Registration number:
KingAsia Foods Limited
for the Year Ended 30 June 2024
KingAsia Foods Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account and Statement of Retained Earnings |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
KingAsia Foods Limited
Company Information
Directors |
Mr K H Fong Mr S H Fong |
Company secretary |
Mr S H Fong |
Registered office |
|
Bankers |
|
Auditors |
|
KingAsia Foods Limited
Strategic Report for the Year Ended 30 June 2024
The directors present their strategic report for the year ended 30 June 2024.
Principal activity
The principal activity of the company is preparation, cooking and packaging of Chinese frozen foods
Fair review of the business
The directors consider that the results for the period and the financial position at the end of the period were satisfactory, given the challenging global economic conditions.
Although turnover has remained static, the company has successfully maintained the sales growth acheived over the last few years, despite the challenging market conditions.
Gross margins have increased from 19% to 26% reflecting both increases in sales prices and the success the buying team have had in sourcing more cost efficient raw material supplies.
The company made an operating profit for the year.
The company's balance sheet remains strong.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2024 |
2023 |
|
Turnover |
£ |
17,627,553 |
17,615,451 |
Gross profit |
£ |
4,555,698 |
3,285,061 |
Gross profit percentage |
% |
26 |
19 |
Profit/(loss) before tax |
£ |
1,449,640 |
266,146 |
Net current assets |
£ |
6,007,153 |
5,250,383 |
Net assets |
£ |
6,616,025 |
5,885,005 |
The directors continue to monitor the impact of the currently challenging global economic conditions on the company and apply appropriate responsive strategies. The company implemented further price increases after the year end with the aim of further improving the company's gross profit margins and covering anticipated future cost increases, such as increasing wages costs.
While current market conditions remain challenging the directors believe there are still opportunities for profitable growth.
During the year the company has invested a further £139,886 in tangible fixed assets. The directors are actively considering further additions to plant and machinery to continue the company's longterm strategy of expanding productive capacity.
Principal risks and uncertainties
The principal risks and uncertainties faced by the company are the general uncertain economic climate in which it currently trades.
Approved and authorised by the
......................................... |
KingAsia Foods Limited
Directors' Report for the Year Ended 30 June 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company’s principal financial instruments comprise bank balances, trade debtors and trade creditors. The purpose of these instruments is to finance the company’s business operations. The directors do not consider that the company has any significant financial risks other than those normal commercial risks arising from its trading operations. Such risks are managed so as to permit the smooth operation of the business.
Price risk, credit risk, liquidity risk and cash flow risk
Most sales are to UK customers and most suppliers are UK based, and accordingly the company has not entered into any hedging arrangements in respect of risks relating to trade debtors or creditors.
The company has operated throughout the year within it's banking facilities, thereby substantially eliminating liquidity and cash flow risks.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Disclosure of information to the auditors
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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
......................................... |
KingAsia Foods Limited
Statement of Directors' Responsibilities
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 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 and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom 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 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. They 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.
KingAsia Foods Limited
Independent Auditor's Report to the Members of KingAsia Foods Limited
Opinion
We have audited the financial statements of KingAsia Foods Limited (the 'company') for the year ended 30 June 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 30 June 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 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 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.
KingAsia Foods Limited
Independent Auditor's Report to the Members of KingAsia Foods Limited
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.
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 year 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, 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 Statement of Directors' Responsibilities [set out on page 4], 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.
KingAsia Foods Limited
Independent Auditor's Report to the Members of KingAsia Foods Limited
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.
