REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
LOFTHOUSE OF FLEETWOOD LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
LOFTHOUSE OF FLEETWOOD LIMITED |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 10 |
Statement of Comprehensive Income | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 15 |
Cash Flow Statement | 16 |
Notes to the Cash Flow Statement | 17 |
Notes to the Financial Statements | 18 |
LOFTHOUSE OF FLEETWOOD LIMITED |
COMPANY INFORMATION |
for the year ended 31 December 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
17 St Peters Place |
Fleetwood |
Lancashire |
FY7 6EB |
BANKERS: |
Victoria Square |
Cleveleys |
Lancashire |
FY5 3LZ |
SOLICITORS: |
One Silk Street |
London |
EC2Y 8HQ |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
STRATEGIC REPORT |
for the year ended 31 December 2024 |
The directors present their strategic report for the year ended 31 December 2024. |
REVIEW OF BUSINESS |
The company's principal activities continued to be the manufacture of the world-famous Fisherman's Friend Lozenges. Its objective is to responsibly sell more Fisherman's Friend products, to more people, more often, as profitably as possible. |
Trading conditions in the Global food and retail sectors remained challenging during the year to 31 December 2024. The industry has seen a stabilising of the inflation and commodity price increases which have impacted upon the companies cost of sales in previous years. The company has managed to remain profitable during the period with an increased operating profit. |
The key financial and other performance indicators during the year were as follows: |
2024 | 2023 |
£'000 | £'000 |
Turnover | 64,849 | 66,490 |
Operating profit | 5,644 | 3,792 |
Profit after tax | 5,131 | 3,630 |
Equity shareholders' funds | 96,692 | 91,562 |
Production per employee (tonnes) |
20.6T |
22.0T |
Current assets as % of current | 8.50 | 7.78 |
liabilities ('quick ratio') |
Average number of employees | 319 | 334 |
Turnover has dropped by 2.5%, the company has been targeting more profitable markets during the period with more focus on margin and operating profit than revenue. Webelieve that there is future growth to come as the company aims to strengthen its revenue capabilities by not only by targeting the more profitable lines but also by achieving more efficiency on the less profitable ones. |
Production levels in tonnes, have decreased from 7,353 in 2023 to 6,574 in 2024 and production per employee has fallen to 20.7T in 2024 from 22.0T in 2023. Both of these indicators are in line with a slight decrease in revenue activity. |
Gross profit for the year has risen from 22.38% to 24.68%. A host of factors such as increased production efficiencies, settling energy costs, and fixed price contracts for ingredients have impacted the margin. Costs of sales have continued to rise throughout the year but the company has mitigated this with its own price increases. A focusing on more profitable lines has ultimately led to an increase in the GP margin with a slight reduction in revenue. |
An operating profit of £5.1 million has been made for the year which is an improvement on the £3.6 million operating profit made during the prior year. This is driven by the gross margin with other overheads largely remaining static. |
We remain fully committed to the future and as such there has been extensive capital expenditure during the previous two financial years which in the main relates to new production facilities and upgraded machinery. This should enable the company to realize our plans to improve the efficiency of both the manufacturing and distribution process. |
Current liquidity "quick ratio" remained excellent and the company held significant cash resources to implement its continuing capital expenditure programme. |
Fisherman's Friend continues to be a key player in the global throat lozenges market and with technological innovation and advancement will further optimise the performance of production and products. We continue to focus on the digitisation and automation of production, changes to blends, and packaging alternatives. New lines are being developed and trialled and the company aim to maximise the opportunity to have a first class pharma facility on the Fylde Coast. The company aim to be forerunners of the new technology within the Pharma Industry in the UK. |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
STRATEGIC REPORT |
for the year ended 31 December 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors believe that the principal risks and uncertainties facing the business are as follows: |
Economic and political factors beyond the company's control: |
South East Asia is a significant market for the company and also the location of one of its production and packing facilities. There are potential political, exchange rate and environmental risks throughout this region over which the company has no control. |
A significant amount of the company's trade is done within the EU. The trade agreement reached with the EU at the end of 2020 has enabled the company to continue this trade tariff free. Whilst some short delays have been experienced at borders and there have been a general rise in prices, to date, no significant problems have been encountered. |
