The directors present the strategic report for the year ended 30 June 2024.
The group has had a successful year despite a £775,002 (2.0%) reduction in revenues with overall revenues generated for the year ended 30 June 2024 of £37,340,133 (2023: £38,115,135). The revenues produced a gross profit of £10,035,650 for the year ended 30 June 2024 (2023: £8,000,210) and operating profits of £3,547,095 for the same year (2023: 1,911,455). The group’s gross profit margin has increased from 20.99% (2023) to 26.8% (2024) primarily from investment in prior year production processes and efficiencies delivered.
The prevailing combination of inflationary pressures and interest rates remaining high have impacted many businesses throughout 2023/24. Throughout the group’s year ended 30 June 2024, these factors have similarly impacted upon the operations of the businesses to some degree. However, despite these negative influences that continue to make trading demanding, the directors of the group are overall pleased with the group’s operating revenues & profits. The group operates in a highly competitive market and trading conditions are anticipated to remain difficult in the forthcoming year. Customer and supplier relationships remain strong.
Grosvenor Enterprise Holdings Limited is that of a holding company. The group have identified the following risks and uncertainties in its business model:
Operational risk
Rising commodity prices, continuity of supply taking into account global influences, together with ongoing inflationary pressure. Primary raw materials are commodities impacted by global markets and trading which means the business can be exposed to volatility in prices due to fluctuations in supply and demand of those products. However, a combination of widely sourcing raw materials and forging close relationships with suppliers, will contribute to balancing this risk but not negate entirely the risk. In avoidable circumstances in which core purchase supply chain costs have systemically and/or inflationary risen, long standing customer relationships and closely working with customers should assist in passing on these unavoidable costs. Until costs are passed on to customers margins will be depressed.
Financial risk management
Foreign exchange risk arises when the group enters into transactions denominated in a currency other than its functional currency. The group is predominantly exposed to currency risk on purchases made in US dollar and Euro and sales in Sterling. The group hedge a proportion of the future anticipated foreign cash flows by means of forward exchange contracts.
Credit risk
The group works hard to main close relationships with both their customers and suppliers such that all parties can agree on credit terms enabling successful liquidity management. The group has also fully insured the vast majority of its debtor balance to minimise the risk of non recoverability.
Finance risk
The group have a number of outstanding loans at the balance sheet date. Interest is paid at a variable rate on the loans based on the current base interest rate. Given the recent increase in interest rates, the directors would look to fix the rate of interest paid through a suitable hedging arrangement if considered to pose a significant long term risk to the company.
Interest rate
The group is exposed to interest rate risk on its long term borrowing which is at floating interest rates. The group has a policy of actively managing its interest rate exposure by having borrowings of cash and cash equivalents as low as possible.
The key performance indicators utilised by the group are sales, profits and cash flows which are regularly monitored throughout the year against budgeted targets.
Revenue: year ended 30 June 2024 £37,340,133 (2023: £38,115,135).
Profit after tax: year ended 30 June 2024 £2,646,816 (2023: £1,299,219).
Cash at bank and in hand: 30 June 2024 £3,318,012 (2023: £1,432,680).
The directors are pleased with the results of the group for the year and consider that the company has sufficient working capital to ensure its continued trading in the foreseeable future.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2024.
The review of the business and principal risks and uncertainties are not shown in the Directors' Report as they are shown in the Strategic Report in accordance with s414C(11) of the Companies Act 2006.
Ordinary dividends were paid amounting to £395,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Mitchell Charlesworth (Audit) Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
We have audited the financial statements of Grosvenor Enterprise Holdings 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 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).
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit, or
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirements to prepare a Strategic Report.
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 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.
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.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
the company's own assessment of the risks that irregularities may occur either as a result of fraud or error;
the results of our enquiries of management of their own identification of and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the Profit and Loss account, (ii) revenue recognition, (iii) stock existence and valuation, (iv) existence and recoverability of trade receivables, and (v) laws and regulations. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
enquiring of management and directors concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of board meetings and reviewing correspondence with relevant authorities where matters identified were significant;
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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. This 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.
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.
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.
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 £2,905,447 (2023 - £286,233 profit).
Grosvenor Enterprise Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Crowland Close, Southport, England, PR9 7RR.
The group consists of Grosvenor Enterprise Holdings Limited and all of its subsidiaries.
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, unless otherwise specified within these accounting policies. The principal accounting policies adopted are set out below.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (Note 10).
The company's functional and presentational currency is GBP.
The group financial statements consolidate the financial statements of Grosvenor Enterprise Holdings Limited and its entities controlled by the group (its subsidiaries) after eliminating all intra-group trading and balances drawn up to 30 June.
After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore adopts the going concern basis in preparing its consolidated financial statements.
The consolidated group financial statements consist of the financial statements of the parent company Grosvenor Enterprise Holdings Limited together with all entities controlled by the parent company (its subsidiaries).
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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Turnover represents amounts receivable from the sales of services, excluding value added tax and trade discounts, derived from ordinary activities. The principal activity of the group in the year under review was that of the manufacturing and sale of food for wild birds, caged birds, fish and small animals.
