Registration number:
Ideal Foods Limited
for the Period from 1 March 2024 to 31 December 2024
Ideal Foods Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Independent Auditor's Report |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Statement of Financial Position |
|
Statement of Financial Position |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Ideal Foods Limited
Company Information
Directors |
M McEllone M E Strand F Trearty R K Vaage |
Registered office |
|
Auditors |
|
Ideal Foods Limited
Strategic Report for the period from 1 March 2024 to 31 December 2024
The directors present their strategic report for the period from 1 March 2024 to 31 December 2024.
Business Review
Ideal foods Limited experienced difficult trading conditions in the period ended 31 December 2024. A combination of inflationary pressures on the supply side and global market conditions has impacted the earnings for the period under review.
The period has seen commencement of the integration of Ideal Foods into the Pelagia Group with the intention of creating synergies and maximising the potential of the company following the acquisition of the entire shareholding in the Ideal Group by Pelagia (UK) Limited on 6 March 2024. This integration continues into 2025 and seeks to ensure Ideal Foods is positioned to maximise its future potential with a continued focus on developing the operational capabilities of the Ideal Group to support the growth strategy.
Principal risks and uncertainties
The impact of high inflation, historically high interest rates and the ongoing war in Ukraine continue to create difficult trading conditions for the company. Ideal Foods will continue to manage these impacts as best it can and is confident that its acquisition by Pelagia will put the company in a strong position in the year ahead. Other uncertainties affecting the business include foreign currency exchange, raw material prices and transport costs. These risks are closely monitored.
Research and Development
The business innovates to solve problems and to take advantage of opportunities it sees. The core business model focuses on reducing food wastage and the company takes great pride in its aim to utilise all the available raw material it receives. The company offers the fish processing sector a route to sell all parts of the fish and to source markets for these products.
Future developments
The global seafood market is expected to continue its growth in 2025. The Ideal Foods Group is in a strong position going forward following its acquisition by Pelagia (UK) Limited. Innovation in seafood products remains key to growth in the sector. The strategic relationship with Pelagia will allow the business to further maximise the potential to innovate and develop the provision of fish, shellfish and co-products to a global market.
Key performance indicators
The group uses a range of key performance indicators to measure its performance. Those main indicators include turnover, gross profit and operating profit.
Turnover: £ 18,215k (2024 - £ 23,862k)
Gross Profit/Margin: £ 1,863k 10.2%, (2024 - £ 4,097k, 17.2%)
Net (Loss)/Proft/Margin: (£ 59k), -3.2% (2024 - £ 2,174k, 9.1%)
Ideal Foods Limited
Strategic Report for the period from 1 March 2024 to 31 December 2024 (continued)
Approved by the
......................................... |
Ideal Foods Limited
Directors' Report for the Period from 1 March 2024 to 31 December 2024
The directors present their report and the for the period from 1 March 2024 to 31 December 2024.
Directors of the group
The directors who held office during the period were as follows:
Directors responsibilities statement
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Ideal Foods Limited
Directors' Report for the Period from 1 March 2024 to 31 December 2024 (continued)
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors Westcotts (SW) LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
|
Approved by the
......................................... |
Ideal Foods Limited
Independent Auditor's Report to the Members of Ideal Foods Limited
Opinion
We have audited the financial statements of Ideal Foods Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 1 March 2024 to 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 the parent company's affairs as at 31 December 2024 and of the group's loss for the period 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 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 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Ideal Foods Limited
Independent Auditor's Report to the Members of Ideal Foods Limited (continued)
We have nothing to report in this regard.
Opinion on other matter 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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and the Directors' Report.
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 -1], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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:
• |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, and inspection of the company's regulatory correspondence. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit. |
Ideal Foods Limited
Independent Auditor's Report to the Members of Ideal Foods Limited (continued)
• |
The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements, including food and hygiene, employment, anti-bribery, anti-money laundering and certain aspects of companies legislation. |
• |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement 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 on the effectiveness of the group’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 group’s or the parent 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 group or the parent 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. |
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. |
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.
Ideal Foods Limited
Independent Auditor's Report to the Members of Ideal Foods Limited (continued)
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 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.
......................................
For and on behalf of
3 Longbridge Road
Plymouth
Devon
PL6 8LT
Ideal Foods Limited
Consolidated Statement of Comprehensive Income for the Period from 1 March 2024 to 31 December 2024
Note |
31 December |
29 February |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating (loss)/profit |
( |
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
9,262 |
11,266 |
||
(Loss)/profit before tax |
( |
|
|
Tax on (loss)/profit |
|
( |
|
(Loss)/profit for the financial period |
( |
|
The above results were derived from continuing operations.
