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Registered number: 03556653










PRO-PAK FOODS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
PRO-PAK FOODS LIMITED
 
 
COMPANY INFORMATION


Directors
A Clarke 
J Cornes 
M Duckworth 
J Guest 




Company secretary
M Duckworth



Registered number
03556653



Registered office
Seven Street York Road
Industrial Park


Malton

North Yorkshire

YO17 6YA




Independent auditor
MHA
Statutory Auditors

11 Merus Court



Meridian Business Park

Leicester

LE19 1RJ





 
PRO-PAK FOODS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 9
Independent Auditor's Report
 
10 - 13
Statement of Comprehensive Income
 
14
Balance Sheet
 
15 - 16
Statement of Changes in Equity
 
17 - 18
Notes to the Financial Statements
 
19 - 35


 
PRO-PAK FOODS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The principal activity of the Company during the year continues to be that of manufacturing chilled ready meals for the retail and convenience sectors.

Business review
 
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.
 
Principal risks and uncertainties
 
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.

Page 1

 
PRO-PAK FOODS LIMITED
 

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

Section 172 (1) Statement
 
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. 

 
Page 2

 
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.



................................................
J Guest
Director

Date: 3 April 2025

Page 3

 
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.

Results and dividends

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).

Directors

The directors who served during the year were:

A Clarke 
J Cornes 
M Duckworth 
J Guest 

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.

Page 4

 
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:

Utility and Scope
2024 Consumption (kWh) UK
2023 Consumption (kWh) UK
Scope 1 Total
7,618,201
7,896,989
Natural gas and Other Fuels (Scope 1)
7,205,146
7,515,595
Transportation (Scope 1)
413,055
381,394
Scope 2 Total
4,196,407
4,394,158
Grid-Supplied Electricity (Scope 2)
4,196,407
4,394,158
Scope 3 Total
303,136
293,872
Transportation (Scope 3)
303,136
293,872
Total
12,117,745
12,585,019

The total emissions t(CO2e) figures for energy supplies reportable by Pro-Pak Foods Limited are as follows:

Utility and Scope
2024 Emissions (tCO2e) UK
2023 Emissions (tCO2e) UK
Scope 1 Total
2,416.75
2,311.11
Natural gas and Other Fuels (Scope 1)
1,848.05
1,927.72
Refrigerants (Scope 1)
469.97
292.21
Transportation (Scope 1)
98.73
91.18
Scope 2 Total
868.87
909.92
Grid-Supplied Electricity (Scope 2)
868.87
909.92
Scope 3 Total
71.09
67.92
Transportation (Scope 3)
71.09
67.92
Total
3,356.71
3,289.65

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:
 
Page 5

 
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.

Future developments

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

Financial instruments

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.

Page 6

 
PRO-PAK FOODS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Employee involvement

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. 

Page 7

 
PRO-PAK FOODS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Engagement with suppliers, customers and others

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.

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.

Auditor

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

Page 8

 
PRO-PAK FOODS 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.
 





................................................
J Guest
Director

Date: 3 April 2025

Seven Street York Road
Industrial Park
Malton
North Yorkshire
YO17 6YA

Page 9

 
PRO-PAK FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS LIMITED
 

Opinion


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 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 10

 
PRO-PAK FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS 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 9, 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 11

 
PRO-PAK FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS 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 12

 
PRO-PAK FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRO-PAK FOODS 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 Auditor
 
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 13

 
PRO-PAK FOODS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
49,503,624
51,141,782

Cost of sales
  
(39,972,277)
(43,146,637)

Gross profit
  
9,531,347
7,995,145

Administrative expenses
  
(8,451,298)
(8,037,924)

Operating profit/(loss)
 5 
1,080,049
(42,779)

Interest receivable and similar income
 9 
10,126
-

Interest payable and similar expenses
 10 
(7,443)
(22,292)

Profit/(loss) before tax
  
1,082,732
(65,071)

Tax on profit/(loss)
 11 
302,509
15,147

Profit/(loss) for the financial year
  
1,385,241
(49,924)

There were no 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 19 to 35 form part of these financial statements.
Page 14