Unforeseen political issues in general can impact on the prices and the availability of raw materials and packaging continues to be a risk which the company is managing on an ongoing basis. |
Financial risks: |
Price risk: |
Around the world there is inflationary pressure at the moment causing suppliers to increase their prices and this has had a direct impact on the margin of the company. |
Upwards price pressure from suppliers constantly represents a risk to the company. The company has a number of contracts with key suppliers that mitigate the effects of input price volatility. |
The company operates in a highly competitive market place, particularly with regard to pricing. The company manages this trading risk by providing well priced, high quality products and by maintaining strong relationships with their distribution base. |
The company trades in currencies other than Sterling and a fall in the value of Sterling could affect the profitability of the company. |
Credit risk: |
The company's credit risk is primarily attributable to it's trade receivables. The company works closely with it's distributors to ensure that stocks and balances are kept at a manageable level and this has resulted in a history of minimal bad debts. |
Liquidity and cash flow risk: |
To manage liquidity and cash flow risk, the company closely monitors it's operating cash flows to ensure that there are sufficient funds to meet not only it's day to day working capital requirements but any future capital commitments that may fall due. |
Interest risk: |
The company has no bank borrowings and considerable assets, which results in very low gearing and any change in interest rates would result in minimal effect. |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
STRATEGIC REPORT |
for the year ended 31 December 2024 |
Operational risks: |
Disruption to supply or production of goods: |
The company operates under regulations which apply to food manufacturing and pharmaceutical companies. Any failure to meet the necessary standards could inhibit the company's ability to trade. In order to mitigate this risk the company has a designated quality assurance team who monitor the practices of the company to ensure that all regulatory requirements are being met. |
Reputational risks: |
The company strives to produce a high quality product. Any supply of goods that did not meet these standards could have a negative effect on their market. The company seeks to mitigate the risk of this by having stringent internal quality control procedures that ensure that all raw materials, packaging and finished goods meet the required standards. |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
STRATEGIC REPORT |
for the year ended 31 December 2024 |
SECTION 172(1) STATEMENT |
The directors of Lofthouse of Fleetwood Limited consider that they have acted in ways that they believe to be the most likely to promote success for the company in the decisions they have made during the year ended 31st December 2024. |
Consequences of decision making: |
All significant decisions have a clear focus on the long term goals and aims of the business. The directors are keen to embrace modern and more efficient manufacturing techniques which will provides the company with the scope to increase output at the current facilities. |
The interests of our employees: |
The company aims to be a responsible employer in its approach to the pay and benefits our employees receive. The health, safety and wellbeing of our colleagues are of the highest importance and ensuring this is one of the primary considerations in the way we do business. Training is provided to all staff to enable them to perform their role to the best of their ability. |
The directors acknowledge the importance of having a culture of 'continuous improvement' and are piloting a number of schemes which aim to modernise working practices and reward staff so that they can continue to perform to the same high standards. |
During 2019, the company joined SEDEX, an organisation whose aim is to ensure ethical and fair employment throughout the supply chain. Their audit found that the company upholds the SEDEX values. |
Fostering good relationships with suppliers, customers and others: |
The company recognizes the importance of both suppliers and customers and takes steps to ensure that these relationships are maintained on a professional footing. The longevity of many of these relationships is testament to company's success in this area. |
Payments to suppliers are not unduly withheld and the company takes steps to ensure that the contractual obligation between it and it's suppliers and customers are clear and fair. Purchase agreements are put in place with the major raw materials suppliers to provide a degree of certainty for both parties. |
The directors and the sales agents make regular trips to meet distributors around the world and this has proven to be a useful exercise in maintaining the working relationship, and also for gathering feed back and exploring new opportunities. |
