Company Registration No. 03133582 (England and Wales)
SIMPLY LUNCH LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Affinia (Stratford)
19th Floor
1 Westfield Avenue
London
E20 1HZ
SIMPLY LUNCH LTD
COMPANY INFORMATION
Directors
Mr J Page
Mrs J Page
Mr S Page
Mr T Page
Mr W Page
Secretary
Mr T Page
Company number
03133582
Registered office
Unit 2, ZK Park
23 Commerce Way
Croydon
CR0 4ZS
Auditor
Affinia (Stratford)
19th Floor
1 Westfield Avenue
London
E20 1HZ
SIMPLY LUNCH LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Profit and loss account
11
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 27
SIMPLY LUNCH LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Fair review of the company's business

The main activity of the company continued to be the production and distribution of chilled convenience food products across the United Kingdom from its manufacturing and distribution facilities across the U.K.

We are very pleased with the progress made throughout the year in achieving our vision of driving forward the food- to-go market in the United Kingdom and staying focused on our company purpose of 'Improving lives through delicious food'. With significant contract wins, people development and experience gained, the business stands in good stead for the years ahead.

 

There was a significant increase in turnover for the period (increase of 15% from 2023), which reflects the continued excellent growth of the business following several new contract wins, growth in existing business and the introduction of new product ranges such as Simply Special Baguettes, “Wildfarmed” Ciabattas and new Plant Powered, Better for Later and Quorn product launches.

 

Given our strong financial performance, we continue to invest in the business and have doubled our manufacturing capacity, expanded our transport fleet, and implemented factory automation to improve operational efficiency and productivity. This enables us to consistently enhance our services, attract new long-term customers, meet the growing demand for Simply Lunch products and maintain exceptional service levels for our loyal customers. We have improved the working environment for our staff by modernising our existing office space and opening a new office, both of which enhance collaboration and creativity across our teams. We launched our “Customer Innovation Lounge” in April 2024, designed as a dynamic hub for creativity and collaboration providing us with a state-of-the-art space to work closely with our customers and partners. We are also investing heavily in our digital infrastructure and will implement an innovative ERP system in 2025 that will streamline our processes across the business.

 

We continue to make great strides in our sustainability strategy and are leading the way in the industry with various projects which focus on our people, operations, community, and products. We are proud to join forces with regenerative farming experts, “Wildfarmed” for our ciabatta range to help reshape the food-to-go landscape with innovation and sustainability. We are also partnering with “My Emissions” for the next three years to cover our entire Simply Lunch product range with full Scope 3 reporting. This provides a deeper understanding of our impact on the environment, which is essential as we work towards our goal of being NetZero by 2035.

 

The business continues to build strong relationships with customers, suppliers, employees, and the local community. We are proud to say that we have continued our 30-year partnership with the local homeless charity, Croydon Nightwatch, by providing daily food products and organising clothing donations from our staff throughout the year to support the homeless and less fortunate people of our local communities. In addition, we continue to work with The Felix Project which distributes food to people in need across London and the surrounding areas and in 2023 we contributed 40,500 sandwiches to the vulnerable/homeless. We now also partner with “Meals and More”, a charity dedicated to providing nutritious meals for those in need. In December 2023 we donated over £4,500 to Meals and More as part of our “Spirit of Giving” Christmas campaign (in collaboration with Quorn) which will continue in 2024. We also donated computer equipment to “Clear Community Web” a local organisation dedicated to developing digital skills and raising digital awareness in the local community.

 

We are proud to have won the “Manufacturer of the Year” award at the Sandwich and Food-To-Go Industry Award in May 2024. This recognises our commitment to innovation, quality and excellence in the food-to-go market and inspires us to continue working towards our vision of becoming the leading food-to-go manufacturer in the UK. We are equally thrilled to be recognised as one of the 100 fastest growing, founder-led, privately owned businesses in the UK by FEBE. Both awards reflect the dedication and hard work of the entire Simply Lunch team, whose efforts continue to drive our success.

