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Marston Foods Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 May 2024

Registration number: 07207619

 

Marston Foods Limited

Contents

Company Information

1

Directors' Report

2 to 3

Profit and Loss Account

4

Balance Sheet

5 to 6

Statement of Changes in Equity

7

Notes to the Unaudited Financial Statements

8 to 15

 

Marston Foods Limited

Company Information

Directors

Mr S T Collingwood

Ms E Tucker

Company secretary

Mrs T Billing

Registered office

Unit 5
Marston Park
Tytherington
Frome
BA11 5BS

Accountants

Francis Clark LLP
Accountant
Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Taunton
Somerset
TA1 2PX

 

Marston Foods Limited

Directors' Report for the Year Ended 31 May 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Principal activity

The principal activity of the company is that of the production of high quality, hand finished chilled and frozen desserts.

Business review

This year the key focus of the business was to move from a period of consolidation back into growth, which it has delivered with great success. This was primarily achieved by developing and retaining key customers. Not only has this increased sales growth in the reporting year, but provided a significant opportunity going forward to ensure that a strong platform for further growth is in place. The sales growth reported in the first half of 2023/24 was maintained through to the end of the year delivering a 17.25% sales increase for the reporting year. The first seven month of the current year 2024/25 achieved a further year on year sales growth of 13.5%.

Despite the market pressures the business still delivered its strategic plan and as a result is pleased to report margin recovery of 4.7% and a decrease of administrative costs of 1.8% as a percentage of sales bringing. This is an extremely pleasing result especially given inflation and the national minimum wage (NLW) increase of 9.8% in April 2024. As a result, the business improved its overall pre-tax profit in this year by £284k compared to previous year.

The business is still forecasting significant sales growth in the next 12 months as a result of new opportunities and market sectors all of which are supported by a strong investment plan to increase the manufacturing capacity. The continued rising costs that the market is continuing to face will be mitigated by the business redeveloping its range of products and achieving productivity improvements through planned investment. Alongside this, innovation continues to be a strong Selling Point and will ensure continued growth for the business.

Balance sheet strength has improved in the year with shareholders funds increasing by 13.7%, £138k compared to £42k in the previous financial year. The business maintained a consistent level of debt during the year with the level of debt since the year end falling by £169k as of December 2024. Although Finance costs did increase during the year, the costs were mainly driven by increased sales and therefore an uplift in cost of the Invoice Discounting facility, and not increased loan interest. The shareholders have again continued to support the business with no pension payments and with minimal dividends to the parent company during the year.
 

Principal Risks & Uncertainties

The challenges of rising costs will continue in 2025/2026 but our business plan has taken this into account with a focus on investment and value engineering to improve productivity as margin recovery will be essential especially after the government announcement that employers National Insurance will rise along with a 6.7% increase in National Living Wage from April 2025.

Sustainability

This is our fourth year of being part of the Make it New Zero programme which verifies our carbon footprint and during 2023/24 the business achieved 18% reduction in CO2 emissions. The target is to achieve a minimum 10% reduction every year with the aim to deliver Somersets target of Net Zero by 2030.

 

Marston Foods Limited

Directors' Report for the Year Ended 31 May 2024

Directors

Directors who held office during the year and up to the date of signature of the financial statements for the year ended 31st May 2024 were as follows:

Mr S T Collingwood
Ms E Tucker
 

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 22 January 2025 and signed on its behalf by:
 

.........................................
Mr S T Collingwood
Director

 

Marston Foods Limited

Profit and Loss Account

Year Ended 31 May 2024

Note

2024
£

2023
£

Turnover

 

8,909,628

7,598,286

Cost of sales

 

(7,205,622)

(6,441,033)

Gross profit

 

1,704,006

1,157,253

Administrative expenses

 

(1,369,226)

(1,303,772)

Other operating income

 

5,000

177,479

Operating profit

 

339,780

30,960

Other interest receivable and similar income

 

339

338

Interest payable and similar expenses

 

(139,585)

(114,846)

   

(139,246)

(114,508)

Profit/(loss) before tax

200,534

(83,548)

Tax on profit/(loss)

 

18,846

167,350

Profit for the financial year

 

219,380

83,802

 

Marston Foods Limited

Balance Sheet

31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

917,702

966,953

Current assets

 

Stocks

5

377,449

491,982

Debtors

6

2,103,373

2,299,812

Cash at bank and in hand

 

301,907

72,235

 

2,782,729

2,864,029

Creditors: Amounts falling due within one year

7

(2,200,063)

(2,460,780)

Net current assets

 

582,666

403,249

Total assets less current liabilities

 

1,500,368

1,370,202

Creditors: Amounts falling due after more than one year

7

(351,549)

(340,412)

Provisions for liabilities

(2,257)

(21,103)

Net assets

 

1,146,562

1,008,687

Capital and reserves

 

Called up share capital

12

100

100

Revaluation reserve

46,080

50,688

Profit and loss account

1,100,382

957,899

Shareholders' funds

 

1,146,562

1,008,687

 

Marston Foods Limited

Balance Sheet

31 May 2024

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 22 January 2025 and signed on its behalf by:
 

.........................................
Mr S T Collingwood
Director

Company Registration Number: 07207619

 

Marston Foods Limited

Statement of Changes in Equity

Year Ended 31 May 2024

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 June 2023

100

50,688

957,899

1,008,687

Profit for the year

-

-

219,380

219,380

Dividends

-

-

(81,505)