Community & environmental: |
The directors are aware of the environmental impact that manufacturing can have and strive to minimize this by bringing in changes to activities and processes as these changes are identified. During the year under review, changes have been made to reduce the energy consumption, and environmental issues will form part of the considerations when looking to further develop the companies facilities. |
The directors are passionate about supporting the local community. Most of the employees are drawn from the local area, and the company supports local community initiatives. |
The company supports The Lofthouse Foundation, a charitable organisation set up by the Lofthouse family, whose objectives are to provide amenities and facilities for the benefit of the inhabitants of the town of Fleetwood and the Fylde Coast. |
Ensuring high standards of business conduct: |
Lofthouse of Fleetwood Limited seek to maintain the highest possible standards of business at all times. The directors are involved in all key relationships to ensure that standards are met and regular meetings are held between the directors and the management team to make sure that any issues that arise can be addressed in a timely and effective manner. |
The company has both a Corporate Social Responsibility Policy and a Modern Slavery Policy in place which provide clear guidelines in the way that it is expected that the core values of the company be upheld and applied to all stakeholders. |
Acting fairly between members of the company and with stakeholders: |
The directors try to conduct themselves in a fair and courteous manner in every aspect of our operations. |
The directors aim to communicate information to staff where appropriate to keep them abreast of changes and developments within the business. |
There is a human resources department within the business that staff can access if any issues arise around their employment with which they need help or resolution. |
ON BEHALF OF THE BOARD: |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
STRATEGIC REPORT |
for the year ended 31 December 2024 |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2024 |
The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the manufacture of medicated confectionery. |
DIVIDENDS |
Final dividends have been declared of £50 per A Ordinary share. |
FUTURE DEVELOPMENTS |
Work is continuing on the development and modification of existing products to meet customers' requirements and, through a continuing programme of research and development, to take advantage of new technology as it becomes available. Current plans are to improve the efficiency of both the manufacturing and distribution process within the existing business model. The company is continuing to invest heavily in plant, machinery and staff in order to achieve its efficiency goals.This innovation is a key part of the companies competitive advantage as it aims to meet customers needs in an ever changing competitive market. It should also help to create new opportunities for the company as it looks towards future growth. |
Plans are also in place for the development of the land purchased opposite our factory which gives us the potential to develop a state of the art production facility. This would enable us to improve the efficiency of both the manufacturing and distribution process. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
EMPLOYMENT POLICIES |
The company is committed to employing people with disabilities, giving full and fair consideration to employment applications from disabled persons, together with supporting the continued employment and training of employees who become disabled. |
The company is committed to keeping all employees informed about general business developments. |
ENGAGEMENT WITH EMPLOYEES |
Communication with the staff is of great importance to the directors. In order to achieve this regular departmental meetings are held to give the opportunity for two way dialogue. When necessary, larger groups of staff are gathered for meetings with senior management. Information is also distributed to staff via e-mail or announcements on notice boards around the factory. Appraisals are held for all employees on an annual basis which provides a formal opportunity for communication. Throughout the last year updates have been issued to staff regularly advising them on the businesses performance, giving a summary of orders received and anticipated production levels. |
We are committed to giving our employees a safe and positive working environment. We have an occupational health service available to all staff to support their health and well being. We also provide access to a specialist mental health organisation to support any employee that needs it. A range of benefits are offered to employees to invest themselves in the company performance including enhanced sick pay, training opportunities and career support. Pay is reviewed on an annual basis and all staff are eligible to join the work place pension scheme. |
STREAMLINED ENERGY AND CARBON REPORTING |
