Company registration number 05115579 (England and Wales)
STOKES SAUCES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
STOKES SAUCES LIMITED
COMPANY INFORMATION
Directors
Mr R J Sheepshanks
Mr C Reeve
Mr P Kerr
Mrs B Whatley
Mr N Smith
Secretary
Mr C Reeve
Company number
05115579
Registered office
Garden House
Rendlesham Hall
Rendlesham
Woodbridge
IP12 2RG
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
STOKES SAUCES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
STOKES SAUCES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

The Company continued its principle activities of food manufacture throughout the current year.

 

As reported in the statement of comprehensive income. Turnover has shown a strong increase of 19.7% from £10.2m to £12.2m in the current period. Profit after tax has increased from £0.38m to £0.88m the increase in the results is due to continued growth combined with a slowdown of the high inflation experienced in the prior year. This has allowed the Company to realise improvements in efficiency and regain some previously lost margin.

 

The balance sheet shows that the Company’s net assets at the year-end has increased from £1.14m to £1.43m. The Company generated cash from operations of £1.3m and invested in £0.14m Fixed assets. The Company did not require additional borrowings for the year.

Principal risks and uncertainities

Management continually monitor the key risks facing the Company together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.

 

The principal risks and uncertainties facing the Company are as follows:

 

Economic downturn – The company acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining,

 

Competitor pressure - The market in which the Company operates is considered to be relatively competitive, and therefore competitor pressure could result in losing sales to key competitors. The company manages this risk by providing quality products and maintaining strong relationships with its key customers.

 

Reliance on key suppliers – The Company’s purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressure. The Company manages this risk by ensuring there is enough breadth in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if necessary.

 

Loss of key personnel – This would present operational difficulties for the Company.. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised.

Financial Key performance indicators

The key performance indicators are discussed in the review of the business section of this report.

By order of the board

.............................................
Mr C Reeve
Secretary
25 March 2025
STOKES SAUCES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be that of the manufacture and wholesale of fine food.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £601,600. 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 R J Sheepshanks
Mr C Reeve
Mr P Kerr
Mrs B Whatley
Mr N Smith
Financial instruments

The Company operates a centralised treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the Company’s’ activities. The Company’s principal financial instruments include bank loans and facilities secured as appropriate, the main purpose of which is to raise finance for the Company’s operations. In addition, the Company has various other financial assets and liabilities such as trade receivables and trade payables arising directly from its operations. Derivatives transactions within the Company enters into principally comprise forward exchange contracts and interest rate swaps. In accordance with the Company’s treasury policy, derivative instruments are not entered into for speculative purposes.

Future developments

The directors consider that the forthcoming financial year will be another year of difficult trading conditions. Their aim is to continue to implement the management policies which have been introduced in recent years in relation to price increases and cost ratio monitoring, which have assisted in successfully overcoming the difficulties and uncertainties in the marketplace in 2023/24. Overall, the directors believe that the Company is well placed in terms of strategic and market position to maximise its ability to generate sales and satisfy customer demand, despite the difficult economic conditions currently facing the business.

Auditor

Ensors Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

STOKES SAUCES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
By order of the board
..............................................
Mr C Reeve
Secretary
25 March 2025
STOKES SAUCES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

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.

STOKES SAUCES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STOKES SAUCES LIMITED
- 5 -
Opinion

We have audited the financial statements of Stokes Sauces Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.

Other matters which we are required to address

In the year ended 30 June 2023 the Company did not meet the requirements to obtain audited financial statements, therefore the comparative figures within these financial statements have not been audited.

Opinions on other matters prescribed by the Companies Act 2006

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

STOKES SAUCES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STOKES SAUCES LIMITED (CONTINUED)
- 6 -
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.

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

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition, accounting estimates and management override of systems and control.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

 

STOKES SAUCES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STOKES SAUCES LIMITED (CONTINUED)
- 7 -

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.

