Company registration number 04493756 (England and Wales)
LAILA'S FINE FOODS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LAILA'S FINE FOODS LIMITED
COMPANY INFORMATION
Directors
Mrs L A Remtulla
Mr A B Remtulla
Mrs N Beaver
Ms Z Dawson-Gerrard
Ms R Remtulla
Secretary
Mrs L A Remtulla
Company number
04493756
Registered office
91 Moor Park Avenue
Bispham
Blackpool
FY2 0LZ
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
LAILA'S FINE FOODS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 29
LAILA'S FINE FOODS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The principal activity of Laila’s Fine Foods Limited ("LFF", "the company") continues to be the production of high-quality, hand-made chilled and frozen private-label ready meals for both the retail and foodservice sectors. There have not been any significant changes in the company's principal activities in the year under review. The directors are not aware of any significant changes for the year ahead.
The Company strives to remain a leading supplier of meals which are delivered through innovation and the desire to deliver benefit to all its stakeholders. The company continues to invest in research and development, resulting in improvements to existing products as well as new methodology. The directors regard R&D investment as necessary for continuing success in the medium to long term future by delivering sales growth through investment in organic growth drivers such as new product development and expansion in high growth markets.
The business continues to operate in a challenging environment with the legacy of recent years from Covid, Brexit and cost inflationary pressures. The family-led structure of the business enables a focus on each of the core areas of the business by each of the Directors and ensures issues are dealt with at the highest level in a timely manner.
Sales overall are comparable to the prior year with lower volumes but improved pricing. Margins have improved from 11% to 13.7% despite direct labour costs being up by 10.6% and energy costs up by 69.4%. The business had previously been operating under historic electricity contracts until December 2022 but new contracts at higher rates commenced in January 2023.
Principal risks and uncertainties
As with all food manufacturing businesses, the unprecedented global events of recent years have impacted the company’s cost base, which has presented a principal risk for the company. Customers have been supportive in mitigating higher costs but the process of negotiating prices does take time and hence the business continues to monitor input costs closely to ensure we can react as quickly as possible.
Energy costs remain at higher levels than experienced prior to the war in Ukraine and we continue to work with our energy advisors to monitor this area, contracting as efficiently as possible.
The business continues to be reliant upon an improvement in trade and the continued support of creditors and funders, hence maintaining adequate cashflow and liquidity continues to be a principal risk of the business.
Note 1.2 on page 14 provides further information.
Development and performance
Turnover and profitability
Turnover for the year is comparable to the prior year.
Gross margin has improved from 11% to 13.7% with higher energy and direct labour costs being offset by improved product margin.
Administrative expenses were 6.5% higher during 2023 with staff costs, business rates and insurance being major contributors to this. Staff costs were higher following additional investment in our maintenance, technical and factory management staff.
This resulted in an operating profit of £58,273 compared to a loss in the prior year of £415,211.
LAILA'S FINE FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Capital Investment
There was capital investment of £64,260 during the year.
Cash flow and financing
The Cash in hand was £14,071 compared to £78,911 for the prior year as the business utilises invoice finance and only draws down to cover the requirement of each day.
The factoring facility provided additional funding of £2,249,093 during the year to fund the business activity and repayments on existing borrowings and leases.
Future Developments
2024 has been another challenging year for the business but growth is anticipated in 2025 from products launched in 2023 and a strong pipeline of potential and achieved new business.
Customer relations, both existing and new, are key to Laila's Fine Foods. Despite the challenging economic climate, we continue to grow current relationships by producing excellent existing products and delivering what we promise while innovating and developing new products that meet new and current customer needs.
There is a keen focus on continuous manufacturing improvements to reduce material and resource wastage and increase productivity. ·
This strategy of the above will help the company to produce products the best suit customer needs whilst achieving acceptable margins for the future benefit of the business.
Other performance indicators
The Board formally reviews the performance of the business monthly with reference to the management accounts, the trends of current performance compared to historic performance, and current performance compared to budget.
