004
291

  
26,854
21,531

Creditors: amounts falling due within one year
 18 
(16,630)
(18,171)

Net current assets
  
 
 
10,224
 
 
3,360

Total assets less current liabilities
  
28,933
21,452

  

Creditors: amounts falling due after more than one year
 19 
(103)
(182)

Provisions for liabilities
  

Deferred taxation
 22 
(488)
-

Other provisions
 23
(1,299)
(1,677)

  
 
 
(1,787)
 
 
(1,677)

Net assets
  
27,043
19,593


Capital and reserves
  

Called up share capital 
 24 
22
22

Profit and loss account brought forward
  
19,571
20,472

Profit/(loss) for the period
  
7,450
(901)

Profit and loss account carried forward
  
27,021
19,571

  
27,043
19,593


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 January 2025.


E A Waugh
Director

The notes on pages 20 to 43 form part of these financial statements.

Page 14

 
KETTLE PRODUCE LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 1 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 May 2022
22
20,237
20,259


Comprehensive income for the period

Loss for the period
-
(1,891)
(1,891)



At 28 May 2023
22
18,346
18,368


Comprehensive income for the period

Profit for the period
-
7,350
7,350


At 1 June 2024
22
25,696
25,718


The notes on pages 20 to 43 form part of these financial statements.

Page 15

 
KETTLE PRODUCE LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 1 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 May 2022
22
20,472
20,494


Comprehensive income for the period

Loss for the period
-
(901)
(901)



At 28 May 2023
22
19,571
19,593


Comprehensive income for the period

Profit for the period
-
7,450
7,450


At 1 June 2024
22
27,021
27,043


The notes on pages 20 to 43 form part of these financial statements.

Page 16

 
KETTLE PRODUCE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 1 JUNE 2024

1 June
27 May
2024
2023
£000
£000

Cash flows from operating activities

Profit/(loss) for the financial period
7,350
(1,891)

Adjustments for:

Amortisation of intangible assets
674
1,520

Depreciation of tangible assets
2,907
2,713

(Gain)/loss on disposal of tangible assets
(96)
(17)

Government grants
(85)
(85)

Interest paid
30
58

Interest received
(63)
(1)

Taxation charge
1,815
-

Decrease/(increase) in stocks
1,100
(581)

(Increase) in debtors
(413)
(4,792)

Increase in creditors
1,344
2,708

(Decrease) in provisions
(293)
(151)

Share of operating (profit) in associates
(267)
(710)

Corporation tax (paid)/received
(840)
65

Net cash generated from operating activities

13,163
(1,164)


Cash flows from investing activities

Purchase of tangible fixed assets
(4,187)
(1,217)

Sale of tangible fixed assets
167
17

Interest received
63
1

HP interest paid
(10)
(38)

Net cash from investing activities

(3,967)
(1,237)
Page 17

 
KETTLE PRODUCE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 1 JUNE 2024

1 June
27 May

2024
2023

£000
£000



Cash flows from financing activities

Repayment of/new finance leases
(41)
178

Interest paid
(20)
(20)

Net cash used in financing activities
(61)
158

Net increase/(decrease) in cash and cash equivalents
9,135
(2,243)

Cash and cash equivalents at beginning of period
(1,858)
385

Cash and cash equivalents at the end of period
7,277
(1,858)


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
7,277
542

Bank overdrafts
-
(2,400)

7,277
(1,858)


The notes on pages 20 to 43 form part of these financial statements.

Page 18

 
KETTLE PRODUCE LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 1 JUNE 2024





At 28 May 2023
Cash flows
New finance leases
At 1 June 2024
£000

£000

£000

£000

Cash at bank and in hand

542

6,735

-

7,277

Bank overdrafts

(2,400)

2,400

-

-

Finance leases

(302)

120

(79)

(261)


(2,160)
9,255
(79)
7,016

The notes on pages 20 to 43 form part of these financial statements.

Page 19

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

1.


