Earth Natural Foods Ltd |
Notes to the Accounts |
for the year ended 31 October 2024 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Plant, Machinery, Fixtures & Fittings |
20% Written Down Value |
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Leasehold Premises |
Over 15 Years |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Operating profit |
2024 |
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2023 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
4,415 |
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2,135 |
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Accountancy |
4,400 |
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4,240 |
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Legal and professional |
- |
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- |
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Directors' remuneration |
42,000 |
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40,000 |
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Bank charges and interest |
18,937 |
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22,072 |
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3 |
Taxation |
2024 |
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2023 |
£ |
£ |
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Balance sheet |
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Corporation tax payable on 01.08.2025 |
65,254 |
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37,172 |
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Profit and loss account |
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Prior year (over)/under provisions |
- |
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- |
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UK corporation tax charge/(refund) @ 25% (2023 - 19% and 25%) on profits |
65,242 |
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37,172 |
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Transfer/(released) to deferred taxation |
2,744 |
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1,757 |
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67,986 |
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38,929 |
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4 |
Wages and NI |
2024 |
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2023 |
£ |
£ |
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Gross wages |
576,625 |
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518,100 |
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Employers NI |
43,965 |
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38,661 |
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Company contributions to defined contribution pension plans |
7,100 |
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4,808 |
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627,690 |
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561,569 |
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Average number of persons employed by the company |
26 |
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28 |
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5 |
Director's emoluments |
2024 |
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2023 |
£ |
£ |
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Gross wages |
42,000 |
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40,000 |
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Employers NI |
4,541 |
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3,991 |
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Company contributions to defined contribution pension plans |
1,013 |
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1,013 |
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43,013 |
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41,013 |
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Highest paid director: |
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Gross wages |
42,000 |
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40,000 |
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Employers NI |
4,541 |
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3,991 |
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Company contributions to defined contribution pension plans |
1,013 |
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1,013 |
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43,013 |
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41,013 |
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6 |
Tangible fixed assets |
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Plant and machinery |
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Leasehold land and buildings |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 November 2023 |
150,602 |
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225,008 |
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375,610 |
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Additions |
13,534 |
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- |
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13,534 |
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Surplus on revaluation |
- |
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- |
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- |
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Disposals |
- |
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- |
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- |
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At 31 October 2024 |
164,136 |
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225,008 |
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389,144 |
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Depreciation |
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At 1 November 2023 |
142,061 |
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225,007 |
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367,068 |
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Charge for the year |
4,415 |
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- |
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4,415 |
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Surplus on revaluation |
- |
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- |
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- |
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On disposals |
- |
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- |
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- |
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At 31 October 2024 |
146,476 |
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225,007 |
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371,483 |
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Net book value |
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At 31 October 2024 |
17,660 |
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1 |
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17,661 |
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At 31 October 2023 |
8,541 |
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1 |
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8,542 |
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7 |
Debtors |
2024 |
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2023 |
£ |
£ |
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Trade debtors |
- |
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- |
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Deferred tax asset (note 9) |
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- |
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- |
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Other debtors |
16,897 |
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16,860 |
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16,897 |
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16,860 |
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8 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
£ |
£ |
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Trade creditors |
146,993 |
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151,355 |
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Corporation tax |
65,254 |
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37,172 |
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Other taxes and social security costs |
8,457 |
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11,143 |
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Other creditors |
11,967 |
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9,270 |
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232,671 |
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208,940 |
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9 |
Provision for liabilities |
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Deferred tax: |
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Accelerated capital allowances |
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Deferred tax brought forward |
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1,017 |
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(740) |
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Charge/(credit) to profit and loss account |
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2,744 |
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1,757 |
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Deferred tax carried forward |
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3,761 |
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1,017 |
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10 |
Share capital |
Nominal |
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2024 |
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2024 |
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2023 |
value |
Number |
£ |
£ |
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Allotted, called up and fully paid: |
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Ordinary shares |
£1 each |
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60 |
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60 |
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60 |
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Redeemable preference shares 'A' |
£1 each |
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10 |
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10 |
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10 |
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Redeemable preference shares 'B' |
£1 each |
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10 |
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10 |
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- |
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80 |
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70 |
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Authorised: |
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Ordinary shares |
£1 each |
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1,000,000 |
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1,000,000 |
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1,000,000 |
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Redeemable preference shares 'A' |
£1 each |
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10 |
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10 |
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10 |
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Redeemable preference shares 'B' |
£1 each |
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10 |
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10 |
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- |
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1,000,020 |
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1,000,010 |
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11 |
Capital redemption reserve |
2024 |
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2023 |
£ |
£ |
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At 1 November 2023 |
40 |
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40 |
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Shares redeemed out of reserves |
- |
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- |
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At 31 October 2024 |
40 |
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40 |
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12 |
Profit and loss account |
2024 |
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2023 |
£ |
£ |
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At 1 November 2023 |
117,494 |
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57,611 |
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Profit for the year |
202,724 |
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139,883 |
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Shares redeemed out of reserves |
- |
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- |
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Dividends |
(142,000) |
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(80,000) |
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At 31 October 2024 |
178,218 |
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117,494 |
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13 |
Related party transactions |
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There were no related party transactions in the year or the comparative year. |
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14 |
Controlling party |
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The company is controlled by three shareholders. No one shareholder has control of the company. |
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15 |
Presentation currency |
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The accounts are presented in British Pounds Sterling. |
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16 |
Other information |
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Earth Natural Foods Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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Suite 1, Unit 2 |
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Stansted Courtyard, Parsonage Road |
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Takeley |
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Essex |
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CM22 6PU |