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REGISTERED NUMBER: 01801112 (England and Wales)










Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 June 2024

for

Il Fornaio Limited

Il Fornaio Limited (Registered number: 01801112)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Statement of Cash Flows 14

Notes to the Statement of Cash Flows 15

Notes to the Financial Statements 16


Il Fornaio Limited

Company Information
for the Year Ended 30 June 2024







DIRECTORS: Mrs A Varchione
Mrs G Montesdeoca
Miss A M Varchione
Mrs S Ghamar



SECRETARY: Mrs G Montesdeoca



REGISTERED OFFICE: 5 Barretts Green Road
Park Royal
London
NW10 7AE



REGISTERED NUMBER: 01801112 (England and Wales)



SENIOR STATUTORY AUDITOR: Simon Freshwater FCCA



AUDITORS: Freshwater Associates Limited
1 Gemini Court
42a Throwley Way
Sutton
Surrey
SM1 4AF

Il Fornaio Limited (Registered number: 01801112)

Strategic Report
for the Year Ended 30 June 2024

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

REVIEW OF BUSINESS
The principal activity of the company is the wholesale manufacturing of bakery products for the UK. The financial statements and balance sheet are expressed in £ sterling.

The directors are satisfied with the results for a challenging year in a market which remains competitive. The post-pandemic and Brexit environment together with the conflict in Ukraine have impacted inflation to all major inputs, in particular raw materials and energy. The business has been determined to minimise the impact of these costs for its customers by way of efficiencies within production. The directors are confident that the business is well placed to meet ongoing challenges and maintain profitability in the future.

The results for the year as set out in page 10 of the financial statements were in line with expectations of the directors. The company reported an operating profit in the period of £980,974 (2023: £838,453) with a turnover of £13,255,083 (2023: £14,743,828). At the year end the company had net assets of £3,700,089 (2023: £3,158,324).

Bank borrowings are secured, and details of this security is disclosed in Note 15 to the financial statements.

The Directors use a range of financial key performance indicators (KPI's) to monitor the business. These include the following:

Turnover £13.3m which represents 10% decrease of prior year's turnover, however the Gross Profit Margin increased to 52% in 2024 from 46% for 2023.This is a satisfactory performance given the inflationary pressures in the labour market and raw materials.

The Directors also monitor non-financial KPI's with the main focus on food waste.

Food waste remains consistent at a satisfactory low level of 2.5% for 2024 (2023 2.5%) . With the investment and improvements within production resulting in improvements in efficiency, it is expect that the automation of production will improve this. Food waste is defined as total food waste generated in our bakery divided by the sum of production and total food waste.

PRINCIPAL RISKS AND UNCERTAINTIES
Performance in this sector is affected by general economic conditions and the level of competition in the market.

The company's finance facilities have been renewed and the directors do not consider the above to create a material uncertainty. They have considered the future trading of the company and are confident the company can continue as a going concern for the foreseeable future.

FUTURE DEVELOPMENTS
The directors are confident that with its innovative product development in conjunction with the plant investment undertaken in the year, it will be well placed to maintain and develop new market opportunities. They aim to continue to supply some of the UK leading household names and to work closely with their customers to develop new products, improve the existing ranges and to ensure that they continue to maintain the highest standards.


Il Fornaio Limited (Registered number: 01801112)

Strategic Report
for the Year Ended 30 June 2024

FINANCIAL RISK MANAGEMENT
The company manages its key financial risks as follows:

Currency Risk
The company is exposed to transaction foreign exchange risk. The company hedges purchases in foreign currency that are expected to occur in future periods. Majority of the capital investment purchases are in foreign currency. The company policy is to actively manage the resulting currency risk, using forward contracts over the credit term periods.

Liquidity Risk
The company's policy is to ensure sufficient resources are available either from cash balances, cash flows and near cash liquid assets to ensure all obligations can be met when they fall due. To achieve this the company continually monitors its cash position. We have reviewed our working capital requirements and the facilities available to us, including our invoice discounting facility which has further capacity to draw down on in the future.

Interest Rate Risk
The company finances its operations through a mixture of retained profits and invoice finance advances. The company does not fix the interest rates on any of its borrowings. Even with the expected rise in interest rates, our forecast operating profit is more than sufficient to cover any rise in interest rates.

Credit Risk
The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterpart's have high credit ratings. The majority of the trade debt is insured and overdue debt is not material.

This report was approved by the board of directors.

ON BEHALF OF THE BOARD:





Mrs G Montesdeoca - Director


19 March 2025

Il Fornaio Limited (Registered number: 01801112)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of wholesale bakers.

DIVIDENDS
An interim dividend of £3,400 per share on the Ordinary A £1 shares was paid on 30 June 2024. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 30 June 2024 will be £ 158,099 .

