SOP International Limited
Annual report and financial statements
For the year ended 30 June 2024
SOP International Limited
Company information
Directors
Mr D Chattwell
Mr A Grainge
Mr S Patel
Mr R Chowdhury
Mr K Jethwa
Mr R Lakhani
Secretary
Mr R Lakhani
Company number
01865316
Registered office
Grafton House
ICON Harlow
Third Avenue
Harlow
Essex
England
CM19 5AW
Auditor
DJH Audit Limited
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
SOP International Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13 - 14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Company statement of cash flows
19
Notes to the financial statements
20 - 38
SOP International Limited
Strategic report
For the year ended 30 June 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of the business

The principal activity of the Group during the period was that of processing and packaging edible oils and

the wholesale of imported Asian foodstuffs and rice products.

The results for the period for the Group and the financial position of the Group and Company are shown in the financial statements.

Gross profit margin has increased to 20.1% (2023 - 17.73%) during the period. Profit before tax increased from £6,393,576 in 2023 to £9,747,781 in 2024.

Principal risks and uncertainties

Foreign trade and currency risk

The Group supply chain could be disrupted by changes in the worldwide geopolitical situation. The Group seeks to minimise this risk by monitoring and researching each supplier and using more than one logistics company for its transportation requirements.

The Group is also exposed to the risk that foreign exchange rates will move against sterling thereby making its imports and exports unprofitable. The Group seeks to minimise this risk using foreign currency bank accounts.

Interest rate risk

The group finances its operations through a mixture of retained profits and external borrowings. The external borrowings are at rates above the Bank of England base rate.

Cash flow risk

The group aims to mitigate cash flow risk by managing cash generated by its operations. Authorisation limits are in place for all types of expenditure.

Credit risk

The group’s objective is to reduce the risk of financial loss due to a customer's failure to settle liabilities as they fall due. All customers are subject to credit control procedures and each customer has a credit limit set. Where credit risk is perceived, payments in advance of sale/distribution are required.

Liquidity risk

Daily cash flows are forecast and monitored to ensure that the group remains within its available funding facilities. The directors consider the available facilities to be adequate.

Key performance indicators

Profit before tax is considered to be the Group's key performance indicator and regular management accounts are prepared and compared to budget. The Group's profit before tax for the year ending 30 June 2024 was £9,747,781 (2023- £6,393,576 ).

Other performance indicators

 

SOP International Limited
Strategic report (continued)
For the year ended 30 June 2024
- 2 -
Promoting the success of the company

The directors of the Group have acted to promote the long-term success of the Group for the benefit of the shareholders, whilst having regard to matters set out in section 172 (1) (a) - (f) of the Companies Act 2006, being:

On behalf of the board

Mr D Chattwell
Director
20 March 2025
SOP International Limited
Directors' report
For the year ended 30 June 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the Group during the period was that of processing and packaging edible oils and the wholesale of imported Asian foodstuffs and rice products.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr D Chattwell
Mr A Grainge
Mr S Patel
Mr R Chowdhury
Mr K Jethwa
Mr G Cheung
(Resigned 6 October 2023)
Mr J C Goodwin
(Resigned 30 June 2024)
Mr R Lakhani
Supplier payment policy

The group's current policy concerning the payment of trade suppliers is to:

 

 

Trade creditors of the group at the year end were equivalent to 40 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Future developments

The group's focus remains profitable growth. The strategy implemented will be a combination of both, inorganic growth through acquisitions and / or partnerships and organic growth through increased market share, acquisitions of prestigious international agencies and expansion of its product range and market channels.

 

Auditor

In accordance with the company's articles, a resolution proposing that DJH Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

The group's greenhouse gas emissions and energy consumption are as follows:-

SOP International Limited
Directors' report (continued)
For the year ended 30 June 2024
- 4 -
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
359,585
493,684
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
75.41
82.94
75.41
82.94
Scope 2 - indirect emissions
- Electricity purchased
74.45
102.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
149.86
184.94
Intensity ratio
Tonnes CO2e per £m revenue
0.92
1.24
Quantification and reporting methodology

The group has followed the HM Government Environmental Reporting Guidelines and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m revenue.

Measures taken to improve energy efficiency

In 2021 the parent company moved headquarters to premises in Harlow and installed LED lighting activated by sensors to reduce energy consumption and CO2 emissions. The group has also invested in new warehouse equipment to further improve energy consumption.