Zoe Plowman (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Connexions
159 Princes Street
Ipswich
IP1 1QJ
26 March 2025
STOKES SAUCES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
unaudited
Notes
£
£
Turnover
3
12,213,583
10,205,652
Cost of sales
(7,997,747)
(6,993,222)
Gross profit
4,215,836
3,212,430
Administrative expenses
(2,988,350)
(2,721,576)
Operating profit
4
1,227,486
490,854
Interest receivable and similar income
-
0
27
Interest payable and similar expenses
7
(92,955)
(94,568)
Profit before taxation
1,134,531
396,313
Tax on profit
8
(251,323)
(15,837)
Profit for the financial year
883,208
380,476

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

STOKES SAUCES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
unaudited
Notes
£
£
£
£
Fixed assets
Intangible assets
10
8,458
23,079
Tangible assets
11
822,911
938,361
831,369
961,440
Current assets
Stocks
12
1,257,804
1,235,643
Debtors
13
2,209,641
2,006,500
Cash at bank and in hand
233,352
5,960
3,700,797
3,248,103
Creditors: amounts falling due within one year
14
(2,670,590)
(2,460,772)
Net current assets
1,030,207
787,331
Total assets less current liabilities
1,861,576
1,748,771
Creditors: amounts falling due after more than one year
15
(265,762)
(401,872)
Provisions for liabilities
Deferred tax liability
17
169,270
201,963
(169,270)
(201,963)
Net assets
1,426,544
1,144,936
Capital and reserves
Called up share capital
19
201
201
Share premium account
199,800
199,800
Profit and loss reserves
1,226,543
944,935
Total equity
1,426,544
1,144,936

The notes on pages 12 to 24 form part of these financial statements.

STOKES SAUCES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2024
30 June 2024
- 10 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
..............................................
..............................................
Mr R J Sheepshanks
Mr C Reeve
Director
Director
Company registration number 05115579 (England and Wales)
STOKES SAUCES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022 (unaudited)
201
199,800
1,053,259
1,253,260
Year ended 30 June 2023 (unaudited):
Profit and total comprehensive income
-
-
380,476
380,476
Dividends
9
-
-
(488,800)
(488,800)
Balance at 30 June 2023 (unaudited)
201
199,800
944,935
1,144,936
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
883,208
883,208
Dividends
9
-
-
(601,600)
(601,600)
Balance at 30 June 2024
201
199,800
1,226,543
1,426,544
STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Stokes Sauces Limited is a private company limited by shares incorporated in England and Wales. The registered office is Garden House, Rendlesham Hall, Rendlesham, Woodbridge, IP12 2RG.

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.

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

 

 

The financial statements of the company are consolidated in the financial statements of Suffolk Saucery Limited. These consolidated financial statements are available from its registered office, Rendlesham Hall, Rendlesham, Woodbridge IP12 2RG.

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 the foreseeable future. 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 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, 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.

STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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.

 

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

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
Website
3 years straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold Land and buildings
20% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
20% straight line
Computer equipment
3 years straight line
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.

STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -

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, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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 and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

Other financial assets

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.

STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

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.

Other financial liabilities

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.

STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

 

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 when the company has 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.

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.

 

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

1.13
Retirement benefits

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

1.14
Leases

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.

STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,706,970
9,676,754
Europe
459,751
443,420
Rest of the world
46,862
85,478
12,213,583
10,205,652
2024
2023
£
£
Other revenue
Interest income
-
27
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
69
(83)
Fees payable to the company's auditor for the audit of the company's financial statements
22,125
-
0
Depreciation of owned tangible fixed assets
257,136
259,071
Loss on disposal of tangible fixed assets
1,752
2,336
Amortisation of intangible assets
14,621
22,980
Operating lease charges
219,909
239,923
5
Employees

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

2024
2023
Number
Number
85
79
STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,342,446
2,188,488
Social security costs
224,554
206,107
Pension costs
207,522
113,967
2,774,522
2,508,562
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
242,196
225,167
Company pension contributions to defined contribution schemes
69,453
38,350
311,649
263,517

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
132,546
113,123
Company pension contributions to defined contribution schemes
56,653
24,950
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
83,042
81,769
Interest on finance leases and hire purchase contracts
9,913
12,722
Other interest
-
0
77
92,955
94,568
STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
317,068
100,282
Adjustments in respect of prior periods
(35,444)
(54,084)
Total current tax
281,624
46,198
Deferred tax
Origination and reversal of timing differences
(30,301)
(30,361)
Total tax charge
251,323
15,837

