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Registered number: 07816763










Supplement Factory Ltd










Annual report and financial statements

For the Year Ended 31 May 2024

 
Supplement Factory Ltd
 

Company Information


Directors
L Smith 
W Selfe 
H Mussard 




Registered number
07816763



Registered office
Unit 5 Javelin Way
Javelin Enterprise Park

Ashford

Kent

TN24 8DE




Independent auditor
Kreston Reeves LLP
Chartered Accountants & Statutory Auditor

Montague Place

Quayside

Chatham Maritime

Chatham

Kent

ME4 4QU





 
Supplement Factory Ltd
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Notes to the financial statements
 
11 - 26


 
Supplement Factory Ltd
 

Strategic report
For the Year Ended 31 May 2024

Introduction
 
The strategic report is set out by the directors to provide the shareholders with information on the business and an insight into its main objectives and strategies and the principal risks it faces.

Business review
 
The business has seen a growth in turnover by 32.8% due to an increase in its customer base and footfall. Profit before tax has decreased by 35.2% although this is in part due to the current challenging environment in the marketplace.  
As shown on the balance sheet, the financial position at the year end remained strong, with net assets of £356,970.

Principal risks and uncertainties
 
Financial instruments
The company uses various financial instruments including cash, trade debtors and trade creditors, as well as retained earnings, to fund its working capital requirements. The use of such instruments exposes the company to several risks which are described in more detail below.
Liquidity risk
The company seeks to manage financial risk by ensuring that sufficient liquidity is available to meet the foreseeable needs of the company, and to invest cash assets safely and profitably.
Credit risk
The group's principal financial assets are cash and trade debtors, therefore, the primary credit risk of the group arises from its trade debtors. To manage this risk, the directors set limits for all customers based on a combination of payment history and reputation. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Economic and market risks
The business environment in which the company operates continues to be challenging as it is directly and indirectly subject to changes in consumer spending patterns and disposable income.
Foreign currency risk
The company also operates in the overseas market and pays its suppliers in non-sterling currencies, and as a result, the company is susceptible to currency fluctuations.
Regulatory risk
The company operations are subject to many regulatory requirements, particularly in relation to employment, health and safety in the environment, and strict food safety hygiene controls. The company applies controls to monitor and comply with all changing legislation affecting the group's operations.

Page 1

 
Supplement Factory Ltd
 

Strategic report (continued)
For the Year Ended 31 May 2024

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and position of the group as a whole and are as follows:
                                                       2024                      2023
                                                           £                           £
Turnover                                      15,121,263            11,386,423
Gross profit                                   2,406,581              2,403,747
Profit before taxation                        540,900                 834,868


This report was approved by the board on 24 January 2025 and signed on its behalf.



L Smith
Director

Page 2

 
Supplement Factory Ltd
 

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £415,875 (2023 - £686,746).

The directors recommend the payment of an ordinary dividend £587,063 (2023: £683,418).

Directors

The directors who served during the year were:

L Smith 
W Selfe 
H Mussard 

Future developments

The company continues with its commitment to apply prudent principles of business management for the long-term benefit of its shareholders, employees and customers alike. The overall aim is to maintain profitability so as to ensure continued reinvestment in the group to achieve planned, sustainable growth.

Disclosure of information to auditor

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

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

Page 3

 
Supplement Factory Ltd
 

 
Directors' report (continued)
For the Year Ended 31 May 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Kreston Reeves LLPwill be deemed for re-appointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 January 2025 and signed on its behalf.
 





L Smith
Director

Page 4

 
Supplement Factory Ltd
 

 
Independent auditor's report to the members of Supplement Factory Ltd
 

Opinion


We have audited the financial statements of Supplement Factory Ltd (the 'Company') for the year ended 31 May 2024, which comprise the Statement of comprehensive income, the Balance sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 May 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
Supplement Factory Ltd
 

 
Independent auditor's report to the members of Supplement Factory Ltd (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.


Page 6

 
Supplement Factory Ltd
 

 
Independent auditor's report to the members of Supplement Factory Ltd (continued)


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.