SIMPLY LUNCH LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Fair review of the company's business (continued)

We successfully published our first “Industry Trend Report” in 2024 using Simply Lunch data and industry knowledge to share insights with customers covering food trends in the UK, consumer behaviour, emerging expectations and how we’re staying ahead of the curve to meet evolving customer needs. We also continued to partner with our customers providing behind the scenes tours of our operations, and insightful retail safaris to food-to-go venues together with discussions on industry research and trends.

 

We have implemented several initiatives into the business to attract and retain talented people in the food industry and improve staff wellbeing. These include sponsored staff development, apprenticeship programmes, student workplace placements, ability for staff to take paid leave to contribute to local charities, a rigorous induction process for new starters, staff happiness surveys, a performance management process as well as various staff engagement events and activities throughout the year. We have also established a partnership with Mind in Croydon, a local charity that helps people with their mental health. During Mental Health Awareness Week, Mind delivered mental health awareness sessions for our staff. We have also appointed Wellbeing Champions and a Committee focusing on mental health and wellbeing across the business.

Principal Risks and Uncertainties

The company has a formal procedure for assessing threats to the business.

The principal threat to the business is the continued challenging economic environment and the increase in raw material, labour and overhead costs and the increased number of competitive tenders. We are continuing to work hard to mitigate price increases by regular communication with our suppliers and innovative purchasing initiatives whilst ensuring product quality is maintained or improved. The board of directors meet regularly to discuss financial performance and review various strategic projects to ensure the business meets its annual objectives.

 

Other risks that are considered and managed effectively are below:

 

Health and safety risk - Internal and external audits are routinely carried out and reported to the senior management team.

 

Food safety risk - Internal and external audits are routinely carried out and reported to the senior management team. We are proud to hold Grade AA in the BRC Global Standard for Food Safety and we are a member of the British Sandwich Association.

 

IT risk - The company have increased investment in protecting against cyber-crime, via a training program for all staff, and back up of IT systems.

 

Credit risk - The company has strong relationships with its customers and the directors are happy that bad debts continue to be relatively low. New customers are credit checked, and robust credit control systems are carried out for existing business relationships.

 

Competitor risk - The company operates in a competitive market. In order to reduce competitor risk the company have continued to spread their business across various sectors of the market to reduce the impact should a particular sector go into decline.

 

Liquidity and cashflow risk - The company has a cashflow forecasting process in place and regularly reviews the cashflow position of the business to ensure its financial obligations can be met.

SIMPLY LUNCH LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Key performance indicators

The main key performance indicators monitored by the business are company turnover, gross profit and cashflow. These KPI's are monitored through weekly tracking of departmental costs versus targets, concise monthly management accounts and customer sales and profitability reports issued to the board of directors and senior management team. The company reports financial performance against their annual budget each month and reforecast this budget each quarter. There is comprehensive internal control in place to ensure the projections for the year ahead are on target. The business has continued with a thorough strategic planning process to forecast financial performance for the next five years to ensure we meet our ambitious growth targets.

 

For the year ending 30th June 2024, underlying profit before tax is £4,936,412 which is a 55% increase from £3,174,531 in 2023. This aligns with the board's expectations and is driven by growth in turnover, several years of investments in productivity and improved service levels for our customers. Turnover increased by 15% from £34,384,841 to £39,495,370.

 

Overheads increased to £6,638,957 (2023: £5,711,116) due to our investment in the business as outlined above. We are continually investing in our staff to ensure the quality of our product and the service we provide remains at an excellent standard. These investments have helped us to enhance our customer relationships and create new opportunities.

Outlook

The business remains in a vibrant convenience food market and is in a strong position to continue its growth into 2024/25. There are many exciting initiatives on the roadmap including the opening of a new purpose-built “Simply Cookhouse” to provide a space for creative and high-quality food preparation. This state-of-the-art facility is designed to foster innovation and enhance the quality of product offerings and also support sustainability goals with a reduction in waste.