SOP International Limited
Directors' report (continued)
For the year ended 30 June 2024
- 5 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr D Chattwell
Director
20 March 2025
SOP International Limited
Directors' responsibilities statement
For the year ended 30 June 2024
- 6 -

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SOP International Limited
Independent auditor's report
To the members of SOP International Limited
- 7 -
Opinion

We have audited the financial statements of SOP International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 directors' 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.

 

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

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 directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

SOP International Limited
Independent auditor's report (continued)
To the members of SOP International Limited
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Group 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 directors either intend to liquidate the parent company or to cease operations, or have 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SOP International Limited
Independent auditor's report (continued)
To the members of SOP International Limited
- 9 -

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:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

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 or collusion.

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.

SOP International Limited
Independent auditor's report (continued)
To the members of SOP International Limited
- 10 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Desirie Lea FCA FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
25 March 2025
Accountants
Statutory Auditor
Chester House
LLoyd Drive
Ellesmere Port
Cheshire
United Kingdom
CH65 9HQ
SOP International Limited
Group profit and loss account
For the year ended 30 June 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
163,019,217
148,773,412
Cost of sales
(130,245,006)
(122,399,507)
Gross profit
32,774,211
26,373,905
Distribution costs
(5,079,731)
(4,384,073)
Administrative expenses
(17,398,597)
(14,681,378)
Operating profit
4
10,295,883
7,308,454
Interest receivable and similar income
8
7,558
4,600
Interest payable and similar expenses
9
(555,660)
(919,478)
Profit before taxation
9,747,781
6,393,576
Tax on profit
10
(2,927,827)
(1,620,112)
Profit for the financial year
6,819,954
4,773,464
Profit for the financial year is attributable to:
- Owners of the parent company
6,084,433
3,835,263
- Non-controlling interests
735,521
938,201
6,819,954
4,773,464
SOP International Limited
Group statement of comprehensive income
For the year ended 30 June 2024
- 12 -
2024
2023
£
£
Profit for the year
6,819,954
4,773,464
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(199,870)
8,414
Total comprehensive income for the year
6,620,084
4,781,878
Total comprehensive income for the year is attributable to:
- Owners of the parent company
5,884,563
3,843,677
- Non-controlling interests
735,521
938,201
6,620,084
4,781,878
SOP International Limited
Group balance sheet
As at 30 June 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,995,853
2,368,557
Other intangible assets
11
12,413
21,028
Total intangible assets
2,008,266
2,389,585
Tangible assets
12
2,312,113
2,673,231
4,320,379
5,062,816
Current assets
Stocks
16
28,245,118
18,096,559
Debtors
17
33,796,617
28,460,275
Cash at bank and in hand
826,654
3,445,841
62,868,389
50,002,675
Creditors: amounts falling due within one year
18
(38,594,995)
(29,419,352)
Net current assets
24,273,394
20,583,323
Total assets less current liabilities
28,593,773
25,646,139
Creditors: amounts falling due after more than one year
19
(85,378)
(138,459)
Provisions for liabilities
Deferred tax liability
22
41,562
53,862
(41,562)
(53,862)
Net assets
28,466,833
25,453,818
Capital and reserves
Called up share capital
23
100,000
100,000
Profit and loss reserves
27,639,726
21,023,414
Equity attributable to owners of the parent company
27,739,726
21,123,414
Non-controlling interests
727,107
4,330,404
28,466,833
25,453,818
SOP International Limited
Group balance sheet (continued)
As at 30 June 2024
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
20 March 2025
Mr D Chattwell
Mr R Lakhani
Director
Director
Company registration number 01865316 (England and Wales)
SOP International Limited
Company balance sheet
As at 30 June 2024
30 June 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,010,955
2,200,586
Investments
13
16,148,349
12,541,281
18,159,304
14,741,867
Current assets
Stocks
16
13,277,019
7,684,297
Debtors
17
26,757,356
20,049,241
Cash at bank and in hand
68,693
90,358
40,103,068
27,823,896
Creditors: amounts falling due within one year
18
(37,456,233)
(25,078,757)
Net current assets
2,646,835
2,745,139
Total assets less current liabilities
20,806,139
17,487,006
Creditors: amounts falling due after more than one year
19
(43,575)
(87,577)
Provisions for liabilities
Deferred tax liability
22
41,562
53,862
(41,562)
(53,862)
Net assets
20,721,002
17,345,567
Capital and reserves
Called up share capital
23
100,000
100,000
Profit and loss reserves
20,621,002
17,245,567
Total equity
20,721,002
17,345,567