Key indicators are turnover, gross margin, gross margin percentage, people costs, EBITDA (Earnings before interest, tax, depreciation and amortisation) and cash headroom.
The management team monitors performance on a daily and weekly basis, ensuring that a balanced set of metrics is reviewed, that highlight if performance is meeting expectations. These are then used to focus on improvement activity. Targets are reviewed as appropriate to drive continuous improvement.
The company's income statement on page 10 shows that the turnover was £29,168,713 compared to £29,269,664 in the prior year, Gross Margin was £3,992,608 (13.7% of turnover) compared with £3,232.036 (11% of turnover) for the prior year, an increase of £760,572. Operating profit was £58,273 compared to a loss of £415,211 in the prior year.
The most recent forecasts show that the company is expecting to see an improvement in sales performance with new and existing customers and a return to profitability. We have critically reviewed these forecasts and will continue to monitor them against actual monthly performance.
Going concern
These financial statements have been prepared on a going concern basis. The Directors have a reasonable expectation that the company will continue in operational existence from the foreseeable future, however they are a aware of certain material uncertainties which may cast significant doubt over the company's ability to continue as a going concern. See note 1.2 for further details.
LAILA'S FINE FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Mrs L A Remtulla
Director
14 March 2025
LAILA'S FINE FOODS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of a manufacturer of ready prepared meals for the food service and retail market.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs L A Remtulla
Mr A B Remtulla
Mrs N Beaver
Ms Z Dawson-Gerrard
Ms R Remtulla
Financial instruments
Liquidity risk
The business relies upon bank and other funding to provide the necessary working and fixed capital funding for the business. A combination of long, medium, and short term debt is utilised to provide appropriate funding for the business based on cash projections. The Board continues to monitor cash projections and working capital facilities to ensure that there are sufficient short and medium term facilities in place to meet the day to day and longer term business needs.
Interest rate risk
The business has long and short term bank borrowings which carry variable interest rates. Other loans are split equally between variable and fixed rate debt to provide a balance of both risk management and opportunity to take advantage of lower base rates where possible.
Foreign currency risk
The business has very limited direct exposure to the Euro through purchases, these are currently at a level that do not pose a significant threat to the business and hence no specific hedging activities are in place for foreign currency exposure. Raw materials are generally sourced from UK suppliers billing in sterling but prices can experience some fluctuation due to underlying currency movements. The business monitors raw material pricing closely and maintains a database of multiple potential suppliers to ensure that buying is at the best price achievable.
Research and development
The company undertakes a significant amount of development of new products and processes to ensure that the products we offer to customers are innovative, distinctive and of the highest standards of presentation.
LAILA'S FINE FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Disabled persons
The Company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
The Company’s policy is to recruit disabled workers for those vacancies that they can fill. All necessary assistance with initial training is given. Once employed, a career plan is developed to enable suitable opportunities for each disabled person. Arrangements are made, where possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
Employee involvement
The Board members work closely with staff members as part of their normal day to day roles within the business and hence are in a position to receive regular feedback from employees and consider any changes or improvements that may be appropriate.
In addition the company has a policy to communicate matters that may affect employees’ interests either by email or staff noticeboards.
The Board are open with staff regarding performance and challenges within the business and seek to act as team working toward consistent goals.
Employee engagement for Laila's Fine Foods Limited is important, we are continually training our employees so they are able to offer products of an excellent standard to our customers.
Auditor
The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of business review and likely future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs L A Remtulla
Director
14 March 2025
LAILA'S FINE FOODS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 then 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;
- 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.
LAILA'S FINE FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAILA'S FINE FOODS LIMITED
- 7 -
Opinion
We have audited the financial statements of Laila's Fine Foods Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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.
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 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.