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 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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:-
• |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capability and skills to identify or recognise non-compliance with applicable laws and regulations; |
KingAsia Foods Limited
Independent Auditor's Report to the Members of KingAsia Foods Limited
• |
We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the food manufacturing industry; |
• |
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protections legislation, employment law and environmental and health and safety legislation; |
• |
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and |
• |
The audit team remained alert to the possibility of non-compliance with laws and regulations throughout the audit. |
We assessed the susceptibility of the company’s financial statements to material misstatement including obtaining an understanding of how fraud might occur, by:
• |
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
• |
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
• |
Considering what motivations and opportunities for fraud may exist within the company. |
To address the risk of fraud through management bias and override of controls, we:
• |
Performed analytical procedures to identify any unusual or unexpected relationships; |
• |
Reviewed journal entries to identify unusual transactions vouching to supporting documentation where appropriate; |
• |
Reviewed the company’s accounting records for any significant or unusual transactions vouching to supporting documentation where appropriate; |
• |
Assessed whether the judgements and assumptions made in determining any accounting estimates used in preparing the accounts were indicative of bias; and |
• |
We maintained an approach of professional scepticism throughout the audit; recognising the possibility of a material misstatement due to facts or behaviour indicating irregularities (including fraud) or error, notwithstanding our past experience of the honesty and integrity of the company's management. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• |
Agreeing financial statement disclosures to underlying supporting documentation; |
• |
Enquiring of management as to actual and potential litigation and claims; |
• |
Reviewing correspondence with HMRC; |
• |
Reviewing legal expenses both during and after the year for any items indicative of ongoing litigation and potential claims; and |
• |
We confirmed that the company’s industry certifications remained valid. |
KingAsia Foods Limited
Independent Auditor's Report to the Members of KingAsia Foods Limited
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.
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
9/13 Thorne Road
South Yorkshire
DN1 2HJ
KingAsia Foods Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Income from other fixed asset investments |
|
|
|
Other interest receivable and similar income |
|
|
|
Fair value adjustments on current asset investments |
|
|
|
Interest payable and similar charges |
( |
( |
|
251,555 |
66,002 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Retained earnings brought forward |
5,884,705 |
6,096,722 |
|
Dividends paid |
( |
( |
|
Retained earnings carried forward |
6,615,725 |
5,884,705 |
KingAsia Foods Limited
Statement of Comprehensive Income for the Year Ended 30 June 2024
2024 |
2023 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
KingAsia Foods Limited
(Registration number: 02610611)
Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Other financial assets |
2,995,852 |
2,704,321 |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
300 |
300 |
|
Retained earnings |
6,615,725 |
5,884,705 |
|
Shareholders' funds |
6,616,025 |
5,885,005 |
Approved and authorised by the
......................................... |
KingAsia Foods Limited
Statement of Changes in Equity for the Year Ended 30 June 2024
Share capital |
Retained earnings |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2024 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2023 |
300 |
5,884,705 |
5,885,005 |
KingAsia Foods Limited
Statement of Cash Flows for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Financial instrument adjustments through profit and loss |
( |
( |
|
Profit on disposal of tangible assets |
( |
- |
|
(Profit)/loss from disposals of investments |
( |
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
(Increase)/decrease in trade debtors |
( |
|
|
(Decrease)/increase in trade creditors |
( |
|
|
Decrease in deferred income, including government grants |
( |
( |
|
Cash generated from operations |
|
|
|
Income taxes (paid)/received |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Dividend income from financial assets |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Acquisition of investments |
( |
( |
|
Proceeds from disposal of investments |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Proceeds from other borrowing draw downs |
|
- |
|
Repayment of other borrowing |
( |
- |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 July |
|
|
|
Cash and cash equivalents at 30 June |
544,980 |
235,652 |
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
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.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible fixed 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 |
Leasehold property improvements |
5 years on a straight line basis |
Plant and equipment |
15% per annum on a reducing balance and 25% on a straight line basis |
Fixtures and fittings |
15% per annum on a reducing balance basis |
Motor vehicles |
25% per annum on a reducing balance basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, 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.
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 company will not be able to collect all amounts due according to the original terms of the receivables.
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Current asset investments
Current asset investments represent investments held in listed shares or similar where there is an active market and the fair value can be reliably measured.
