Company registration number 08953092 (England and Wales)
KERVAN GIDA UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
KERVAN GIDA UK LIMITED
COMPANY INFORMATION
Director
E Basar
Company number
08953092
Registered office
Swan Court
11 Worple Road
Wimbledon
London
SW19 4JS
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
KERVAN GIDA UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Group statement of changes in equity
10
Group statement of cash flows
11
Notes to the group financial statements
12 - 25
Parent company statement of financial position
26 - 27
Parent company statement of changes in equity
28
Notes to the parent company financial statements
29 - 33
KERVAN GIDA UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The director presents the strategic report for the year ended 31 December 2024.
Principal activities
The principal activity of the group continued to be that of the wholesale of sugar and chocolate and sugar confectionery.
Review of the business
For 2024, despite continuous challenging trading conditions, the Group is expected to maintain profit levels following stability across the confectionary industry. Given significant restructuring in recent years, the Group is in a good position to build on its success.
The Parent Company incorporated a new subsidiary in France in 2024 and intends to incorporate a new subsidiary in Australia.
Principal risks and uncertainties
The Group is exposed to various risks that are inherent within the confectionery industry. The Directors consider that the principal risks the Group faces relate to being competitive within a continuous challenging trading environment.
Within the industry it operates, the Group continues to face challenges and risks that have been brought on by global supply chain disruption and high labour, raw material and energy inflation. The Group continues to explore all opportunities to maintain a reliable and cost-effective supply chain, working closely with fewer preferred suppliers to develop stronger, long-term agreements. Such enduring relationships mirror our own commitments to our key customers, where we operate in partnerships which enable investment and co-value creation to generate profitable growth for both parties. The Group prides itself on working closely with customers to provide a broad portfolio of products which are enjoyed by consumers. The Group recognises the potential risk from changing trends in consumer preferences and an increasingly health-conscious public.
In summary, the Group focuses on customer retention and growth through seeking an optimal approach to operational improvements, efficiency, quality, marketing and relationship management. The Group is confident its approach to risk management ensures that risks are mitigated to controllable limits, and opportunities to improve both operational efficiency and financial results are maximised.
Key performance indicators
The Group uses a range of key performance indicators ("KPIs") to monitor the performance of the business on an ongoing basis. Financial measures include Revenue, Gross Profit, Operating profit, and Profit before tax, which are all line items disclosed on the face of the Statement of Comprehensive Income.
2024 2023
£'000 £'000
Turnover 42,784 32,765
Gross Profit 7,855 6,509
Net Profit/ (Loss) before tax 1,170 840
KERVAN GIDA UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Financial risk management policies and objectives
The Group uses financial instruments (invoice finance loan etc), with the principal aims of the Group's financial risk management policy being to monitor and address the risks arising from the Group's external and internal funding requirements, minimise net interest costs and manage financial risk arising from the international business of the Group, principally interest rate and financial risk.
The Directors of the Group, together with the Directors of the parent company, Kervan Gıda San. ve Tic. A.Ş, seek to achieve a balance between certainty of funding with committed facilities and a flexible cost-effective structure.
The Group has implemented a credit check system to carry out checks on potential customers before sales commence and continuously monitors payment terms and payment performance of customers.
E Basar
Director
8 March 2025
KERVAN GIDA UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2024.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid (2023: £nil). The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
E Basar
Research and development
The Group is not involved in Research and Development (R&D).
Future developments
The Group aims to grow its business with existing and new customers in the UK and within new markets in France and Australia through the introduction of innovative confectionery and targeted new product development in its BEBETO brand, with performance underpinned by returns from the former programme of focused operational efficiency and productivity.
Statement of director's responsibilities
The directors are responsible 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 UK adopted international accounting standards. 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;
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.
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
KERVAN GIDA UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
E Basar
Director
8 March 2025
KERVAN GIDA UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KERVAN GIDA UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Kervan Gida UK Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group and parent company statement of financial position, the group and parent company statement of changes in equity, the group statement of cash flows and the group and parent company notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.