Material uncertainty related to going concern
We draw attention to Note 1.2 to the financial statements, which explains that the company incurred a loss before tax of £630,250 during the year ended 31 December 2023 and, as of that date, the company's liabilities exceeded its total assets by £3,250,997. The company has incurred further losses in 2024 and 2025. The company depends on credit and finance provided by creditors to continue as a going concern, which is not guaranteed. These conditions, along with the other matters set out in Note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
LAILA'S FINE FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAILA'S FINE FOODS LIMITED (CONTINUED)
- 8 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
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:
LAILA'S FINE FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAILA'S FINE FOODS LIMITED (CONTINUED)
- 9 -
Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations or fraud within the business. Because of the field in which the company operates we identified the Data Protection Act, employment law, health and safety, food hygiene standards and compliance with the UK Companies Act as the areas most likely to have a material impact on the financial statements;
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Russell Cooper BSc ACA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
14 March 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
LAILA'S FINE FOODS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
29,168,713
29,269,664
Cost of sales
(25,176,105)
(26,037,628)
Gross profit
3,992,608
3,232,036
Administrative expenses
(3,967,988)
(3,725,715)
Other operating income
33,653
78,468
Operating profit/(loss)
4
58,273
(415,211)
Interest payable and similar expenses
7
(688,523)
(580,006)
Loss before taxation
(630,250)
(995,217)
Tax on loss
8
351,676
Loss for the financial year
(630,250)
(643,541)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LAILA'S FINE FOODS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
6,729,190
6,974,750
Current assets
Stocks
10
597,047
583,796
Debtors
11
5,934,982
4,585,660
Cash at bank and in hand
14,071
78,911
6,546,100
5,248,367
Creditors: amounts falling due within one year
12
(14,042,761)
(12,057,948)
Net current liabilities
(7,496,661)
(6,809,581)
Total assets less current liabilities
(767,471)
165,169
Creditors: amounts falling due after more than one year
13
(2,041,402)
(2,312,758)
Government grants
16
(442,124)
(473,158)
Net liabilities
(3,250,997)
(2,620,747)
Capital and reserves
Called up share capital
18
100
100
Revaluation reserve
172,089
175,929
Profit and loss reserves
(3,423,186)
(2,796,776)
Total equity
(3,250,997)
(2,620,747)
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 14 March 2025 and are signed on its behalf by:
Mrs L A Remtulla
Director
Company registration number 04493756 (England and Wales)
LAILA'S FINE FOODS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
100
198,970
(2,176,276)
(1,977,206)
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(643,541)
(643,541)
Transfers
-
(23,041)
23,041
-
Balance at 31 December 2022
100
175,929
(2,796,776)
(2,620,747)
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(630,250)
(630,250)
Transfers
-
(3,840)
3,840
-
Balance at 31 December 2023
100
172,089
(3,423,186)
(3,250,997)
LAILA'S FINE FOODS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(1,679,089)
(1,143,535)
Interest paid
(688,523)
(580,006)
Income taxes refunded
394,725
415,173
Net cash outflow from operating activities
(1,972,887)
(1,308,368)
Investing activities
Purchase of tangible fixed assets
(64,260)
(172,790)
Increase in directors loans
(133,075)
(127,316)
Net cash used in investing activities
(197,335)
(300,106)
Financing activities
Increase in invoice discount facility
2,249,093
2,157,404
Proceeds from borrowings
294,279
Repayment of borrowings
(229,838)
(71,196)
Repayment of bank loans
(151,644)
(161,853)
Payment of finance leases obligations
(56,508)
(242,375)
Net cash generated from financing activities
2,105,382
1,681,980
Net (decrease)/increase in cash and cash equivalents
(64,840)
73,506
Cash and cash equivalents at beginning of year
78,911
5,405
Cash and cash equivalents at end of year
14,071
78,911
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Laila's Fine Foods Limited is a private company limited by shares incorporated in England and Wales. The registered office is 91 Moor Park Avenue, Bispham, Blackpool, FY2 0LZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The food manufacturing industry has continued to face a number of challenges on the back of Covid and Brexit with staff availability, transport issues and cost inflation being significant factors in recent years.