Current asset investments are initially recorded at cost and are revalued to fair value at each year end with changes in fair value being recognised in the income statement.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
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 company 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.
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 profit and loss account 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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, which are described in note 2, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
Critical judgements
The directors do not consider that there have been any critical judgements made in the process of applying the company's accounting policies. |
Key sources of estimation uncertainty
The directors do not consider that there have been any key assumptions concerning the future or other key sources of estimation uncertainty at the balance sheet date which may cause a material adjustment to the carrying amount of assets and liabilities within the next financial year.
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Revenue |
The analysis of the company's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
Royalties received |
|
|
|
|
The analysis of the company's Turnover for the year by market is as follows:
2024 |
2023 |
|
UK |
|
|
Europe |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2024 |
2023 |
|
Government grants |
|
|
Miscellaneous other operating income |
|
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
2024 |
2023 |
|
(Gain) loss on disposal of property, plant and equipment |
( |
- |
(Gain) loss from disposals of investments |
( |
|
(16,952) |
26,476 |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
- |
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Government grants |
Additional Restrictions Grant - Capital - £10,838 (2023 - £12,750)
There are no unfulfilled conditions attached to this grant.
The amount of grants recognised in the financial statements was £
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
|
|
Foreign exchange losses |
|
|
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
Other departments |
|
|
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
311,859 |
4,445 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
Tax increase/(decrease) from effect of indexation allowance on capital gains |
|
( |
Total tax charge |
|
|
On 1 April 2023 the main rate of corporation tax increased from 19% to 25%. This change in the main rate of corporation tax has been time apportioned to arrive at the rate used in the above analysis.
Deferred tax has been recognised at 25% (2023 - 25%) in line with the corporation tax rates expected to be in force when the associated timing differences reverse.
Deferred tax
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Deferred tax relating to accelerated capital allowances |
- |
|
Deferred tax on revalued investments |
- |
|
Deferred tax on capital grant |
|
- |
|
|
2023 |
Asset |
Liability |
Deferred tax relating to accelerated capital allowances |
- |
|
Deferred tax on revalued investments |
- |
|
Deferred tax on capital grant |
|
- |
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Tangible assets |
Leasehold property improvements |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
|
Cost or valuation |
|||||
At 1 July 2023 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
- |
- |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 July 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 30 June 2024 |
|
|
|
|
|
At 30 June 2023 |
|
|
|
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Other financial assets (current and non-current) |
Financial assets at fair value through profit and loss |
Total |
|
Current financial assets |
||
Cost or valuation |
||
At 1 July 2023 |
2,704,321 |
2,704,321 |
Fair value adjustments |
274,233 |
274,233 |
Additions |
512,081 |
512,081 |
Disposals |
(494,783) |
(494,783) |
At 30 June 2024 |
2,995,852 |
2,995,852 |
Impairment |
||
At 1 July 2023 |
- |
- |
At 30 June 2024 |
- |
- |
Carrying amount |
||
At 30 June 2024 |
|
2,995,852 |
At 30 June 2023 |
|
2,704,321 |
Current financial assets represent listed shares and investments in managed equity funds. These are included in the accounts at market value.
The carrying amount of investments includes £1,570,574 (2023 - £1,445,349) which have been pledged as security against an uncommitted facility that the company has not drawn upon.
Stocks |
2024 |
2023 |
|
Raw materials and consumables |
|
|
Finished goods and goods for resale |
|
|
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Debtors |
Current |
Note |
2024 |
2023 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
Cash and cash equivalents |
2024 |
2023 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accruals |
|
|
|
Corporation tax |
312,183 |
4,418 |
|
Deferred income |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
|
Deferred income |
|
|
|
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 July 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 30 June 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
300 |
|
300 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Loans and borrowings |
Non-current loans and borrowings
2024 |
2023 |
|
Other borrowings |
|
|
Current loans and borrowings
2024 |
2023 |
|
Bank borrowings |
- |
|
Other borrowings |
|
|
|
|
Bank borrowings
Bank borrowings were repayable in monthly instalments and were secured by way of a debenture over the company's assets. |
Other borrowings
Interest is charged on the loan at 2.5% over base rate per annum and the loan is repayable over the next three years.
