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Registered number: 08116493









SARA (EU) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
SARA (EU) LIMITED
 
 
COMPANY INFORMATION


Director
Mr K Wadhwani 




Company secretary
Mr T S Wadhwani



Registered number
08116493



Registered office
Leytonstone House
3 Hanbury Drive

Leytonstone

London

E11 1GA




Independent auditor
Barnes Roffe LLP
Chartered Accountants

Leytonstone House

Leytonstone

London

E11 1GA





 
SARA (EU) LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Director's Report
 
4 - 5
Independent Auditor's Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11 - 12
Company Balance Sheet
 
13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16 - 17
Consolidated Analysis of Net Debt
 
18
Notes to the Financial Statements
 
19 - 42


 
SARA (EU) LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The principal activity of the Company during the year continues to be that of a holding company for its trading subsidiaries, Wanis Limited, Lumen House Limited and Wanis Management Services LLP. Wanis International Foods Limited and Tropical Sun Foods Limited also form part of the Group, however, these companies remained dormant throuhgout the period.
Wanis Limited’s principal activities continue to be that of a specialist international foods distributor, together with the operation of a cash and carry centre for international and general foods.
The principal activity of Lumen House Limited was that of property rental and holding.
The principal activity of Wanis Management Services LLP continues to be that of the provision of personnel services.

Business review
 
The Directors are satisfied with results for the year achieved by the Group's main trading subsidiary, Wanis Limited, in the face of tough trading conditions. Turnover rose for a number of factors including the impact of the food inflation, new product launches and increased distribution. The Group also faced ongoing challenges including post Brexit trading conditions, and global supply chain availability and  exchange rate volatility. 
The Group maintained a similar gross margin to the prior year, which remains in-line with expectations.
The members are satisfied with the results of Wanis Management Services LLP and Lumen House Limited. 

Principal risks and uncertainties
 
The principal risks faced by the business continue to be the global economic climate and the fluctuations in the commodity and currency markets. However, the Directors believe with their careful management there will continue to be opportunities to grow the business. The global economic climate and the fluctuations in the commodity and currency markets continue to provide opportunities if managed correctly.
We will carefully monitor the company’s trading results over the course of the next financial year, together with the business risks with aim of providing stability and ensuring growth.
The Directors recognise that the grocery market place is very competitive and price sensitive and that the Company must consistently adapt and improve its supply chain and internal processes to meet the needs of customers to maintain presence and a broad market space.

Financial key performance indicators
 
The Directors monitor the success of the Group by its ability to achieving a controlled increase in sales that delivers sufficient gross profit to cover operating costs and generates cash flow from managing working capital to ensure that it can invest in new resources for the future.
The Group’s KPIs are Turnover, Gross Profit, Net Profit and Cash Conversion Cycle.

Page 1

 
SARA (EU) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Other key performance indicators
 
The 3 key resources of the business are its customers, its suppliers and its staff.
The Directors review statistics to measure customer retention, volume of activity with suppliers and measures to ensure long term retention of the skilled and trained workforce.
Section 172 (1) statement
As the Directors of Sara (EU) Limited, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders and in doing so must have regard to the following:
• the likely consequences of any decision in the long term,
• the interests of the company’s employees,
• the need to foster the company’s business relationships with suppliers, customers and others,
• the impact of the company’s operations on the community and the environment,
• the desirability of the company maintaining a reputation for high standards of business conduct, and
• the need to act fairly between members of the company.
Our key stakeholders, and the ways in which we engage with them, are as follows:
Employees
Our business success is strongly linked to the skills and qualifications of its management and employees and this is reflected in the high levels of service that we provide.
To ensure that we maintain these high standards, the well-being and development of our employees is critical and we therefore provide appropriate levels of training and support.
Regular updates are provided to employees on all aspects of company business including performance, employee events and opportunities. Employee opinions and suggestions are encouraged at staff meetings and suggestions boxes are placed in the company’s premises. The Board welcomes ideas and comments from all employees and operates an informal open- door policy.
Customers and Suppliers
We are aware that that our customers and suppliers are an important part of our success. We have strong relationships with our customers and suppliers and are in constant contact to maintain these relationships.
Our conduct guarantees that we treat all suppliers and customers fairly. All suppliers are paid to terms with any queries being dealt with as a matter of urgency to ensure the supply chain continues uninterrupted.
Community
As a company we are active in the local communities where we operate and support local charities and not-for-profit organisations. We participate in charity-organised events as well as those what we organise ourselves.
This year we have continued to be particularly focused on food-bank charities and local authorities.
Environment
The Company continues to monitor its impact in the fields of climate protection, energy management and waste avoidance. In the coming years Wanis will continue to work to further reduce or compensate for the effects and influences of its economic activities.
 