The group has no recognised gains or losses for the period other than the results above.
Ideal Foods Limited
(Registration number: 04173954)
Consolidated Statement of Financial Position as at 31 December 2024
Note |
31 December |
29 February |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
750 |
750 |
|
Capital redemption reserve |
250 |
250 |
|
Profit and loss account |
7,409,298 |
7,458,054 |
|
Equity attributable to owners of the company |
7,410,298 |
7,459,054 |
|
Shareholders' funds |
7,410,298 |
7,459,054 |
Approved and authorised by the
|
Approved and authorised by the
......................................... |
Ideal Foods Limited
(Registration number: 04173954)
Statement of Financial Position as at 31 December 2024
Note |
31 December |
29 February |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
750 |
750 |
|
Capital redemption reserve |
250 |
250 |
|
Profit and loss account |
7,679,477 |
7,754,824 |
|
Shareholders' funds |
7,680,477 |
7,755,824 |
The company made a loss after tax for the financial period of £75,347 (February 2024- profit of £1,679,738).
Approved and authorised by the
|
Approved and authorised by the
......................................... |
Ideal Foods Limited
Consolidated Statement of Changes in Equity for the Period from 1 March 2024 to 31 December 2024
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 March 2024 |
|
|
|
|
Loss for the period |
- |
- |
( |
( |
At 31 December 2024 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 March 2023 |
|
|
|
|
Profit for the period |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 29 February 2024 |
750 |
250 |
7,458,054 |
7,459,054 |
Ideal Foods Limited
Statement of Changes in Equity for the Period from 1 March 2024 to 31 December 2024
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 March 2024 |
|
|
|
|
Loss for the period |
- |
- |
( |
( |
At 31 December 2024 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 March 2023 |
|
|
|
|
Profit for the period |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 29 February 2024 |
750 |
250 |
7,754,824 |
7,755,824 |
Ideal Foods Limited
Consolidated Statement of Cash Flows for the Period from 1 March 2024 to 31 December 2024
Note |
31 December |
29 February |
|
Cash flows from operating activities |
|||
(Loss)/profit for the period |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
( |
|
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
Decrease in trade debtors |
|
|
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
( |
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends paid |
- |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 March |
|
|
|
Cash and cash equivalents at 31 December |
1,932,334 |
3,423,077 |
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Principal activity
The principal activity of the company is wholesale of other food, including fish, crustaceans and molluscs.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling which is the functional currency of the entity.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
2 |
Accounting policies (continued) |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Statement of Comprehensive Income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. |
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
2 |
Accounting policies (continued) |
Foreign currency transactions and balances
Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold property |
2% straight line |
Plant and machinery |
25-50% straight line |
Fittings, fixtures, and equipment |
25-33% straight line |
Motor vehicles |
25% straight line |
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
2 |
Accounting policies (continued) |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past
event; it is probable that the entity will be required to transfer economic benefits in settlement and the
amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the
statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
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.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
2 |
Accounting policies (continued) |
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Recognition and measurement
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
Turnover |
The analysis of the group's turnover for the period from continuing operations is as follows:
31 December |
29 February |
|
Sale of goods |
|
|
The analysis of the group's turnover for the period by market is as follows:
31 December |
29 February |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
Operating (loss)/profit |
Arrived at after charging/(crediting)
31 December |
29 February |
|
Depreciation expense |
|
|
Operating lease charges |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Foreign exchange movements |
108,509 |
177,289 |
Impairment of trade debtors |
(6,145) |
- |
Auditors' remuneration |
31 December |
29 February |
|
Audit of these financial statements |
12,727 |
10,894 |
Audit of the financial statements of the company's subsidiaries |
7,098 |
8,900 |
|
|
|
Total non-audit services |
|
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
31 December |
29 February |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
31 December |
29 February |
|
Operations |
|
|
Managerial and administration |
|
|
Sales |
|
|
Finance |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
31 December |
29 February |