In our opinion:
the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended;
the financial statements have been properly prepared in accordance with UK adopted international accounting standards; and
the financial statements 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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group and parent company's ability to continue as a going concern.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
KERVAN GIDA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KERVAN GIDA UK LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
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, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group and parent company through discussions with directors and other management, and from our commercial knowledge and experience of the 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 group and parent company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
KERVAN GIDA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KERVAN GIDA UK LIMITED
- 7 -
We assessed the susceptibility of the groups’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
understanding the business model as part of the control and business environment;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
investigated the rationale behind significant or unusual transactions.
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; and
reviewing correspondence and enquiring with the group management of actual and potential non-compliance with laws and regulations.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the parent 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 parent company’s members those matters we are required to state to him 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Filiz Zekia FCCA (Senior Statutory Auditor)
For and on behalf of Gravita II LLP, Statutory Auditor
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA
10 March 2025
KERVAN GIDA UK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
2
42,784,072
32,765,473
Cost of sales
(34,929,317)
(26,256,741)
Gross profit
7,854,755
6,508,732
Other operating income
171
9,761
Distribution costs
(3,317,240)
(2,963,872)
Administrative expenses
(2,869,068)
(2,475,667)
Operating profit
3
1,668,618
1,078,954
Finance costs
6
(498,940)
(239,096)
Profit before taxation
1,169,678
839,858
Income tax expense
7
(357,909)
(89,000)
Profit and total comprehensive income for the year
811,769
750,858
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The income statement has been prepared on the basis that all operations are continuing operations.
KERVAN GIDA UK LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
Non-current assets
Goodwill
8
123,000
164,000
Property, plant and equipment
9
1,663,564
1,645,554
1,786,564
1,809,554
Current assets
Inventories
11
13,032,389
7,725,672
Trade and other receivables
12
7,747,806
5,860,809
Cash and cash equivalents
24,067
63,076
20,804,262
13,649,557
Current liabilities
Trade and other payables
15
9,835,406
6,939,294
Current tax liabilities
89,000
Borrowings
14
3,188,795
4,363,042
Lease liabilities
16
151,105
60,354
13,175,306
11,451,690
Net current assets
7,628,956
2,197,867
Non-current liabilities
Borrowings
14
4,500,000
Lease liabilities
16
1,216,721
1,101,291
Deferred tax liabilities
17
19,100
5,716,721
1,120,391
Net assets
3,698,799
2,887,030
Equity
Called up share capital
19
2,660,000
2,660,000
Retained earnings
1,038,799
227,030
Total equity
3,698,799
2,887,030
The financial statements were approved and signed by the director and authorised for issue on 8 March 2025
E Basar
Director
Company registration number 08953092 (England and Wales)
KERVAN GIDA UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
2,660,000
(523,828)
2,136,172
Year ended 31 December 2023:
Profit and total comprehensive income
-
750,858
750,858
Balance at 31 December 2023
2,660,000
227,030
2,887,030
Year ended 31 December 2024:
Profit and total comprehensive income
-
811,769
811,769
Balance at 31 December 2024
2,660,000
1,038,799
3,698,799
KERVAN GIDA UK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(2,347,644)
(1,888,325)
Interest paid
(498,940)
(239,096)
Income taxes paid
(466,009)
Net cash outflow from operating activities
(3,312,593)
(2,127,421)
Investing activities
Purchase of property, plant and equipment
(24,922)
(281,983)
Net cash used in investing activities
(24,922)
(281,983)
Financing activities
Proceeds from new bank loans
7,668,795
2,760,860
Repayment of bank loans
(4,343,042)
Payment of lease liabilities
(27,247)
(334,170)
Net cash generated from financing activities
3,298,506
2,426,690
Net (decrease)/increase in cash and cash equivalents
(39,009)
17,286
Cash and cash equivalents at beginning of year
63,076
45,790
Cash and cash equivalents at end of year
24,067
63,076
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
Kervan Gida UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Swan Court, 11 Worpole Road, Wimbledon, SW19 4JS. The company's principal activities and nature of its operations are disclosed in the director's report.