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

Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of investment properties. Audit procedures performed by the engagement team included:
 Discussions with management and assessment of known or suspected instances of non-compliance with  laws and regulations (including health and safety) and fraud.
 Identifying and assessing the design effectiveness of controls that management has in place to prevent
 and detect fraud; and
 Review of cash expenditure to confirm no evidence of personal benefit; and
 Challenging assumptions and judgements made by management in its significant accounting estimates;    and
 Identifying key contracts and confirming that all required procurement and tendering procedures have
 been followed; and
 Checking and reperforming the reconciliation of key control accounts; and
 Performing analytical procedures to identify any unusual or unexpected relationships, including related
 party transactions, that may indicate risks of material misstatement due to fraud; and
 Confirmation of related parties with management, and review of transactions throughout the period to
 identify any previously undisclosed transactions with related parties outside the normal course of
 business; and
 Performing analytical procedures with automated data analytics tools to identify any unusual or
 unexpected relationships, including related party transactions, that may indicate risks of material
 misstatement due to fraud; and
 Reading minutes of meetings of those charged with governance, reviewing internal audit reports and
 reviewing correspondence with relevant tax and regulatory authorities; and
 Review of significant and unusual transactions and evaluation of the underlying financial rationale
 supporting the transactions.

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 a 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.

Page 7

 
Supplement Factory Ltd
 

 
Independent auditor's report to the members of Supplement Factory Ltd (continued)


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
 
Other matters 
 

In the prior financial year, the financial statements of the company were not subject to an audit. As such, comparative figures presented in these financial statements have not been audited. Our opinion is not modified in respect of this matter, but we draw attention to this for clarity and completeness of information provided.

Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.



Robert Sellers FCCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Chatham Maritime

24 January 2025
Page 8

 
Supplement Factory Ltd
 

Statement of comprehensive income
For the Year Ended 31 May 2024

2024
2023
Note
£
£

  

Turnover
 4 
15,121,263
11,386,423

Cost of sales
  
(12,714,682)
(8,982,676)

Gross profit
  
2,406,581
2,403,747

Distribution costs
  
(763,980)
(740,636)

Administrative expenses
  
(1,014,812)
(737,485)

Operating profit
 5 
627,789
925,626

Interest receivable and similar income
 9 
134
1

Interest payable and similar expenses
 10 
(87,023)
(90,759)

Profit before tax
  
540,900
834,868

Tax on profit
 11 
(125,025)
(148,122)

Profit for the financial year
  
415,875
686,746

  

Total comprehensive income for the year
  
415,875
686,746

The notes on pages 11 to 26 form part of these financial statements.

Page 9

 
Supplement Factory Ltd
Registered number: 07816763

Balance sheet
As at 31 May 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
8,935
39,483

Tangible assets
 14 
796,651
905,562

Investments
 15 
11,163
11,163

  
816,749
956,208

Current assets
  

Stocks
 16 
567,265
1,225,340

Debtors: amounts falling due within one year
 17 
2,688,612
2,259,985

Cash at bank and in hand
 18 
103,944
87,771

  
3,359,821
3,573,096

Creditors: amounts falling due within one year
 19 
(3,481,063)
(3,521,167)

Net current (liabilities)/assets
  
 
 
(121,242)
 
 
51,929

Total assets less current liabilities
  
695,507
1,008,137

Creditors: amounts falling due after more than one year
 20 
(203,567)
(300,114)

Provisions for liabilities
  

Deferred tax
 21 
(134,970)
(179,865)

  
 
 
(134,970)
 
 
(179,865)

Net assets
  
356,970
528,158


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
  
356,870
528,058

  
356,970
528,158


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 January 2025.




L Smith
Director

The notes on pages 11 to 26 form part of these financial statements.

Page 10

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

1.


General information

Supplement Factory Ltd is a limited liability company incorporated in England and Wales, company number 07816763. The address of the company's principal place of business is the registered office. The principal activity of the business is the development, manufacture and distribution of health supplements. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Forza International Group Limited as at 31 May 2024 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

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

Sale of goods

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

Page 11

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

2.Accounting policies (continued)

 
2.4

Intangible assets

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

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

 
2.5

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis:.


