Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
COMPANY INFORMATION
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PRO-PAK FOODS LIMITED
CONTENTS
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PRO-PAK FOODS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activity of the Company during the year continues to be that of manufacturing chilled ready meals for the retail and convenience sectors.
Turnover for 2024 of £49,503,624 decreased by 3.2% compared to 2023. Additional areas of work successfully introduced to utilise the manufacturing capabilities within the Group, opening up new sales opportunities.
Gross Margin increased to 20.8% compared with 15.6% in 2023. The sales price increases from 2023 impacted for the full year in 2024 pushing the gross margin up. Raw materials and packaging stayed consistent throughout the year. Operating profit margin increased, from a loss of -0.08% in 2023 to a profit of 2.18% in 2024. Management of cost prices, improvements in productivity and securing additional volume have all continued to remain strong areas of focus in the year. The Company remains well placed to support its Customer requirements, delivering quality products across all category types and minimising waste due to shelf life capabilities.
The management of the business and the execution of the Company's strategy are subject to a number of risks, including the effect of credit risk and the effects of price inflation. Other key business risks and uncertainties affecting the Company are considered to relate to food scares and supplier rationalisation by customers. With regards to food scares, certification of incoming goods from suppliers and an approved supplier base continues to manage this risk within the business. The Company uses its service, quality, price, innovation and flexibility to position itself as a competent and preferred supplier to the market.
Financial risk management The Company has in place a risk management process that seeks to limit adverse effects on the financial performance of the Company by monitoring levels of debt finance and related finance costs. Credit risk The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. Price risk The Company is subject to price inflation of raw materials. It manages this risk through entering into fixed contracts where appropriate and introducing Customer agreements that allow pricing adjustments to take place should raw material prices fluctuate significantly. Liquidity risk The Company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the Company has sufficient available funds for operations and planned expansions. The Company has access to intercompany funds and borrowings from its parent Group.
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PRO-PAK FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
In accordance with section 172 of the Companies Act 2006, the Board acknowledges its duties and responsibilities to act, individually and collectively, in good faith, on behalf of the Company in a way to promote the success of the Company for the benefit of its key stakeholders.
In doing so having regard, amongst other matters to: a. The likely consequences of any decision in the long term; b. The interests of the Company's employees; c. The need to foster the Company's business relationships with suppliers, customers and others; d. The impact of the Company's operations on the community and the environment; e. The desirability of the Company maintaining a reputation for high standards of business conducted; and f. The need to act fairly between members of the Company. The Directors also take into account the views and interests of a wider set of stakeholders when making decisions. The Directors regard to these matters is embedded in their decision-making process, through the Company's business strategy, culture, governance framework, management information flows and stakeholder engagement process. The Board acknowledge that not every decision will necessarily result in a positive outcome for all stakeholders and that there is frequently a need to make difficult and complex decisions based on balancing any number of competing priorities. By considering the Company's strategic priorities, purpose, values and cultures and ensuring a robust decision-making process is in place, it does however, aim to balance those different perspectives, in order to promote the success of the Company for the benefit of its key stakeholders. The Directors consider the likely consequences of any decision in the long-term. The Company is bound by policies consistent with the organisation's culture in key areas including, but not limited to, supplier management, customer conduct, human resources and the environment. The Board regularly receives information to enable them to consider the impact of the Company's decisions on its key stakeholders. This information can be in a variety of different formats covering financial and operational performance, key transactions, KPIs, both financial and non-financial, and risk indicators. The Directors and management ensure the business is operated in a responsible manner with the aim of ensuring that the Company maintains its reputation for high standards of business conduct, quality of both product and service, as well as good governance. The impact of the Company's activities on our stakeholders, including but not limited to colleagues, customers and suppliers is an important consideration when making decisions. The Board will often engage directly with stakeholders on certain issues, often at operational or site level, alternatively at group level if required to do so, in order to best understand their interests and views. In the financial year 2024 no key strategic changes or decisions were made by Pro-Pak Foods Limited. The Company's business strategy is focused on achieving success for the Company in the long-term. In setting this strategy the Board takes into account the impact of relevant factors and stakeholder interests on the Company's performance. Furthermore, the Board also identifies principal risks facing the business and sets risk management objectives. The Board promotes a culture of upholding the highest standards of business and regulatory conduct and standards. It ensures these core values are communicated to the Company's employees and embedded in the Company's policies and procedures, employee induction and training and its risk control framework.