FUTURE DEVELOPMENTS
Future developments in the business of the company are discussed in the strategic report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Mrs A Varchione
Mrs G Montesdeoca
Miss A M Varchione
Mrs S Ghamar

POLITICAL DONATIONS AND EXPENDITURE
There were no political donations made during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Il Fornaio Limited (Registered number: 01801112)

Report of the Directors
for the Year Ended 30 June 2024


AUDITORS
The auditors, Freshwater Associates Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs G Montesdeoca - Director


19 March 2025

Report of the Independent Auditors to the Members of
Il Fornaio Limited

Opinion
We have audited the financial statements of Il Fornaio Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Il Fornaio Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Il Fornaio Limited


Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations related to data protection, health and safety ;legislation and environmental law. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and Financial Reporting Standards.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to fraudulent financial reporting and management bias in accounting estimates.

We communicated the identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. Audit procedures performed by the auditors included, but were not limited to:

Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

Challenging assumptions and judgements made by management in their significant accounting estimates and
Identifying and testing of unusual journal entries.

Owing to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those
leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion,omission or misrepresentation.

As part of an audit in accordance with ISAs (UK) we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.

Report of the Independent Auditors to the Members of
Il Fornaio Limited


We communicate with those charged with governance regarding, among other matters, the planned scope and timing often audit and significant audit findings, including any significant deficiencies in internal control we identify during our audit.

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 Report of the Auditors.

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 a Report of the Auditors 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 Freshwater FCCA (Senior Statutory Auditor)
for and on behalf of Freshwater Associates Limited
1 Gemini Court
42a Throwley Way
Sutton
Surrey
SM1 4AF

19 March 2025

Il Fornaio Limited (Registered number: 01801112)

Income Statement
for the Year Ended 30 June 2024

2024 2023
Notes £    £    £    £   

REVENUE 13,255,083 14,743,828

Cost of sales 6,319,686 7,909,740
GROSS PROFIT 6,935,397 6,834,088

Distribution costs 1,598,065 1,758,903
Administrative expenses 4,356,358 4,236,732
5,954,423 5,995,635
OPERATING PROFIT 4 980,974 838,453

Interest receivable and similar income 37,110 21,209
1,018,084 859,662

Interest payable and similar expenses 5 182,576 97,013
PROFIT BEFORE TAXATION 835,508 762,649

Tax on profit 6 135,644 30,296
PROFIT FOR THE FINANCIAL YEAR 699,864 732,353

Il Fornaio Limited (Registered number: 01801112)

Other Comprehensive Income
for the Year Ended 30 June 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 699,864 732,353


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

699,864

732,353

Il Fornaio Limited (Registered number: 01801112)

Statement of Financial Position
30 June 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 8 2,304,818 2,777,669

CURRENT ASSETS
Inventories 9 488,379 548,631
Debtors 10 3,420,526 3,112,559
Cash at bank 2,222,807 1,421,248
6,131,712 5,082,438
CREDITORS
Amounts falling due within one year 11 2,234,471 2,465,841
NET CURRENT ASSETS 3,897,241 2,616,597
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,202,059

5,394,266

CREDITORS
Amounts falling due after more than one
year

12

(2,087,800

)

(2,031,658

)

PROVISIONS FOR LIABILITIES 16 (414,170 ) (204,284 )
NET ASSETS 3,700,089 3,158,324

CAPITAL AND RESERVES
Called up share capital 17 145 145
Retained earnings 18 3,699,944 3,158,179
SHAREHOLDERS' FUNDS 3,700,089 3,158,324

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2025 and were signed on its behalf by:




Mrs G Montesdeoca - Director Mrs A Varchione - Director




Miss A M Varchione - Director Mrs S Ghamar - Director


Il Fornaio Limited (Registered number: 01801112)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2022 145 2,604,326 2,604,471

Changes in equity
Dividends - (178,500 ) (178,500 )
Total comprehensive income - 732,353 732,353
Balance at 30 June 2023 145 3,158,179 3,158,324

Changes in equity
Dividends - (158,099 ) (158,099 )
Total comprehensive income - 699,864 699,864
Balance at 30 June 2024 145 3,699,944 3,700,089

Il Fornaio Limited (Registered number: 01801112)

Statement of Cash Flows
for the Year Ended 30 June 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,283,668 1,339,812
Interest paid (160,045 ) (79,037 )
Interest element of hire purchase payments
paid

(22,531

)

(17,976

)
Finance costs paid - (280,555 )
Tax paid 74,242 (162,646 )
Net cash from operating activities 1,175,334 799,598

Cash flows from investing activities
Purchase of tangible fixed assets (236,034 ) (2,663,304 )
Sale of tangible fixed assets 5,879 -
Interest received 37,110 21,209
Net cash from investing activities (193,045 ) (2,642,095 )