Long-term leasehold property
-
10% straight line
Plant and machinery
-
Between 10% and 25% straight line
Motor vehicles
-
25% straight line
Office equipment
-
25% straight line
Computer equipment
-
Between 25% reducing balance and 33% straight line
Website
-
33% straight line

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

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

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.7

Stocks

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

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

 
2.8

Debtors

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

Page 12

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

2.Accounting policies (continued)

 
2.9

Cash and cash equivalents

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

 
2.10

Financial instruments

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

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

Page 13

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

2.Accounting policies (continued)


2.10
Financial instruments (continued)

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 14

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

2.Accounting policies (continued)

 
2.11

Creditors

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

 
2.12

Finance costs

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

  
2.13

Invoice Discounting

The company has an invoice discounting agreement covering certain trade debtors with full recourse. On the basis that the benefits and risks attaching to the debts remain with the company, a separate presentation has been adopted, in accordance with Financial Reporting Standard 102. On this basis the gross debts are included as an asset within trade debtors and the proceeds received are included within bank loans and overdrafts as a liability.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

Operating leases

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

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

 
2.16

Pensions

Defined contribution pension plan

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

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

 
2.17

Interest income

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

 
2.18

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 15

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

2.Accounting policies (continued)

 
2.19

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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


Page 16

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the directors to make judgments, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following judgments have had the most significant impact on amounts recognised in the financial statements:
Lease commitments
The company has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the group has acquired the risks and rewards associated with the ownership of the underlying assets. Lease commitments at the balance sheet date are stated in Note 24 to these financial statements. 
Depreciation
The company exercises judgement to determine the useful lives and residual values of property, plant and equipment. The assets are depreciated down to their residual values over their estimated useful lives. Actual results may differ from their estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
The carrying value of fixed assets at the balance sheet date for the company is £796,651 (2023: £905,562) and is included within Note 14 to these financial statements.
Prepayments
The Company exercises judgement to determine the amount of an invoice that is attributable to future accounting periods. Using the total value of the invoice and the amount attributable to future accounting periods, management is able to calculate the amount to be included as a prepayment in the accounts. Prepayments at the year end are stated in Note 17 to these financial statements.


4.


Turnover

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


2024
2023
£
£

Sales
15,121,263
11,386,423


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
4,499,411
6,942,074

Rest of Europe
8,747,876
3,503,002

Rest of the world
1,873,976
941,347

15,121,263
11,386,423


Page 17

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
43,812
21,489

Other operating lease rentals
12,057
9,065


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
16,950
-

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

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


2024
2023
£
£

Wages and salaries
1,930,254
1,430,145

Social security costs
173,883
130,874

Cost of defined contribution scheme
86,460
61,727

2,190,597
1,622,746


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


        2024
        2023
            No.
            No.







Employees
66
58

Page 18

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
106,524
71,572

Company contributions to defined contribution pension schemes
4,465
3,257

110,989
74,829


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
134
1


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
70,939
74,130

Finance leases and hire purchase contracts
16,084
16,629

87,023
90,759


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
169,920
190,852

Adjustment in respect of prior periods
-
(64)


Total current tax
169,920
190,788

Deferred tax


Origination and reversal of timing differences
(44,895)
(42,666)


Tax on profit
125,025
148,122
Page 19

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the effective tax rate of corporation tax in the UK of 25% (2023 - 20%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
540,900
834,868


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
135,225
166,996

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,590
47

Capital allowances for year in excess of depreciation
13,766
23,663

Adjustments to tax charge in respect of prior periods
-
(64)

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
418
146

Short term timing difference leading to an increase (decrease) in taxation
(29,974)
(42,666)

Total tax charge for the year
125,025
148,122


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Dividends paid
587,063
683,418

Page 20

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

13.


Intangible assets




Licences
Develop-  ment
Trademarks
Total

£
£
£
£



Cost


At 1 June 2023
264,787
710,229
62,935
1,037,951



At 31 May 2024

264,787
710,229
62,935
1,037,951



Amortisation


At 1 June 2023
234,935
700,599
62,934
998,468


Charge for the year on owned assets
20,917
9,630
1
30,548



At 31 May 2024

255,852
710,229
62,935
1,029,016



Net book value



At 31 May 2024
8,935
-
-
8,935



At 31 May 2023
29,852
9,630
1
39,483



Page 21

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

14.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Office equipment
Computer equipment
Website
Total

