Company registration number 01876796 (England and Wales)
NEW ENGLISH TEAS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
NEW ENGLISH TEAS LIMITED
COMPANY INFORMATION
Directors
N Houghton
R O'Keefe
Company number
01876796
Registered office
3 Coventry Innovation Village
Cheetah Road
Coventry
CV1 2TL
Auditor
Spencer Gardner Dickins Audit LLP
3 Coventry Innovation Village
Cheetah Road
Coventry
CV1 2TL
Business address
Unit 6 Spitfire Close
Coventry Business Park
Coventry
CV5 6UR
NEW ENGLISH TEAS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 19
NEW ENGLISH TEAS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Principal Activities
New English Teas Limited is a privately owned company, and the principal activity of the business is the manufacture and supply of tea and tea gifts to wholesalers, retailers and direct to consumers.
Review of the Business
The company has performed well during the financial year. Reported revenue for the year ended 30 April 2024 was £10.3m, with operating profits of £2.5m.
All customer sectors have performed well with a more diversified range of distribution channels and trading customers than previous years.
Gross profit margins have also improved during the year. This is mainly attributable to a change in customer and channel mix. However, direct costs relating to transport and logistics have remained relatively stable for the majority of the year, following the volatility experienced in previous years due to the Covid pandemic.
NEW ENGLISH TEAS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Principal Risks and Uncertainties
Disruption to the Supply Chain
Recent years have brought disruptions to our international supply chain and have increased costs to supply, for example the global pandemic, the war in Ukraine and the disruption in the Red Sea.
Mitigation: Our supply chain relationships and experience helps protect us from the impact of these disruptions through effective stock management and international logistics capabilities. This has been proven with no orders lost during the Covid pandemic. We continue to diversify our supplier network geographically and set up the ability to dual source our key product lines.
Economic and political factors beyond our control
A downturn in the macro-economic environment may reduce customer demand.
Mitigation: Our products are sold through multiple sales channels across multiple countries. This widespread customer base offers protection against external factors impacting specific global regions. We continue to expand the customer base and our supplier network as previously mentioned.
Our product is high quality, with an affordable price point, and sales are therefore less impacted by economic factors compared to similar, more premium priced products.
Competition
The retail sector remains a highly competitive environment which could impact demand for our products.
Mitigation: We believe our focus on the quality and design of the product is essential in protecting and increasing our market share.
Loss of Key Management
The absence of critical employees for an extended period of time could impact the performance of the business.
Mitigation: We have continued to expand the senior management team and have strengthened resources across all functions of the business.
Cyber Security
Disruption to our systems could limit our ability to sell and distribute our products.
Mitigation: We have implemented additional security measures across the team and all of our applications, and will continue to do so. The knowledge and processes across the team allow us to continue to operate manually, should our systems be compromised or temporarily unavailable.
NEW ENGLISH TEAS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Future Plans
The Board is focused on fulfilling the growth potential of New English Teas both in the UK and internationally, and believe these opportunities are significant.
Throughout the financial period we have invested in our team, our IT systems, our trademarks and our product ranges. Whilst this has understandably increased overhead expenditure, this strategy ensures that the Company is well placed to exploit opportunities in the future and to deliver ongoing growth at rates comparable with the last two years.
Our strategy remains focused on delivering a high quality, beautifully designed and presented product range at a competitive price point to an increasingly diverse customer base; diversified both through distribution channel and geography.
Our supply chain strength remains a key success factor for growth. Our longstanding, ethical relationships with our key suppliers ensures our ability to respond to customer needs and protect ourselves against external global transport and logistic disruptions.
Integrity and honesty is a key foundation of our business and remains a core value for the Company going forward. We support our tea suppliers by funding their SA8000 certification. SA8000 improves standards for workers and businesses to ensure better working conditions and worker well-being. In addition, we are also proud to support charities within the global communities we interact with, as well as the charitable causes our colleagues care about.
Going Concern
The Directors have considered cashflow forecasts and budgets going forward at least twelve months from the date of approval of these financial statements. They have also assessed the company’s situation regarding the other risks identified above and the likely impact on the company. They are satisfied that this review and those forecasts provide an expectation that the company will continue to trade for the foreseeable future and so the company continues to adopt the going concern basis.
R O'Keefe
Director
30 January 2025
NEW ENGLISH TEAS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity continue to be that of the manufacture and supply of tea and tea gifts to wholesalers, retailers and direct to consumers.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
N Houghton
R O'Keefe
Auditor
The auditor, Spencer Gardner Dickins Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company 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 research and development activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
NEW ENGLISH TEAS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
R O'Keefe
Director
30 January 2025
NEW ENGLISH TEAS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW ENGLISH TEAS LIMITED
- 6 -
Opinion
We have audited the financial statements of New English Teas Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
NEW ENGLISH TEAS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW ENGLISH TEAS LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Enquiry of management and those charged with governance around actual and potential litigation and claims.
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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.
