Caseware UK (AP4) 2023.0.135 2023.0.135 2024-12-312024-12-31truetruetruetrue7false2024-01-01false6truefalse 01511942 2024-01-01 2024-12-31 01511942 2022-08-28 2023-12-31 01511942 2024-12-31 01511942 2023-12-31 01511942 2022-08-28 01511942 1 2024-01-01 2024-12-31 01511942 1 2022-08-28 2023-12-31 01511942 d:ContinuingOperations 2024-01-01 2024-12-31 01511942 d:ContinuingOperations 2022-08-28 2023-12-31 01511942 d:DiscontinuedOperations 2024-01-01 2024-12-31 01511942 d:DiscontinuedOperations 2022-08-28 2023-12-31 01511942 e:CompanySecretary1 2024-01-01 2024-12-31 01511942 e:Director1 2024-01-01 2024-12-31 01511942 e:Director2 2024-01-01 2024-12-31 01511942 e:RegisteredOffice 2024-01-01 2024-12-31 01511942 d:PlantMachinery 2024-01-01 2024-12-31 01511942 d:OfficeEquipment 2024-12-31 01511942 d:OfficeEquipment 2023-12-31 01511942 d:CurrentFinancialInstruments 2024-12-31 01511942 d:CurrentFinancialInstruments 2023-12-31 01511942 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 01511942 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 01511942 d:ReportableOperatingSegment1 2024-01-01 2024-12-31 01511942 d:ReportableOperatingSegment1 2022-08-28 2023-12-31 01511942 d:ReportableOperatingSegment2 2024-01-01 2024-12-31 01511942 d:ReportableOperatingSegment2 2022-08-28 2023-12-31 01511942 f:UnitedKingdom 2024-01-01 2024-12-31 01511942 f:UnitedKingdom 2022-08-28 2023-12-31 01511942 f:RestEuropeOutsideUK 2024-01-01 2024-12-31 01511942 f:RestEuropeOutsideUK 2022-08-28 2023-12-31 01511942 d:UKTax 2024-01-01 2024-12-31 01511942 d:UKTax 2022-08-28 2023-12-31 01511942 d:ShareCapital 2024-12-31 01511942 d:ShareCapital 2023-12-31 01511942 d:ShareCapital 2022-08-28 01511942 d:SharePremium 2024-12-31 01511942 d:SharePremium 2023-12-31 01511942 d:SharePremium 2022-08-28 01511942 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 01511942 d:RetainedEarningsAccumulatedLosses 2024-12-31 01511942 d:RetainedEarningsAccumulatedLosses 2022-08-28 2023-12-31 01511942 d:RetainedEarningsAccumulatedLosses 2023-12-31 01511942 d:RetainedEarningsAccumulatedLosses 2022-08-28 01511942 d:AcceleratedTaxDepreciationDeferredTax 2024-12-31 01511942 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 01511942 d:TaxLossesCarry-forwardsDeferredTax 2024-12-31 01511942 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 01511942 e:OrdinaryShareClass1 2024-01-01 2024-12-31 01511942 e:OrdinaryShareClass1 2024-12-31 01511942 e:OrdinaryShareClass1 2023-12-31 01511942 e:FRS102 2024-01-01 2024-12-31 01511942 e:Audited 2024-01-01 2024-12-31 01511942 e:FullAccounts 2024-01-01 2024-12-31 01511942 e:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 01511942 2 2024-01-01 2024-12-31 01511942 g:PoundSterling 2024-01-01 2024-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01511942










CHEALE MEATS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
CHEALE MEATS LIMITED
 
 
COMPANY INFORMATION


Directors
A G Clarke 
J A Cornes 




Company secretary
G Avrain



Registered number
01511942



Registered office
Orchard Farm, Little Warley
Brentwood

Essex

CM13 3EN




Independent auditor
MHA

Statutory Auditor
11 Merus Court

Meridian Business Park

Leicester

LE19 1RJ





 
CHEALE MEATS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10 - 11
Statement of Changes in Equity
 
12
Notes to the Financial Statements
 
13 - 29


 
CHEALE MEATS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The principal activity of the Company continued to be that of the wholesale of meat and meat products.
In the prior year, the directors extended the accounting period from 27 August 2023 to 31 December 2023 to align the period end with the rest of the Group. All comparative amounts noted throughout these financial statements relate to the 16 month period to 31 December 2023. The current figures relate to the 12 month period ended 31 December 2024.