Dividends |
2024 |
2023 |
|||
£ |
£ |
|||
Interim dividends paid on ordinary shares |
356,400 |
356,400 |
||
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2023 - £
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Related party transactions |
Transactions with directors |
At the year end the following amounts were owed to the company by its directors:-
2024 |
At 1 July 2023 |
Advances to director |
Repayments by director |
At 30 June 2024 |
Mr S H Fong |
||||
Unsecured loan, no repayment terms and no interest charged |
|
|
( |
|
Mr K H Fong |
||||
Unsecured loan, no repayment terms and no interest charged |
|
|
( |
|
2023 |
At 1 July 2022 |
Advances to director |
Repayments by director |
At 30 June 2023 |
Mr S H Fong |
||||
Unsecured loan, no repayment terms and no interest charged |
|
|
( |
|
Mr K H Fong |
||||
Unsecured loan, no repayment terms and no interest charged |
|
|
( |
|
Summary of transactions with parent
Summary of transactions with other related parties
Included in other creditors is £11,583 (2023 £11,583) due to Mr W H Fong and £8,910 (2023 £8,910) due to Mr K P Fong. Mr W H Fong and Mr K P Fong are brothers of the directors and shareholders in the company's parent company, Pearl Asia Holdings Limited.
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Income and receivables from related parties
2024 |
Other related parties |
Sale of goods |
|
Receipt of services |
|
Transfers under finance arrangements (including loans and equity contributions) |
|
|
|
Amounts receivable from related party |
|
|
2023 |
Other related parties |
Sale of goods |
|
Receipt of services |
|
Transfers under finance arrangements (including loans and equity contributions) |
|
|
|
Amounts receivable from related party |
|
|
Expenditure with and payables to related parties
2024 |
Other related parties |
Rendering of services |
|
Amounts payable to related party |
|
|
2023 |
Other related parties |
Rendering of services |
|
Amounts payable to related party |
|
|
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Loans to related parties
2024 |
Other related parties |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
Interest transactions |
|
|
At end of period |
|
|
|
2023 |
Other related parties |
Total |
At start of period |
|
|
Repaid |
( |
( |
Interest transactions |
|
|
At end of period |
|
|
|
Terms of loans to related parties
No interest is charged on the loan advanced during the year, which is unsecured and repayable on demand.
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Loans from related parties
2024 |
Other related parties |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
Interest transactions |
|
|
At end of period |
|
|
|
2023 |
Other related parties |
Total |
At start of period |
|
|
Interest transactions |
|
|
At end of period |
|
|
|
Terms of loans from related parties
No interest was charged on the loan advanced and repaid during the year of £50,000, which was unsecured and repayable on demand.
Analysis of changes in net debt |
At 1 July 2023 |
Cash flows |
Other non-cash changes |
At 30 June 2024 |
|
Cash and cash equivalents |
||||
Cash |
235,652 |
309,328 |
- |
544,980 |
Borrowings |
||||
Long term borrowings |
(443,737) |
200,000 |
(48,960) |
(292,697) |
Short term borrowings |
(220,702) |
20,702 |
- |
(200,000) |
(664,439) |
220,702 |
(48,960) |
(492,697) |
|
( |
|
( |
|
|
|
Other non cash changes represent loan interest accrued but not paid on borrowings during the year.
KingAsia Foods Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Financial guarantee contracts |
The company acts as guarantor on a loan taken out during the year by a related party, Pearl Northern Developments (Jersey) Limited.
The amount of the financial guarantee contract is £
Parent and ultimate parent undertaking |
The ultimate controlling party is