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PRO-PAK FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Board also recognises that building strong and lasting relationships with stakeholders will help deliver the strategy in line with the long-term values, and furthermore operate a sustainable business. The Directors endeavour to understand and appreciate the importance of fully understanding their duties and obligations under all relevant and current legislation.
This report was approved by the board and signed on its behalf.
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PRO-PAK FOODS 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.
The profit for the year, after taxation, amounted to £1,385,241 (2023: loss £49,924).
There were no dividends paid in the year (2023: £Nil).
The directors who served during the year were:
Environmental matters The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations. The Companies Act 2006 (Strategic Report and Directors' Report) Regulation 2018 requires Pro-Pak Foods Limited to disclose annual UK energy consumption and Greenhouse Gas emissions from SECR regulated sources. Energy and Greenhouse Gas emissions have been independently calculated by the ESG division of Inspired Energy PLC. This report (including the Scope 1, 2 and 3 consumption and CO2e emissions data) has been developed and calculated using the GHG Protocol – A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development, 2004); Greenhouse Gas Protocol – Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019). Government Emissions Factor Database 2024 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the reporting period 01/01/2024 – 31/12/2024. Estimations were undertaken to cover missing billing periods for properties directly invoiced to Pro-Pak Foods Limited. These were calculated on a kWh/day pro-rata basis at the meter level and are equivalent to 0.09% of total consumption. Market-based emissions were calculated by utilising the supplier-specific CO2 emission factor or fuel mix (a breakdown of various renewable and non-renewable energy sources that compose the total energy supplied) published by each supplier Pro-Pak had procured from. This was calculated against the total electricity consumption of Pro-Pak Foods Limited during FY2024. Transport emissions for FY2023 have been restated due to the inclusion of additional grey fleets, as these emissions were not included in the previous year’s report. The figures for FY2023 have been updated to reflect this updated data and have been restated in the current year’s report.
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PRO-PAK FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Consumption (kWh) and Greenhouse Gas emissions (tCO2e) totals
Scope 1: Emissions associated with gas usage and transportation fuels (under the company's control). Scope 2: Emissions associated with the consumption of purchased electricity are presented on both a location based (using country average electricity emission factors) and market based (considering any purchased renewable generated electricity) approach. Scope 3: Company's value chain emissions, divided into 15 categories, as established by the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting & Reporting Standard. Under SECR this is limited to emissions resulting from sources not directly owned by the Pro-Pak Foods Limited. For example, grey fleet business travel undertaken in employee-owned vehicles only. Totals The total consumption (kWh) figures for energy supplies reportable by Pro-Pak Foods Limited are as follows:
The total emissions t(CO2e) figures for energy supplies reportable by Pro-Pak Foods Limited are as follows:
Intensity Metric
Intensity metrics based on revenue and tonnes of production have been calculated as follows: Total tonnage produced - 9,814 (2023 - 11,348) Location based: tCO2e / £m - 66.68 (2023 - 63.23) tCO2e / tonne of production - 0.34 (2023 - 0.29) Market based:
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PRO-PAK FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
tCO2e / £m - 74.11 (2023 - 66.96)
tCO2e / tonne of production - 0.38 (2023 - 0.31) Energy Efficiency Improvements Pro-Pak Foods Limited is committed to year-on-year improvements in its operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years. Measures Undertaken In FY2024: Upgradation of Lighting System Pro-Pak Foods Limited has been working consistently on upgrading the lighting system aimed at enhancing energy efficiency. This initiative already has and further will lead to reduced power consumption, lower operational costs, and contribute to a more sustainable environment. Review of HVAC Performance The HVAC (Heating, ventilation, and air conditioning) system is under review to improve efficiency, reduce energy consumption, and enhance operations. This evaluation identifies ways to increase energy efficiency, minimise waste, and implement sustainable solutions to lower costs and environmental impact. Energy Efficiency Narrative Measures To Be Addressed In FY2025: Investment in Steam Trap Technology Pro-Pak Foods Limited will invest in energy measurement and optimisation to enhance steam trap technology. This will minimise maintenance costs, optimise steam usage, and reduce energy consumption.