The SECR disclosure presents our carbon footprint within the United Kingdom across Scope 1 and 2 emissions, an appropriate intensity metric, the total energy use of electricity, gas and transport fuel and an energy efficiency actions summary taken during the relevant financial year. No disclosure has been made in respect of Scope 3 as there are no emissions from our business practice that fall under this category. |
Year to 31 Dec 2024 |
Year to 31 Dec 2023 |
Energy consumption used to calculate emissions (kWh) | 9,839,500 | 10,238,155 |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2024 |
Emissions from combustion of gas tCO2e (Scope 1) | 566 | 574 |
Emissions from combustion of fuel for transport purposes tCO2e (Scope 1) | 1 | 1 |
Emissions from purchased electricity tCO2e (Scope 2) | 1,381 | 1,469 |
Total gross tCO2e based on above | 1,948 | 2,044 |
Intensity Ratio (tCO2e/sales revenue £m) | 29.97 | 30.19 |
Energy Efficiency Action Summary |
Year to 31 Dec 2024 |
During the year to 31st December 2024 Lofthouse of Fleetwood Limited has not made any specific inroads in terms of energy efficiencies, however during recent years we have undertaken the following actions to reduce associated carbon emissions; |
- Installation of occupancy detection sensors throughout our buildings for improved energy management. |
- Rollout of LED lighting upgrades which will deliver a reduction in associated energy usage. |
- Investment in Air Wash solutions to reduce the amount of water consumed. |
- Reduction in plastic packaging materials and introduction of recyclable wrappers and other materials. |
- Sourcing raw materials sustainably and responsibly but also from the UK where possible to reduce Carbon Footprint. |
- Reviewing production processes to highlight efficiencies that can be made. |
Methodology Notes |
Reporting Period | 1st January 2024 - 31st December 2024 |
Alignment with financial reporting | SECR disclosure has been prepared in line with Lofthouse of Fleetwood's annual financial statements made up to 31st December 2024 |
Reporting method | GHG Emissions reporting are in line with the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard |
Emissions factor source | DEFRA 2024 for all emissions factors - https://www.gov.uk/government/publications/greenhou se-gas-reporting-conversion-factors-2024 |
Calculation | Activity Data x Emission Factor = GHG emissions |
Reasons for the intensity measurement choice | We have followed the SECR legislation and chosen sales revenue as our metric as we believe, being a manufacturing business that sales revenue is directly linked to GHG emissions. |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOFTHOUSE OF FLEETWOOD LIMITED |
Opinion |
We have audited the financial statements of Lofthouse of Fleetwood Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 December 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOFTHOUSE OF FLEETWOOD LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LOFTHOUSE OF FLEETWOOD LIMITED |
Auditors' 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 a Report of the Auditors 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 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 a Report of the Auditors 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
1) Discussions with management, including consideration of known or suspected instances of non-compliance with |
laws and regulation and fraud. This includes legislation that affects the running of the company such as the |
Companies Act 2006 and current payroll and employment legislation, as well as legislation that affects production, such as environmental, health and trading standards laws. Compliance has been checked with the ISO9001, FSSC22000, MHRA and US FDA to ensure that all accreditation are up to date. |
2) Evaluation the operating effectiveness of the management's controls designed to prevent and detect irregularities. The company has standard operating procedures in place for all aspects of the business and the design of these are reviewed to ensure the procedures within the accounting function operate as documented. |
3) Reviewing key correspondence with regulatory authorities in relation to compliance with relevant regulations. These include external bodies, such as the Medicines and Healthcare Regulatory Authority, who conduct regular inspections to ensure compliance with their standards. |
4) Challenging assumptions and judgements made by the management in their significant accounting estimates, the main areas being the valuation of investment property, the valuation of stock, and the useful economic life of fixed assets. |
5) Identifying and testing journal entries This includes reviewing significant entries around the year end and any journals posted throughout the year that are deemed to be higher risk. |
6) Looking for evidence of management override of controls. Along with the review of journals detailed above, this |
would include reviewing monthly control accounts and looking for evidence of departures from the accounting |
procedures that are in place. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
17 St Peters Place |
Fleetwood |
Lancashire |