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
1,134,531
396,313
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
283,633
81,244
Tax effect of expenses that are not deductible in determining taxable profit
300
665
Adjustments in respect of prior years
(35,444)
(54,387)
Effect of change in corporation tax rate
-
0
(4,793)
Group relief
-
0
(337)
Deferred tax adjustments in respect of prior years
-
0
(4,207)
Fixed asset timing differences
2,834
(2,985)
Other movements
-
0
637
Taxation charge for the year
251,323
15,837
9
Dividends
2024
2023
£
£
Final paid
601,600
488,800
STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
10
Intangible fixed assets
Goodwill
Software
Website
Total
£
£
£
£
Cost
At 1 July 2023 and 30 June 2024
32,562
74,892
37,651
145,105
Amortisation and impairment
At 1 July 2023
32,561
60,371
29,094
122,026
Amortisation charged for the year
-
0
10,818
3,803
14,621
At 30 June 2024
32,561
71,189
32,897
136,647
Carrying amount
At 30 June 2024
1
3,703
4,754
8,458
At 30 June 2023
1
14,521
8,557
23,079
11
Tangible fixed assets
Leasehold Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
358,967
1,820,088
32,752
101,308
30,140
2,343,255
Additions
-
0
120,434
1,766
21,238
-
0
143,438
Disposals
-
0
(2,361)
-
0
-
0
-
0
(2,361)
At 30 June 2024
358,967
1,938,161
34,518
122,546
30,140
2,484,332
Depreciation and impairment
At 1 July 2023
273,254
1,002,025
29,322
78,872
21,421
1,404,894
Depreciation charged in the year
23,289
213,592
1,400
16,676
2,179
257,136
Eliminated in respect of disposals
-
0
(609)
-
0
-
0
-
0
(609)
At 30 June 2024
296,543
1,215,008
30,722
95,548
23,600
1,661,421
Carrying amount
At 30 June 2024
62,424
723,153
3,796
26,998
6,540
822,911
At 30 June 2023
85,713
818,063
3,430
22,436
8,719
938,361
STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Tangible fixed assets
(Continued)
- 21 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
216,419
288,559
12
Stocks
2024
2023
£
£
Raw materials and consumables
741,989
820,719
Finished goods and goods for resale
515,815
414,924
1,257,804
1,235,643
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,553,350
1,406,601
Corporation tax recoverable
-
0
14,034
Amounts owed by group undertakings
269,764
268,629
Other debtors
226,392
174,113
Prepayments and accrued income
160,135
140,731
2,209,641
2,004,108
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
-
0
2,392
Total debtors
2,209,641
2,006,500
STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
76,900
167,447
Obligations under finance leases
61,748
58,796
Trade creditors
1,251,022
1,068,676
Corporation tax
317,068
100,282
Other taxation and social security
70,689
58,186
Other creditors
734,155
923,051
Accruals and deferred income
159,008
84,334
2,670,590
2,460,772

The bank loans are secured by a fixed and floating charge over all assets of the company.

 

Hire purchase liabilities are secured against the assets to which they relate.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
158,707
233,069
Obligations under finance leases
107,055
168,803
265,762
401,872

The bank loans are secured by a fixed and floating charge over all assets of the company.

 

Hire purchase liabilities are secured against the assets to which they relate.

16
Loans and overdrafts
2024
2023
£
£
Bank loans
235,607
400,516
Payable within one year
76,900
167,447
Payable after one year
158,707
233,069

The bank loans are secured by a fixed and floating charge over all assets of the company.

 

A director provided guarantees for a combined principal of £440,000 plus interest and costs related to the loans under the guarantee.

STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
17
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
169,270
201,963
-
2,392
2024
Movements in the year:
£
Liability at 1 July 2023
199,571
Credit to profit or loss
(30,301)
Liability at 30 June 2024
169,270
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
207,522
113,967

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.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
201
201
201
201
20
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
154,223
84,760
Between two and five years
364,822
243,040
In over five years
146,667
206,250
665,712
534,050
STOKES SAUCES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
21
Directors' transactions

At the year end the company owed the directors £12,471 (2023: £31,185).

22
Ultimate controlling party

The parent undertaking is Suffolk Saucery Limited, a company registered in England and Wales. It's registered office address is Rendlesham Hall, Rendlesham, Woodbridge, IP12 2RG. Suffolk Saucery Limited is the largest and smallest group to prepare consolidated financial statements including the company.

The ultimate controlling party is Mr R J Sheepshanks by virtue of the shareholding in the ultimate parent company.

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