Page 2

 
SARA (EU) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


Standards of Business Conduct
The Company is committed to conduct business with the highest integrity and the compliance with the law and have Standards in place which must be adhered to by everyone who represents the Company. These Standards embody the fundamental principles that govern our ethical and legal obligations. These standards not only comply with the Company's policies but also with laws and regulations applicable.


This report was approved by the board on 17 March 2025 and signed on its behalf.



................................................
Mr K Wadhwani
Director

Page 3

 
SARA (EU) LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The Director presents his report and the financial statements for the year ended 30 June 2024.

Director's responsibilities statement

The Director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the Director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The Director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £10,691,041 (2023 - £9,040,129).

During the year company declared dividends of £5,400,000 (2023 - £8,300,000).
The Director does not recommend payment of a final dividend.

Director

The Director who served during the year was:

Mr K Wadhwani 

Future developments

The Director's aim is to maintain the management policies which have resulted in the Group's sustainability and growth in recent years.

Page 4

 
SARA (EU) LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

TThe Group's greenhouse gas emissions and energy consumption for the year are 1,487,513 Kwh (2023 - 1,511,696 Kwh), 68,823 litres (2023 - 63,242 litres) and associated greenhouse gas emissions for the year are 308,189 Kg CO2 (2023 - 313,183 Kg CO2).

The usage was calculated from third party billing information recieved in the year.

CO2 per £'000 revenue amounted to 2.21Kg/CO2 £'000 (2023 - 2.49Kg/CO2 £'000).

Disclosure of information to auditor

The Director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

he has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Auditor

The auditor, Barnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 17 March 2025 and signed on its behalf.
 





................................................
Mr K Wadhwani
Director

Page 5

 
SARA (EU) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SARA (EU) LIMITED
 

Opinion


We have audited the financial statements of Sara (EU) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Our responsibilities and the responsibilities of the Director with respect to going concern are described in the relevant sections of this report.


Page 6

 
SARA (EU) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SARA (EU) LIMITED (CONTINUED)


Other information


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group 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 Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 4, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
SARA (EU) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SARA (EU) LIMITED (CONTINUED)


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 Group 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:

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:
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 company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;
- We focused on specific laws and regulations, which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and ISO standards;
- We assessed the extent of compliance with laws and regulations identified above through making enquires of management and inspecting legal correspondence 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.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- Making enquires 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 and unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 
- Investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures 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.
 
 
Page 8

 
SARA (EU) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SARA (EU) LIMITED (CONTINUED)



Material misstatements that arise due to fraud can be harder to detect that those that arise from errors as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Simon Liggins (Senior Statutory Auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

21 March 2025
Page 9

 
SARA (EU) LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
                                                                                                                 Note
£
£

  

Turnover
 4 
139,597,543
126,136,063

Cost of sales
  
(108,513,633)
(100,539,709)

Gross profit
  
31,083,910
25,596,354

Administrative expenses
  
(17,056,202)
(15,449,850)

Other operating income
 5 
350,076
321,660

Fair value movements
  
-
1,000,000

Operating profit
 6 
14,377,784
11,468,164

Interest receivable and similar income
 10 
84,115
82,977

Interest payable and similar expenses
 11 
(168,880)
(125,097)

Profit before taxation
  
14,293,019
11,426,044

Tax on profit
 12 
(3,601,978)
(2,385,915)

Profit for the financial year
  
10,691,041
9,040,129

Profit for the year attributable to:
  

Owners of the parent Company
  
10,691,041
9,040,129

  
10,691,041
9,040,129

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 19 to 42 form part of these financial statements.