(81,505)

Transfers

-

(4,608)

4,608

-

At 31 May 2024

100

46,080

1,100,382

1,146,562

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 June 2022

100

55,296

911,589

966,985

Profit for the year

-

-

83,802

83,802

Dividends

-

-

(42,100)

(42,100)

Transfers

-

(4,608)

4,608

-

At 31 May 2023

100

50,688

957,899

1,008,687

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 5
Marston Park
Tytherington
Frome
BA11 5BS

These financial statements were authorised for issue by the Board on 22 January 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The directors, having made all necessary enquiries and considered the ongoing impacts of; the current UK economic uncertainty; significant inflationary pressures on business costs and the ‘cost of living crisis’ amongst consumers; are satisfied that it remains appropriate to prepare the financial statements on a going concern basis. In making this assessment the directors have forecasted financial and cash flow performance for a period of no less than 12 months from the date of the approval of these financial statements.

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

Key judgements and sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods

The key judgement that has a significant impact on the financial statements is in respect of going concern, as described above.

The key estimate that is significant to the financial statements is depreciation. Tangible fixed assets are carried at cost or valuation, less accumulated depreciation and any subsequent accumulated impairment loss. Plant and machinery is carried at deemed cost based upon a valuation carried out by external professionals as at 31 May 2018. This approach requires estimation of depreciation rates used. An assessment of the ongoing economic contribution of the assets of the company is undertaken to determine whether an indicator of impairment has occurred. The carrying amount is £917,702 (2023 - £966,953).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

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.

Government grants

Government revenue grants are accounted for under the accruals method. These are credited to the profit and loss account when the company is entitled to the income.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

6.67% / 10% / 20% on cost

Fixtures, fittings & equipment

6.67% / 10% / 20% on cost

Computer equipment

20% on cost

Motor vehicles

15% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. The treatment of finance leases is as set out in the accounting policy for financial instruments detailed below.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Hire purchase and finance lease obligations;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

Assets held under fire purchase and finance lease are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligations. The assets is subsequently measured as discused in the tangible fixed asset accounting policy above. Finance lease obligations are subsequently measured at amortised cost using the effective interest method.


 

3

Staff numbers

The average number of persons employed by the company (including directors and excluding temporary workers) during the year, was 59 (2023 - 62).

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

4

Tangible assets

Fixtures and fittings
£

Office equipment
£

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 June 2023

94,274

81,821

13,554

1,438,861

1,628,510

Additions

12,174

7,822

-

36,911

56,907

At 31 May 2024

106,448

89,643

13,554

1,475,772

1,685,417

Depreciation

At 1 June 2023

67,923

68,588

13,554

511,493

661,558

Charge for the year

3,686

7,412

-

95,059

106,157

At 31 May 2024

71,609

76,000

13,554

606,552

767,715

Carrying amount

At 31 May 2024

34,839

13,643

-

869,220

917,702

At 31 May 2023

26,351

13,234

-

927,368

966,953

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

5

Stocks

2024
£

2023
£

Raw materials

260,264

343,500

Work in progress

23,722

16,956

Finished goods

93,463

131,526

377,449

491,982

6

Debtors

Note

2024
£

2023
£

Trade debtors

 

999,993

1,159,939

Amounts owed by related parties

10

361,755

337,970

Other debtors

 

608,184

645,484

Prepayments

 

133,441

156,419

 

2,103,373

2,299,812

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

7

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

1,071,727

1,188,543

Trade creditors

 

829,566

963,328

Taxation and social security

 

64,263

73,402

Accruals and deferred income

 

124,026

136,683

Other creditors

 

110,481

98,824

 

2,200,063

2,460,780

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

8

351,549

340,412


Loans and borrowings due within and after one year consist of bank loans and invoice discounting facilities, as well as hire purchase creditors, which are secured.

8

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

50,000

84,113

Hire purchase contracts

43,908

40,841

Other borrowings

977,819

1,063,589

1,071,727

1,188,543

2024
£

2023
£

Loans and borrowings due after one year

Bank borrowings

54,167

104,167

Hire purchase contracts

8,923

51,467

Other borrowings

288,459

184,778

351,549

340,412

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

 

Marston Foods Limited

Notes to the Unaudited Financial Statements

Year Ended 31 May 2024

The total amount of financial commitments not included in the balance sheet is £305,596 (2023 - £387,457). The commitment relates to non-cancellable operating leases.

There is a composite company unlimited multilateral guarantee given by Marston Foods Limited and S C (Holdings) Limited in respect of bank borrowings. The total value of guarantees not included in the balance sheet is £Nil (2023 - £Nil).

10

Related party transactions

Transactions with directors

2024

At 1 June 2023
£

Advances to director
£

Repayments by director
£

At 31 May 2024
£

A Director

Loan - interest free, due on demand

477,437

39,012

(100,177)

416,272

2023

At 1 June 2022
£

Advances to director
£

At 31 May 2023
£

A Director

Loan - interest free, due on demand

440,332

37,105

477,437

11

Parent and ultimate parent undertaking

The company's immediate parent is S C (Holdings) Limited, incorporated in England and Wales.

  These financial statements are available upon request from Unit 5 Marston Park, Frome, Somerset, BA11 5BS.

 

12

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100