The group consists of Kervan Gida UK Limited and all of its subsidiaries as set out in note 10.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the company and the group. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Kervan Gida UK Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
The director has at the time of approving the financial statements, a reasonable expectation that the truegroup has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Revenue
The group recognises revenue when it transfers control of a product to a customer. Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods (confectionery products) is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Goodwill
Goodwill arose from the purchase of a brand in 2018. This has been amortised over its estimated useful life of 10 years and reviewed annually for impairment.
1.7
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the lease term
Fixtures and fittings
33% straight line
Plant and equipment
33% straight line
Motor vehicles
25% straight line
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 recognised in the income statement.
1.8
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of tangible and intangible assets
At each reporting end date, the group 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.10
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.11
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial assets
Financial assets are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.13
Financial liabilities
The group recognises financial debt when the group becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled, or they expire.
1.14
Equity instruments
Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer payable at the discretion of the company.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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 group 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.
1.16
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 inventories or non-current 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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the group's estimate of the amount expected to be payable under a residual value guarantee; or the group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
1.19
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
Revenue
2024
2023
£
£
Revenue analysed by class of business
Sales of goods
42,784,072
32,765,473
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Revenue
(Continued)
- 17 -
2024
2023
£
£
Revenue analysed by geographical market
UK Sales
42,784,072
32,765,473
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
12,409
38
Fees payable to the company's auditor for the audit of the company's financial statements
49,000
27,500
Depreciation of property, plant and equipment
240,340
232,772
Amortisation of intangible assets (included within )
41,000
41,000
Cost of inventories recognised as an expense
32,277,249
24,049,081
4
Employees
The average monthly number of persons (including directors) employed by the group during the year was:
2024
2023
Number
Number
Directors
1
1
Management
2
2
Operations
18
12
Total
21
16
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,717,959
1,286,796
Social security costs
176,802
97,614
Pension costs
17,809
18,844
1,912,570
1,403,254
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
385,099
155,988
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
6
Finance costs
2024
2023
£
£
Interest on bank overdrafts and loans
231,295
29,451
Other interest payable
267,645
209,645
Total interest expense
498,940
239,096
7
Income tax expense
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
382,000
89,000
Adjustments in respect of prior periods
(4,991)
Total UK current tax
377,009
89,000
Deferred tax
Origination and reversal of temporary differences
(19,100)
Total tax charge
357,909
89,000
The charge for the year can be reconciled to the loss per the income statement as follows:
2024
2023
£
£
Profit before taxation
1,169,678
839,858
Expected tax charge based on a corporation tax rate of 25.00% (2023: 23.50%)
292,420
197,367
Effect of expenses not deductible in determining taxable profit
3,893
1,791
Utilisation of tax losses not previously recognised
-
(102,464)
Unutilised tax losses carried forward
10,004
-
Permanent capital allowances in excess of depreciation
24,249
(20,500)
Under/(over) provided in prior years
(4,991)
-
Deferred tax adjustments in respect of prior years
(19,100)
-
Other movements
-
12,806
Over/(under) provision of current year tax
51,434
-
Taxation charge for the year
357,909
89,000
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
8
Intangible assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023
410,000
243,051
653,051
Disposals
(243,051)
(243,051)
At 31 December 2023
410,000
410,000
At 31 December 2024
410,000