 
PRO-PAK FOODS LIMITED
REGISTERED NUMBER: 03556653

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
-
-

Tangible assets
 13 
7,973,339
7,268,422

  
7,973,339
7,268,422

Current assets
  

Stocks
 14 
4,383,266
5,978,290

Debtors: amounts falling due within one year
 15 
10,349,235
5,632,156

Cash at bank and in hand
 16 
717
252,352

Current liabilities
  
14,733,218
11,862,798

Creditors: amounts falling due within one year
 17 
(7,614,808)
(5,122,203)

Net current assets
  
 
 
7,118,410
 
 
6,740,595

Total assets less current liabilities
  
15,091,749
14,009,017

Provisions for liabilities
  

Deferred tax
 18 
(126,777)
(429,286)

  
 
 
(126,777)
 
 
(429,286)

Net assets
  
14,964,972
13,579,731


Capital and reserves
  

Called up share capital 
 19 
208,164
208,164

Share premium account
  
48,984
48,984

Revaluation reserve
  
195,648
314,527

Capital redemption reserve
  
200,000
200,000

Profit and loss account
  
14,312,176
12,808,056

  
14,964,972
13,579,731

Page 15

 
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: 




................................................
M Duckworth
Director

Date: 3 April 2025

The notes on pages 19 to 35 form part of these financial statements.
Page 16

 

 
PRO-PAK FOODS LIMITED


 

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



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 January 2023
208,164
48,984
200,000
433,406
12,739,101
13,629,655



Comprehensive income for the year


Loss for the year
-
-
-
-
(49,924)
(49,924)


Transfer (to)/from revaluation reserves
-
-
-
(118,879)
118,879
-





At 1 January 2024
208,164
48,984
200,000
314,527
12,808,056
13,579,731



Comprehensive income for the year


Profit for the year
-
-
-
-
1,385,241
1,385,241


Surplus on revaluation of freehold property
-
-
-
(118,879)
118,879
-



At 31 December 2024
208,164
48,984
200,000
195,648
14,312,176
14,964,972



The notes on pages 19 to 35 form part of these financial statements.

Page 17

 

 
PRO-PAK FOODS LIMITED


 


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

Share premium account 
Includes any premiums received on issue of share capital. Any transaction costs associated with issuing of shares are deducted from share premium.
Capital redemption reserve
The statutory, non-distributable reserve into which amounts were transferred following the redemption of the Company's own shares.
Revaluation reserve 
Revaluation reserves represent the revaluation of the land and properly.
Profit and loss account
Includes all current and prior year retained profits and losses. All amounts are distributable.

Page 18

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

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

 
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; 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.

Page 19

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.
Lease incentives are recognised over the lease term on a straight line basis.

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
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.

 
2.6

Interest income

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

 
2.7

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.

Page 20

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Borrowing costs

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

 
2.9

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.
 
2.10

 
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.


 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

Page 21

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

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.

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:

Freehold property
-
Straight-line over 25 years
Alterations to leasehold improvements
-
Straight-line over 5 years
Plant and machinery
-
Straight-line over 10 years
Motor vehicles
-
Straight-line over 5 years
Office equipment
-
Straight-line over 5 years
Assets under construction
-
Not depreciated

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.

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the Statement of Comprehensive Income.

 
2.14

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.

Page 22

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.15

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.

 
2.16

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.

 
2.17

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.

 
2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
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.
 
 
2.19

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.

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.


 

Page 23

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.19
Financial instruments (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.

Page 24

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.19
Financial instruments (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.


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) Stocks provisioning
 
The Company continues to prepare ready meals and is exposed to changes in the market prices of food commodities. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the stocks provision, management considers the nature and condition of the stocks, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.
 
Page 25

 
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
 
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.



4.


Turnover

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


2024
2023
£
£

Ready meals
49,503,624
51,141,782

49,503,624
51,141,782


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
49,503,624
51,141,782

49,503,624
51,141,782



5.


Operating profit/(loss)

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

2024
2023
£
£

Depreciation of fixed assets
1,203,232
1,144,087

Other operating lease rentals
237,317
183,735

Page 26

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Auditor's remuneration

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


2024
2023
£
£

Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
21,000
20,000

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


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
17,177,119
18,006,795

Social security costs
899,461
870,969

Cost of defined contribution scheme
219,543
229,953

18,296,123
19,107,717


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


        2024
        2023
            No.
            No.







