REGISTERED NUMBER: 03091668 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 August 2024 |
for |
Chicken Joes Limited |
REGISTERED NUMBER: 03091668 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 August 2024 |
for |
Chicken Joes Limited |
Chicken Joes Limited (Registered number: 03091668) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 August 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Chicken Joes Limited |
Company Information |
for the Year Ended 31 August 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
Registered Auditors |
962 Eastern Avenue |
Newbury Park |
Ilford |
Essex |
IG2 7JD |
BANKERS: | Santander Corporate Banking |
1 Cornwall Street |
Birmingham |
B3 2DX |
Chicken Joes Limited (Registered number: 03091668) |
Group Strategic Report |
for the Year Ended 31 August 2024 |
The directors present their strategic report of the company and the group for the year ended 31 August 2024. |
REVIEW OF BUSINESS |
It has been another successful year, with positive results that demonstrate the ongoing commitment and strategic vision of the company's management. Our aim is to build on this momentum and continue driving progress in the year ahead. |
This year, our primary focus is on expanding sales and marketing efforts, particularly by entering new markets such as wholesale and retail. This strategy is designed to create a more balanced turnover between the education sector and other industries, addressing the long-standing challenge of seasonality. Historically, sales have seen significant declines during school term holidays, resulting in losses due to fixed costs. By achieving more consistent turnover year-round, we expect to enhance profitability. |
We are also in the process of assembling a completely new Sales & Marketing team to support this growth. In addition, the new ERP system that we began implementing last year is now in the installation phase. With the final design approved, the development is underway. This ERP system will be instrumental in supporting our sales and marketing objectives, as it will provide real-time data access to help the team track performance, plan strategies, and stay on top of sales targets. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Supply Chain Disruption: |
Ongoing global challenges, such as the Russia-Ukraine war and the crisis in the Middle East, continue to pose significant concerns for businesses worldwide. The instability in the Middle East shows no signs of easing, and it remains a major issue for Western businesses. These geopolitical tensions are expected to have a direct impact on supply chains and shipping costs, further complicating the global business landscape. |
ERP Deployment: |
The installation and implementation of the ERP system is a major undertaking and a significant challenge for this year. As a large-scale project, it inherently carries substantial risks, and the complexity of such initiatives means there is always the potential for setbacks. Any mistake, error, or limitation in the design can result in additional significant costs. However, the goal is to ensure a smooth deployment, with a focus on minimizing disruptions to day-to-day operations. Successful implementation of the ERP system is crucial, as it will streamline processes, improve data accessibility, and ultimately enhance decision-making across the business. We are committed to addressing any challenges that arise and delivering the system on time, in order to fully leverage its potential for operational efficiency and growth. |
New Policy by DEFRA: |
The implementation of the Better Chicken Commitment is likely to result in increased prices for poultry products. With the requirement for slower-growing breeds, lower stocking densities, and restrictions on thinning birds, farms will need more space and time to raise each bird. This leads to a decrease in the number of chickens that can be raised in the same area, as well as longer breeding cycles. As a result, production costs will rise, which may translate into higher prices for consumers. While these changes aim to improve poultry welfare, they could also impact the overall cost structure of the industry. |
FUTURE DEVELOPMENTS |
The Company is focused on making the business more mechanised and efficient by investing into the equipment and software in the near future. |
ON BEHALF OF THE BOARD: |
Chicken Joes Limited (Registered number: 03091668) |
Report of the Directors |
for the Year Ended 31 August 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 August 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of processing of fresh chicken meat and sale and distribution of food and non-food products to the catering trade and renting cold storage pallet spaces. |