Business review
 
Turnover has decreased by £25,853,898 (-67.9%) during the year from £38,055,250 in 2023 to £12,201,352 in 2024.
Gross profit margins decreased from 22.5% in 2023 to 7.6% in 2024.
Operating result increased from -5.1% to 3.3% in 2023 and 2024 respectively.
The above have been driven by the discontinuation of some of the activities during the period, as can be seen from the Statement of Comprehensive Income. 
The directors will seek to improve profitability further with improved revenue streams and ongoing focus on costs and efficiencies.

Principal risks and uncertainties
 
The Company is exposed to the risks that faces the meat industry, such risks which are generally outside of the control of the Company, include unforeseen changes in purchase and selling prices, poor harvests having an impact on feed price and disease to livestock. The Company has a trusted, long standing farming supply base which partly mitigates the risks associated with pig price fluctuations and raw material supply.
Contagious animal diseases and failing livestock numbers are a continuing risk for the company. The company manages these risks by adhering to strict bio-security procedures, maintaining the highest standards of animal welfare, ensuring consistent supplies to customers by use of imported product replacement and, by operating to the highest standards, the company obtains premium prices for export production.
Credit risk and price risk
The Company sources its products from a number of suppliers and is exposed to changes in the market prices of its commodities. To mitigate increases in prices, the Company continues to source its products from a number of different suppliers and periodically reviews its agreements with suppliers to ensure these are on commercially favourable terms.
The Company faces constant pressure from customers to reduce prices, highlighting the importance of commodity buying prices. This also places additional pressure on margins. To mitigate this risk, the Company continues to undertake perpetual cost review processes to make savings where possible. New credit customers are only accepted after they have been approved by the credit controller.
Liquidity risk
The Company is financed with appropriate long-term and short-term finance to match the needs of the business.

Page 1

 
CHEALE MEATS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Financial key performance indicators
 
Key performance indicators used by the Company are as follows;
- Turnover;
- Gross profit margin; and
- Profit on ordinary activities before taxation.
Details of the key performance indicators are shown in the Statement of Comprehensive Income.
Cash flow is also closely monitored and measured.

Other key performance indicators
 
The non-financial key performance indicator of the Company is whether the Company continues to pass food health & safety audits, which it continually does.


This report was approved by the board and signed on its behalf.



................................................
A G Clarke
Director

Date: 3 April 2025

Page 2

 
CHEALE MEATS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Principal activity

The principal activity of the Company was that of meat distributors and exporters.

Results and dividends

The profit for the year, after taxation, amounted to £488,809 (2023 - loss £1,574,707).

Equity of dividends were declared in the year £Nil (2023 - £7,514,344)

Directors

The directors who served during the year were:

A G Clarke 
J A Cornes 

Future developments

Going forward the directors aim to continue to grow the business whilst keeping tight control over costs.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Independent Auditor

The auditor, MHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 3

 
CHEALE MEATS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

This report was approved by the board and signed on its behalf.
 





................................................
A G Clarke
Director

Date: 3 April 2025

Orchard Farm, Little Warley
Brentwood
Essex
CM13 3EN

Page 4

 
CHEALE MEATS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEALE MEATS LIMITED
 

Opinion


We have audited the financial statements of Cheale Meats Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
CHEALE MEATS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEALE MEATS LIMITED (CONTINUED)


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 ReportOur 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.


Opinion 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 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.


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:


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 Directors' Responsibilities Statement set out on page 4, 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.


Page 6

 
CHEALE MEATS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEALE MEATS LIMITED (CONTINUED)


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.


