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Registered number: 06080714









WENZELS THE BAKERS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 7 APRIL 2024

 
WENZELS THE BAKERS LIMITED
 
 
COMPANY INFORMATION


Directors
P Wenzel 
S Wenzel 
R Robins 
K B Spinks 
L G Hutcheson 
D Russell (appointed 1 January 2025)




Registered number
06080714



Registered office
Sunley House Old's Approach
Northwood

Watford

WD18 9TB




Independent auditor
Adler Shine LLP
Chartered Accountants & Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF





 
WENZELS THE BAKERS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 7
Independent Auditors' Report
8 - 11
Statement of Comprehensive Income
12
Balance Sheet
13 - 14
Statement of Changes in Equity
15
Statement of Cash Flows
16 - 17
Analysis of Net Debt
18
Notes to the Financial Statements
19 - 37


 
WENZELS THE BAKERS LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 7 APRIL 2024

Introduction
 
The directors present the Strategic Report for the period ended 7 April 2024.

Business review
 
Wenzels the Bakers Limited ('Wenzels') is an independent baker established in 1975 and a favourite brand of locals in and around the North West London area. In order to meet increasing demand for our products we have opened 10 new shops during the period and at the balance sheet date, the business was operating from a total of 109 shops.
During the period we invested into our Head office and Bakery in order to be able to service the opening of more shops in the coming years.
The directors are pleased with the results for the period, as reported in these financial statements, with increases in KPIs. The company generated revenue of £67.1m (2023 - £61.4m), an increase of 9.2%.

Principal risks and uncertainties
 
Principal risks and uncertainties include:
Commercial environment
The business faces many challenges in respect of the commercial trading environment including general footfall across high streets, the 'cost of living' crisis giving rise to an uncertain economic outlook for our customers and increasing high street competition.
While the business has relied primarily on its loyal customer base, buying our products in store, the company expanded it's profile on delivery/food ordering platforms, which remains a strong source of revenue. 
Our confidence and dedication to high quality, competitively price products is synonymous with the growing reputation of the Wenzels brand. The directors are committed to supporting the UK high street and making our stores accessible to our growing customer base through the continued growth in the number of Wenzels stores.
Supply risk 
Supply risk includes the risks associated with the cost of raw materials, production, logistics and staff talent. The cost of raw materials is affected by the UK weather, demand and the general market conditions. In addition, the business is reliant on its extraordinary skilled work force, both in the central bakery and across its stores, to meet production requirements while maintaining the high standards of product quality and delivery of fresh baked goods across our network of stores.
The company has forged strong relationships with suppliers which has been critical in meeting the increasing demands of servicing a larger client base through our growing number of stores and across on-line platforms.
Our team values the importance of our dedicated workforce and is dedicated to talent recruitment and training. Our people's commitment to meet both production and customer service needs is paramount for the continued success of the Wenzels brand.
The directors continue to support the growth of the business through review, assessment and investment in technology and infrastructure to facilitate the delivery of our freshly produced products in a timely manner to our customers.
Regulatory risk
The business continuously reviews and assess compliance with legislation including employment law, health and safety regulations, and food hygiene. 

Page 1

 
WENZELS THE BAKERS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024

Financial key performance indicators
 
The board monitors the progress of the company by reference to the following KPIs:
- Increase in total turnover
- Increase in like for like sales by shop
- Gross margin
- Wage percentage
- Net profit percentage

Other key performance indicators
 
Other key performance indicators which are monitored include the number of stores and the number of new stores opened during the period, as well as customer feedback and our own assessments of the quality of the products sold.

