Company registration number 07055439 (England and Wales)
GLOBAL GRAINS AND INGREDIENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GLOBAL GRAINS AND INGREDIENTS LIMITED
COMPANY INFORMATION
Director
Mr D J Buttery
Company number
07055439
Registered office
12 Austin Friars
London
United Kingdom
EC2N 2HE
Auditor
Xeinadin Audit Limited
12 Conqueror Court
Sittingbourne
Kent
ME10 5BH
Bankers
Barclays Bank Plc
128 Moorgate
London
EC2M 6SX
GLOBAL GRAINS AND INGREDIENTS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
GLOBAL GRAINS AND INGREDIENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The director presents his strategic report for the year ended 30 September 2024.

Review of the business

During the year ended 30 September 2024 the company's operating profit has decreased to £1,151,105 from £1,182,907 and it's turnover has decreased to £27,305,723 from £28,212,751. Its cash and cash equivalents increased from £588,645 to £1,728,560. The director considers that the state of affairs of the company and its profit after tax to be satisfactory.

Principal risks and uncertainties

Credit Risk

The company's principle financial assets are cash and cash equivalents, stocks and trade receivables. The maximum exposure to credit risk is that shown within the balance sheet. All amounts are short term and management consider the amounts to be of a good credit quality.

Interest rate risk

The company holds the majority of cash and cash equivalents in corporate current accounts. These accounts offer a competitive interest rate with the advantage of instant access to the funds.

Foreign Currency Risk

Transactional foreign currency exposures arise from both the export of food ingredients from the UK to overseas clients and from the import of food ingredients from overseas suppliers. The company manages this risk by selling and purchasing foreign currency by way of foreign exchange forward currency contracts.

On behalf of the board

Mr D J Buttery
Director
7 February 2025
GLOBAL GRAINS AND INGREDIENTS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The director presents his report with the financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company continued to be that of commodity trading in natural ingredients for the food industry.

Results and dividends

The results for the year are set out on page 7.

No dividends will be distributed for the year ended 30 September 2024

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr D J Buttery
Future developments

The market for healthy natural ingredients is growing and consequently we see our opportunities increasing also.

Auditor

In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement of disclosure to auditor

So far as the director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director has taken all the necessary steps that they ought to have taken as a director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

GLOBAL GRAINS AND INGREDIENTS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr D J Buttery
Director
7 February 2025
GLOBAL GRAINS AND INGREDIENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLOBAL GRAINS AND INGREDIENTS LIMITED
- 4 -
Opinion

We have audited the financial statements of Global Grains and Ingredients Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

GLOBAL GRAINS AND INGREDIENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLOBAL GRAINS AND INGREDIENTS LIMITED (CONTINUED)
- 5 -
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 director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

 

1. Assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud

may occur.

 

2. Held discussions with the client regarding their policies and procedures on compliance with laws and regulations.

 

3. Held discussions with the client regarding their policies and procedures on fraud risks, including knowledge of any actual, suspected, or alleged fraud.

 

We consider the entity's controls effective in identifying fraud. We do not consider there to be significant difficulty in detecting irregularities.

 

Because of the inherent limitations of an audit, there is risk that we will not detect all irregularities, inlcuding 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 occuring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

GLOBAL GRAINS AND INGREDIENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLOBAL GRAINS AND INGREDIENTS LIMITED (CONTINUED)
- 6 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Samuel Ketcher FCCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
Chartered Accountants
12 Conqueror Court
Sittingbourne
Kent
ME10 5BH
11 February 2025
GLOBAL GRAINS AND INGREDIENTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
27,305,723
28,212,751
Cost of sales
(25,303,865)
(26,285,558)
Gross profit
2,001,858
1,927,193
Administrative expenses
(899,672)
(911,981)
Other operating income
48,919
167,695
Operating profit
4
1,151,105
1,182,907
Interest payable and similar expenses
7
(200,011)
(533,357)
Profit before taxation
951,094
649,550
Tax on profit
8
(263,278)
(194,975)
Profit for the financial year
687,816
454,575