Cash flows from financing activities
New loans in year - 2,000,000
Loan repayments in year (68,270 ) -
Capital repayments in year 73,105 20,552
Amount withdrawn by directors (27,466 ) (214,751 )
Equity dividends paid (158,099 ) (178,500 )
Net cash from financing activities (180,730 ) 1,627,301

Increase/(decrease) in cash and cash equivalents 801,559 (215,196 )
Cash and cash equivalents at beginning of
year

2

1,421,248

1,636,444

Cash and cash equivalents at end of year 2 2,222,807 1,421,248

Il Fornaio Limited (Registered number: 01801112)

Notes to the Statement of Cash Flows
for the Year Ended 30 June 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2024 2023
£    £   
Profit before taxation 835,508 762,649
Depreciation charges 704,198 851,025
Profit on disposal of fixed assets (1,192 ) -
Finance costs 182,576 97,013
Finance income (37,110 ) (21,209 )
1,683,980 1,689,478
Decrease/(increase) in inventories 60,252 (216,020 )
Increase in trade and other debtors (307,967 ) (275,000 )
(Decrease)/increase in trade and other creditors (152,597 ) 141,354
Cash generated from operations 1,283,668 1,339,812

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 2,222,807 1,421,248
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 1,421,248 1,636,444


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank 1,421,248 801,559 2,222,807
1,421,248 801,559 2,222,807
Debt
Finance leases (188,753 ) (73,105 ) (261,858 )
Debts falling due within 1 year (100,943 ) 53,733 (47,210 )
Debts falling due after 1 year (1,906,696 ) 14,537 (1,892,159 )
(2,196,392 ) (4,835 ) (2,201,227 )
Total (775,144 ) 796,724 21,580

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

Il Fornaio Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed ot be reasonable under the circumstances.

Turnover
Turnover represents sales of goods net of VAT and trade discounts. Turnover is recognised when the goods are physically delivered to the customer.

Property, plant & equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - Over the Lease Term
Bakery equipment - 25% on reducing balance
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.


3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,013,098 2,424,423
Social security costs 63,198 26,435
Other pension costs 93,419 95,447
2,169,715 2,546,305

The average number of employees during the year was as follows:
2024 2023

Administrative and operations staff 79 107

2024 2023
£    £   
Directors' remuneration 431,823 236,693

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 308,023 110,893

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 206,291 136,867
Other operating leases 62,919 66,479
Depreciation - owned assets 653,640 783,639
Depreciation - assets on hire purchase contracts 50,558 67,384
Profit on disposal of fixed assets (1,192 ) -
Auditors' remuneration 23,365 17,000
Foreign exchange differences 2,644 -

The number of directors to whom retirement benefits were accruing was as follows:

Self Invested Personal Pension4 4

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest - 385
Loan interest 160,045 48,356
HMRC interest - 296
Loan Arrangement fees - 30,000
Hire purchase 22,531 17,976
182,576 97,013

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
PY Tax Adjustments (74,242 ) (52,426 )

Deferred tax 209,886 82,722
Tax on profit 135,644 30,296

UK corporation tax has been charged at 25% (2023 - 25%).

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 835,508 762,649
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

208,877

190,662

Effects of:
Expenses not deductible for tax purposes 712 1,135
Capital allowances in excess of depreciation - (579,957 )
Depreciation in excess of capital allowances 100,958 -
Utilisation of tax losses (310,844 ) 388,160
Adjustments to tax charge in respect of previous periods (74,242 ) (52,426 )
Deferred tax 210,183 82,722
Total tax charge 135,644 30,296

The PY tax adjustment related to the Research and Development credit claimed for the year end 30/06/2022.

7. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of £1 each
Interim 158,099 178,500

8. PROPERTY, PLANT AND EQUIPMENT
Short Bakery Plant and
leasehold equipment machinery
£    £    £   
COST
At 1 July 2023 580,731 1,337,595 4,960,714
Additions - 181,605 25,000
Disposals - - (6,250 )
At 30 June 2024 580,731 1,519,200 4,979,464
DEPRECIATION
At 1 July 2023 533,160 1,007,461 3,159,865
Charge for year 11,062 127,935 455,306
Eliminated on disposal - - (1,563 )
At 30 June 2024 544,222 1,135,396 3,613,608
NET BOOK VALUE
At 30 June 2024 36,509 383,804 1,365,856
At 30 June 2023 47,571 330,134 1,800,849

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

8. PROPERTY, PLANT AND EQUIPMENT - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 July 2023 941,196 155,074 165,523 8,140,833
Additions 25,752 - 3,677 236,034
Disposals - - - (6,250 )
At 30 June 2024 966,948 155,074 169,200 8,370,617
DEPRECIATION
At 1 July 2023 494,544 38,769 129,365 5,363,164
Charge for year 70,860 29,076 9,959 704,198
Eliminated on disposal - - - (1,563 )
At 30 June 2024 565,404 67,845 139,324 6,065,799
NET BOOK VALUE
At 30 June 2024 401,544 87,229 29,876 2,304,818
At 30 June 2023 446,652 116,305 36,158 2,777,669

