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COMPANY REGISTRATION NUMBER: 13179042
Pembrokeshire Creamery Limited
Filleted Unaudited Financial Statements
30 June 2024
Pembrokeshire Creamery Limited
Financial Statements
Period from 1 March 2023 to 30 June 2024
Contents
Pages
Directors' report
1 to 2
Statement of financial position
3 to 4
Notes to the financial statements
5 to 9
Pembrokeshire Creamery Limited
Directors' Report
Period from 1 March 2023 to 30 June 2024
The directors present their report and the unaudited financial statements of the company for the period ended 30 June 2024 .
Directors
The directors who served the company during the period were as follows:
Mr M A Harrod
Mr J M Langmead
Mr H E M Thomas
Mr R C Iley
Mr D J Cassidy
Business review
The directors are pleased to report that during the year the company has made substantial investment in a brand new BRC accredited milk bottling facility in Haverfordwest. The project reflects the completion of the phase 1 investment with sales volumes equating to 80% of phase 1 capacity by 30 June 2024. The company started its initial milk production in May 2024 and from a standing start has rapidly built up its production to meet the expanding demand of our retail customers for an authentic Welsh milk, produced and bottled in Wales, for the Welsh consumer. In order to facilitate further expansion of the business into the retail, wholesale and food service sectors, further capital investment was required to double the operational capacity. On this basis and with support of our investors, a further equity investment was made amounting to £3.9m post year end. This was done to support the phase 2 investment in a second processing line and associated infrastructure alongside automated trolley packing, the latter in recognition of the need to mitigate rising labour cost moving forward. The directors consider the company to be well placed and are confident that the company will continue to win new contracts as it has done this year and generate profits in the future. The continued development and growth of the business, with both existing and new customers, remains the absolute focus, whilst continuing to invest in people and state of the art facilities.
Events after the end of the reporting period
Particulars of events after the reporting date are detailed in note 14 to the financial statements.
Directors responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with the applicable law and regulations and in accordance with United Kingdom Generally Accepted Accounting Practice.
Company Law requires the directors to prepare financial statements for each financial period. Under that law, the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102). 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 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.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report was approved by the board of directors on 28 March 2025 and signed on behalf of the board by:
Mr J M Langmead
Director
Pembrokeshire Creamery Limited
Statement of Financial Position
30 June 2024
30 Jun 24
28 Feb 23
Note
£
£
Fixed assets
Intangible assets
6
20,000
Tangible assets
7
21,212,353
4,598,238
-------------
------------
21,232,353
4,598,238
Current assets
Stocks
554,288
Debtors
8
3,455,552
494,036
Cash at bank and in hand
9,454
------------
---------
4,009,840
503,490
Creditors: amounts falling due within one year
9
( 13,205,191)
( 1,629,566)
-------------
------------
Net current liabilities
( 9,195,351)
( 1,126,076)
-------------
------------
Total assets less current liabilities
12,037,002
3,472,162
Creditors: amounts falling due after more than one year
10
( 11,531,919)
( 2,295,232)
-------------
------------
Net assets
505,083
1,176,930
-------------
------------
Capital and reserves
Called up share capital
12
1,989,390
1,989,390
Profit and loss account
( 1,484,307)
( 812,460)
------------
------------
Shareholders funds
505,083
1,176,930
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the period ending 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
Pembrokeshire Creamery Limited
Statement of Financial Position (continued)
30 June 2024
These financial statements were approved by the board of directors and authorised for issue on 28 March 2025 , and are signed on behalf of the board by:
Mr J M Langmead
Director
Company registration number: 13179042
Pembrokeshire Creamery Limited
Notes to the Financial Statements
Period from 1 March 2023 to 30 June 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 44 Hamilton Terrace, Milford Haven, Pembrokeshire, SA73 3JP. The company extended it's year end from 29 February 2024 to 30 June 2024 to align with other associated companies, therefore the results are not entirely comparable.
2. Statement of compliance
These financial statements have been prepared in accordance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have a reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future. For this reason, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Judgements and key sources of estimation uncertainty
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 to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. The creamery was in the course of construction during the year and therefore no depreciation is provided until the construction is complete.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
4. Employee numbers
The average number of persons employed by the company during the period amounted to 15 (2023: 2 ).