410,000
Amortisation and impairment
At 1 January 2023
205,000
77,328
282,328
Charge for the year
41,000
41,000
Impairment loss
165,723
165,723
Eliminated on disposals
(243,051)
(243,051)
At 31 December 2023
246,000
246,000
Charge for the year
41,000
41,000
At 31 December 2024
287,000
287,000
Carrying amount
At 31 December 2024
123,000
-
123,000
At 31 December 2023
164,000
-
164,000
At 31 December 2022
205,000
165,722
370,722
9
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
19,222
98,530
147,029
264,781
Additions
1,495,815
182,658
99,325
1,777,798
At 31 December 2023
1,515,037
98,530
329,687
99,325
2,042,579
Additions
233,428
24,922
258,350
Disposals
(98,530)
(98,530)
At 31 December 2024
1,748,465
354,609
99,325
2,202,399
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
(Continued)
- 20 -
Accumulated depreciation and impairment
At 1 January 2023
160
98,530
65,563
164,253
Charge for the year
122,201
108,351
2,220
232,772
At 31 December 2023
122,361
98,530
173,914
2,220
397,025
Charge for the year
161,230
68,489
10,621
240,340
Eliminated on disposal
(98,530)
(98,530)
At 31 December 2024
283,591
242,403
12,841
538,835
Carrying amount
At 31 December 2024
1,464,874
-
112,206
86,484
1,663,564
At 31 December 2023
1,392,676
-
155,773
97,105
1,645,554
10
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Kervan UK (Trading) Ltd
England
Ordinary Shares
100.00
Kervan Gida France SAS
France
Ordinary Shares
100.00
The registered office addresses of the subsidiary companies are:
UK - Swan Court, 11 Worpole Road, Wimbledon, London, SW19 4JS
France - 27 Avenue de l'Opera, 75001 Paris
Under section 479A and 479C of the Companies Act 2006 - audit exemption for a subsidiary company, the company has provided a statement of guarantee by a parent undertaking of a subsidiary undertaking on behalf of Kervan UK (Trading) Limited. Consequently, Kervan UK (Trading) Limited is exempt from the requirements of the Companies Act relating to the audit of its individual accounts.
11
Inventories
2024
2023
£
£
Finished goods
13,032,389
7,725,672
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Trade and other receivables
2024
2023
£
£
Trade receivables
7,341,344
5,669,683
Provision for bad and doubtful debts
(72,411)
(54,833)
7,268,933
5,614,850
Other receivables
362,987
112,150
Prepayments
115,886
133,809
7,747,806
5,860,809
13
Trade receivables - credit risk
Fair value of trade receivables
The director considers that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
Movement in the allowances for doubtful debts
2024
2023
£
£
Balance at 1 January 2024 and at 31 December 2024
72,411
54,833
14
Borrowings
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Borrowings held at amortised cost:
Bank loans
3,188,795
4,363,042
4,500,000
-
Included within the above balance is a bank loan of £4,500,000. The company's parent, Kervan Gida San ve Ticaret A.S, has provided a guarantee to the bank in support of this loan.
15
Trade and other payables
2024
2023
£
£
Trade payables
7,270,700
5,159,872
Accruals
1,277,518
899,352
Social security and other taxation
1,251,617
822,819
Other payables
35,571
57,251
9,835,406
6,939,294
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
16
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
151,106
60,354
In two to five years
479,578
280,128
In over five years
737,142
821,163
Total undiscounted liabilities
1,367,826
1,161,645
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
151,105
60,354
Non-current liabilities
1,216,721
1,101,291
1,367,826
1,161,645
17
Deferred taxation
Liabilities
2024
2023
£
£
Deferred tax balances
19,100
The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.
Fixed asset timing differences
£
Liability at 1 January 2023 and 1 January 2024
19,100
Deferred tax movements in current year
Charge/(credit) to profit or loss
(19,100)
Liability at 31 December 2024
-
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,809
18,844
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2,660,000
2,660,000
2,660,000
2,660,000
There is a single class of Ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.
20
Capital risk management
The company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance,
The group is not subject to any externally imposed capital requirements.
21
Subsidiary investments
On 15 November 2023, Kervan Gida UK Limited acquired 100% of the shares in Kervan UK (Trading) Limited at par of £1. Kervan UK (Trading) Limited commenced trade on 10 October 2023 and at the date of acquisition had pre acquisition reserves of £5,467. Kervan UK (Trading) Limited's profits from acquisition to 31 December 2023 were £6,773 and net assets as at 31 December 2023 were £12,140. These results were not considered material for consolidation with the Kervan Gida UK Limited 2023 Financial Statements and were not included. They have been brought in to the 2024 results.