Page 10

 
SARA (EU) LIMITED
REGISTERED NUMBER: 08116493

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024

2024
2024
2023
2023
                                                                    Note
£
£
£
£

Fixed assets
  

Intangible assets
 15 
48,624
48,520

Tangible assets
 16 
3,036,006
3,193,136

Investments
 17 
3,515,000
3,515,000

  
6,599,630
6,756,656

Current assets
  

Stocks
 18 
24,187,942
22,062,429

Debtors: amounts falling due within one year
 19 
13,407,046
13,909,237

Cash at bank and in hand
 20 
5,887,648
4,601,083

  
43,482,636
40,572,749

Creditors: amounts falling due within one year
 21 
(15,994,807)
(18,469,916)

Net current assets
  
 
 
27,487,829
 
 
22,102,833

Total assets less current liabilities
  
34,087,459
28,859,489

Creditors: amounts falling due after more than one year
 22 
-
(56,528)

Provisions for liabilities
  

Deferred taxation
 25 
(1,147,124)
(1,153,667)

  
 
 
(1,147,124)
 
 
(1,153,667)

Net assets
  
32,940,335
27,649,294


Capital and reserves
  

Called up share capital 
 26 
8,750
8,750

Revaluation reserve
 27 
2,231,931
2,231,931

Capital redemption reserve
 27 
1,250
1,250

Profit and loss account
 27 
30,698,404
25,407,363

Equity attributable to owners of the parent Company
  
32,940,335
27,649,294

  
32,940,335
27,649,294


Page 11

 
SARA (EU) LIMITED
REGISTERED NUMBER: 08116493
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 March 2025.




................................................
Mr K Wadhwani
Director

The notes on pages 19 to 42 form part of these financial statements.

Page 12

 
SARA (EU) LIMITED
REGISTERED NUMBER: 08116493

COMPANY BALANCE SHEET
AS AT 30 JUNE 2024

2024
2024
2023
2023
                                                                    Note
£
£
£
£

Fixed assets
  

Investments
 17 
10,400
10,400

  
10,400
10,400

Current assets
  

Debtors: amounts falling due within one year
 19 
3,893,051
6,945,206

Cash at bank and in hand
 20 
52,381
52,622

  
3,945,432
6,997,828

Creditors: amounts falling due within one year
 21 
(2,215,861)
(5,305,148)

Net current assets
  
 
 
1,729,571
 
 
1,692,680

Total assets less current liabilities
  
1,739,971
1,703,080

  

  

Net assets
  
1,739,971
1,703,080


Capital and reserves
  

Called up share capital 
 26 
8,750
8,750

Capital redemption reserve
 27 
1,250
1,250

Profit and loss account
 27 
1,729,971
1,693,080

  
1,739,971
1,703,080


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 March 2025.


................................................
Mr K Wadhwani
Director

The notes on pages 19 to 42 form part of these financial statements.

Page 13
 

 
SARA (EU) LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024



Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£



At 1 July 2022
8,750
1,250
1,481,931
25,417,234
26,909,165
26,909,165





Profit for the year
-
-
-
9,040,129
9,040,129
9,040,129


Dividends: Equity capital
-
-
-
(8,300,000)
(8,300,000)
(8,300,000)


Transfer to/from profit and loss account
-
-
750,000
(750,000)
-
-





At 1 July 2023
8,750
1,250
2,231,931
25,407,363
27,649,294
27,649,294





Profit for the year
-
-
-
10,691,041
10,691,041
10,691,041


Dividends: Equity capital
-
-
-
(5,400,000)
(5,400,000)
(5,400,000)



At 30 June 2024
8,750
1,250
2,231,931
30,698,404
32,940,335
32,940,335



The notes on pages 19 to 42 form part of these financial statements.

Page 14
 
SARA (EU) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2022
8,750
1,250
1,690,029
1,700,029



Profit for the year
-
-
8,303,051
8,303,051

Dividends: Equity capital
-
-
(8,300,000)
(8,300,000)



At 1 July 2023
8,750
1,250
1,693,080
1,703,080



Profit for the year
-
-
5,436,891
5,436,891

Dividends: Equity capital
-
-
(5,400,000)
(5,400,000)


At 30 June 2024
8,750
1,250
1,729,971
1,739,971


The notes on pages 19 to 42 form part of these financial statements.