5. Tax on loss
Major components of tax income
Period from
1 Mar 23 to
Year to
30 Jun 24
28 Feb 23
£
£
Deferred tax:
Origination and reversal of timing differences
( 399,506)
( 142,676)
---------
---------
Tax on loss
( 399,506)
( 142,676)
---------
---------
6. Intangible assets
Intangible assets
£
Cost
Additions
20,000
--------
At 30 June 2024
20,000
--------
Amortisation
At 1 March 2023 and 30 June 2024
--------
Carrying amount
At 30 June 2024
20,000
--------
At 28 February 2023
--------
7. Tangible assets
Leasehold property
Plant and machinery
Fixtures and fittings
Computer Equipment
Total
£
£
£
£
£
Cost
At 1 March 2023
2,850,816
1,747,422
4,598,238
Additions
9,591,272
6,965,018
19,525
38,300
16,614,115
Transfers
(22,547)
19,143
3,404
-------------
------------
--------
--------
-------------
At 30 June 2024
12,419,541
8,731,583
22,929
38,300
21,212,353
-------------
------------
--------
--------
-------------
Depreciation
At 1 March 2023 and 30 June 2024
-------------
------------
--------
--------
-------------
Carrying amount
At 30 June 2024
12,419,541
8,731,583
22,929
38,300
21,212,353
-------------
------------
--------
--------
-------------
At 28 February 2023
2,850,816
1,747,422
4,598,238
-------------
------------
--------
--------
-------------
8. Debtors
30 Jun 24
28 Feb 23
£
£
Trade debtors
1,292,515
Other debtors
2,163,037
494,036
------------
---------
3,455,552
494,036
------------
---------
Other debtors includes an amount of £nil (2023 - £nil) falling due after more than one year.
9. Creditors: amounts falling due within one year
30 Jun 24
28 Feb 23
£
£
Bank loans and overdrafts
7,727,856
Trade creditors
2,378,963
479,653
Deferred government grants
716,208
Social security and other taxes
71,678
3,257
Other creditors
2,310,486
1,146,656
-------------
------------
13,205,191
1,629,566
-------------
------------
Security is given to HSBC UK Bank Plc by way of a fixed and floating charge over all assets of the company dated 23 November 2022 and by way of a legal mortgage over certain assets of the company dated 8 February 2024. Security is given to HSBC Equipment Finance (UK) Ltd by way of a fixed charge over certain assets of the company dated 29 November 2022 and 16 August 2024. During the year, the company secured and drew down on a £6,200,000 loan facility to fund an equipment cost reimbursement agreement for the purchase of the new creamery equipment. The loan is repayable after 8 years from 16 August 2024.
10. Creditors: amounts falling due after more than one year
30 Jun 24
28 Feb 23
£
£
Bank loans and overdrafts
6,061,770
1,650,558
Deferred government grants
5,470,149
644,674
-------------
------------
11,531,919
2,295,232
-------------
------------
11. Deferred tax
The deferred tax included in the statement of financial position is as follows:
30 Jun 24
28 Feb 23
£
£
Included in debtors (note 8)
542,182
142,676
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
30 Jun 24
28 Feb 23
£
£
Accelerated capital allowances
3,254,275
436,856
Unused tax losses
( 1,546,589)
( 579,532)
Deferred income
( 2,249,868)
------------
---------
(542,182)
(142,676)
------------
---------
12. Called up share capital
Issued, called up and fully paid
30 Jun 24
28 Feb 23
No.
£
No.
£
Ordinary shares of £ 1 each
1,989,390
1,989,390
1,989,390
1,989,390
------------
------------
------------
------------
13. Capital commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
30 Jun 24
28 Feb 23
£
£
Tangible assets
1,552,328
2,562,823
------------
------------
14. Events after the end of the reporting period
Subsequent to the year end, on 24 July 2024 the company raised further capital to support the continued growth of the business. The company received a further £3,893,100 from Crown Private Investments S.Á.R.L as share capital which was issued and allotted 468,000 £1 ordinary shares at £2.136752 per share paid on 24 July 2024 and of which a further £6.181838 per share was paid on 30 September 2024.