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:

•  Enquiry of management and those charged with governance around actual, potential or suspected               litigation, claims, non-compliance with applicable laws and regulations and fraud;
•  Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with         laws and regulations;
•  Performing audit work over the risk of management override, including testing of journal entries and other   adjustments for appropriateness, evaluating the business rationale of significant transactions outside the      normal course of business and reviewing accounting estimates for bias;
•  Reviewing of financial statements disclosures and testing to supporting documentation to assess                  compliance with applicable laws and regulations; and
•  Discussions amongst the engagement team in relation to how and where fraud might occur in the                 financial statements and any potential indicators of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's Report.


Page 7

 
CHEALE MEATS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHEALE MEATS LIMITED (CONTINUED)


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 2006Our 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.





Shelley Harvey FCCA (Senior Statutory Auditor)
  
for and on behalf of MHA, Statutory Auditors

Leicester, United Kingdom 

 

3 April 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 8

 
CHEALE MEATS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

Continuing operations
Discontinued operations
Total
Continuing operations
Discontinued operations
Total
12 months ended       31 December
12 months ended          31                          December
12 Months ended       31 December
16 months ended
31 December
16 months ended
31 December
16 months ended
31 December
2024
2024
2024
2023
2023
2023
Note
£
£
£
£
£
£

  

Turnover
 4 
12,201,352
-
12,201,352
22,135,050
15,920,200
38,055,250

Cost of sales
  
(11,272,832)
-
(11,272,832)
(16,370,486)
(13,111,940)
(29,482,426)

Gross profit
  
928,520
-
928,520
5,764,564
2,808,260
8,572,824

Administrative expenses
  
(566,697)
-
(566,697)
(6,666,138)
(4,017,645)
(10,683,783)

Other operating income
 5 
42,114
-
42,114
-
154,469
154,469

Operating profit/(loss)
 6 
403,937
-
403,937
(901,574)
(1,054,916)
(1,956,490)

Interest receivable and similar income
 9 
46,834
-
46,834
9,797
-
9,797

Interest payable and similar expenses
 10 
(56,199)
-
(56,199)
-
-
-

Profit/(loss) before tax
  
394,572
-
394,572
(891,777)
(1,054,916)
(1,946,693)

Tax on profit/(loss)
 11 
94,237
-
94,237
170,406
201,580
371,986

Profit/(loss) for the financial year
  
488,809
-
488,809
(721,371)
(853,336)
(1,574,707)

  





There were no gains recognised gains and losses for 2024 or 2023 other than those included in the Statement of Comprehensive Income.
There was no other comprehensive income for 2024 (2023 - Nil). 

The notes on pages 13 to 29 form part of these financial statements.

Page 9

 
CHEALE MEATS LIMITED
REGISTERED NUMBER: 01511942

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

  

Tangible assets
 13 
-
-

  
-
-

Current assets
  

Stocks
 14 
-
104,424

Debtors: amounts falling due within one year
 15 
7,537,621
1,855,221

Cash at bank and in hand
 16 
66,909
2,198,052

Current liabilities
  
7,604,530
4,157,697

Creditors: amounts falling due within one year
 17 
(4,030,262)
(1,072,238)

Net current assets
  
 
 
3,574,268
 
 
3,085,459

Total assets less current liabilities
  
3,574,268
3,085,459

  

Net assets
  
3,574,268
3,085,459


Capital and reserves
  

Called up share capital 
 19 
51,040
51,040

Share premium account
  
503,813
503,813

Profit and loss account
  
3,019,415
2,530,606

  
3,574,268
3,085,459


Page 10

 
CHEALE MEATS LIMITED
REGISTERED NUMBER: 01511942
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
A G Clarke
Director

Date: 3 April 2025

The notes on pages 13 to 29 form part of these financial statements.

Page 11

 
CHEALE MEATS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 August 2022
51,040
503,813
11,619,657
12,174,510


Comprehensive income for the period

Loss for the period
-
-
(1,574,707)
(1,574,707)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(7,514,344)
(7,514,344)



At 1 January 2024
51,040
503,813
2,530,606
3,085,459


Comprehensive income for the year

Profit for the year
-
-
488,809
488,809


At 31 December 2024
51,040
503,813
3,019,415
3,574,268


The notes on pages 13 to 29 form part of these financial statements.

Share premium account
Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of share are deducted from share premium.
Profit and loss account
Includes all current and prior year retained profits and losses. All amounts are distributable.