The company has reported a loss before tax of £630,250 in the year ended 31 December 2023 and the company’s liabilities exceeded its total assets by £3,250,997 at that date. Notwithstanding this, the operating profit for the year of £58,273 was an improvement on the prior year's operating loss of £415,211.
The business experienced further losses before tax in 2024 of in excess of £1m with a net reduction in sales volumes and a higher direct labour cost percentage being key factors. The board are working to mitigate these factors with a number of opportunities and an ongoing focus on direct labour cost and productivity.
The company’s external borrowing is with three principal lenders; Barclays Bank, Blackpool Council and WeDo Finance.
Two of the company's mortgages with Barclays were due for renewal in 2024 and these were extended in October 2024 and certain covenants removed. The new facility of £813,000 has repayments over 8 months from November 2024. The repayments are being financed by Wedo Finance.
The Blackpool Council loan is repayable by monthly instalments through to December 2028.
WeDo Finance continue to provide additional finance to the company. The existing facilities include property finance, invoice financing facilities and loan funding. Wedo Finance have confirmed their intention for these facilities to remain in place for a period of at least 12 months.
The Directors expect to comply with the terms of the above finance agreements.
The company has prepared forecasts through to March 2026. These forecasts anticipate an improvement in profitability and cash flow performance. The Directors are dedicated to putting appropriate resources in place to achieve these targets.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Going concern (continued)
In making their going assessment the Directors assume that:
the loan facilities will continue under the same terms for at least 12 months following the approval of the financial statements;
credit will continue to be provided by suppliers and HMRC under the existing agreed payment plans; and
new product lines and customers will be introduced to increase the company’s turnover.
Based on the above, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis but acknowledge that these conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
over 50 years
Plant and machinery
10% - 100% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises ingredients and packaging and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, invoice discounting facilities, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Capital grants are amortised over the life of the assets of which they relate.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no key estimations that have a significant impact on these financial statements.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Directors loan account debtor
There is a key judgement concerning the recoverability of the directors loan account balances. At the year end, balances totalling £1,064,983 (2022: £931,908) were included within other debtors as recoverable from directors. These debts are considered recoverable based on the value of personal assets owned by directors.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Bad debt provision
At each year end the directors review the trade debtors and provide for balances deemed not recoverable. At the year end the trade debtors are stated net of a bad debt provision of £465,108 (2022: £323,732). During the year a bad debt expense of £197,552 (2022: £101,260) was recognised in the profit and loss account.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sales of food products
29,168,713
29,269,664
2023
2022
£
£
Turnover analysed by geographical market
UK
28,762,242
29,015,551
Europe
406,471
254,113
29,168,713
29,269,664
2023
2022
£
£
Other revenue
Grants received
31,034
33,468
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses
12,618
8,991
Research and development costs
19,660
16,415
Government grants
(31,034)
(33,468)
Fees payable to the company's auditor for the audit of the company's financial statements
24,000
21,000
Depreciation of owned tangible fixed assets
309,820
383,401
Depreciation of tangible fixed assets held under finance leases
-
63,483
Operating lease charges
128,702
116,792
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Production
244
218
Management and administration
28
24
Directors
5
5
Total
277
247
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
6,480,133
5,702,516
Social security costs
549,162
528,428
Pension costs
95,248
88,824
7,124,543
6,319,768
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
649,974
628,371
Company pension contributions to defined contribution schemes
6,714
6,604
656,688
634,975
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
134,979
130,880
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