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,375,436 (2023 - £1,330,434 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
20 March 2025
Mr D Chattwell
Mr R Lakhani
Director
Director
Company registration number 01865316 (England and Wales)
SOP International Limited
Group statement of changes in equity
For the year ended 30 June 2024
- 16 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 2 July 2022
100,000
17,179,737
17,279,737
3,392,203
20,671,940
Year ended 30 June 2023:
Profit for the year
-
3,835,263
3,835,263
938,201
4,773,464
Other comprehensive income:
Currency translation differences
-
8,414
8,414
-
8,414
Total comprehensive income
-
3,843,677
3,843,677
938,201
4,781,878
Balance at 30 June 2023
100,000
21,023,414
21,123,414
4,330,404
25,453,818
Year ended 30 June 2024:
Profit for the year
-
6,084,433
6,084,433
735,521
6,819,954
Other comprehensive income:
Currency translation differences
-
(199,871)
(199,871)
-
(199,871)
Total comprehensive income
-
5,884,562
5,884,562
735,521
6,620,084
Purchase of shares in subsidiary from non-controlling interest
-
731,750
731,750
(4,338,818)
(3,607,068)
Balance at 30 June 2024
100,000
27,639,726
27,739,726
727,107
28,466,833
SOP International Limited
Company statement of changes in equity
For the year ended 30 June 2024
- 17 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 2 July 2022
100,000
15,915,133
16,015,133
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
1,330,434
1,330,434
Balance at 30 June 2023
100,000
17,245,567
17,345,567
Year ended 30 June 2024:
Profit and total comprehensive income
-
3,375,435
3,375,435
Balance at 30 June 2024
100,000
20,621,002
20,721,002
SOP International Limited
Group statement of cash flows
For the year ended 30 June 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
723,289
14,273,724
Interest paid
(555,660)
(919,477)
Income taxes paid
(2,140,593)
(1,726,238)
Net cash (outflow)/inflow from operating activities
(1,972,964)
11,628,009
Investing activities
Purchase of intangible assets
(5,079)
-
Purchase of tangible fixed assets
(51,004)
(196,983)
Proceeds from disposal of tangible fixed assets
41,450
33,219
Interest received
7,558
4,600
Net cash used in investing activities
(7,075)
(159,164)
Financing activities
Repayment of bank loans
3,214,337
(6,582,021)
Payment of finance leases obligations
(54,582)
(4,834)
Purchase of shares in subsidiary from non-controlling interest
(3,607,068)
-
Net cash used in financing activities
(447,313)
(6,586,855)
Net (decrease)/increase in cash and cash equivalents
(2,427,352)
4,881,990
Cash and cash equivalents at beginning of year
3,445,841
(1,444,563)
Effect of foreign exchange rates
(191,835)
8,414
Cash and cash equivalents at end of year
826,654
3,445,841
SOP International Limited
Company statement of cash flows
For the year ended 30 June 2024
- 19 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
455,579
6,714,614
Interest paid
(493,770)
(803,232)
Income taxes paid
(771,785)
(740,999)
Net cash (outflow)/inflow from operating activities
(809,976)
5,170,383
Investing activities
Purchase of tangible fixed assets
(40,191)
(74,721)
Proceeds from disposal of tangible fixed assets
20,998
-
0
Purchase of subsidiaries
(3,607,068)
-
0
Interest received
2,464
1,636
Net cash used in investing activities
(3,623,797)
(73,085)
Financing activities
Repayment of borrowings
4,466,690
1,080,910
Repayment of bank loans
-
(6,566,320)
Payment of finance leases obligations
(54,582)
(4,834)
Net cash generated from/(used in) financing activities
4,412,108
(5,490,244)
Net decrease in cash and cash equivalents
(21,665)
(392,946)
Cash and cash equivalents at beginning of year
90,358
483,304
Cash and cash equivalents at end of year
68,693
90,358
SOP International Limited
Notes to the group financial statements
For the year ended 30 June 2024
- 20 -
1
Accounting policies
Company information

SOP International Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office and principal place of business is Grafton House, ICON Harlow, Third Avenue, Harlow, Essex, CM19 5AW.

 

The group consists of SOP International Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, 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. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 21 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company SOP International 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 30 June 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.

The following subsidiaries have been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows includes the results and cashflows of the subsidiaries from the date of acquisition.

 

M L Rice Limited

Liroy UK Limited

Liroy BV

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The group's management have considered a period of twelve months from the date of approval of the financial statements. The group's management confirm that no further disclosures relating to the group's ability to continue as a going concern need to be made in the financial statements.