FY7 6EB |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
REVENUE | 4 |
Other operating income | ( |
) | ( |
) |
64,581,559 | 66,317,164 |
Raw materials and consumables |
Other external expenses |
34,511,228 | 38,477,152 |
30,070,331 | 27,840,012 |
Staff costs | 5 |
Depreciation |
Other operating expenses |
24,426,421 | 24,047,815 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
BALANCE SHEET |
31 December 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Property, plant and equipment | 10 |
Investment property | 11 |
CURRENT ASSETS |
Inventories | 12 |
Debtors | 13 |
Investments | 14 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2024 |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
CASH FLOW STATEMENT |
for the year ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of intangible fixed assets |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 900 | 1,000 |
Amount withdrawn by directors | (61,123 | ) | (206,215 | ) |
Equity dividends paid | ( |
) | ( |
) |
Change in current asset investments | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
27,905,303 |
Cash and cash equivalents at end of year | 2 | 21,563,765 | 22,778,966 |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE CASH FLOW STATEMENT |
for the year ended 31 December 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Rounding | (2 | ) | 2 |
Finance income | (1,378,646 | ) | (884,685 | ) |
9,032,207 | 7,126,152 |
Increase in inventories | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2024 |
31/12/24 | 1/1/24 |
£ | £ |
Cash and cash equivalents | 21,563,765 | 22,778,966 |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 22,778,966 | 27,905,303 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/24 | Cash flow | At 31/12/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 22,778,966 | (1,215,201 | ) | 21,563,765 |
22,778,966 | ( |
) | 21,563,765 |
Liquid resources |
Current asset investments | 11,000,000 | 9,000,000 | 20,000,000 |
11,000,000 | 9,000,000 | 20,000,000 |
Total | 33,778,966 | 7,784,799 | 41,563,765 |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2024 |
1. | STATUTORY INFORMATION |
Lofthouse of Fleetwood Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents sales of medicated confectionery net of VAT and trade discounts. Turnover is recognised when the goods are physically despatched to the customer. |
Trademarks |
Trademarks are amortised on a straight line basis over the period from their acquisition to the date of their expiry. They are stated at cost less accumulated amortisation and accumulated impairment losses |
Tangible fixed assets |
Freehold property | - |
Assets under construction | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Land is not depreciated. |
No items under £1,000 are capitalized. |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes cost directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible assets at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life. The carrying values of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stock is valued at the lower of cost or net realisable value. Finished goods are valued using the standard costing method which incorporates and element of overheads and labour into the final cost of the finished goods. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. |
Short term debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the period end. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates defined contribution schemes in respect of its directors and employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the directors' fund and payments to individual pension plans of employees. |
Going concern |
The company has at it's disposal a lengthy and consistent record of strong cash generation which is more than sufficient to meet it's day -to-day working capital requirements. The directors have reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future and for at least 12 months from the date that these financial statements are approved. Therefore, the company continues to adopt the going concern basis in preparing the financial statements. |
Provisions for liabilities |
Provisions are recognised where there is a legal or constructive obligation to transfer economic benefits as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the company expects some or all of a provision to be reimbursed, the reimbursement is only recognised as a separate asset if recovery is virtually certain. |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Company's accounting policies, which are described in note 2, 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 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. |
Critical judgements in applying the Company's accounting policies and key source of estimation uncertainty |
The following are the key sources of estimation uncertainty that the directors have assessed as being applicable to the entity and that have the most significant effect on the amounts recognised in the financial statements. It is deemed that there are no critical accounting judgements. |
Fixed assets: |