176,502
125,251
Interest on invoice finance arrangements
510,521
440,107
687,023
565,358
Other finance costs:
Interest on finance leases and hire purchase contracts
1,500
14,648
688,523
580,006
8
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(351,676)
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(630,250)
(995,217)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.47% (2022: 19.00%)
(147,920)
(189,091)
Tax effect of expenses that are not deductible in determining taxable profit
138
493
Tax effect of income not taxable in determining taxable profit
(7,284)
(10,247)
Adjustments in respect of prior years
(351,676)
Deferred tax not recognised
161,556
198,845
Remeasurement of deferred tax for changes in tax rates
(6,356)
Other permanent differences
28
Fixed asset differences
(162)
Taxation charge/(credit) for the year
-
(351,676)
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
9
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
6,457,839
6,237,619
92,263
298,963
1,755
13,088,439
Additions
54,933
9,327
64,260
Disposals
(123,274)
(123,274)
At 31 December 2023
6,457,839
6,292,552
92,263
185,016
1,755
13,029,425
Depreciation and impairment
At 1 January 2023
733,111
5,028,473
88,732
261,618
1,755
6,113,689
Depreciation charged in the year
114,141
179,873
955
14,851
309,820
Eliminated in respect of disposals
(123,274)
(123,274)
At 31 December 2023
847,252
5,208,346
89,687
153,195
1,755
6,300,235
Carrying amount
At 31 December 2023
5,610,587
1,084,206
2,576
31,821
6,729,190
At 31 December 2022
5,724,728
1,209,146
3,531
37,345
6,974,750
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
40,208
Freehold land and buildings were revalued in February 2014 by Duxburys Commercial, a firm of independent qualified surveyors. The main property was valued at £1,200,000. The valuation included non-depreciable land at a valuation of £420,000 and a cost of £384,984.
The revalued amount of £1,200,000 is to be considered as deemed cost from the date of transition to FRS 102.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
10
Stocks
2023
2022
£
£
Food ingredients and packaging
475,010
457,992
Finished food products
122,037
125,804
597,047
583,796
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,943,177
2,427,509
Corporation tax recoverable
337,395
Other debtors
1,379,052
1,113,970
Prepayments and accrued income
300,395
439,341
5,622,624
4,318,215
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
312,358
267,445
Total debtors
5,934,982
4,585,660
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Invoice Discounting facility
15
7,252,642
5,003,549
Bank loans
15
174,064
163,747
Obligations under finance leases
14
56,508
Other borrowings
15
1,114,458
940,622
Trade creditors
4,134,951
4,750,672
Corporation tax
57,330
Other taxation and social security
184,266
267,429
Other creditors
61,167
65,526
Accruals and deferred income
1,063,883
809,895
14,042,761
12,057,948
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
1,596,834
1,758,795
Other borrowings
15
444,568
553,963
2,041,402
2,312,758
Amounts included above which fall due after five years are as follows:
Payable by instalments
797,768
1,121,300
14
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
57,558
Less: future finance charges
(1,050)
56,508
Obligations under finance leases are secured over the assets to which they relate.
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. At the year end, there are no outstanding finance lease agreements.
15
Loans and overdrafts
2023
2022
£
£
Invoice Discounting facility
7,252,642
5,003,549
Bank loans
1,770,898
1,922,542
Other loans
1,559,026
1,494,585
10,582,566
8,420,676
Payable within one year
8,541,164
6,107,918
Payable after one year
2,041,402
2,312,758
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Loans and overdrafts
(Continued)
- 26 -
The Invoice finance facility of £7,252,642 and a loan of £743,094 (2022: £830,217) included in other loans are secured against the company's trade debtor balance and a third charge over the company's properties listed below. There is also a charge over the residential property of two of the directors.
The bank loans, except for the Bounce Back Loan of £26,737 (2022: £36,745), are secured by a first legal mortgage over property known as 81 Moor Park Avenue Blackpool, 91 Moor Park Avenue Blackpool, Unit 7 Bristol Avenue Blackpool, 210 Bristol Avenue Blackpool as well as a fixed and floating charge over the undertaking and all property and assets present and future.
Also Included in other loans is £580,432 (2022: £664,368) due to Blackpool Borough Council. This loan is secured by a second legal mortgage over the properties listed above. There is also a charge over the residential property of two of the directors.
There are in addition personal guarantees of £750,000 provided by 5 directors of the company.