General information

Kettle Produce Limited is a private company limited by shares and is incorporated and domiciled in the United Kingdom. The address of its registered office is Balmalcolm Farm, Cupar, Fife, KY15 7TJ.
The Group consists of Kettle Produce Limited and all of its subsidiaries.
The principal activity of the Group is the growing and packing of fresh produce.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

Page 20

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

2.Accounting policies (continued)

 
2.3

Going concern

In determining whether the going concern basis of preparation for the financial statements is appropriate the directors have considered the sources of revenue, the ongoing running costs of all aspects of the group's business and the availability of funding. The directors have prepared a base case cash flow forecast and a severe but plausible downside forecast covering the going concern period and beyond.
The Group has successfully traded through the global pandemic during which time sales have increased. There hasn't been as severe an impact on the food supply industry compared to other industries and the Group's operations, being the supply of food, continues to be deemed essential. The directors recognise that it is plausible the cost of living crisis could have an effect on operations in the future and have factored this into their severe but plausible downside scenario.
The Group currently has an invoice discounting facility with a credit limit which exceeds expected borrowing levels over the going concern period. Due to the seasonality of the Group's business, this facility is required for working capital purposes and the forecasts prepared by the directors indicate that this facility will continue to be required over the going concern period. The existing facility is in place until March 2024 and the directors are confident that this facility will be renewed for an additional 12 month period. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. Monetary amounts in these financial statements are rounded to the nearest £000.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 21

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

2.Accounting policies (continued)

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 22

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

2.Accounting policies (continued)

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 23

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

2.Accounting policies (continued)

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of five years.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
10-20 years
Long-term leasehold property
-
10-20 years
Plant and machinery
-
1-7 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 24

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

2.Accounting policies (continued)

 
2.16

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at cost and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 25

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

2.Accounting policies (continued)

  
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.22

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

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

 
2.23

Employee share ownership plan

The cost of the Group's shares held by the ESOP is deducted from equity in the Group and Company balance sheets under the heading ESOP share reserve. Any cash received by the ESOP on disposal of the shares it holds is also recognised directly in equity. Other assets and liabilities of the ESOP (including borrowings) are recognised as assets and liabilities of the Group.

The costs of operating the ESOP are included in the profit and loss account.

Page 26

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, the directors are required to make judgments, 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. 
 
Those estimates considered to involve a significant risk of causing a material adjustment to the carrying amount of assets and liabilites are as follows -  
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in their estimated useful economic lives and the residual values of the assets. Asset lives are reviewed on a periodic basis and are amended where necessary. These amendments reflect current estimates and are based upon technological advancement, future investments, economic utilisation and the physical condition of the assets.
Useful economic life of intangible assets
The Group’s intangible assets comprise the goodwill arising from the acquisition of subsidiary companies. The estimation of the economic life of this goodwill is subjective and is reviewed periodically based upon projected future trading performances of the subsidiary businesses. The estimated economic life of the goodwill arising from the acquisition of Barrowcliffe Limited is currently 5 years.
Retirement pay provision
The Company operates a scheme whereby employees are entitled to a lump sum payment on retirement from the Company which varies depending on the length of the employee’s service with the Company. Estimates are made as to the likelihood of employees remaining in the Company’s employment until retirement and consequently being entitled to a lump sum payment. 
Stock valuations
Included within stock are growing crops. Estimates are made regarding the realisable value of these crops which will depend on the yield and quality of the crop when it is ultimately harvested. 
Taxation
Management estimation is required to determine the amount of deferred tax liabilities that are recognised based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax policie.
Provisions for settlement of legal disputes 
Management estimation is required to determine the likely settlement of on-going legal disputes.  
 

Page 27

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£000
£000

Produce sales
191,336
161,686

191,336
161,686


Analysis of turnover by country of destination:

2024
2023
£000
£000

United Kingdom
191,336
161,680

Rest of Europe
-
6

191,336
161,686



5.


Other operating income

2024
2023
£000
£000

Net rents receivable
20
19

Government grants receivable
85
85

105
104



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2024
2023
£000
£000

Depreciation of tangible fixed assets
2,907
2,713

Amortisation of intangible assets, including goodwill
674
1,520

Exchange differences
(18)
7

Other operating lease rentals
1,612
1,640

Amortisation of deferred EC grants
(85)
(85)

(Gain) on sale of tangible fixed assets
(96)
(17)

Page 28

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

7.