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GLOBAL GRAINS AND INGREDIENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
687,816
454,575
Other comprehensive income
-
-
Total comprehensive income for the year
687,816
454,575
GLOBAL GRAINS AND INGREDIENTS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,946
2,116
Current assets
Stocks
11
5,677,730
5,293,838
Debtors
12
4,852,869
4,833,137
Cash at bank and in hand
1,728,560
588,645
12,259,159
10,715,620
Creditors: amounts falling due within one year
13
(7,665,050)
(6,529,202)
Net current assets
4,594,109
4,186,418
Total assets less current liabilities
4,597,055
4,188,534
Creditors: amounts falling due after more than one year
14
(209,626)
(489,128)
Provisions for liabilities
Deferred tax liability
16
736
529
(736)
(529)
Net assets
4,386,693
3,698,877
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
4,386,593
3,698,777
Total equity
4,386,693
3,698,877

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 7 February 2025
Mr D J Buttery
Director
Company registration number 07055439 (England and Wales)
GLOBAL GRAINS AND INGREDIENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
100
3,244,202
3,244,302
Year ended 30 September 2023:
Profit and total comprehensive income
-
454,575
454,575
Balance at 30 September 2023
100
3,698,777
3,698,877
Year ended 30 September 2024:
Profit and total comprehensive income
-
687,816
687,816
Balance at 30 September 2024
100
4,386,593
4,386,693
GLOBAL GRAINS AND INGREDIENTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,866,354
3,903,396
Interest paid
(200,011)
(533,357)
Income taxes paid
(184,485)
(202,429)
Net cash inflow from operating activities
1,481,858
3,167,610
Investing activities
Purchase of tangible fixed assets
(3,702)
-
0
Net cash used in investing activities
(3,702)
-
Financing activities
Repayment of borrowings
-
0
(600,000)
Repayment of bank loans
(338,241)
(3,573,374)
Net cash used in financing activities
(338,241)
(4,173,374)
Net increase/(decrease) in cash and cash equivalents
1,139,915
(1,005,764)
Cash and cash equivalents at beginning of year
588,645
1,594,409
Cash and cash equivalents at end of year
1,728,560
588,645
GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information

Global Grains and Ingredients Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12 Austin Friars, London, United Kingdom, EC2N 2HE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

The whole of the turnover is attributable to the commodity trading in natural ingredients for the food industry.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible assets are initially recorded at cost, and is subsequently stated at cost less accumulated depreciation and any accumulated impairment losses.

 

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings
33% on cost
Computer equipment
33% on cost
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

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

 

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

 

1.8
Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

 

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

 

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

 

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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

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.

 

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

 

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14

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.

1.15

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.

1.16

Provision for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

 

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

 

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of Goods
27,305,723
28,212,751
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(48,437)
(167,695)
Fees payable to the company's auditor for the audit of the company's financial statements
15,500
14,500
Depreciation of owned tangible fixed assets
2,872
3,869
Operating lease charges
52,860
35,013

 

5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Director
1
1
Administration and Sales
9
9
Total
10
10

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
343,943
326,274
Social security costs
19,189
173,729
Pension costs
117,399
105,069
480,531
605,072
GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
9,100
9,127
Company pension contributions to defined contribution schemes
103,333
96,667
112,433
105,794
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
5,809
12,161
Other interest on financial liabilities
194,202
309,741
200,011
321,902
Other finance costs:
Other interest
-
0
211,455
200,011
533,357
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
263,070
195,583
Deferred tax
Origination and reversal of timing differences
208
(608)
Total tax charge
263,278
194,975

From 1 April 2023, the corporation tax rate in the UK increased from 19% to 25%. As a result the average rate of corporation tax for the year ended 30 September 2023 was 22.008%. In the year ended 30 September 2024, corporation tax will be charged at the main rate of 25%. There are no factors which are due to affect the future tax rate.