DIVIDENDS |
An interim dividend of £0.25 per share was paid on 31 March 2024. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 August 2024 will be £ 255,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report. |
CHARITABLE DONATIONS |
Charitable donations during the year amounted to £18,889 (2023: £17,615). |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Chicken Joes Limited (Registered number: 03091668) |
Report of the Directors |
for the Year Ended 31 August 2024 |
AUDITORS |
The auditors, Alderton Accountancy Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Chicken Joes Limited |
Opinion |
We have audited the financial statements of Chicken Joes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 affairs as at 31 August 2024 and of the group's 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. |
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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Chicken Joes Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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. |
Report of the Independent Auditors to the Members of |
Chicken Joes Limited |
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 a Report of the Auditors 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: |
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. |
We obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework. The Health and Safety at Work Act and associated secondary legislation, Health and Safety (Consultation with Employees) Regulations, the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013, the CDM Regulations and the Building Act are of significance in the context of the entity. |
We consider that the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. |
The audit team identified particular areas that were susceptible to misstatement as part of their fraud discussion which included revenue recognition, fair value of assets and debtors recoverability. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Chicken Joes Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants |
Registered Auditors |
962 Eastern Avenue |
Newbury Park |
Ilford |
Essex |
IG2 7JD |
Chicken Joes Limited (Registered number: 03091668) |
Consolidated |
Income Statement |
for the Year Ended 31 August 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 34,425,979 | 30,930,574 |
Cost of sales | 21,323,314 | 20,030,967 |
GROSS PROFIT | 13,102,665 | 10,899,607 |
Distribution costs | 4,200,242 | 3,329,345 |
Administrative expenses | 7,403,726 | 6,370,057 |
11,603,968 | 9,699,402 |
1,498,697 | 1,200,205 |
Other operating income | 12,271 | 31,978 |
OPERATING PROFIT | 4 | 1,510,968 | 1,232,183 |
Interest receivable and similar income | 4,010 | 3,594 |
1,514,978 | 1,235,777 |
Interest payable and similar expenses | 6 | 62,942 | 62,110 |
PROFIT BEFORE TAXATION | 1,452,036 | 1,173,667 |
Tax on profit | 7 | 230,429 | 212,879 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,221,607 | 960,788 |
Chicken Joes Limited (Registered number: 03091668) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 August 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,221,607 | 960,788 |
OTHER COMPREHENSIVE INCOME |
Revaluation Reserve | - | 65,625 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
- |
65,625 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,221,607 |
1,026,413 |
Total comprehensive income attributable to: |
Owners of the parent | 1,221,607 | 1,026,413 |
Chicken Joes Limited (Registered number: 03091668) |
Consolidated Balance Sheet |
31 August 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 71,656 | 79,005 |
Tangible assets | 11 | 1,187,629 | 896,917 |
Investments | 12 | - | - |
Investment property | 13 | 1,125,000 | 1,125,000 |
2,384,285 | 2,100,922 |
CURRENT ASSETS |
Stocks | 14 | 3,364,192 | 1,937,317 |
Debtors | 15 | 2,148,354 | 2,238,225 |
Cash at bank and in hand | 559,052 | 669,363 |
6,071,598 | 4,844,905 |
CREDITORS |
Amounts falling due within one year | 16 | 4,125,851 | 3,449,149 |
NET CURRENT ASSETS | 1,945,747 | 1,395,756 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,330,032 |
3,496,678 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(508,920 |
) |
(581,781 |
) |
PROVISIONS FOR LIABILITIES | 21 | (71,653 | ) | (132,045 | ) |
NET ASSETS | 3,749,459 | 2,782,852 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 1,010,000 | 1,010,000 |
Share premium | 23 | 103,515 | 103,515 |
Revaluation reserve | 23 | 65,625 | 65,625 |
Retained earnings | 23 | 2,570,319 | 1,603,712 |
SHAREHOLDERS' FUNDS | 3,749,459 | 2,782,852 |
The financial statements were approved by the Board of Directors and authorised for issue on 4 February 2025 and were signed on its behalf by: |
J Koumi - Director |