On 19 December 2024, the group incorporated a new wholly owned subsidiary in France called Kervan Gida France SAS. The initial investment was €100,000 which was to provide initial working capital. At the year end date, Kervan Gida France SAS had not commenced to trade, remaining dormant from incorporation through to the group year end date.
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
2024
2023
£
£
Short-term employee benefits
385,099
155,988
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Related party transactions
(Continued)
- 24 -
Other transactions with related parties
During the year the group entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2024
2023
2024
2023
£
£
£
£
Parent company
83,503
33,953,507
11,773
Other related parties
1,648,449
2,547,825
28,103,487
-
1,731,952
36,501,332
28,115,260
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Parent company
5,689,412
1,170
Other related parties
1,073,279
4,724,984
6,762,691
4,726,154
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Parent company
39,918
Other related parties
156,516
-
196,434
23
Controlling party
The parent company is Kervan Gıda Sanayi ve Ticaret Anonim Şirketi , a company incorporated in Turkey.
KERVAN GIDA UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
24
Cash absorbed by group operations
2024
2023
£
£
Profit for the year before taxation
1,169,678
839,857
Adjustments for:
Finance costs
498,940
239,096
Amortisation and impairment of intangible assets
41,000
206,723
Depreciation and impairment of property, plant and equipment
240,340
232,772
Movements in working capital:
Increase in inventories
(5,306,717)
(3,204,348)
Increase in trade and other receivables
(1,886,997)
(1,302,024)
Increase in trade and other payables
2,896,112
1,099,599
Cash absorbed by operations
(2,347,644)
(1,888,325)
KERVAN GIDA UK LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 26 -
2024
2023
Notes
£
£
Non-current assets
Goodwill
27
123,000
164,000
Property, plant and equipment
28
1,663,564
1,645,554
Investments
29
83,988
1,870,552
1,809,554
Current assets
Inventories
30
13,029,420
7,725,672
Trade and other receivables
31
7,860,310
5,860,809
Cash and cash equivalents
13,667
63,076
20,903,397
13,649,557
Current liabilities
Trade and other payables
33
9,818,187
6,939,294
Current tax liabilities
89,000
Borrowings
32
3,188,795
4,363,042
Lease liabilities
34
151,105
60,354
13,158,087
11,451,690
Net current assets
7,745,310
2,197,867
Non-current liabilities
Borrowings
32
4,500,000
Lease liabilities
34
1,216,721
1,101,291
Deferred tax liabilities
35
19,100
5,716,721
1,120,391
Net assets
3,899,141
2,887,030
Equity
Called up share capital
36
2,660,000
2,660,000
Retained earnings
1,239,141
227,030
Total equity
3,899,141
2,887,030
KERVAN GIDA UK LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
31 December 2024
- 27 -
As permitted by trues408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £1,012,111 (2023 - £750,858 profit).
The financial statements were approved and signed by the director and authorised for issue on 8 March 2025
E Basar
Director
Company registration number 08953092 (England and Wales)
KERVAN GIDA UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
2,660,000
(523,828)
2,136,172
Year ended 31 December 2023:
Profit and total comprehensive income
-
750,858
750,858
Balance at 31 December 2023
2,660,000
227,030
2,887,030
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,012,111
1,012,111
Balance at 31 December 2024
2,660,000
1,239,141
3,899,141
KERVAN GIDA UK LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
25
Accounting policies
Company information
Kervan Gida UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Swan Court, 11 Worple Road, Wimbledon, London, SW19 4JS. The company's principal activities and nature of its operations are disclosed in the director's report.
25.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
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 company applies accounting policies consistent with those applied by the group. To the extent that an accounting policy is relevant to both group and parent company financial statements, please refer to the group financial statements for disclosure of the relevant accounting policy.