Page 12

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Cheale Meats Limited is a private company, limited by shares, domiciled in England and Wales, registration number 01511942. The registered offices is Orchard Farm, Little Warley, Brentwood, Essex, CM13 3EN.
The principal activity of the Company was that of meat distributors and exporters.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial information. The directors therefore believe the Company has the ability to continue as a going concern for the next 12 months. 

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of CPC Foods Limited as at 31 December 2024 and these financial statements may be obtained from Oak House, Heyford Close, Aldermans Green, Coventry, West Midlands, CV2 2QB.

Page 13

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is British Pound Sterling (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

Page 14

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.6

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 15

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods.

Depreciation is provided on the following basis:

Plant and machinery
-
10% - 33.33% straight line and 15% - 25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 16

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to the Statement of Comprehensive Income.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the Statement of Comprehensive Income. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
 

Page 17

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Comprehensive Income. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
 
Page 18

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
(ii) Impairment of assets
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
(iii) Accruals provisioning
The Company provides for liabilities from customers in proportion to the risk they are exposed to on a percentage basis.

Page 19

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


12 months ended 31 December
16 months ended
31 December
2024
2023
£
£

Slaughter of animals and packing of meat
-
15,920,200

Meat sales
12,201,352
22,135,050

12,201,352
38,055,250


Analysis of turnover by country of destination:

12 months ended 31 December
16 months ended
31 December
2024
2023
£
£

United Kingdom
677,342
29,409,554

Rest of Europe
11,524,010
8,645,696

12,201,352
38,055,250



5.


Other operating income

12 months ended 31 December
16 months ended
31 December
2024
2023
£
£

Other operating income
42,114
108,658

Net rents receivable
-
45,811

42,114
154,469


Page 20

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging/(crediting):

12 months ended 31 December
16 months ended
31 December
2024
2023
£
£

Depreciation of tangible fixed assets
-
648,945

Profit on sale of tangible assets
-
(36,652)

Foreign exchange loss
139
12,557


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


12 months ended 31 December
16 months ended
31 December
2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
13,000
21,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 21

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs were as follows:


12 months ended 31 December
16 months ended
31 December
2024
2023
£
£

Wages and salaries
148,493
144,357

Social security costs
12,550
10,728

Cost of defined contribution scheme
2,914
2,028

163,957
157,113


During the period there were no directors who received remuneration through Cheale Meats Limited (2023: £NIL)

The average monthly number of employees, including the directors, during the year was as follows:


12 months ended 31 December
   16 months ended
      31 December
        2024
        2023
            No.
            No.







Employees
5
2



Directors
2
4

7
6


9.


Interest receivable

12 months ended 31 December
16 months ended
31 December
2024
2023
£
£


Other interest receivable
46,834
9,797

46,834
9,797

Page 22

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Interest payable and similar expenses

12 months ended 31 December
16 months ended
31 December
2024
2023
£
£


Bank interest payable
56,199
-

56,199
-


11.


Taxation


12 months ended 31 December
16 months ended
31 December
2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
(80,427)
-


Total current tax
(80,427)
-

Deferred tax


Origination and reversal of timing differences
(13,810)
(371,986)

Total deferred tax
(13,810)
(371,986)


Tax on profit/(loss)
(94,237)
(371,986)
Page 23

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year/period is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 22.4%). The differences are explained below:

12 months ended 31 December
16 months ended
31 December
2024
2023
£
£


Profit/(loss) on ordinary activities before tax
394,572
(1,946,693)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.4%)
98,643
(436,059)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
(218,097)

Capital allowances for year/period in excess of depreciation
(22,638)
-

Adjustments to tax charge in respect of prior periods
(80,427)
(16,042)

Unrelieved tax losses carried forward
(89,815)
298,212

Total tax charge for the year/period
(94,237)
(371,986)

Page 24

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors that may affect future tax charges