Chicken Joes Limited (Registered number: 03091668) |
Company Balance Sheet |
31 August 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,137,691 | 873,019 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Chicken Joes Limited (Registered number: 03091668) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 August 2024 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 September 2022 | 1,010,000 | 854,924 | 103,515 | - | 1,968,439 |
Changes in equity |
Dividends | - | (212,000 | ) | - | - | (212,000 | ) |
Total comprehensive income | - | 960,788 | - | 65,625 | 1,026,413 |
Balance at 31 August 2023 | 1,010,000 | 1,603,712 | 103,515 | 65,625 | 2,782,852 |
Changes in equity |
Dividends | - | (255,000 | ) | - | - | (255,000 | ) |
Total comprehensive income | - | 1,221,607 | - | - | 1,221,607 |
Balance at 31 August 2024 | 1,010,000 | 2,570,319 | 103,515 | 65,625 | 3,749,459 |
Chicken Joes Limited (Registered number: 03091668) |
Company Statement of Changes in Equity |
for the Year Ended 31 August 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 August 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 August 2024 |
Chicken Joes Limited (Registered number: 03091668) |
Consolidated Cash Flow Statement |
for the Year Ended 31 August 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 844,936 | 1,237,049 |
Interest paid | (62,942 | ) | (62,110 | ) |
Tax paid | (212,550 | ) | (72,587 | ) |
Net cash from operating activities | 569,444 | 1,102,352 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (660,703 | ) | (336,706 | ) |
Sale of tangible fixed assets | 33,969 | 71,607 |
Interest received | 4,010 | 3,594 |
Net cash from investing activities | (622,724 | ) | (261,505 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (210,789 | ) |
Capital repayments in year | 194,417 | 25,422 |
Amount introduced by directors | 167 | 1 |
Amount withdrawn by directors | - | (171 | ) |
Equity dividends paid | (255,000 | ) | (212,000 | ) |
Net cash from financing activities | (60,416 | ) | (397,537 | ) |
(Decrease)/increase in cash and cash equivalents | (113,696 | ) | 443,310 |
Cash and cash equivalents at beginning of year |
2 |
652,612 |
209,302 |
Cash and cash equivalents at end of year |
2 |
538,916 |
652,612 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 August 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,452,036 | 1,173,667 |
Depreciation charges | 349,610 | 261,056 |
Profit on disposal of fixed assets | (6,240 | ) | (3,854 | ) |
Government grants | - | (30,237 | ) |
Finance costs | 62,942 | 62,110 |
Finance income | (4,010 | ) | (3,594 | ) |
1,854,338 | 1,459,148 |
Increase in stocks | (1,426,875 | ) | (121,999 | ) |
(Increase)/decrease in trade and other debtors | (109,675 | ) | 540,709 |
Increase/(decrease) in trade and other creditors | 527,148 | (640,809 | ) |
Cash generated from operations | 844,936 | 1,237,049 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2024 |
31.8.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 559,052 | 669,363 |
Bank overdrafts | (20,136 | ) | (16,751 | ) |
538,916 | 652,612 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 669,363 | 214,864 |
Bank overdrafts | (16,751 | ) | (5,562 | ) |
652,612 | 209,302 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 August 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.9.23 | Cash flow | At 31.8.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 669,363 | (110,311 | ) | 559,052 |
Bank overdrafts | (16,751 | ) | (3,385 | ) | (20,136 | ) |
652,612 | (113,696 | ) | 538,916 |
Debt |
Finance leases | (60,357 | ) | (194,417 | ) | (254,774 | ) |
Debts falling due within 1 year | (199,548 | ) | 13,548 | (186,000 | ) |
Debts falling due after 1 year | (542,667 | ) | 186,000 | (356,667 | ) |
(802,572 | ) | 5,131 | (797,441 | ) |
Total | (149,960 | ) | (108,565 | ) | (258,525 | ) |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 August 2024 |
1. | STATUTORY INFORMATION |
Chicken Joes Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised on delivery or collection of the goods sold. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
A full year's depreciation is charged in the year an asset is purchased, and no depreciation is charged in the year of its disposal. |
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 the income statement. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Financial instruments are recognised in the company's statement of financial position 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. |
Basic financial assets |
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Financial assets classified as receivable within one year are not amortised. |
Basic financial liabilities |