1.5
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a straight line basis over its expected life, which is 10 years.

SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 22 -
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
5% straight line
1.8
Tangible fixed assets

Tangible fixed assets 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:

Short Leasehold land and buildings
25 years straight line
Plant and equipment
15% reducing balance
Fixtures & Fittings
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Investments in subsidiaries are measured at cost less accumulated impairment.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 23 -

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and 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.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. As all financial assets are classified within one year, they are not amortised but carried at face value.

 

SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 24 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are carried at face value.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and continue to be measured at face value.

 

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies
(Continued)
- 25 -
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 stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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.

 

The trading results of group undertakings together with the assets and liabilities of overseas undertakings, including assets, liabilities and goodwill on acquisition, are translated at the exchange rates ruling at the year-end. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses are recognised in ‘Other comprehensive income’ and allocated to non-controlling interest as appropriate.

 

SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
- 26 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Goodwill

Goodwill is amortised over the course of its useful life. Management determine the useful life of the assets based upon cash flow forecasts which involves an element of judgement in assessing the potential future benefits to be derived from these assets. Critical judgements are the levels of future economic benefits that the group can expect to receive.

3
Turnover and other revenue

The entire turnover is attributable to the Group's principal activity of processing and packaging edible oils and wholesale of imported Asian foodstuffs and rice products.

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
100,544,797
91,713,487
Rest of the world
62,474,420
57,059,925
163,019,217
148,773,412
2024
2023
£
£
Other revenue
Interest income
7,558
4,600
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
- 27 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(670,995)
(409,030)
Depreciation of owned tangible fixed assets
340,476
348,285
Loss/(profit) on disposal of tangible fixed assets
22,474
(9,343)
Amortisation of intangible assets
386,084
409,980
Operating lease charges
1,285,157
1,268,612
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
19,070
17,337
Audit of the financial statements of the company's subsidiaries
7,335
6,668
26,405
24,005
For other services
Taxation compliance services
4,000
3,637
All other non-audit services
27,653
24,352
31,653
27,989
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
55
54
25
25
Administration
75
71
46
45
Total
130
125
71
70
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
6
Employees
(Continued)
- 28 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
10,990,410
8,999,756
7,606,253
5,686,610
Social security costs
1,144,347
851,704
687,364
464,006
Pension costs
270,573
263,585
88,004
99,620
12,405,330
10,115,045
8,381,621
6,250,236
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
4,084,269
3,567,074
Company pension contributions to defined contribution schemes
87,863
46,750
4,172,132
3,613,824

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
2,132,566
812,000
Company pension contributions to defined contribution schemes
9,000
15,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
4,023
4,600
Other interest income
3,535
-
Total income
7,558
4,600
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
8
Interest receivable and similar income
(Continued)
- 29 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
4,023
4,600
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
534,987
912,065
Other finance costs:
Interest on finance leases and hire purchase contracts
7,977
7,413
Other interest
12,696
-
Total finance costs
555,660
919,478
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,939,115
1,688,070
Adjustments in respect of prior periods
1,012
(74,730)
Total current tax
2,940,127
1,613,340
Deferred tax
Origination and reversal of timing differences
(12,300)
6,772
Total tax charge
2,927,827
1,620,112
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
10
Taxation
(Continued)
- 30 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
9,747,781
6,393,576
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
2,436,945
1,598,394
Tax effect of expenses that are not deductible in determining taxable profit
361,758
112,263
Tax effect of income not taxable in determining taxable profit
(204)
-
0
Adjustments in respect of prior years
1,012
(74,730)
Permanent capital allowances in excess of depreciation
-
(3,110)
Depreciation on assets not qualifying for tax allowances
17,743
17,139
Amortisation on assets not qualifying for tax allowances
93,176
93,176
Effect of overseas tax rates
17,358
17,537
Tax at marginal rate
-
0
(140,557)
Change in previously unrecognised deferred tax liabilty
39
-
0
Taxation charge
2,927,827
1,620,112
11
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 July 2023
3,727,042
317,707
4,044,749
Additions - internally developed
-
0
5,079
5,079
Exchange adjustments
-
0
(5,237)
(5,237)
At 30 June 2024
3,727,042
317,549
4,044,591
Amortisation and impairment
At 1 July 2023
1,358,485
296,679
1,655,164
Amortisation charged for the year
372,704
13,380
386,084
Exchange adjustments
-
0
(4,923)
(4,923)
At 30 June 2024
1,731,189
305,136
2,036,325
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
11
Intangible fixed assets
(Continued)
- 31 -
Carrying amount
At 30 June 2024
1,995,853
12,413
2,008,266
At 30 June 2023
2,368,557
21,028
2,389,585
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.