A loan with carrying value at the year end of £435,919 is repayable in equal monthly instalments over 25 years from January 2007 with the interest charged monthly at 1.9% over base.
A loan with carrying value at the year end of £185,609 is repayable in equal monthly instalments over 10 years from April 2021 with the interest charged monthly at 3.15% over base.
A loan with carrying value at the year end of £375,135 is repayable in equal monthly instalments over 15 years from November 2017 with the interest charged at 3.5% over base.
A loan with carrying value at the year end of £748,404 is repayable in equal monthly instalments over 15 years from July 2017 with the interest charged at 1.75% over base.
A loan with carrying value at the year end of £25,831 is repayable in equal monthly instalments over 6 years from July 2020 with interest charged at 2.5% fixed.
Other borrowings with carrying value at the year end of £1,559,026 are repayable in equal monthly instalments over 10 years from December 2018 with interest charged at 6.25% fixed.
16
Government grants
2023
2022
£
£
Arising from government grants
442,124
473,158
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
2023
2022
£
£
Deferred grant income
Government Grant income b/f
Government Grant income received in the year
Government Grant release in the year
Government Grant income c/f
473,158
0
(31,034)
442,124
472,417
37,809
(37,068)
473,158
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
95,248
88,824
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
73
73
73
73
Ordinary B shares of £1 each
8
8
8
8
Ordinary C shares of £1 each
8
8
8
8
Ordinary D shares of £1 each
8
8
8
8
Ordinary E shares of £1 each
3
3
3
3
100
100
100
100
All classes of share A- E have the same voting rights, and the rights to receive dividends, save that the directors may declare a dividend in respect of one class of share and not in respect of any other class of shares.
Capital rights on distribution of assets on a winding up, or return of capital. Any surplus of assets after provisions for liabilities shall be distributed as follows: Firstly £0.005 on each A Ordinary share held, Secondly £0.004 on each B Ordinary share held, Thirdly £0.003 on each C Ordinary share held, Fourthly, £0.002 on each D Ordinary share held and lastly £0.001 on each E share held. Any surplus assets remaining thereafter shall be distributed pro rata amongst all shareholders.
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
71,955
58,743
Between two and five years
60,003
43,245
131,958
101,988
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
139,560
-
Pre year end a deposit was paid for a new item of machinery. The balance is payable on delivery of the machine.
21
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan to director
-
731,933
305,709
(221,944)
815,698
Loan to director
-
74,140
103,704
(72,744)
105,100
Loan to director
-
63,307
82,778
(74,866)
71,219
Loan to director
-
62,527
86,942
(76,504)
72,965
931,907
579,133
(446,058)
1,064,982
22
Related party transactions
Transactions with related parties
The company has traded with a limited company, where a director of Laila's Fine Foods Limited is also a director and shareholder for the company. This company made sales to the related party of £14,672 (2022: £21,008) and has a year end balance of £2,173 (2022: £nil). All transactions are at market value.
23
Ultimate controlling party
The ultimate controlling parties are Laila Remtulla and Alnajir Remtulla.
LAILA'S FINE FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
24
Cash absorbed by operations
2023
2022
£
£
Loss for the year after tax
(630,250)
(643,541)
Adjustments for:
Taxation charged/(credited)
(351,676)
Finance costs
688,523
580,006
Depreciation and impairment of tangible fixed assets
309,820
446,884
(Decrease)/increase in deferred income
(31,034)
741
Movements in working capital:
Increase in stocks
(13,251)
(86,877)
Increase in debtors
(1,553,642)
(947,724)
Decrease in creditors
(449,255)
(141,348)
Cash absorbed by operations
(1,679,089)
(1,143,535)
25
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
78,911
(64,840)
14,071
Borrowings excluding overdrafts
(8,420,676)
(2,161,890)
(10,582,566)
Obligations under finance leases
(56,508)
56,508
-
(8,398,273)
(2,170,222)
(10,568,495)
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