Page 15

 
SARA (EU) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
10,691,041
9,040,129

Adjustments for:

Amortisation of intangible assets
23,949
23,898

Depreciation of tangible assets
586,496
587,166

Loss on disposal of tangible assets
(10,234)
43,726

Interest paid
168,880
125,097

Interest received
(84,115)
(82,977)

Taxation charge
3,601,978
2,385,915

(Increase) in stocks
(2,125,513)
(3,181,935)

Decrease/(increase) in debtors
502,191
(3,138,595)

Increase/(decrease) in creditors
645,753
(124,310)

Net fair value losses/(gains) recognised in P&L
-
(1,000,000)

Corporation tax (paid)
(2,929,170)
(1,046,323)

Net cash generated from operating activities

11,071,256
3,631,791


Cash flows from investing activities

Purchase of intangible fixed assets
(24,053)
(8,500)

Purchase of tangible fixed assets
(464,634)
(357,181)

Sale of tangible fixed assets
45,502
26,334

Interest received
84,115
82,977

Net cash from investing activities

(359,070)
(256,370)

Cash flows from financing activities

Repayment of/new finance leases
(20,373)
(20,374)

Dividends paid
(8,500,000)
(3,000,000)

Interest paid
(168,880)
(125,097)

Net cash used in financing activities
(8,689,253)
(3,145,471)
Page 16

 
SARA (EU) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


2024
2023

£
£



Net increase in cash and cash equivalents
2,022,933
229,950

Cash and cash equivalents at beginning of year
3,790,942
3,560,992

Cash and cash equivalents at the end of year
5,813,875
3,790,942


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,887,648
4,601,083

Bank overdrafts
(73,773)
(810,141)

5,813,875
3,790,942


The notes on pages 19 to 42 form part of these financial statements.

Page 17

 
SARA (EU) LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

4,601,083

1,286,565

5,887,648

Bank overdrafts

(810,141)

736,368

(73,773)

Finance leases

(78,754)

20,373

(58,381)


3,712,188
2,043,306
5,755,494

The notes on pages 19 to 42 form part of these financial statements.

Page 18

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Sara (EU) Limited (the "Company") is a private company limited by shares, incorporated in England and Wales. The business address is Golden House, Golden Business Park, Leyton, London, E10 7FE.
The principal activity of the Company during the year continues to be that of a holding company for its trading subsidiaries, Wanis Limited and Wanis Management Services LLP.
Wanis Limited's principal activities continue to be that of a specialist international foods distributor, together with the operation of a cash and carry centre for international and general foods.
The principal activity of Wanis Management Services LLP continues to be that of the provision of personnel services.
The principal activity of Lumen House Limited was that of property holding and rental.
Wanis International Foods Ltd and Tropical Sun Foods Limited were dormant during the period.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Financial reporting standard 102 - reduced disclosure exemptions

FRS 102 section 1.12 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the Company's shareholders.
The Company has taken advantage of the following exemption:
(i) From preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, included in these financial statements, includes the Company's cash flows.

Page 19

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.3

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
All entities consolidated within these financial statements have the same financial reporting date, being 30 June.

 
2.4

Going concern

The Group meets its day-to-day working capital requirements through careful management of working capital positions. After making enquiries, the Director has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

Page 20

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue shown in the profit and loss account represents amounts receivable for goods and management income provided during the year in the normal course of business, net of discounts, VAT and other sales and related taxes.
Wanis Limited ("the Company" for the purposes of this note)
Sale of goods
Revenue for the sale of all goods is recognised once the customer takes delivery as this is the point at which the significant risks and rewards are transferred from the Company to the customer. Sales invoices are raised when an order is received and processed. Occasionally a customer will take delivery of the goods subsequently. Accordingly, an adjustment is made to ensure that sales are recognised within the correct accounting period (i.e. the period in which the customer takes delivery).
Rental income
Rental income is recognised on a monthly basis in advance of the services provided. Revenue is recognised in the accounting period in which the services are rendered.
Wanis Management Services LLP ("the LLP" for the purposes of this note)
(i) The LLP provides personnel services. Sales invoices are raised monthly in arrears for personnel services provided. Revenue is recognised in the accounting period in which the services are rendered.
With the exception of cash sales, sales are made with credit terms. The element of financing is deemed immaterial and disregarded in the treatment of revenue.
Lumen House Limited ("the Company" for the purposes of this note)
Rental income is recognised on a monthly basis in advance of the services provided. Revenue is recognised in the accounting period in which the services are rendered.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 21

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following annual basis.