 

The business regularly looks to improve and reinvest, ensuring they are offering a wide variety of quality products. The Management team feel that the company can continue its growth following recent investments in the business and together with creative initiatives, a strong sustainability strategy and innovative product launches is able to stand out in the market, improve upon their current market position and achieve their vision of being a clear market leader.

 

On behalf of the board

Mr S Page
Director
26 March 2025
SIMPLY LUNCH LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

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

Principal activities

The main activity of the company continued to be the production and distribution of chilled convenience food products across the United Kingdom from its manufacturing and distribution facilities across the U.K.

Results and dividends

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

Ordinary dividends were declared amounting to £1,799,000. 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 J Page
Mrs J Page
Mr S Page
Mr T Page
Mr W Page
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

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 company’s auditor 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 company’s auditor is aware of that information.

SIMPLY LUNCH LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
On behalf of the board
Mr S Page
Director
26 March 2025
SIMPLY LUNCH LTD
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 company and of the profit or loss of the company 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 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.

SIMPLY LUNCH LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMPLY LUNCH LTD
- 7 -
Opinion

We have audited the financial statements of Simply Lunch Ltd (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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:

 

SIMPLY LUNCH LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPLY LUNCH LTD
- 8 -
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 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 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.

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.

SIMPLY LUNCH LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPLY LUNCH LTD
- 9 -

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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:

SIMPLY LUNCH LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMPLY LUNCH LTD
- 10 -

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.

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.

Andrew Runicles
Senior Statutory Auditor
For and on behalf of Affinia (Stratford)
26 March 2025
Chartered Accountants
Statutory Auditor
19th Floor
1 Westfield Avenue
London
E20 1HZ
SIMPLY LUNCH LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
39,495,370
34,384,841
Cost of sales
(27,993,202)
(25,450,269)
Gross profit
11,502,168
8,934,572
Administrative expenses
(6,638,957)
(5,711,116)
Operating profit
4
4,863,211
3,223,456
Interest receivable and similar income
8
156,188
17,574
Interest payable and similar expenses
9
(82,487)
(66,499)
Profit before taxation
4,936,912
3,174,531
Tax on profit
10
(1,198,449)
(112,198)
Profit for the financial year
3,738,463
3,062,333

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SIMPLY LUNCH LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
£
£
Profit for the year
3,738,463
3,062,333
Other comprehensive income
-
-
Total comprehensive income for the year
3,738,463
3,062,333
SIMPLY LUNCH LTD
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
3,845
1,146
Tangible assets
13
3,100,113
2,735,272
3,103,958
2,736,418
Current assets
Stocks
14
698,158
838,575
Debtors
15
5,978,079
5,393,030
Cash at bank and in hand
6,971,378
3,503,371
13,647,615
9,734,976
Creditors: amounts falling due within one year
16
(8,179,808)
(5,627,803)
Net current assets
5,467,807
4,107,173
Total assets less current liabilities
8,571,765
6,843,591
Creditors: amounts falling due after more than one year
17
(1,105,662)
(1,316,951)
Provisions for liabilities
Deferred tax liability
20
141,416
141,416
(141,416)
(141,416)
Net assets
7,324,687
5,385,224
Capital and reserves
Called up share capital
22
6
6
Profit and loss reserves
7,324,681
5,385,218
Total equity
7,324,687
5,385,224
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
Mr S Page
Director
Company registration number 03133582 (England and Wales)
SIMPLY LUNCH LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
6
3,427,885
3,427,891
Year ended 30 June 2023:
Profit and total comprehensive income
-
3,062,333
3,062,333
Dividends
11
-
(1,105,000)
(1,105,000)
Balance at 30 June 2023
6
5,385,218
5,385,224
Year ended 30 June 2024:
Profit and total comprehensive income
-
3,738,463
3,738,463
Dividends
11
-
(1,799,000)
(1,799,000)
Balance at 30 June 2024
6
7,324,681
7,324,687
SIMPLY LUNCH LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Profit for the year
3,738,463
3,062,333
Adjustments for:
Depreciation of tangible assets
765,059
661,508
Impairment of tangible assets
-
0
24,000
Amortisation of intangible assets
1,391
6,957
Loss on disposal of tangible assets
36,810
8,244
Tax on profit
1,198,449
112,198
Movements in working capital:
Stocks
140,417
(93,868)
Trade and other debtors
(585,049)
(1,116,748)
Trade and other creditors
1,353,556
1,858,643
Cash generated from operations
6,649,096
4,523,267
Interest received
156,188
17,574
Interest paid
(82,487)
(66,499)
Income taxes refunded
-
0
7,887
Net cash inflow from operating activities
6,722,797
4,482,229
Investing activities
Purchase of intangible assets
(4,090)
-
Purchase of tangible fixed assets
(623,145)
(582,539)
Proceeds from disposal of tangible fixed assets
192,822
1,623
Net cash used in investing activities
(434,413)
(580,916)
Financing activities
Payments of borrowings
(430,000)
(133,206)
Payment of finance leases obligations
(591,377)
(497,632)
Dividends paid
(1,799,000)
(1,105,000)
Net cash used in financing activities
(2,820,377)
(1,735,838)
Net increase in cash and cash equivalents
3,468,007
2,165,475
Cash and cash equivalents at beginning of year
3,503,371
1,337,896
Cash and cash equivalents at end of year
6,971,378
3,503,371
SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
1
Accounting policies
Company information