 

12
Tangible fixed assets
Group
Short Leasehold land and buildings
Plant and equipment
Fixtures & Fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
2,323,018
1,405,900
680,914
389,887
4,799,719
Additions
547
19,004
31,453
-
0
51,004
Disposals
-
0
(245,817)
(2,511)
(121,374)
(369,702)
Exchange adjustments
(5,629)
(10,450)
(2,412)
(6,403)
(24,894)
At 30 June 2024
2,317,936
1,168,637
707,444
262,110
4,456,127
Depreciation and impairment
At 1 July 2023
604,473
909,882
457,747
154,386
2,126,488
Depreciation charged in the year
91,435
123,010
78,326
47,705
340,476
Eliminated in respect of disposals
-
0
(195,069)
(2,046)
(108,663)
(305,778)
Exchange adjustments
(5,411)
(7,282)
(1,998)
(2,481)
(17,172)
At 30 June 2024
690,497
830,541
532,029
90,947
2,144,014
Carrying amount
At 30 June 2024
1,627,439
338,096
175,415
171,163
2,312,113
At 30 June 2023
1,718,545
496,018
223,167
235,501
2,673,231
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
12
Tangible fixed assets
(Continued)
- 32 -
Company
Short Leasehold land and buildings
Plant and equipment
Fixtures & Fittings
Total
£
£
£
£
Cost
At 1 July 2023
1,981,423
772,746
534,470
3,288,639
Additions
-
0
10,655
29,536
40,191
Disposals
-
0
(147,025)
-
0
(147,025)
At 30 June 2024
1,981,423
636,376
564,006
3,181,805
Depreciation and impairment
At 1 July 2023
277,307
472,240
338,506
1,088,053
Depreciation charged in the year
79,257
49,493
64,038
192,788
Eliminated in respect of disposals
-
0
(109,991)
-
0
(109,991)
At 30 June 2024
356,564
411,742
402,544
1,170,850
Carrying amount
At 30 June 2024
1,624,859
224,634
161,462
2,010,955
At 30 June 2023
1,704,116
300,506
195,964
2,200,586
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
16,148,349
12,541,281
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023
12,541,281
Additions
3,607,068
At 30 June 2024
16,148,349
Carrying amount
At 30 June 2024
16,148,349
At 30 June 2023
12,541,281
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
- 33 -
14
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
M L Rice Limited
UK
Ordinary
100.00
-
Liroy BV
Netherlands
Ordinary
96.00
-
Liroy UK Limited
UK
Ordinary
0
96.00

During the year the parent company purchased an additional 25% of the issued share capital of Liroy BV, taking the shareholding to 96%.

15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
24,400,636
21,905,910
17,538,991
13,533,801
Instruments measured at fair value through profit or loss
826,654
3,445,841
63,693
90,358
Carrying amount of financial liabilities
Measured at amortised cost
37,062,817
28,799,217
36,308,990
24,873,027
Financial assets measured at amortised cost comprise trade and other debtors and accrued income.
Financial liabilities measured at amortised cost comprise bank overdrafts and loans, trade and other creditors and accruals.
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
560,544
610,548
560,544
573,977
Work in progress
-
708
-
708
Finished goods and goods for resale
27,684,574
17,485,303
12,716,475
7,109,612
28,245,118
18,096,559
13,277,019
7,684,297
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
- 34 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
21,367,231
19,962,676
14,973,034
11,635,672
Other debtors
3,033,406
1,943,234
2,587,420
1,940,009
Prepayments and accrued income
9,395,980
6,554,365
9,196,902
6,473,560
33,796,617
28,460,275
26,757,356
20,049,241
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
3,239,196
15,780
-
0
-
0
Obligations under finance leases
21
43,044
53,624
43,044
53,624
Other borrowings
20
-
0
-
0
7,014,189
2,547,499
Trade creditors
14,993,269
13,316,640
11,676,113
8,240,367
Corporation tax payable
1,298,108
498,574
1,000,771
138,785
Other taxation and social security
319,448
260,020
190,047
154,522
Other creditors
12,259,062
9,688,624
12,159,667
9,633,625
Accruals and deferred income
6,442,868
5,586,090
5,372,402
4,310,335
38,594,995
29,419,352
37,456,233
25,078,757
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
41,803
50,882
-
0
-
0
Obligations under finance leases
21
43,575
87,577
43,575
87,577
85,378
138,459
43,575
87,577
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
- 35 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,280,999
66,662
-
0
-
0
Loans from group undertakings
-
0
-
0
7,014,189
2,547,499
3,280,999
66,662
7,014,189
2,547,499
Payable within one year
3,239,196
15,780
7,014,189
2,547,499
Payable after one year
41,803
50,882
-
0
-
0

The bank overdraft is secured by a legal charge of the assets of the group.