Depreciation is provided on the following basis:

Leasehold improvements
-
over the term of the lease
Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
15% reducing balance
Computer equipment
-
33.3% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.7

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
The non-depreciation of investment properties is contrary to the Companies Act 2006 which states that investment properties should be depreciated but is, in the opinion of the Directors, necessary in order to give a true and fair view of the financial position of the Group. It is not practicable to quantify the effect of this departure since no depreciation policy has ever been set.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.
Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 22

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

  
2.12

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Page 23

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.15

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.16

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Page 24

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.17

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.18

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.19

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.20

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

The Group enters into forward foreign currency exchange contracts, see note for details of these contracts. The forward foreign currency exchange contracts are measured at fair value.

  
2.22

Related party transactions

The Group and Company discloses transactions with related parties which are not wholly owned with the same Group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the Director, separate disclosure is necessary to understand the effect of the transaction on the Group financial statements.

Page 25

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

  
2.23

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

  
2.24

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.25

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 26

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

  
2.26

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholers at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified in interest payable.

 
2.27

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 27

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the entity’s accounting policies
No critical accounting judgments have had to be made by management in preparing these financial statements.
b) Critical accounting estimates and assumptions
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 16 for the carrying amount of the property plant and equipment, and note 2.6 for the useful economic lives for each class of assets.
(ii) Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 19 for the net carrying amount of the debtors.
(iii) Taxation
The Group establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 12.
(iv) Valuation of investment properties
The Director assesses the market valuation of investment properties annually. Market valuation is based upon the Directors knowledge and experience of the property market in which the Group operates, recent market transactions and current rental yields. The Director annually assesses whether any investment property is impaired. Impairment reviews consist of assessing a number of factors including impairment due to market conditions that may only be transient or factors that indicate permanent impairment. Impairment losses are recognised in the profit and loss account. See note 17 for the net carrying value of investment properties.

Page 28

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Turnover

The whole of the turnover is attributable to the one principal activity of the Group.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
128,923,669
111,234,237

Rest of Europe
10,673,874
14,901,826

139,597,543
126,136,063



5.


Other operating income

2024
2023
£
£

Rental income
320,076
291,660

Sundry income
30,000
30,000

350,076
321,660



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
586,496
587,166

Loss/(profit) on disposal of tangible fixed assets
(10,234)
43,726

Stock recognised as an expense
100,459,883
92,403,645

Exchange differences
41,380
118,912

Other operating lease rentals
3,248,898
3,003,320

Amortisation of intangible fixed assets
23,949
23,898

Page 29

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor and its associates:


2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the consolidated, parent Company's financial statements and subsidiary financial statements
30,000
30,000

Fees payable to the Company's auditor and its associates in respect of:

Taxation compliance services
3,500
3,500

All non-audit services not included above
54,557
28,550


8.


Employees

Staff costs, including Director's remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
7,218,305
6,661,038

Social security costs
677,455
617,915


Pension costs
92,492
87,655


The average monthly number of employees, including the Director, during the year was as follows:


        2024
        2023
            No.
            No.







Sales and distribution
108
110



Administration
52
54

160
164


9.


Director's remuneration

The highest paid Director received remuneration of £350,000 (2023 - £350,000).




Page 30

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Interest receivable and similar income

2024
2023
£
£


Other interest receivable
84,115
82,977

84,115
82,977


11.


Interest payable and similar charges

2024
2023
£
£


Bank interest payable
52,825
64,389

Other interest payable
116,055
60,708

168,880
125,097


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
3,608,434
2,201,227

Adjustments in respect of previous periods
87
(193)


3,608,521
2,201,034


Total current tax
3,608,521
2,201,034

Deferred tax


Origination and reversal of timing differences
(6,543)
184,881

Total deferred tax
(6,543)
184,881


Taxation on profit on ordinary activities
3,601,978
2,385,915
Page 31

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
14,293,019
11,426,044


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
3,573,255
2,342,339

Effects of:


Expenses/(income) not deductible for tax purposes, other than goodwill amortisation and impairment
20,124
1,613

Capital allowances for year in excess of depreciation
8,512
(2,837)

Deferred tax on rolled over gain and revalued investment property
-
44,993

Adjustments to tax charge in respect of prior periods
87
(193)

Total tax charge for the year
3,601,978
2,385,915


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £5,436,891 (2023 - £8,303,051)


14.


Dividends

2024
2023
£
£


Dividends
5,400,000
8,300,000

5,400,000
8,300,000

Page 32

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

15.