Auditors' remuneration

During the period, the Group obtained the following services from the Company's auditors and their associates:


2024
2023
£000
£000

Fees payable to the Company's auditors and their associates in respect of:

Audit-related assurance services
56
53

Taxation compliance services
27
14

All non-audit services not included above
6
8


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000


Wages and salaries
32,232
29,436
27,294
25,117

Social security costs
2,978
2,784
2,602
2,433

Cost of defined contribution scheme
1,260
1,256
1,083
1,099

36,470
33,476
30,979
28,649


The average monthly number of employees, including the directors, during the period was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Administration
103
121
88
88



Production
1,013
1,021
832
871

1,116
1,142
920
959

Page 29

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

9.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
1,021
1,062

Group contributions to defined contribution pension schemes
128
128

1,149
1,190


During the period retirement benefits were accruing to 9 directors (2023 - 7) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £217k (2023 - £216k).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).

During the period NIL directors received shares under the long-term incentive schemes (2023 -NIL)

No (2023 - 0) directors have exercised share options and no (2023 - 0) director received share options under the share option scheme during the year. Further details of the share option scheme operated by the company are disclosed in note 29.


10.


Interest receivable

2024
2023
£000
£000


Other interest receivable
63
1

63
1


11.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
20
48

Finance leases and hire purchase contracts
10
10

30
58

Page 30

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

12.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
1,171
-


Total current tax
1,171
-

Deferred tax


Origination and reversal of timing differences
644
-

Total deferred tax
644
-


Taxation on profit on ordinary activities
1,815
-

Factors affecting tax charge for the period

The tax assessed for the period is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£000
£000


Profit/(loss) on ordinary activities before tax
9,165
(1,891)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
2,291
(359)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
169
289

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
45
(31)

Capital allowances for period in excess of depreciation
(543)
38

Utilisation of tax losses
(553)
-

Adjustments to tax charge in respect of prior periods
97
-

Non-taxable income
(88)
(151)

Changes in provisions leading to an increase (decrease) in the tax charge
644
-

Unrelieved tax losses carried forward
-
214

Group relief
(247)
-

Total tax charge for the period
1,815
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 31

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

13.


Intangible assets

Group







Goodwill

£000



Cost


At 28 May 2023
7,631



At 1 June 2024

7,631



Amortisation


At 28 May 2023
6,957


Charge for the period on owned assets
674



At 1 June 2024

7,631



Net book value



At 1 June 2024
-



At 27 May 2023
674



The Company has no intangible assets.

Page 32

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

14.


Tangible fixed assets

Group








Freehold property
Long-term leasehold property
Plant and machinery
Total

£000
£000
£000
£000



Cost or valuation


At 28 May 2023
22,919
269
44,214
67,402


Additions
276
-
3,911
4,187


Disposals
-
(133)
(782)
(915)



At 1 June 2024

23,195
136
47,343
70,674



Depreciation


At 28 May 2023
15,257
268
39,863
55,388


Charge for the period on owned assets
857
-
1,928
2,785


Charge for the period on financed assets
-
-
122
122


Disposals
-
(133)
(711)
(844)



At 1 June 2024

16,114
135
41,202
57,451



Net book value



At 1 June 2024
7,081
1
6,141
13,223



At 27 May 2023
7,662
1
4,351
12,014

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


1 June
27 May
2024
2023
£000
£000



Plant and machinery
486
460

486
460

Page 33

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

           14.Tangible fixed assets (continued)


Company









Freehold property
Plant and machinery
Total

£000
£000
£000

Cost or valuation


At 28 May 2023
22,318
42,097
64,415


Additions
276
3,050
3,326


Disposals
-
(458)
(458)



At 1 June 2024

22,594
44,689
67,283



Depreciation


At 28 May 2023
15,080
38,015
53,095


Charge for the period on owned assets
804
1,712
2,516


Charge for the period on financed assets
-
122
122


Disposals
-
(387)
(387)



At 1 June 2024

15,884
39,462
55,346



Net book value



At 1 June 2024
6,710
5,227
11,937



At 27 May 2023
7,238
4,082
11,320






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


1 June
27 May
2024
2023
£000
£000



Plant and machinery
486
460

486
460

Page 34

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

15.


