The directors present the strategic report for the year ended 31 October 2024.

The principle turnover of the company for the year to October 2024 of Paramount 21 Ltd (“the Company”) was the continued operation of a food manufacturing facility in Devon, the principle activity of the Company was to produce meal solutions for the frozen seafood and vegetarian market in the UK and Australia. The company continues to develop its presence in its chosen market places, but is actively exploring new opportunities.

The issues of sustainability, social responsibility, environmental impact and trading ethically remain key concerns for our customers and these are all areas where the company is seeking to excel. The continuing economic climate has brought into focus customers perception of value for money and the company remains committed to working with all partners to deliver its quality products at the best possible price. The importance of our founding values (quality, service, integrity and innovation) coupled with addressing the concerns mentioned above provide a platform for future success.

The results for the Company are shown in the attached financial statements; there has been a 26.0% increase in turnover (continuing business), there was an increase in profitability of £0.47m on 2023. Net assets rose by £0.17m. The cost base of the business continues to rise, although internal efficiencies have been secured wherever possible to maintain margins and delay further price increases. Operating profit grew driven entirely by increased volumes and efficient and effective control of the overhead base.

The directors remain satisfied with the underlying strength of the business in regards to sales growth but are cautious as to the impact of further rises in prices in the coming year. The company continues to be an accredited employer of the ‘Living Wage Foundation’.

The directors believe the business continues to be in a positive position for the challenges of the coming years; the products being sold fit the core competencies of the Company. Further traction within the chosen markets is envisaged which will continue to deliver on the strategy. The directors continue to monitor all aspects of the business on a continuous basis; proactive plans are implemented wherever they are deemed necessary.

The directors remain pleased with all key areas of working capital and these remain well controlled, trade debtors and creditors were operated to the satisfaction of the appropriate parties. The directors are content that the level of stocks remain relevant to the size of the business, the directors are content that adequate controls are in place to ensure appropriate valuation and relevance.

The wider economic risks and uncertainties continue to impact the business and do influence results and decisions made by the directors. Supply chain pressures are seen by the directors as part of the continuing economic environment. The business keeps under review its supplier base and works closely with key partners in regards to pricing, lead times and availability, minimum internal stocks are also regularly reviewed in order to navigate the challenges present and ensure continuity.

Input price inflation appears to be raising its head again driven predominantly by macro economic factors outside of our control, the continued impact of these and low overall economic growth pose a challenge to the business. At the same time customer expectation of value for money remains and the company hasn’t and would never take for granted its own need for efficiency and effectiveness as competition remains strong.

The company is mindful of the risks of an over dependence on a small number of customers, products or markets. In that regard, the company is constantly seeking to minimise such risks by investing in new products and markets to ensure a wider strategic spread of customers.

The company’s energy strategy of buying forward is not immune to the continued volatility but the directors believe this strategy provides for a degree of stability, the business continues to review further energy efficiency measures to mitigate this volatility.

The directors believe that the business is resilient, agile and adaptable and whilst it will never be immune from the shocks and turbulence that seem commonplace in today’s economy it is able to embrace and adapt strategies as the full impact becomes known.

The Company continues to remain committed to investing in product development and the directors believe that such innovation is integral to the on-going success of the Company. Delivering enhanced products to the market will further enhance the standing of the company in respect of innovation.

The Company continues to review the market and invest in research to keep it in tune with both its customers and end consumer requirements.

Environment and Sustainability

The Company remains strongly committed to operating its business in an appropriate manner that is beneficial to all stakeholders. To this end the Company operates both cross functional environmental and sustainability management teams, tasked with reviewing and improving our environmental and sustainability performance, during the year the company maintained its ISO14001 accreditation and almost all its seafood purchases (> 97%) are from sustainable sources or sources undergoing certification for sustainability.

The Company monitors a number of key indicators in relation to its consumption of utilities and its waste streams; the Company’s waste doesn’t go to landfill.

The Company continues to work with external partners to further action plans to address scope 1 and 2 emissions.

In order to monitor the risks facing the business, Key Performance Indicators are operated at all levels to measure performance enabling the Company to control its business on a daily basis. These KPI’s range from financial to operational measures to ensure any issues are highlighted and addressed on a timely basis. A number of management meetings are held on a regular basis to review operational performance of all areas of the business. These meetings cover such topics as the environment, sustainability, health & safety, food safety & quality as well as the more common financial and operational performance reviews.