£
£
£
£
£
£



Cost or valuation


At 1 June 2023
422,859
1,445,171
27,085
54,757
33,113
1,982,985


Additions
-
84,277
-
10,781
-
95,058



At 31 May 2024

422,859
1,529,448
27,085
65,538
33,113
2,078,043



Depreciation


At 1 June 2023
235,249
735,151
27,085
46,825
33,113
1,077,423


Charge for the year on owned assets
55,781
142,547
-
5,641
-
203,969



At 31 May 2024

291,030
877,698
27,085
52,466
33,113
1,281,392



Net book value



At 31 May 2024
131,829
651,750
-
13,072
-
796,651



At 31 May 2023
187,610
710,020
-
7,932
-
905,562

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


2024
2023
£
£



Plant and machinery
287,727
452,550


15.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
11,163



At 31 May 2024
11,163




Page 22

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Forza Industries BV
Belgium
Ordinary
100%


16.


Stocks

2024
2023
£
£

Raw materials and consumables
567,265
1,225,340



17.


Debtors

2024
2023
£
£


Trade debtors
1,719,304
1,620,181

Amounts owed by group undertakings
433,300
437,300

Other debtors
482,205
143,116

Prepayments and accrued income
53,803
59,388

2,688,612
2,259,985


Supplement Factory Limited discounts the majority of its trade debtors with full recourse. The gross amount of the debts which are invoice discounted as at 31 May 2024 is £856,850 (2023: £1,356,146). The company has a proportion of its debtors advanced which, including charges, totals £652,980 which is included within creditors amounts falling due within one year. These facilities are secured by fixed and floating charges over all the property or undertakings of the company.


18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
103,944
87,771

Less: bank overdrafts
(652,980)
(795,000)

(549,036)
(707,229)


Page 23

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
652,980
795,000

Bank loans
72,033
154,568

Trade creditors
2,370,597
2,128,479

Corporation tax
142,038
190,837

Other taxation and social security
44,067
85,663

Obligations under finance lease and hire purchase contracts
85,575
89,604

Other creditors
14,900
10,798

Accruals and deferred income
98,873
66,218

3,481,063
3,521,167


Bank loans and overdrafts include the company's invoice discounting facilities. All are secured by a fixed and floating charge over all the property or undertakings of the company. 


20.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
87,871
159,913

Net obligations under finance leases and hire purchase contracts
115,696
140,201

203,567
300,114



21.


Deferred taxation




2024
2023


£

£






At beginning of year
(179,865)
(222,531)


Charged to profit or loss
44,895
42,666



At end of year
(134,970)
(179,865)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(134,970)
(179,865)

Page 24

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



23.


Reserves

Profit and loss account

The profit and loss accounts includes all current and prior periode retained profits and losses.


24.


Capital commitments


At 31 May 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
232,555
-

232,555
-


25.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £86,460 (2023 - £61,727).  Contributions totalling £14,900 (2023 - £10,798) were payable to the fund at the balance sheet date and are included in other creditors.


26.


Commitments under operating leases

At 31 May 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
321,343
306,361

Later than 1 year and not later than 5 years
816,856
926,549

1,138,199
1,232,910

Page 25

 
Supplement Factory Ltd
 

 
Notes to the financial statements
For the Year Ended 31 May 2024

27.


Related party transactions

The company has taken advantage of the exemptions available under FRS102, section 33.5, not to disclose details of its transactions with members of the group headed by Forza International Group Limited.  
Key management personnel
All directors and certain senior employees who have authority and responsiblity for planning, directing and controlling the activities of the group are considered to be key management personnel.
Included within the accounts are amounts owed by companies outside of the group that share the same key management personnel;
Supplement Factory Ltd made purchases from MANOP Support Ltd of £564,634 (2023: £755,096), of which nothing is owed to them as at the year end (2023: £25,000).
Supplement Factory Ltd made sales to Repizza Ltd of £57,412 (2023: £19,893), of which £154,818 is owed from them as at the year end (2023: £20,593).
Supplement Factory Ltd made sales to National Science Group Ltd of £14,677 (2023: Nil), of  which £55,846 is owed from them as at the year end (2023: Nil). 


28.


Controlling party

The ultimate parent undertaking of the company is Forza International Group Limited, a company incorporated in England and Wales, where the ultimate controlling party is L N Smith by virtue of his 75% shareholding. 


Page 26