Fixed asset investments

Group








Investments in associates
Unlisted investments
Total

£000
£000
£000



Cost or valuation


At 28 May 2023
1,190
249
1,439


Share of profit/(loss)
267
-
267



At 1 June 2024
1,457
249
1,706




Company








Investments in subsidiary companies
Investments in associates
Unlisted investments
Total

£000
£000
£000
£000



Cost or valuation


At 28 May 2023
6,043
480
249
6,772



At 1 June 2024
6,043
480
249
6,772




The investments in associates represents an investment of 33.3% of the share capital of Kettle Produce Espania, a company registered in Spain that prepares statutory financial statements to a year end of 30 September. Its principal business activity is the packaging and sale of broccoli, cabbages, and melons.
The net book value of Group's fixed asset investments in relation to associated undertakings amounting to £1,457k (2023 - £1,190k) comprises of the initial cost of the investment of £480k (2023 - £480k) plus cumulative share of profits to date amounting to £977k (2023 - £710).

Page 35

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Barrowcliffe Limited
England
Supply of fresh produce
Ordinary & Preference
100%
Barrowcliffe Food Solutions Limited
England
Non-trading
Ordinary
100%
Barrowcliffe Cooking Limited
England
Rental business
Ordinary
100%
WM Barrowcliffe & Sons Limited
England
Non-trading
Ordinary
100%

The registered office address for all of the companies listed above is Hooton Street, Carlton Road, Nottingham, NG3 2NJ.


16.


Stocks

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Raw materials and consumables
1,981
1,765
1,981
1,765

Work in progress and finished goods
602
1,918
430
1,709

2,583
3,683
2,411
3,474



17.


Debtors

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000


Trade debtors
20,079
18,896
15,567
14,759

Amounts owed by group undertakings
-
-
1,373
538

Other debtors
1,122
1,746
1,073
1,672

Prepayments and accrued income
661
964
426
797

Deferred taxation
-
29
-
-

21,862
21,635
18,439
17,766


Page 36

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

18.


Creditors: Amounts falling due within one year

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Bank overdrafts
-
2,400
-
2,360

Trade creditors
15,467
14,731
13,727
13,076

Amounts owed to group undertakings
-
-
-
518

Corporation tax
174
-
174
-

Other taxation and social security
788
634
716
564

Obligations under finance lease and hire purchase contracts
158
120
158
120

Accruals and deferred income
2,329
1,875
1,855
1,533

18,916
19,760
16,630
18,171


The group has a debt facility with the Bank of Scotland that is secured over certain trade receivables of the group with interest charged at normal commercial rates. As part of this facility Kettle Produce Limited guarantees the borrowings of other group undertakings. At 1 June 2024 there were no amounts borrowed under this facility (2023 - £2.4m).
Obligations under finance leases and hire purchase contracts are secured against the relevant tangible fixed assets. 


19.


Creditors: Amounts falling due after more than one year

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Net obligations under finance leases and hire purchase contracts
103
182
103
182

103
182
103
182


Obligations under finance leases and hire purchase contracts are secured against the relevant tangible fixed assets. 

Page 37

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Within one year
158
120
158
120

Between 1-5 years
103
182
103
182

261
302
261
302


21.


Financial instruments

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Financial assets

Financial assets measured at fair value through profit or loss
1,457
1,190
6,772
6,772




Financial assets measured at fair value through profit or loss comprise of fixed asset investments. 

Page 38

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

22.


Deferred taxation


Group



2024


£000






At beginning of year
29


Charged to profit or loss
(644)



At end of year
(615)

Company


2024


£000






Charged to profit or loss
(488)



At end of year
(488)

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Accelerated capital allowances
(615)
29
(488)
-

(615)
29
(488)
-

Page 39

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

23.