Basic financial liabilities, including trade payables, other payables and amounts due to fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 6,127,966 | 4,879,947 |
Social security costs | 576,686 | 410,131 |
Other pension costs | 116,685 | 86,297 |
6,821,337 | 5,376,375 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 2 |
Administration | 40 | 40 |
Production | 57 | 57 |
Sales & Distribution | 75 | 75 |
All staff is employed by the parent company. |
2024 | 2023 |
£ | £ |
Directors' remuneration | 60,000 | 60,000 |
Directors' pension contributions to money purchase schemes | 3,000 | 3,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 10,671 | 16,721 |
Depreciation - owned assets | 249,489 | 217,340 |
Depreciation - assets on hire purchase contracts | 92,773 | 36,367 |
Profit on disposal of fixed assets | (6,240 | ) | (3,854 | ) |
Goodwill amortisation | 7,349 | 7,349 |
5. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
26,150 |
17,800 |
Auditors' remuneration for non audit work | 5,250 | 5,250 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 52,756 | 55,854 |
Hire purchase interest | 10,728 | 6,256 |
Interest on overdue tax | (542 | ) | - |
62,942 | 62,110 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 290,822 | 219,479 |
Deferred tax | (60,393 | ) | (6,600 | ) |
Tax on profit | 230,429 | 212,879 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,452,036 | 1,173,667 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 21.515 %) |
363,009 |
252,514 |
Effects of: |
Expenses not deductible for tax purposes | 6,639 | 501 |
Income not taxable for tax purposes | (1,560 | ) | (829 | ) |
Capital allowances in excess of depreciation | (77,065 | ) | (15,406 | ) |
Adjustments to tax charge in respect of previous periods | - | (6,600 | ) |
Research and development tax credits | - | (17,221 | ) |
Marginal Relief | (201 | ) | (80 | ) |
Deferred Tax | (60,393 | ) | - |
Total tax charge | 230,429 | 212,879 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 August 2024. |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation Reserve | 65,625 | - | 65,625 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1.00 each |
Interim | 255,000 | 212,000 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 | 110,242 |
AMORTISATION |
At 1 September 2023 | 31,237 |
Amortisation for year | 7,349 |
At 31 August 2024 | 38,586 |
NET BOOK VALUE |
At 31 August 2024 | 71,656 |
At 31 August 2023 | 79,005 |
Company |
Goodwill |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 |
AMORTISATION |
At 1 September 2023 |
Amortisation for year |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 September 2023 | 100,412 | 955,985 | 1,160,885 |
Additions | - | 139,851 | 160,639 |
Disposals | - | - | - |
At 31 August 2024 | 100,412 | 1,095,836 | 1,321,524 |
DEPRECIATION |
At 1 September 2023 | - | 583,665 | 1,019,341 |
Charge for year | - | 128,043 | 60,437 |
Eliminated on disposal | - | - | - |
At 31 August 2024 | - | 711,708 | 1,079,778 |
NET BOOK VALUE |
At 31 August 2024 | 100,412 | 384,128 | 241,746 |
At 31 August 2023 | 100,412 | 372,320 | 141,544 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 September 2023 | 650,042 | 616,585 | 3,483,909 |
Additions | 360,213 | - | 660,703 |
Disposals | (100,900 | ) | - | (100,900 | ) |
At 31 August 2024 | 909,355 | 616,585 | 4,043,712 |
DEPRECIATION |
At 1 September 2023 | 419,381 | 564,605 | 2,586,992 |
Charge for year | 140,787 | 12,995 | 342,262 |
Eliminated on disposal | (73,171 | ) | - | (73,171 | ) |
At 31 August 2024 | 486,997 | 577,600 | 2,856,083 |
NET BOOK VALUE |
At 31 August 2024 | 422,358 | 38,985 | 1,187,629 |
At 31 August 2023 | 230,661 | 51,980 | 896,917 |
Included in cost or valuation of land and buildings is freehold land of £500,000 (2023 - £500,000) which is not depreciated. |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 August 2024 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2024 | (1,125,000 | ) | - | - |
Cost | 1,225,412 | 1,095,836 | 1,321,524 |
100,412 | 1,095,836 | 1,321,524 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2024 | - | - | (1,125,000 | ) |
Cost | 909,355 | 616,585 | 5,168,712 |
909,355 | 616,585 | 4,043,712 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor | Computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 September 2023 | 221,780 | 217,620 | 28,392 | 467,792 |
Additions | - | 266,623 | - | 266,623 |
At 31 August 2024 | 221,780 | 484,243 | 28,392 | 734,415 |
DEPRECIATION |
At 1 September 2023 | 194,425 | 140,507 | 23,760 | 358,692 |
Charge for year | 6,839 | 85,934 | - | 92,773 |
At 31 August 2024 | 201,264 | 226,441 | 23,760 | 451,465 |
NET BOOK VALUE |
At 31 August 2024 | 20,516 | 257,802 | 4,632 | 282,950 |
At 31 August 2023 | 27,355 | 77,113 | 4,632 | 109,100 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 August 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor | Computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