Accounting for fixed assets involves the use of estimates for (a) the useful live of the assets over which they are to be depreciated, and (b) the existence and any amount of impairment. Details of fixed assets can be found in note 11. |
Fixed assets are depreciated on a straight line basis over the estimated useful lives. When the company estimates useful lives, various factors are considered including expected technology obsolescence and the expected usage of the asset. The company regularly reviews these assets useful lives and future economic utilization and the physical condition of the assets concerned. |
The carrying value of the assets is assessed periodically to determine whether there are any indications of any impairment of the value beyond the depreciation charge. If this is the case, an impairment charge is taken against the carrying value of the assets and charged to profit and loss account. The impairment of fixed assets requires management judgement in determining the amounts to be impaired, in particular, judgement is used when assessing the future cash flows. |
Investment property: |
The fair value, £609,550 (2023: £609,550) of the investment property has been arrived at on the basis of the directors valuation carried out on 31st December 2024. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. |
Stock: |
Stock provisions are provided where it is considered that the amount realisable is considered to be less than its carrying amount. The provisions are made using management's best estimate for recoverable amounts. |
4. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by class of business is given below: |
2024 | 2023 |
£ | £ |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
4. | REVENUE - continued |
An analysis of revenue by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
EU | 29,613,387 | 30,984,497 |
Rest of the world | 32,536,761 | 32,734,373 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production staff | 256 | 275 |
Office and management | 63 | 59 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31 December 2024 is as follows: |
2024 |
£ |
Emoluments etc |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Trademarks amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax: |
Origination and reversal of timing differences |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 23.52%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods |
R&D claim | (74,540 | ) | (88,545 | ) |
Deferred tax | 2,041,456 | 245,844 |
Total tax charge | 1,821,397 | 1,047,218 |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
'A' Ordinary shares of £1 each |
Final |
9. | INTANGIBLE FIXED ASSETS |
Trademarks |
£ |
COST |
At 1 January 2024 |
Additions |
Disposals | ( |
) |
At 31 December 2024 |
AMORTISATION |
At 1 January 2024 |
Amortisation for year |
Eliminated on disposal | ( |
) |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Assets |
Freehold | under | Plant and |
property | construction | machinery |
£ | £ | £ |
COST |
At 1 January 2024 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer | ( |
) |
At 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
10. | PROPERTY, PLANT AND EQUIPMENT - continued |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2024 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer |
At 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
Included in cost of land and buildings is freehold land of £ 4,801,365 (2023 - £ 4,801,365 ) which is not depreciated. |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2024 |
and 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
12. | INVENTORIES |
2024 | 2023 |
£ | £ |
Raw materials and consumables |
Finished goods |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments and accrued income |
14. | CURRENT ASSET INVESTMENTS |
2024 | 2023 |
£ | £ |
Time deposits with bank | 20,000,000 | 11,000,000 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 35,150 | 95,373 |
Accruals and deferred income |
16. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax on accelerated capital allowances |
6,075,122 |
4,033,666 |
Deferred |
tax |
£ |
Balance at 1 January 2024 |
Deferred tax charge | 2,041,456 |
Balance at 31 December 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1,440,000 | 1,440,000 |
'A' Ordinary | £1 | 10 | 10 |
1,440,010 | 1,440,010 |
The 'A' Ordinary shares carry no rights beyond the right to receive a dividend when so declared. |
LOFTHOUSE OF FLEETWOOD LIMITED (REGISTERED NUMBER: 00781277) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2024 |
18. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2024 | 90,121,453 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2024 | 95,322,112 |
19. | OTHER FINANCIAL COMMITMENTS |
The company has entered into an agreement to purchase 1,500 tonnes of sugar Annually at €670 per tonne until 30th September 2025. |
20. | ULTIMATE CONTROLLING PARTY |
Mr D Lofthouse is considered the ultimate controlling party by virtue of his shareholding and his trusteeship in the The Lofthouse Foundation. The Lofthouse Foundation became the majority shareholder in the company on 12 May 2022 when shares were transferred from the estate of Doreen Lofthouse. |