Intangible assets

Group





Software

£



Cost


At 1 July 2023
143,500


Additions
24,053



At 30 June 2024

167,553



Amortisation


At 1 July 2023
94,980


Charge for the year on owned assets
23,949



At 30 June 2024

118,929



Net book value



At 30 June 2024
48,624



At 30 June 2023
48,520



Page 33

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Tangible fixed assets

Group






Leasehold improvements
Plant and machinery
Motor vehicles
Furniture, fittings and office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 July 2023
3,043,544
2,201,148
749,516
1,624,310
7,618,518


Additions
9,172
362,145
44,490
48,827
464,634


Disposals
-
(43,370)
(76,000)
(29,502)
(148,872)



At 30 June 2024

3,052,716
2,519,923
718,006
1,643,635
7,934,280



Depreciation


At 1 July 2023
2,155,580
822,588
383,288
1,063,926
4,425,382


Charge for the year on owned assets
110,832
261,117
68,791
112,394
553,134


Charge for the year on financed assets
-
-
33,362
-
33,362


Disposals
-
(29,430)
(72,790)
(11,384)
(113,604)



At 30 June 2024

2,266,412
1,054,275
412,651
1,164,936
4,898,274



Net book value



At 30 June 2024
786,304
1,465,648
305,355
478,699
3,036,006



At 30 June 2023
887,964
1,378,560
366,228
560,384
3,193,136

Leasehold improvements shown above relate wholly to short term leasehold property.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
58,492
77,990

58,492
77,990

Page 34

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Fixed asset investments

Group





Other fixed asset investments

£



Cost or valuation


At 1 July 2023
3,515,000



At 30 June 2024
3,515,000




Investment property
An investment property, Lumen House, which had an original cost of £684,193 was revalued on 30 June 2023 by the Director who has relevant experience in the location and category of the property being revalued and taking into account recent valuation reports obtained. The property was revalued on an open market basis with a valuation of £3,500,000. In the Director's opinion, the market value of the investment at the year end, on an open market value basis, is not materially different to the value as stated above.
Other investments
Unlisted investments amounting to £15,000 (2023 - £15,000) relate to the Group's shareholding in a trade association. In the Director's opinion, the market value of the investment at the year end, on an open market value basis, is not materially different to the book value as stated above.

Company





Investments in subsidiary entities

£



Cost or valuation


At 1 July 2023
10,400



At 30 June 2024
10,400




Page 35

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Wanis Limited
Ordinary
-
100%
-
Wanis Management Services LLP
Member
-
100%
-
Lumen House Limited
Ordinary
-
100%
-
Wanis International Foods Limited
Ordinary
-
100%
-
Tropical Sun Foods Limited
Ordinary
-
100%
-

The aggregate of the share capital and reserves as at 30 June 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Wanis Ltd
10,536,874
29,515,229

Wanis Management Services LLP
526,734
908,586

Lumen House Limited
1,701,087
117,376

Wanis International Foods Limited
100
-

Tropical Sun Foods Limited
100
-


18.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Finished goods and goods for resale
24,187,942
22,062,429
-
-

24,187,942
22,062,429
-
-


Page 36

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
11,664,450
12,141,118
-
-

Amounts owed by group undertakings
-
-
3,893,051
6,945,206

Other debtors
862,476
990,296
-
-

Prepayments and accrued income
880,120
777,823
-
-

13,407,046
13,909,237
3,893,051
6,945,206


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
5,887,648
4,601,083
52,381
52,622

Less: bank overdrafts
(73,773)
(810,141)
-
-

5,813,875
3,790,942
52,381
52,622


Page 37

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
73,773
810,141
-
-

Trade creditors
9,912,821
9,444,337
-
-

Corporation tax
2,340,750
1,661,399
11,561
848

Other taxation and social security
449,791
468,161
-
-

Obligations under finance lease and hire purchase contracts
58,381
22,226
-
-

Other creditors
2,773,430
5,695,375
2,200,300
5,300,300

Accruals and deferred income
385,861
368,277
4,000
4,000

15,994,807
18,469,916
2,215,861
5,305,148


Bank overdrafts of £73,773 (2023 - £810,141) are secured by a legal charge over the assets of the subsidiary, Wanis Limited.
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Net obligations under finance leases and hire purchase contracts
-
56,528
-
-


Net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate to. 