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
8
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
951,094
649,550
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
237,774
142,953
Tax effect of expenses that are not deductible in determining taxable profit
25,504
51,776
Movement in deferred tax
208
(608)
Capital allowances in excess of depreciation
(208)
854
Taxation charge for the year
263,278
194,975
9
Tangible fixed assets
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 October 2023
6,676
19,309
25,985
Additions
-
0
3,702
3,702
At 30 September 2024
6,676
23,011
29,687
Depreciation and impairment
At 1 October 2023
6,676
17,193
23,869
Depreciation charged in the year
-
0
2,872
2,872
At 30 September 2024
6,676
20,065
26,741
Carrying amount
At 30 September 2024
-
0
2,946
2,946
At 30 September 2023
-
0
2,116
2,116

 

 

 

 

 

 

 

 

 

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
-
67,912
Carrying amount of financial liabilities include:
Measured at fair value through profit or loss
- Other financial liabilities
195,262
-

Financial assets measured at fair value through profit or loss comprise foreign exchange asset.

 

Financial liabilities measured at fair value through profit or loss comprise foreign exchange liability.

11
Stocks
2024
2023
£
£
Raw materials and consumables
5,677,730
5,293,838
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,730,914
4,654,116
Other debtors
74,770
119,427
Prepayments and accrued income
47,185
59,594
4,852,869
4,833,137
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
2,788,479
3,126,720
Trade creditors
3,255,047
2,095,191
Corporation tax
255,746
177,160
Other taxation and social security
357,337
276,547
Other creditors
926,523
770,457
Accruals and deferred income
81,918
83,127
7,665,050
6,529,202
GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
14
Creditors: amounts falling due after more than one year
2024
2023
£
£
Taxation and social security
209,626
489,128
15
Loans and overdrafts
2024
2023
£
£
Bank loans
2,788,479
3,126,720
Payable within one year
2,788,479
3,126,720

Bank loans include £2,788,479 in relation to a trade loan facility which is secured by way of a fixed and floating charge over the assets of the company and a guarantee by the company's director.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
736
529
2024
Movements in the year:
£
Liability at 1 October 2023
529
Charge to profit or loss
207
Liability at 30 September 2024
736

The deferred tax liability set out above is expected to reverse within 4 years and relates to accelerated capital allowances that are expected to mature within the same period.

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
117,399
105,069

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
100 of £1 each
100
100
100
100
19
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
38,333
24,210
Between two and five years
40,350
62,543
78,683
86,753

Expense incurred during the year £24,210 (2023: £2,018)

20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Included within other creditors due within one year is a balance of £730,460 (2023: £817,246) owed to Arable Solutions Ltd, a company under the common control of the director. The balance is repayable on demand.

During the year remuneration and employer benefits of £33,598 (2023: £10,961) were paid to a close family member of the sole director who was employed by the company as a member of administrative and sales staff. Their appointment was made in open competition and they are paid within the normal pay scales for their role and received no special treatment as a result of their relationship to the director. No amounts were outstanding as at 30 September 2024 (2023: £NIL).

21
Ultimate controlling party

The ultimate controlling party is D J Buttery.

GLOBAL GRAINS AND INGREDIENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
22
Cash generated from operations
2024
2023
£
£
Profit after taxation
687,816
454,575
Adjustments for:
Taxation charged
263,278
194,975
Finance costs
200,011
533,357
Depreciation and impairment of tangible fixed assets
2,872
3,868
Movements in working capital:
(Increase)/decrease in stocks
(383,892)
2,224,273
(Increase)/decrease in debtors
(19,732)
1,254,523
Increase/(decrease) in creditors
1,116,001
(762,175)
Cash generated from operations
1,866,354
3,903,396
23
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
588,645
1,139,915
1,728,560
Borrowings excluding overdrafts
(3,126,720)
338,241
(2,788,479)
(2,538,075)
1,478,156
(1,059,919)
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