The directors continue to review the investment strategy to ensure the facilities and capabilities are appropriate in nature and scale for the continued planned growth. In the year the Company invested £730K in its facility and plant, the majority of the latter was delivered in October, the benefits in regards to product quality will be seen in the coming year.

The average number of people employed for the year ending October 2024 was 88 people (82 in 2023).

The directors feel that further growth is available within its core competency areas and its chosen existing and new markets.

The focus for the future must remain factory efficiency, quality, service and innovation whilst retaining accreditation to the BRCGS Food Standard. By continuing to produce high quality products and offering them at competitive prices the company is well placed to deliver against customer expectations for the coming year and to grow the business accordingly.

One of the great values of the business is looking to the future and investing accordingly in its operational capabilities and the markets it serves, this continues to be the case.

The directors feel that the company is a positive reflection of its founding values of quality, service, integrity and innovation, and a business which operates for the benefit of all stakeholders.

The Directors continue to believe that the market will remain highly competitive but that the Company is well placed to deliver in the best interest of all stakeholders with the infrastructure and team it has built and continues to invest in.

At the date of these accounts the business remains financially sound and the directors are confident this will continue to improve into the future as the business continues to grow.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 October 2024.

The principal activity of the company continued to be that of producing meal solutions for the frozen seafood and vegetarian market.

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £100,000. The directors do not recommend payment of a further dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The Company’s financial instruments comprise cash at bank, invoice discounting, bank loans and chattels mortgages. The main purpose of these financial instruments is to raise adequate finance for the Company’s operations.

The main risks arising from the Company’s financial instruments are interest rate fluctuations and liquidity risk. It is the Company’s policy to finance its operations through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cash flow requirements of the Company and an acceptable level of risk exposure.

The company traditionally utilises a range of variable rate bank loans and fixed rate chattels mortgages, the fixed rate facilities by nature are over a shorter term. The directors review the consensus forecasts for interest rate movements that might impact upon the affordability of the variable rate borrowings and would take action as appropriate to mitigate any exposure; the directors do not believe there will be any material adverse movement in interest rates within the next twelve months, and acknowledge that interest rates are more than likely going to remain level before falling in the near term, these movements are not believed to be material to the businesses operation.

Currency exposure is managed through the use of securing fixed price time options on an as needs basis.

In accordance with the company's articles, a resolution proposing that Prydis Accounts Limited be reappointed as auditor of the company will be put at a General Meeting.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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.

We have audited the financial statements of Paramount 21 Ltd (the 'company') for the year ended 31 October 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:

• give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the 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:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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.

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.

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.

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

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.

Paramount 21 Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Old Newton Road, Heathfield, Newton Abbot, Devon, TQ12 6RA.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value

In undertaking the going concern assessment the directors have reviewed thetrue:

i) Historical results of the business; and variances to the original budget.

ii) Budget for the year to October 2025, outlook for the year after and any associated sensitivities.

iii) Cashflow, liquidity and borrowing position of the business.

iv) Principle risks concerning the customer and supplier base, competition, business development plans and any other factors.

After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue as a going concern for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

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 (usually on dispatch 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.

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

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:

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.

Investments in subsidiary undertakings are recognised at cost. All subsidiaries are immaterial and either not trading or dormant.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

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.

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.

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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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

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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

Their aggregate remuneration comprised:

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 6).

Details of the company's subsidiaries at 31 October 2024 are as follows:

Included within trade debtors is £1,863,884 (2023: £1,828,674) which are subject to invoice discounting arrangements. Although these balances have been sold to the counterparty, the transaction does not qualify for derecognition because the company retains the full risk and reward of ownership. The related invoice discounting liability is reported in the creditors note.

Bank loans are secured by a fixed charge over book debts, a floating charge over all assets and a first legal charge against the company's freehold property.

Other loans are secured against some of the fixed assets of the company.

All finance leases and hire purchase contracts have been refinanced during the year to longer term borrowing secured on the property.

Included within other creditors is an invoice discounting liability of £1,325,822 (2023: £1,331,162). This liability pertains to trade debtors that have been sold under invoice discounting arrangements.

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

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.

Advances or credits have been granted by the company to its directors as follows:

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The controlling parties are Mr P and Mrs A Hannaford.