NEW ENGLISH TEAS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW ENGLISH TEAS LIMITED (CONTINUED)
- 8 -
Debra Knighton FCCA
Senior Statutory Auditor
For and on behalf of Spencer Gardner Dickins Audit LLP
30 January 2025
Chartered Accountants
Statutory Auditor
3 Coventry Innovation Village
Cheetah Road
Coventry
CV1 2TL
NEW ENGLISH TEAS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
2
10,312,576
10,773,511
Cost of sales
(6,181,300)
(6,605,378)
Gross profit
4,131,276
4,168,133
Administrative expenses
(2,246,673)
(1,775,890)
Other operating income
585,260
157,377
Operating profit
3
2,469,863
2,549,620
Interest receivable and similar income
6
37,282
5,885
Interest payable and similar expenses
7
(1,567)
Profit before taxation
2,505,578
2,555,505
Tax on profit
8
(575,381)
(488,582)
Profit for the financial year
1,930,197
2,066,923
Retained earnings brought forward
7,792,499
5,725,576
Retained earnings carried forward
9,722,696
7,792,499
NEW ENGLISH TEAS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
72,085
39,049
Current assets
Stocks
10
2,663,408
2,136,035
Debtors
11
5,865,189
3,604,891
Cash at bank and in hand
2,829,799
2,708,823
11,358,396
8,449,749
Creditors: amounts falling due within one year
12
(1,680,534)
(678,062)
Net current assets
9,677,862
7,771,687
Total assets less current liabilities
9,749,947
7,810,736
Provisions for liabilities
Deferred tax liability
13
17,251
8,237
(17,251)
(8,237)
Net assets
9,732,696
7,802,499
Capital and reserves
Called up share capital
15
10,000
10,000
Profit and loss reserves
9,722,696
7,792,499
Total equity
9,732,696
7,802,499
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
R O'Keefe
Director
Company registration number 01876796 (England and Wales)
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information
New English Teas Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Coventry Innovation Village, Cheetah Road, Coventry, CV1 2TL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
At the reporting date, the company was 100% owned by New English Foods Limited. The ultimate parent company was NEF Holdings Limited. This company is the parent of the smallest group for which consolidated accounts are drawn up of which the company is a member which are available from Unit 6 Spitfire Close, Coventry Business Park, Coventry, CV5 6UR.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line
Plant and equipment
10% straight line
Fixtures and fittings
10% - 33% straight line
Computers
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell on an average cost basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognsied in the profit and loss account in other administrative expenses.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
5,395,559
4,611,675
Europe
383,996
242,150
Rest of World
4,533,021
5,919,686
10,312,576
10,773,511
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Turnover and other revenue
(Continued)
- 14 -
2024
2023
£
£
Other revenue
Interest income
37,282
5,885
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
107,367
(59,172)
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
8,565
Depreciation of owned tangible fixed assets
28,697
20,426
Profit on disposal of tangible fixed assets
(450)
-
Operating lease charges
92,476
85,721
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Admin
16
15
Warehouse
3
3
Total
19
18
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
961,242
855,748
Social security costs
102,390
103,106
Pension costs
89,993
72,516
1,153,625
1,031,370
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
126,753
127,254
Company pension contributions to defined contribution schemes
57,326
44,668
184,079
171,922
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
37,282
5,159
Other interest income
726
Total income
37,282
5,885
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
1,567
-
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
566,367
489,165
Deferred tax
Origination and reversal of timing differences
9,014
(583)
Total tax charge
575,381
488,582
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
8
Taxation
(Continued)
- 16 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,505,578
2,555,505
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
626,395
498,145
Tax effect of expenses that are not deductible in determining taxable profit
38,296
7,957
Effect of change in corporation tax rate
(739)
Group relief
(89,310)
(19,529)
Other permanent differences
(37)
Deferred tax adjustments in respect of prior years
2,785
Taxation charge for the year
575,381
488,582
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 May 2023
54,454
4,000
51,623
39,407
149,484
Additions
18,695
1,330
41,708
61,733
Disposals
(4,000)
(15,227)
(29,545)
(48,772)
At 30 April 2024
54,454
18,695
37,726
51,570
162,445
Depreciation and impairment
At 1 May 2023
38,118
4,000
35,983
32,334
110,435
Depreciation charged in the year
10,891
1,246
7,328
9,232
28,697
Eliminated in respect of disposals
(4,000)
(15,227)
(29,545)
(48,772)
At 30 April 2024
49,009
1,246
28,084
12,021
90,360
Carrying amount
At 30 April 2024
5,445
17,449
9,642
39,549
72,085
At 30 April 2023
16,336
15,640
7,073
39,049
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
10
Stocks
2024
2023
£
£
Raw materials and consumables
1,331,767
1,282,290
Finished goods and goods for resale
1,331,641
853,745
2,663,408
2,136,035
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,017,912
682,291
Amounts owed by group undertakings
4,100,755
2,647,965
Other debtors
25,466
17,740
Prepayments and accrued income
721,056
256,895
5,865,189
3,604,891
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
489,573
224,597
Amounts owed to group undertakings
543,688
Corporation tax
270,610
174,705
Other taxation and social security
30,323
29,980
Other creditors
1,398
1,387
Accruals and deferred income
344,942
247,393
1,680,534
678,062
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
17,339
8,314
Retirement benefit obligations
(88)
(77)
17,251
8,237
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Deferred taxation
(Continued)
- 18 -
2024
Movements in the year:
£
Liability at 1 May 2023
8,237
Charge to profit or loss
9,014
Liability at 30 April 2024
17,251
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,993
72,516
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
16
Financial commitments, guarantees and contingent liabilities
New English Teas Limited is part of a group guarantor scheme regarding the commercial loans and loan notes within the group. At the reporting date New English Teas Limited has fixed and floating charges over its assets to the value of £7,160,438 (2023: £8,094,409).
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
31,458
75,500
Between two and five years
31,458
31,458
106,958
NEW ENGLISH TEAS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
18
Related party transactions
The company has taken advantage of the exemption under the terms of FRS 102 not to disclose related party transactions with wholly owned group entities.true
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