Provisions

Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000


Deferred EC grant
142
227
142
227

Retirement pay provision
999
961
999
961

Staff loyalty award provision
158
129
158
129

Provision for pending legal case
-
360
-
360

1,299
1,677
1,299
1,677

EC grants on capital expenditure are amortised over the expected useful like of the assets to which they relate. During the year the amount amortised was £85k (2023 - £85k) and this was credited to the profit and loss account.
The Company operates an unfunded defined benefit long service award scheme whereby employees are entitled to a lump sum payment on retirement from the Company. The lump sum benefit is based on the length of the employees’ service with the company. The Company meets the payments from the scheme as they fall due. In the year to 1 June 2024 the company paid lump sums totalling £39k (2023 - £69k) under the scheme. At 1 June 2024 the company has recorded a liability of £999k (2023 - £961k) in respect of future expected payments under the scheme.
The Company also has an employee loyalty award scheme whereby employees are rewarded on significant anniversaries of commencing employment. The Company has recorded a liability of £158k (2023 - £129k) in respect of expected future payments under this scheme.
The Company had provided for the costs of settling a legal dispute. In 2022 the provision was set at a level estimated by the directors’ following consultations with their legal advisors (£500k). In 2023 the provision was reduced to £360k to reflect the fine imposed on the Company by the Courts post year end and fully released in 2024. 


24.


Share capital

1 June
27 May
2024
2023
£000
£000
Allotted, called up and fully paid



22,501 (2023 - 22,501) Ordinary shares of £1.00 each
22
22



25.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses. 

Page 40

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

26.


Capital commitments




At 1 June 2024 the Group and Company had capital commitments as follows:


Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Contracted for but not provided in these financial statements
1,032
24
1,032
24

1,032
24
1,032
24


27.


Pension commitments

The Group operates a number of defined contribution pension plans. Contributions of £1,260k (2023 - £1,256k) were paid into these schemes during the year. Contributions totalling £19k (2023 - £120k) were payable to the schemes at the balance sheet date. 


28.


Commitments under operating leases

At 1 June 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
1 June
Group
27 May
Company
1 June
Company
27 May
2024
2023
2024
2023
£000
£000
£000
£000

Not later than 1 year
719
761
504
527

Later than 1 year and not later than 5 years
782
913
366
457

1,501
1,674
870
984

Page 41

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

29.


Kettle Produce Employee Share Option Scheme

The Company operates a share option scheme for certain key executives with grants having been awarded at dates between November 2013 and September 2021. The options are equity settled and only vest in the event of a change in ownership of the equity. At present the Directors have no expectation that the awards will vest and consequently the total expense recognised in 2024 is nil (2023 - nil).
Details of the scheme are as follows:

1 June
27 May
2024
2023
Number of awards outstanding at start of year

3,000

3,000
 
Grants awarded in the year

-

-
 
Lapsed awards

-

-
 
Number of awards outstanding at the year end
3,000

3,000
 

Number of awards exercisable at the start and end of the year

0

0
 
Share price

£200

£200
 
The fair value of the awards outstanding at the date of the grant

£600,000

£600,000
 


 
The total expense recognised for the year

£0

£0
 
Liabilities arising from share-based payment transactions

£0

£0
 

The fair value of the share option awards has been determined as the value of the share price as at the date of grant less expected future dividends over the expected life of the award. The Directors have assumed a nil future dividend yield over the vesting year of the awards and as such the fair value of the award has been set as equal to the share price at the date of grant. As the shares do not have an observable market price, share valuation techniques have been used to determine the share price at the date of grant.

Page 42

 
KETTLE PRODUCE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 JUNE 2024

30.


Related party transactions

During the year the company has traded in its normal course of business with businesses in which the directors have a material interest as follows:


1 June
27 May
2024
2023
£000
£000

C C McIntyre Farming
Net purchases/(sales) during the year
5,331
4,728
Net debtor/(creditor) balance at year end
(142)
151

S J McIntyre has a financial interest in the farming business carried out by C C McIntyre Farming.

During the year Kettle Produce Limited traded with its associate companies as follows:

1 June
27 May
2024
2023
£000
£000
Kettle Produce Espana SL
Net purchases/(sales) during the year

11,673

8,722
 
Net debtor/(creditor) balance at year end

(1,879)

(1,551)
 

Kettle Strawson Produce Limited
Net purchases/(sales) during the year

2,751

2,937
 
Net debtor/(creditor) balance at year end

-

(102)
 


31.


Post balance sheet events

Since the balance sheet date the group sold freehold property for a value of £606,501 and used the proceeds received for working capital requirements.


32.


Controlling party

The ultimate controlling party is S J McIntyre, a director of the Company.


Page 43