Simply Lunch Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, ZK Park, 23 Commerce Way, Croydon, CR0 4ZS.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least the next 12 months from the date of filing the financial statements.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, specifically on delivery 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.

1.4
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.

 

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
20% straight line
Website
20% straight line
1.5
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.

SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -

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:

Leasehold land and buildings
Over duration of lease
Plant and equipment
10% - 25% Reducing balance
Fixtures and fittings
15% - 25% Reducing balance
Computers
10% - 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 credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.8
Cash and cash equivalents

Cash is 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.

SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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 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.

Impairment of financial assets

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.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial 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.

SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Equity instruments

Equity instruments issued by the company 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 company.

1.11
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 company’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.

1.12
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.

1.13
Retirement benefits

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

1.14
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 leases asset are consumed.

SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

 

We consider there to be no key sources of estimation, that have a significant risk of causing a material

adjustment to the carrying amounts of the assets and liabilities within the next financial years.

Critical judgements

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

Stock Provision

Judgment is required from management to determine the costs to be incurred to sell the stock and thereby determine the net realisable value of the stock at year end and any provision that may required for impairment of the stock.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
39,495,368
34,384,841
2024
2023
£
£
Other revenue
Interest income
156,188
17,574

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
765,059
282,467
Loss on disposal of tangible fixed assets
36,810
8,244
Amortisation of intangible assets
1,391
6,957
Operating lease charges
687,482
678,541
SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
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 company
12,000
9,000
For other services
All other non-audit services
36,725
30,586
6
Employees

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

2024
2023
Number
Number
Production staff
305
284
Administrative staff
35
31
Management staff
5
5
Total
345
320

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
9,130,399
7,479,897
Social security costs
840,838
667,919
Pension costs
190,021
175,572
10,161,258
8,323,388
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
62,500
62,500
Company pension contributions to defined contribution schemes
-
-
Social securities costs
2,346
2,346
64,846
64,846

5 directors received equal remuneration during the year.

SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
156,188
17,574
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
156,188
17,574
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
6,675
9,433
Other finance costs:
Interest on finance leases and hire purchase contracts
75,812
57,066
82,487
66,499
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,198,449
112,198

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
4,936,912
3,174,531
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
1,234,228
650,648
Tax effect of expenses that are not deductible in determining taxable profit
13,399
4,709
Permanent capital allowances in excess of depreciation
(48,636)
(215,651)
Research and development tax credit
-
0
(327,508)
Tax relief in respect of charitable donations
(542)
-
0
Taxation charge for the year
1,198,449
112,198
SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
11
Dividends
2024
2023
£
£
Dividends declared during the year
1,799,000
1,105,000
The amount of dividend has been paid with amount of £1,799,000 (FY23: £1,105,000) during the year.
12
Intangible fixed assets
Software
Website
Total
£
£
£
Cost
At 1 July 2023
9,283
25,500
34,783
Additions
2,000
2,090
4,090
At 30 June 2024
11,283
27,590
38,873
Amortisation and impairment
At 1 July 2023
8,137
25,500
33,637
Amortisation charged for the year
973
418
1,391
At 30 June 2024
9,110
25,918
35,028
Carrying amount
At 30 June 2024
2,173
1,672
3,845
At 30 June 2023
1,146
-
0
1,146
SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
13
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
337,790
2,045,345
52,770
98,443
1,797,769
4,332,117
Additions
347,784
236,723
13,643
24,995
555,607
1,178,752
Disposals
-
0
(22,527)
-
0
-
0
(170,295)
(192,822)
At 30 June 2024
685,574
2,259,541
66,413
123,438
2,183,081
5,318,047
Depreciation and impairment
At 1 July 2023
153,473
701,722
31,165
32,477
678,009
1,596,846
Depreciation charged in the year
91,024
225,553
6,923
22,717
418,842
765,059
Eliminated in respect of disposals
-
0
(13,131)
-
0
-
0
(130,840)
(143,971)
At 30 June 2024
244,497
914,144
38,088
55,194
966,011
2,217,934
Carrying amount
At 30 June 2024
441,077
1,345,397
28,325
68,244
1,217,070
3,100,113
At 30 June 2023
184,317
1,343,623
21,605
65,967
1,119,760
2,735,272
14
Stocks
2024
2023
£
£
Raw materials and consumables
698,158
838,575
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,641,586
3,960,912
Other debtors
609,821
761,200
Prepayments and accrued income
726,672
670,918
5,978,079
5,393,030
SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
130,000
130,000
Obligations under finance leases
19
690,890
658,445
Trade creditors
3,896,717
3,223,453
Corporation tax
1,318,534
120,085
Other taxation and social security
226,285
171,520
Other creditors
60,693
52,792
Accruals and deferred income
1,856,689
1,271,508
8,179,808
5,627,803
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
119,167
249,167
Obligations under finance leases
19
986,495
1,067,784
1,105,662
1,316,951
18
Loans and overdrafts
2024
2023
£
£
Bank loans
249,167
379,167
Payable within one year
130,000
130,000
Payable after one year
119,167
249,167

The long-term loans with Lloyds Bank are secured by fixed and floating charges over all assets and undertakings of the company. The loan term is 60 months, started from 22 May 2020 and payment is on a monthly basis with an amount of £10,834.

19
Lease commitment
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
690,890
658,445
In two to five years
986,495
1,067,784
1,677,385
1,726,229
SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Included in provisions
141,416
141,416
There were no deferred tax movements in the year.

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.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
190,021
175,572

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
6 of £1 each
6
6
6
6
23
Operating lease commitments
Lessee

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:

2024
2023
£
£
Within one year
132,185
125,886
Between two and five years
556,938
549,738
In over five years
177,942
317,327
867,065
992,951
SIMPLY LUNCH LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
24
Directors' transactions

Dividends totalling £1,799,000 (2023 - £1,105,000) were declared in the year in respect of shares held by the company's directors.

 

The amount of dividend has been paid with amount of £1,799,000 (FY23: £1,105,000) during the year.

During the year a director loan was granted at £430,000 which remained unpaid at year end and included within Other debtors at year end. The loan was repaid to the company post year end in full.

 

25
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
3,503,371
3,468,007
6,971,378
Borrowings excluding overdrafts
(379,167)
130,000
(249,167)
Obligations under finance leases
(1,726,229)
48,844
(1,677,385)
1,397,975
3,646,851
5,044,826
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