There are no factors to note that may affect future tax changes. 
BEPS 2.0 Pillar Two Legislation 
Cheale Meats Limited is part of a group that operates in a number of jurisdictions. The effective tax rate for the financial year 2024 was 0% (2023: 19.12%) as a result of Capital allowances and Group relief claims.
For periods that commenced on or after 1 January 2024, new tax legislation has been applied to ensure the effective tax rate of the UK companies within the group will be at least 15%, subject to various complex calculations. This is in line with the minimum taxation rules announced by the G7 and progressed by the OECD Inclusive Framework on Base Erosion and Profit Shifting. These rules have been implemented in the UK via the Domestic Top Up Tax legislation during the year.
Historically Cheale Meats Limited’s effective rate has been below 15% but the company has assessed its exposure to Domestic Top Up Tax to be immaterial. In addition, Cheale Meats Limited is taking advantage of the temporary deferred tax exemption within the “International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12)” in relation to the current year and retrospectively in accordance with IAS 8. This means the Company does not recognise deferred tax assets and liabilities related to OECD pillar two income taxes and does not disclose information about them.


12.


Dividends

2024
2023
£
£


Equity dividends paid
-
7,514,344

-
7,514,344

Page 25

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Tangible fixed assets





Plant and machinery

£



Cost or valuation


At 1 January 2024
247,689



At 31 December 2024

247,689



Depreciation


At 1 January 2024
247,689



At 31 December 2024

247,689



Net book value



At 31 December 2024
-



At 31 December 2023
-


14.


Stocks

2024
2023
£
£

Finished goods and goods for resale
-
104,424

-
104,424


Page 26

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Debtors

2024
2023
£
£


Trade debtors
-
15,509

Amounts owed by group undertakings
7,102,444
1,440,187

Other debtors
121,355
99,513

Deferred taxation
313,822
300,012

7,537,621
1,855,221



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
66,909
2,198,052

Less: bank overdrafts
(2,989,647)
-

(2,922,738)
2,198,052



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
2,989,647
-

Trade creditors
201,667
362,608

Amounts owed to group undertakings
260,042
10,627

Other taxation and social security
2,772
97,312

Other creditors
18,718
82,036

Accruals and deferred income
557,416
519,655

4,030,262
1,072,238


HSBC holds a fixed fixed and floating charge over the assets of the Company. 
The Company is party to a cross guarantee agreement with HSBC between CPC Foods Limited, Pro-Pak Foods Limited, Tican (Chilled) Limited, Beckett's Foods Limited, Riverway Foods Limited, C&K Meats Limited, Cheale Meats Limited, Peddars Pigs Limited and Direct Table Foods Limited. The cross guarantee covers the net overdraft facility of the aforementioned entities and is secured by a debenture including a fixed and floating charge over the assets of the Company. 

Page 27

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Deferred taxation




2024
2023


£

£






At beginning of year
300,012
(149,896)


Charged to the Statement of Comprehensive Income
13,810
449,908



At end of year
313,822
300,012

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
63,914
72,453

Tax losses carried forward
249,908
227,559

313,822
300,012


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



51,040 (2023 - 51,040) Ordinary shares of £1.00 each
51,040
51,040

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.



20.Other financial commitments

At the balance sheet date the Company had entered into commitments to purchase sterling currency for the sum of £714,084 (2023 - £1,425,055) for consideration of €850,011 (2023 - €1,645,000).

Page 28

 
CHEALE MEATS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

21.


Related party transactions

The Company has taken advantage of the exemption available under FRS102 33.1A not to disclose transactions with wholly owned subsidiaries of the Group.
Total key management personnel remuneration for the period was £NIL (2023: £NIL).
Transactions and balances with related parties are as follows:


2024
2023
£
£

Sales made to other related parties
-
15,051
Purchases made to other related parties
-
45,045
Salary recharges from other related parties
-
875,763
Dividends issued to other related parties
-
7,514,344

No transactions requiring disclosure in current year.


22.


Controlling party

At the 31 December 2024 CPC Foods Limited holds the controlling interest in the Company.
The ultimate parent Company and controlling party during the year and as at 31 December 2024 remained unchanged and was Tönnies Holding Gmbh & Co. KG, incorporated in Germany. 
CPC Foods Limited is the parent of the smallest and largest Group of which the Company is a member and for which Group financial statements are prepared and are publically available.

 
Page 29