Going forward the directors aim to continue to grow the business whilst keeping a tight control over costs.
The directors have significant experience in the sector and have developed review procedures and control systems to effectively manage the exposure of the entity to price risk, credit risk, liquidity risk and cash flow risk. The Company's principal financial instruments comprise of bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the Company's operations and to finance the Company's operations. Due to the nature of the financial instruments used by the Company there is no exposure to price risk. The liquidity risk in respect of these is managed by way of a funding strategy set by the directors which includes setting operating limits to liquidity risk exposure. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
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PRO-PAK FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on various factors affecting the performance of the Company. This is achieved through formal and informal meetings. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.
Employment of disabled persons Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the applicant concerned. In the event of employees becoming disabled every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees. Engagement with employees Our employees contribute to a positive working culture and healthy working environment and are paramount to the success of the business. The Company strives to be a responsible employer in our approach to pay and benefits, constantly engaging with the team to ascertain which training and development opportunities should be made available to improve both productivity as well as individual employees; potential within the business. We continually invest in employee development and wellbeing to create and encourage an inclusive culture within the organisation. Employee appraisal programmes are being adopted which will encourage employee feedback and facilitate the opportunity for both employees and managers to agree on setting performance goals on a regular basis. Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued and recognised for their hard work.
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PRO-PAK FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Customers
Customers are at the centre of our business and it is essential that the commercial sales teams focus on building long-term partnerships with current and potential customers in order to fully understand their objectives and requirements. Suppliers The Company works with a wide range of suppliers both UK and continental and remains committed to being fair and transparent in dealings with all suppliers. The Company has procedures requiring due diligence of suppliers as to their internal governance. The Company has systems and processes in place to ensure suppliers are paid in a fair and timely manner. Community and environment The Board's approach to social responsibility, diversity and the community is of high importance. Corporate social responsibility principles are part of our culture and decision-making process and we take a consultative approach focused on building long-term relationships and solving business problems. Regulators We work closely with all industry sector regulators, Trade Associations and relevant government departments in an open and proactive manner in order to help develop regulations that meet the needs of all our stakeholders. The Board's intention is to behave responsibly and to ensure that the management team operates the business in a responsible manner, acting with the high standards and good governance expected of a business like Pro-Pak Foods Limited.
There have been no significant events affecting the Company since the year end.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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PRO-PAK FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 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.
This report was approved by the board and signed on its behalf.
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PRO-PAK FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS LIMITED
We have audited the financial statements of Pro-Pak Foods 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 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).
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.
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.
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PRO-PAK FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
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.
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PRO-PAK FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS LIMITED (CONTINUED)
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.
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PRO-PAK FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of MHA, Statutory Auditor
Leicester, United Kingdom
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
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PRO-PAK FOODS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
REGISTERED NUMBER: 03556653
BALANCE SHEET
AS AT 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
REGISTERED NUMBER: 03556653
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:
The notes on pages 19 to 35 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Pro-Pak Foods Limited is a private company, limited by shares, domiciled in England and Wales, registration number 03556653. The registered office is Seven Street York Road, Industrial Park, Malton, North Yorkshire, YO17 6YA.
The principal activity of the Company during the year continues to be that of manufacturing chilled ready meals for the retail and convenience sectors.
2.Accounting policies
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:
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; and
∙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.
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Lease incentives are recognised over the lease term on a straight line basis. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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 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.
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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 (ii) Stocks provisioning
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
3.Judgements in applying accounting policies (continued)
(iii) Impairment of assets
Analysis of turnover by country of destination:
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
There are no factors to note that may affect future tax changes.
BEPS 2.0 Pillar Two Legislation Pro-Pak Foods 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: 0%) as a result of Capital allowances, Utilised tax losses 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 Pro-Pak Foods 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, Pro-Pak Foods Limited 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.
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13.Tangible fixed assets (continued)
The most recent full five year valuation of freehold land and buildings, performed by Barry Crux & Company, qualified surveyors, took place in the financial year ended 31 December 2020.
Land with a value of £956,387 (2023: £956,387) is included in freehold land and buildings and is not depreciated.
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PRO-PAK FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
During the year and up to the 27 December 2024, the Company's immediate parent was
The ultimate parent Company and controlling party during the year and as at 31 December 2024 remained unchanged and was 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.
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