|
Remuneration |
- |
|
Contributions paid to money purchase schemes |
- |
|
- |
187,802 |
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
Taxation |
Tax charged/(credited) in the consolidated statement of comprehensive income
31 December |
29 February |
|
Current taxation |
||
UK corporation tax |
( |
|
UK corporation tax adjustment to prior periods |
|
- |
(11,501) |
535,333 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from changes in tax rates and laws |
|
- |
Total deferred taxation |
|
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (December 2024- lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2024 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
|
- |
Decrease from other tax effects |
( |
- |
Total tax (credit)/charge |
( |
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
Tangible assets |
Group |
Freehold property |
Fixtures, fittings and equipment |
Plant and machinery |
Motor vehicles |
Total |
Cost or valuation |
|||||
At 1 March 2024 |
|
|
|
|
|
Additions |
- |
- |
- |
|
|
Disposals |
- |
- |
- |
( |
( |
At 31 December 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 March 2024 |
|
|
|
|
|
Charge for the period |
|
( |
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 31 December 2024 |
|
|
|
|
|
At 29 February 2024 |
|
|
|
|
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
9 |
Tangible assets (continued) |
Company |
Freehold property |
Fixtures, fittings and equipment |
Plant and machinery |
Motor vehicles |
Total |
Cost or valuation |
|||||
At 1 March 2024 |
|
|
|
|
|
Additions |
- |
- |
- |
|
|
Disposals |
- |
- |
- |
( |
( |
At 31 December 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 March 2024 |
|
|
|
|
|
Charge for the period |
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 31 December 2024 |
|
|
|
|
|
At 29 February 2024 |
|
|
|
|
|
Investments |
Company
31 December |
29 February |
|
Investments in subsidiaries |
|
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
10 |
Investments (continued) |
Details of undertakings
Subsidiary undertakings |
Nature of Business |
Class of share |
Immediate parent |
Ideal Nutritional Foods Limited |
Wholesale of food including fish and crustaceans |
Ordinary |
Ideal Foods Limited |
Ideal Pet Foods Limited |
Retailer of fish product or pet foods |
Ordinary |
Ideal Foods Limited |
The Ideal British Babyfood Company Limited |
Dormant |
Ordinary |
Ideal Foods Limited |
Ideal Seafoods Limited |
Dormant |
Ordinary |
Ideal Foods Limited |
Channel to China Limited |
Dormant |
Ordinary |
Ideal Foods Limited |
All of the subsidiaries disclosed above have the same registered office as Ideal Foods Limited.
Each subsidiary is owned 100% by Ideal Food Limited as at 29 February 2024.
Stocks |
Group |
Company |
|||
31 December |
29 February |
31 December |
29 February |
|
Finished goods and goods for resale |
|
|
|
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
Debtors |
Group |
Company |
|||
Current |
31 December |
29 February |
31 December |
29 February |
Trade debtors |
|
|
|
|
Amounts owed by related parties |
- |
- |
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Income tax asset |
|
- |
|
- |
|
|
|
|
Creditors |
Group |
Company |
|||
31 December |
29 February |
31 December |
29 February |
|
Due within one year |
||||
Bank overdrafts |
|
- |
- |
- |
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accruals and deferred income |
|
|
|
|
Income tax liability |
- |
292,834 |
- |
286,755 |
|
|
|
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 March 2024 |
( |
( |
Increase (decrease) in existing provisions |
|
|
At 31 December 2024 |
( |
( |
|
Company
Deferred tax |
Total |
|
At 1 March 2024 |
( |
( |
Increase (decrease) in existing provisions |
|
|
At 31 December 2024 |
( |
( |
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
31 December |
29 February |
|||
No. |
£ |
No. |
£ |
|
|
|
250 |
|
250 |
|
|
250 |
|
250 |
|
|
250 |
|
250 |
|
|
|
|
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
Reserves |
Company
Profit and loss account
This reserve records retained earnings and accumulated losses.
Loans and borrowings |
Current loans and borrowings
Group |
Company |
|||
31 December |
29 February |
31 December |
29 February |
|
Bank overdrafts |
|
- |
- |
- |
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
31 December |
29 February |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Dividends |
31 December |
29 February |
|||
£ |
£ |
|||
Dividends paid |
- |
679,566 |
||
Analysis of changes in net debt |
Ideal Foods Limited
Notes to the Financial Statements for the Period from 1 March 2024 to 31 December 2024 (continued)
21 |
Analysis of changes in net debt (continued) |
Group
At 1 March 2024 |
Financing cash flows |
At 31 December 2024 |
|
Cash and cash equivalents |
|||
Cash |
3,423,077 |
(1,490,743) |
1,932,334 |
|
Related party transactions |
Group
Transactions with directors |
2024 |
At 1 March 2023 |
Advances to director |
Repayments by director |
At 29 February 2024 |
|
||||
Overdrawn directors |
|
|
( |
- |
Other directors |
( |
|
( |
- |
133,084 |
515,802 |
(648,886) |
- |
|
No director transactions in the year as balance fully repaid by 29 February 2024.
Parent and ultimate parent undertaking |
The company's immediate parent is
Registered office of parent is Gilbey Road, Pyewipe, Grimsby, North East Lincolnshire, DN31 2SL.
The ultimate controlling party is