At 31 August 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaki |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
During the period the Company received a dividend of NIL (year ended 2023: NIL) from Silverdust Limited. |
The company acquired 100% shareholding in Silverdust Limited on 6 October 2017. |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 September 2023 |
and 31 August 2024 | 1,125,000 |
NET BOOK VALUE |
At 31 August 2024 | 1,125,000 |
At 31 August 2023 | 1,125,000 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
13. | INVESTMENT PROPERTY - continued |
Group |
Fair value at 31 August 2024 is represented by: |
£ |
Valuation in 2024 | 1,125,000 |
14. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 3,364,192 | 1,937,317 |
15. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,517,844 | 1,827,709 |
Other debtors | 15,507 | 16,158 |
VAT | 136,845 | 127,627 |
Prepayments | 243,069 | 199,338 |
1,913,265 | 2,170,832 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Amounts owed by associates | 235,089 | 67,393 |
235,089 | 67,393 |
Aggregate amounts | 2,148,354 | 2,238,225 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 206,136 | 216,299 |
Hire purchase contracts (see note 19) | 102,521 | 21,243 |
Trade creditors | 2,502,729 | 1,595,376 |
Invoice discounting advances | 77,420 | 529,110 | 77,420 | 529,110 |
Tax | 314,972 | 236,700 |
Social security and other taxes | 126,316 | 160,680 |
Other creditors | (667 | ) | 12,338 | ( |
) |
Wages and salaries control | 100 | 769 | 100 | 769 |
Directors' current accounts | 1,086 | 919 | 1,086 | 919 |
Accrued expenses | 795,238 | 675,715 |
4,125,851 | 3,449,149 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 356,667 | 542,667 |
Hire purchase contracts (see note 19) | 152,253 | 39,114 |
Amounts owed to group undertakings | - | - | 249,167 | 286,667 |
508,920 | 581,781 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 20,136 | 16,751 |
Bank loans | 186,000 | 199,548 |
206,136 | 216,299 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 186,000 | 186,000 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 134,000 | 320,000 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 36,667 | 36,667 | - | - |
The group borrowed £1,285,362 from Santander Bank under Coronavirus Business Interruption Loan Scheme (CBILS) during the year ended 31 May 2021. The loan is repayable over a term of 5 to 10 years and carries an interest ranging from 3.25 to 3.8% per annum. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 102,521 | 21,243 |
Between one and five years | 152,253 | 39,114 |
254,774 | 60,357 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
19. | LEASING AGREEMENTS - continued |
Company |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank overdrafts | 20,136 | 16,751 |
Bank loans | 542,667 | 742,215 |
Hire purchase contracts | 254,774 | 60,357 | 254,774 | 60,357 |
817,577 | 819,323 |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 71,653 | 132,045 | 71,653 | 132,045 |
Group |
Deferred |
tax |
£ |
Balance at 1 September 2023 | 132,045 |
Provided during year | (60,392 | ) |
Balance at 31 August 2024 | 71,653 |
Company |
Deferred |
tax |
£ |
Balance at 1 September 2023 |
Credit to Income Statement during year | ( |
) |
Adjustments |
Balance at 31 August 2024 |
Chicken Joes Limited (Registered number: 03091668) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 August 2024 |
21. | PROVISIONS FOR LIABILITIES - continued |
The provision for deferred tax is made up of accelerated capital allowances. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1.00 | 1,010,000 | 1,010,000 |
23. | RESERVES |
Group |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 September 2023 | 1,603,712 | 103,515 | 65,625 | 1,772,852 |
Profit for the year | 1,221,607 | 1,221,607 |
Dividends | (255,000 | ) | (255,000 | ) |
At 31 August 2024 | 2,570,319 | 103,515 | 65,625 | 2,739,459 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 September 2023 | 1,508,772 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 August 2024 | 2,391,463 |
24. | RELATED PARTY DISCLOSURES |
Included within debtors is an amount of £14,000 (2023: £5,000), owed to £3,955 (2023: owed by £10,122), and £160,625 (2023: £182,379) owed by Empire Shipping Agencies (UK) Limited, Empire MOT & Service Centre Limited, and Silverdust Limited, respectively. |
Included within creditors is an amount of £249,167 (2023: £286,667) owed to Silverdust Limited. |
The directors' of Empire Shipping Agencies (UK) Limited, Empire MOT & Service Centre Limited, and Silverdust Limited are the same as the directors' of Chicken Joes Limited. |