25.2
Going concern
The director has at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
26
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
1
1
Management
2
2
Operations
13
12
Total
16
15
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,590,590
1,286,796
Social security costs
169,451
97,614
Pension costs
17,809
18,844
1,777,850
1,403,254
KERVAN GIDA UK LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
27
Intangible assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023
410,000
243,051
653,051
Disposals
(243,051)
(243,051)
At 31 December 2023
410,000
410,000
At 31 December 2024
410,000
410,000
Amortisation and impairment
At 1 January 2023
205,000
77,328
282,328
Charge for the year
41,000
41,000
Impairment loss
165,723
165,723
Eliminated on disposals
(243,051)
(243,051)
At 31 December 2023
246,000
246,000
Charge for the year
41,000
41,000
At 31 December 2024
287,000
287,000
Carrying amount
At 31 December 2024
123,000
-
123,000
At 31 December 2023
164,000
-
164,000
At 31 December 2022
205,000
165,722
370,722
28
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
19,222
98,530
147,029
264,781
Additions
1,495,815
182,658
99,325
1,777,798
At 31 December 2023
1,515,037
98,530
329,687
99,325
2,042,579
Additions
233,428
24,922
258,350
Disposals
(98,530)
(98,530)
At 31 December 2024
1,748,465
354,609
99,325
2,202,399
KERVAN GIDA UK LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
28
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
(Continued)
- 31 -
Accumulated depreciation and impairment
At 1 January 2023
160
98,530
65,563
164,253
Charge for the year
122,201
108,351
2,220
232,772
At 31 December 2023
122,361
98,530
173,914
2,220
397,025
Charge for the year
161,230
68,489
10,621
240,340
Eliminated on disposal
(98,530)
(98,530)
At 31 December 2024
283,591
242,403
12,841
538,835
Carrying amount
At 31 December 2024
1,464,874
-
112,206
86,484
1,663,564
At 31 December 2023
1,392,676
-
155,773
97,105
1,645,554
29
Investments
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Investments in subsidiaries
83,988
Fair value of financial assets carried at amortised cost
The directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.
Investment in subsidiary undertakings
Details of the company's principal operating subsidiaries are included in Note 11.
30
Inventories
2024
2023
£
£
Finished goods
13,029,420
7,725,672
KERVAN GIDA UK LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
31
Trade and other receivables
2024
2023
£
£
Trade receivables
7,537,835
5,669,683
Provision for bad and doubtful debts
(72,411)
(54,833)
7,465,424
5,614,850
Other receivables
279,000
112,150
Prepayments
115,886
133,809
7,860,310
5,860,809
32
Borrowings
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Borrowings held at amortised cost:
Bank loans
3,188,795
4,363,042
4,500,000
-
All loans balances are repayable within 1 year in full.
Included within the above balance is a bank loan of £4,500,000. The company's parent, Kervan Gida San ve Ticaret A.S, has provided a guarantee to the bank in support of this loan.
33
Trade and other payables
2024
2023
£
£
Trade payables
7,264,900
5,159,872
Accruals
1,273,018
899,352
Social security and other taxation
1,244,698
822,819
Other payables
35,571
57,251
9,818,187
6,939,294
34
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
151,106
60,354
In two to five years
479,578
280,128
In over five years
737,142
821,163
Total undiscounted liabilities
1,367,826
1,161,645
KERVAN GIDA UK LIMITED
NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
34
Lease liabilities
(Continued)
- 33 -
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
151,105
60,354
Non-current liabilities
1,216,721
1,101,291
1,367,826
1,161,645
The fair value of the company's lease obligations is approximately equal to their carrying amount.
35
Deferred taxation
Liabilities
Assets
2024
2023
2024
2023
£
£
£
£
Deferred tax balances
19,100
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Fixed asset timing differences
£
Liability at 1 January 2023 and 1 January 2024
19,100
Deferred tax movements in current year
Charge/(credit) to profit or loss
(19,100)
Liability at 31 December 2024
-
36
Share capital
Refer to note 19 of the group financial statements.
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