23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
58,381
22,226

Between 1-5 years
-
22,226

Over 5 years
-
34,302

58,381
78,754

Page 38

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

24.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
3,515,000
3,515,000
-
-

Financial assets that are debt instruments measured at amortised cost
12,428,499
13,131,414
3,893,051
6,945,206

15,943,499
16,646,414
3,893,051
6,945,206


Financial liabilities

Financial liabilities measured at amortised cost
(13,071,913)
(15,915,319)
(2,204,300)
(5,304,300)


Financial assets measured at fair value through profit or loss comprise of the group's investments.


Financial assets that are debt instruments measured at amortised cost comprise of trade debtors, other
debtors and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise of trade creditors, other creditors and amounts
owed to group undertakings.

Page 39

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

25.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
1,153,667
968,786


Charged to profit or loss
(6,543)
184,881



At end of year
(1,147,124)
(1,153,667)







The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
486,626
493,169

Provision for deferred tax on rolled over gain
76,622
76,622

Provision for deferred tax on investment property
583,876
583,876

1,147,124
1,153,667


26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



3,588 (2023 - 3,588) Ordinary A shares of £1.00 each
3,588
3,588
2,100 (2023 - 2,100) Ordinary B shares of £1.00 each
2,100
2,100
3,062 (2023 - 3,062) Ordinary C shares of £1.00 each
3,062
3,062

8,750

8,750

There are no restrictions on the distribution of dividends and the repayment of capital.


Page 40

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

27.


Reserves

Revaluation reserve

The Revaluation reserve consists of non-distributable reserves arising from cumulative historical revaluation profits and losses in respect of the investment properties.

Capital redemption reserve

The capital redemption reserve relates to the nominal value of share brought back in prior years. This reserve is non-distributable.

Profit and loss account

The Profit and loss account consists of distributable reserves arising from cumulative historical profits and losses less any distributions made.


28.


Provisions

At 30 June 2024 the Company did not have any outstanding commitments or obligations related to foreign currency exchange contracts.


29.


Commitments under operating leases - lessee

At 30 June 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
2,524,828
2,524,828

Later than 1 year and not later than 5 years
7,548,627
8,882,271

Later than 5 years
2,386,383
3,584,484

12,459,838
14,991,583
The company had no commitments under operating leases.

Page 41

 
SARA (EU) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

30.


Income under operating leases - lessor

Group
Group
2024
2023
£
£


Not later than 1 year
100,000
100,000

Later than 1 year and not later than 5 years
68,219
168,493

Later than 5 years
-
-

168,219
268,493

The company had no income under operating leases.


31.


Pension commitments

Wanis Management Services LLP operates a defined contribution pension scheme. The net assets of the scheme are held separately from those of the LLP in an independently administered fund. The pension cost charge represents contributions payable by the LLP to the fund and amounted to £92,492 (2023 - £87,655). Contributions totalling £19,131 (2023 - £12,908) were payable to the fund at the balance sheet date and are included in other creditors. 



32.


Related party transactions

The Company has taken advantage of the exemption, under FRS 102 paragraph 1.12 and paragraph 33.1A, from disclosing transactions with entities included in these consolidated financial statements.
The Group occupies a property owned by a Limited Liability Partnership (LLP), in which the Director and certain shareholders are members. The LLP charged the Group rent of £1,901,772 (
2023 - £1,823,672) during the year. At the year end the Group owed the LLP £344,000 (2023 - £4,229) in respect of rent and other trading balances. The Group charges management fees to this LLP of £30,000 (2023 - £30,000).
The Group entered into a lease on 28 June 2021 for a property owned by a Company in which a shareholder of the ultimate parent Company is also a shareholder. At the year end the Group owed £119,483 
(2023 - £Nil) in respect of rent and other rent related expenses to that company. During the year the Group was charged rent of £1,196,312 (2023 - £1,127,378).
Included within creditors are amounts owed to the shareholders of £2,600,300 (
2023 - £5,560,000).
During the year shareholders had an interest in dividends amounting to £5,400,000 (
2023 - £8,300,000).


33.


Lease of assets

The Group received rental income in relation to operating leases amounting to £318,904 (2023 - £291,660).
During the year to 30 June 2024, land and buildings used in operating leases comprised an investment property with a valuation of £3,500,000. There was no related depreciation charge on the property. 

 
Page 42