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 July 2023
and 30 June 2024 552,866 155,074 707,940
DEPRECIATION
At 1 July 2023 466,998 38,769 505,767
Charge for year 21,482 29,076 50,558
At 30 June 2024 488,480 67,845 556,325
NET BOOK VALUE
At 30 June 2024 64,386 87,229 151,615
At 30 June 2023 85,868 116,305 202,173

9. INVENTORIES
2024 2023
£    £   
Raw materials and consumables 179,409 247,510
Finished goods 308,970 301,121
488,379 548,631

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

10. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 2,220,685 2,223,814
Tax Debtor 77,976 -
V.A.T. 212,111 124,196
Other debtors 2,550 6,600
Factoring account 111,830 105,832
Prepayments 257,199 144,486
2,882,351 2,604,928

Amounts falling due after more than one year:
Vachione Property Co Ltd 538,175 507,631

Aggregate amounts 3,420,526 3,112,559

At the balance sheet date, included in other debtors due within more than one year £538,175 (2023: £507,631) was owed by Varchione Property Co. Ltd which is under common control. Loan interest of £15,979 (2023: £15,072) was received during the year.

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 47,210 100,943
Hire purchase contracts (see note 14) 66,217 63,791
Trade creditors 1,434,165 1,679,164
Social security and other taxes 185,078 70,129
Pension control account 9,082 8,779
Directors' current accounts 55,341 82,807
Accrued expenses 437,378 460,228
2,234,471 2,465,841

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 1,892,159 1,884,275
Other loans (see note 13) - 22,421
Hire purchase contracts (see note 14) 195,641 124,962
2,087,800 2,031,658

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 47,210 100,943

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

13. LOANS - continued
2024 2023
£    £   
Amounts falling due between one and two years:
Bank loans - 1-2 years 47,458 100,943
Pension Scheme Loan - 22,421
47,458 123,364

Amounts falling due between two and five years:
Bank Loans 2-5 years 164,924 302,830

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 1,679,777 1,480,502

A long term loan of £1.94m was outstanding to NatWest Bank on 30 June 2024. The repayment started from February 2023 with 240 months of repayment terms. The interest rate is 3.5% p.a. over base rate.

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Gross obligations repayable:
Within one year 88,110 77,785
Between one and five years 213,655 152,517
301,765 230,302

Finance charges repayable:
Within one year 21,893 13,994
Between one and five years 18,014 27,555
39,907 41,549

Net obligations repayable:
Within one year 66,217 63,791
Between one and five years 195,641 124,962
261,858 188,753

15. SECURED DEBTS

The company's overdraft facility is secured by a debenture on the company and directors unsupported guarantees.

The company's invoice finance facility is secured by a company debenture.

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 491,486 592,444
Tax losses carried forward (77,316 ) (388,160 )
414,170 204,284

Deferred
tax
£   
Balance at 1 July 2023 204,284
Accelerated C/A movement (100,958 )
Utilised losses movement 310,844
Balance at 30 June 2024 414,170

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1 100 100
45 Ordinary A £1 45 45
145 145

The Ordinary Shares shall be non redeemable but shall hold full rights in respect of Voting, and shall entitle the holder to full participation in respect of equity and in the event of a winding up.

The Ordinary 'A' Shares shall be non-voting shares and the registered holder thereof shares shall on a winding up or other payment of capital, be entitled to participate in the assets of the Company, which the Company may determine to distribute by way of dividends but only when dividends are declared for the Ordinary 'A' Shares. Different rates of dividends may be declared and dividends may be declared for one class of share and not for the other classes of shares.

18. RESERVES
Retained
earnings
£   

At 1 July 2023 3,158,179
Profit for the year 699,864
Dividends (158,099 )
At 30 June 2024 3,699,944

19. PENSION COMMITMENTS

The amount recognised as an expense in the year relating to defined contribution plans was £93,419 (2023: £95,447).

Il Fornaio Limited (Registered number: 01801112)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

20. RELATED PARTY DISCLOSURES

During the year, total rent payments of £114,410 (2023: £114,410) were paid to Varchione Property Co. Ltd, a company incorporated in England and Wales and under common control.

At the balance sheet date, a long term loan of £538,175 (2023: £507,631) was due from Varchione Property Co. Ltd, the interest was charged at a rate of 3.06%. The loan is repayable by 30/06/2030.

During the year, total rent payments of £291,960 (2023: £119,454) were paid to The Varchione Retirement Benefits Scheme, a scheme where all four directors were members.

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are considered to be the four directors of the company, who together own 100% of the issued ordinary share capital.