The group recognises revenue when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
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.
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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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 subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. All other foreign gains and losses are presented in the Income Statement within 'other operating income'.
Debt factoring and invoice discounting facility
Bulldog Products Limited uses a credit insurer to cover its trade debt risk.
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.
In preparing these financial statements, the directors have made the following judgements:
- Determine whether leases entered into by the group as a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
- Determine whether there are indications of impairment of the group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Other key sources of estimation uncertainty:
- Tangible fixed assets (note 13).
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023: 2).
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:
Included within plant and equipment tangible fixed assets above are assets held under hire purchase contracts whose net book values at 30 June 2024 collectively amounted to £235,330 (2023: £288,821).
Included within motor vehicles tangible fixed assets above are assets held under hire purchase contracts whose net book values at 30 June 2024 collectively amounted to £41,999 (2023: £36,760).
Bulldog Products Limited plant and equipment tangible fixed assets, included within the above, were independently and externally revalued on 20 May 2019 by Lambert Smith Hampton LLP on a fair value in its working place basis collectively in the amount of £1,725,000. The company directors consider the value of plant and machinery after additions to have a fair value at 30 June 2024 of £939,546 (2023: £1,020,991).
Plant and equipment assets are carried at valuation. If the plant and equipment assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 30 June 2024 are as follows:
The registered office address of Bulldog Products Limited and Heritage Feeds Limited is Grosvenor House, 1 Crowland Close, Southport, Merseyside, PR9 7RR.
The registered office address of Twootz.Com Limited is Stud Farm, Lumb Brook Road, Appleton, Warrington, Cheshire, WA4 3HL.
Financial assets: Financial assets that are equity instruments measured at cost less impairment as at 30 June 2024 amounted to £9,847,294 (2023: £7,211,588) in respect of the group and £3,101,791 (2023: £550,744) in respect of the company. Financial assets measured at amortised cost comprise cash and cash equivalents, trade and other debtors.
Financial liabilities: Financial liabilities measured at amortised cost as at 30 June 2024 amounted to £6,151,317 (2023: £6,262,486) in respect of the group and £50,600 (2023: £NIL) in respect of the company. Financial liabilities measured at amortised cost comprise bank loans, trade and other creditors, accruals and hire purchase contracts.
Stocks recognised in the group's Profit and Loss within its cost of sales during the year ended 30 June 2024 as an expense was £24,652,692 (2023: £28,143,853).
Bank loans, which include loans with National Westminster Bank Plc, Funding Circle Focal Point Lending Limited and Lombard, are secured by way of debentures incorporating a fixed and floating charge over the assets of the group, a Department and Industry Guarantee and personal guarantees from the directors of the group and Bulldog Products Limited, a subsidiary undertaking of the company.
Finance lease and hire purchase creditors are secured on the assets concerned.
Included within bank loans and overdrafts as at 30 June 2024 is an amount of £451,919 payable to RBS invoice financing in connection with the company's Invoice Discounting Agreement with RBS. The equivalent balance as at 30 June 2023 is an in hand balance of £484,485 and is included within cash at bank and in hand.
Details of security are given in note 19.
Details of security are given in note 19.
Details of security are given in note 19.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £4,517 as at 30 June 2024 (2023: £7,489) were payable to the funds and are included within creditors.
The revaluation reserve represents cumulative surpluses/deficits upon revaluation of the group's tangible fixed assets and other adjustments.
The capital redemption reserve contains the nominal value of Bulldog Products Limited company's own shares that have been acquired by Bulldog Products Limited and cancelled.
The retained earnings reserve represents the cumulative profits or losses, net of dividends paid and other adjustments.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company has taken advantage of the available exemption not to disclose transactions with group members due to consolidated accounts being publicly available from Companies House, Crown Way, Cardiff, CF14 3UZ. Such transactions with group members are at an arms length basis.
Chalkbay Services Limited is a company related to Bulldog Products Limited through common directors. During the year ended 30 June 2024 rent payable to Chalkbay Services Limited of £78,000 (2023: £95,000) was charged to the Income Statement. Included within creditors as at 30 June 2024 is an amount of £37,600 (2023: £48,455) payable by Bulldog Products Limited to Chalkbay Services Limited in respect of rents.
On 29 October 2024 Chalkbay Services Limited became 100% owned by Grosvenor Enterprise Holdings Limited following a share for share exchange.
Bulldog Products Limited has cross guaranteed a bank loan of £75,000 for a company whose director is a company director of Bulldog Products Limited and Grosvenor Enterprise Holdings Limited, and a shareholder of Grosvenor Enterprise Holdings Limited. The amount outstanding as at 30 June 2024 amounted to £NIL (2023: £8,750).
Amounts payable by Twootz.Com Limited to a member of key management personnel as at 30 June 2024 amounted to £NIL (2023: £30,298). The rate of interest charged is 0% and there are no fixed repayment terms.
At 30 June 2024 Mr A Graham, a director of the company, owed the company a balance of £160,000 (2023: £NIL). This was subsequently repaid after the year end.
The directors of the group have granted personal guarantees in respect of the company's loan finance.