 

The bank loan is secured by fixed and floating charges over all the assets of the group, including present and future goodwill, book debts, uncalled capital, property plant and equipment of the group.

 

The obligations under finance leases and hire purchase contracts are secured against the respective assets.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
43,044
53,624
43,044
53,624
In two to five years
43,575
87,577
43,575
87,577
86,619
141,201
86,619
141,201

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
41,562
53,862
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
22
Deferred taxation
(Continued)
- 36 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
41,562
53,862
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
53,862
53,862
Credit to profit or loss
(12,300)
(12,300)
Liability at 30 June 2024
41,562
41,562

The deferred tax liability set out above is expected to reverse within 12 to 60 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,345,470
1,169,569
648,945
610,208
Between two and five years
3,511,544
3,597,230
2,379,013
2,198,827
In over five years
7,750,000
8,250,000
7,750,000
8,250,000
12,607,014
13,016,799
10,777,958
11,059,035
25
Events after the reporting date

On 3 October 2024 SOP International purchased the remaining 4% of share capital relating to Liroy BV taking the ownership to 100%. The cost of the investment was €650,000.

SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
- 37 -
26
Related party transactions
Transactions with related parties

During the year the company paid consultancy fees of £250,000 (2023 - £250,000) to entities with an interest in the company. (A further £199,992 was accrued for a total of £449,992 (2023- £449,992.) At the balance sheet date £600,000 was outstanding in creditors in relation to these amounts (2023 - £600,000).

 

During the year interest on loans payable to entities with an interest in the company was £Nil (2023-£197,390). The capital balance outstanding at 30 June 2024 was £3,000,000 (2023 - £3,000,000).

 

During the year rent of £522,367 was payable to other related parties (2023 - £565,054). At the balance sheet date there was a balance of £nil outstanding (2023 - £nil) in relation to these amounts.

 

27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
6,819,954
4,773,464
Adjustments for:
Taxation charged
2,927,827
1,620,112
Finance costs
555,660
919,478
Investment income
(7,558)
(4,600)
Loss/(gain) on disposal of tangible fixed assets
22,474
(9,343)
Amortisation and impairment of intangible assets
386,084
409,980
Depreciation and impairment of tangible fixed assets
340,476
348,285
Movements in working capital:
(Increase)/decrease in stocks
(10,148,559)
10,949,654
Increase in debtors
(5,336,342)
(6,527,795)
Increase in creditors
5,163,273
1,794,489
Cash generated from operations
723,289
14,273,724
SOP International Limited
Notes to the group financial statements (continued)
For the year ended 30 June 2024
- 38 -
28
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
3,375,435
1,330,434
Adjustments for:
Taxation charged
1,621,471
408,134
Finance costs
493,770
803,232
Investment income
(2,464)
(1,636)
Loss on disposal of tangible fixed assets
16,036
-
Depreciation and impairment of tangible fixed assets
192,788
188,624
Movements in working capital:
(Increase)/decrease in stocks
(5,592,722)
8,208,558
Increase in debtors
(6,708,115)
(5,591,455)
Increase in creditors
7,059,380
1,368,723
Cash generated from operations
455,579
6,714,614
29
Analysis of changes in net funds/(debt) - group
1 July 2023
Cash flows
Exchange rate movements
30 June 2024
£
£
£
£
Cash at bank and in hand
3,445,841
(2,427,352)
(191,835)
826,654
Borrowings excluding overdrafts
(66,662)
(3,214,337)
-
(3,280,999)
Obligations under finance leases
(141,201)
54,582
-
(86,619)
3,237,978
(5,587,107)
(191,835)
(2,540,964)
30
Analysis of changes in net debt - company
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
90,358
(21,665)
68,693
Borrowings excluding overdrafts
(2,547,499)
(4,466,690)
(7,014,189)
Obligations under finance leases
(141,201)
54,582
(86,619)
(2,598,342)
(4,433,773)
(7,032,115)
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