Production
263
291



Administration
90
67



Management
2
2

355
360

Page 27

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
298,502
276,818

Company contributions to defined contribution pension schemes
25,928
24,990

324,430
301,808


During the year retirement benefits were accruing to 2 directors (2023: 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £180,708 (2023: £150,702).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £15,635 (2023: £15,070).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
10,126
-

10,126
-


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
7,443
22,292

7,443
22,292

Page 28

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
-
(103,885)


Total current tax
-
(103,885)

Deferred tax


Origination and reversal of timing differences
(302,509)
88,738

Total deferred tax
(302,509)
88,738


Tax on profit/(loss)
(302,509)
(15,147)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
1,082,732
(65,071)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
270,683
(15,292)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
15
141

Capital allowances for year in excess of depreciation
(209,335)
131,456

Adjustments to tax charge in respect of prior periods
-
(103,885)

Utilised tax losses
(122,216)
(26,490)

Other differences leading to an increase/(decrease) in the tax charge
10,257
(1,077)

Group relief
(251,913)
-

Total tax charge for the year
(302,509)
(15,147)

Page 29

 
PRO-PAK FOODS 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 
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.


12.


Intangible assets




Computer software

£



Cost


At 1 January 2024
54,121



At 31 December 2024

54,121



Amortisation


At 1 January 2024
54,121



At 31 December 2024

54,121



Net book value



At 31 December 2024
-



At 31 December 2023
-


Page 30

 


 
PRO-PAK FOODS LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024


13.


Tangible fixed assets






Freehold land and buildings
&
leasehold alterations
Plant and machinery
Motor vehicles
Office equipment
Assets under construction
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2024
4,290,556
18,253,186
12,300
1,096,485
954,816
24,607,343


Additions
-
1,090,447
-
-
817,702
1,908,149


Transfers between classes
914,195
-
-
21,222
(935,417)
-



At 31 December 2024

5,204,751
19,343,633
12,300
1,117,707
837,101
26,515,492



Depreciation


At 1 January 2024
2,540,212
13,911,942
12,300
874,467
-
17,338,921


Charge for the year on owned assets
159,831
950,308
-
93,093
-
1,203,232



At 31 December 2024

2,700,043
14,862,250
12,300
967,560
-
18,542,153



Net book value



At 31 December 2024
2,504,708
4,481,383
-
150,147
837,101
7,973,339



At 31 December 2023
1,750,344
4,341,244
-
222,018
954,816
7,268,422
Page 31

 


 
PRO-PAK FOODS LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           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.

Page 32

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Stocks

2024
2023
£
£

Raw materials
1,821,095
3,148,102

Packaging material
606,455
576,305

Finished goods
1,955,716
2,253,883

4,383,266
5,978,290





15.


Debtors

2024
2023
£
£


Trade debtors
9,236,923
4,974,608

Amounts owed by Group undertakings
420,336
6,772

Other debtors
354,906
277,134

Prepayments and accrued income
337,070
373,642

10,349,235
5,632,156



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
717
252,352

Less: bank overdrafts
(1,302,363)
-

(1,301,646)
252,352


Page 33

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
1,302,363
-

Trade creditors
3,058,528
3,720,241

Amounts owed to Group undertakings
346,354
54,801

Other taxation and social security
387,772
337,286

Other creditors
321,823
373,034

Accruals and deferred income
2,197,968
636,841

7,614,808
5,122,203


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. 


18.


Deferred taxation




2024


£






At beginning of year
429,286


Charged to the Statement of Comprehensive Income
302,509



At end of year
126,777

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
126,777
429,286

126,777
429,286

Page 34

 
PRO-PAK FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



200,000 (2023 - 200,000) A shares of £1.00 each
200,000
200,000
8,164 (2023 - 8,164) B shares of £1.00 each
8,164
8,164

208,164

208,164



20.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
244,834
204,698

Later than 1 year and not later than 5 years
330,476
306,980

575,310
511,678


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.
No transactions requiring disclosure.
Total key management personnel remuneration for the period was £573,020 (2023: £522,306)


22.


Controlling party

During the year and up to the 27 December 2024, the Company's immediate parent was Tican Process Holdings Limited, incorporated in England and Wales with the intermediate parent being Tican Fresh Meat A/S (copies of the consolidated financial statements of Tican Fresh Meat A/S may be obtained from its offices at Strandvejen 6 7700 Thisted, Denmark). On the 27 December 2024, following a group restructure, the immediate and intermediate parent company was CPC Foods Limited. 

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 35