Directors' statement of compliance with duty to promote the success of the company
 
The directors of the company, in line with their duties under section 172 of the Companies Act 2006, have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members and stakeholders as a whole, in the decisions taken during the period ended 31 March 2024. In doing so, the directors are required to have regard for the following:
     - the likely long-term consequences of any decision;
     - the interests of the company’s employees;
     -  the need to foster the company’s business relationships with suppliers, customers and others;
     -  the impact of the company’s operations on the community and the environment;
     -  the desirability of the company maintaining a reputation for high standards of business conduct; and
     -  the need to act fairly as between shareholders of the company.
The board have considered the following matters, amongst others, in regard to the points above:
Long-term planning and shareholders
Through working collaboratively with management and having an open and transparent dialogue with the company´s many stakeholders, the board believes that Wenzels has been able to develop a clear understanding of their needs, assess their perspectives and is well positioned to promote the long-term success of the company. 
Employees
The directors recognize that Wenzels' employees are key to its success and to the delivery of the company's ambitions. The success of the business depends on attracting, retaining, and motivating employees. The company seeks to remain a responsible employer regarding pay and benefits, whilst health, safety and well-being of our employees is one of the primary considerations. We aim to provide an enjoyable, unique working environment where staff feel valued and are excited to be part of our success story.
Suppliers and customers
The majority of our products are produced by our dedicated team. Notwithstanding that, we are reliant on our network of service and product suppliers that form our supply chain. The company has forged strong relationships with our suppliers, regularly meeting with them and keeping open dialogue to facilitate and meet the demands of our growing business.
Delivery of quality, fresh products and customer satisfaction is key to our business. As a family owned business, established in 1975, our customer base has been the core of our growth and success. Customer feedback and recommendations have been paramount in the development of our product and service offering. In addition to offering our customers a mouth watering menu, we offer a host of other benefits as a 'thank you', including  competitions and loyalty schemes.
 
Page 2

 
WENZELS THE BAKERS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024

Community
The UK high street is a national treasure and has been an ever important part of our ability to meet our customer's needs. The directors take a vested interest in our continued commitment to support local communities. Our ongoing strategic plan to increase the number of physical stores provides employment opportunities, support to food banks and local/national charities.
High standards of business conduct
The board is constantly looking at ways to improve the business across its products, service and strategic management. In doing so, the board evaluate and assess the strategic requirements needed to maintain the high standards expected and have successfully appointed new members to the board to assist in the delivery and execution of these plans.


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



P Wenzel
Director

Date: 29 April 2025

Page 3

 
WENZELS THE BAKERS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 7 APRIL 2024

The directors present their report and the financial statements for the period ended 7 April 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;

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.

Principal activity

The principal activity of the company continued to be that of the production and retailing of bakery products.

Results and dividends

The profit for the period, after taxation, amounted to £2,064,414 (2023 - £1,644,728).

Ordinary interim dividends were paid amounting to £5,115,000 (2023 - £2,500,000).

Page 4

 
WENZELS THE BAKERS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024


Directors

The directors who served during the period were:

P Wenzel 
S Wenzel 
E L Roback (resigned 31 January 2025)
R Robins 
T Smith (resigned 3 November 2023)
K B Spinks 
A Juhasz (resigned 31 January 2025)
L G Hutcheson 
N N Chotai (resigned 30 November 2024)

Future developments

Based on our principle of delivering quality products, at affordable prices with outstanding customer service, we have seen increasing demand for our products in recent years. We plan to meet this demand by opening additional shops and the directors anticipate a further increase in both turnover and operating profit. Furthermore, to assist with the level of demand created by these additional shops, we are in the process of developing and expanding the bakery.

Engagement with employees

The company's policy is to consult and discuss with employees; through management and departmental meetings, matters likely to affect employees' interests.
Matters of concern to employees are given through regular meetings which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Engagement with suppliers, customers and others

The company's current policy concerning the payment of trade creditors is to:
• settle the terms of payment with suppliers when agreeing the terms of each transaction;
•  ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in
 contracts; and
•  pay in accordance with the company's contractual and other legal obligations.

Disabled employees

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Page 5

 
WENZELS THE BAKERS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

The company's greenhouse gas emissions and energy consumption for the period are:
•  Total energy consumption (kWh) calculated across the company from electricity, gas and transport is
 8,746,448 kwh (2023: 7,923,559 kwh).
•  The combined scope one and two carbon emissions for the period was recorded at 1,846 tCO2e (2023:
 1,581 tCO2e).
•  The specific carbon consumption (SCC) for the period is calculated at 0.028 kgCO2e/£k turnover
 (2023: 0.02564 kgCO2e/£k). 

The methodology taken to comply with the requirements of reporting follows a number of defined steps, outlined as follows:
•  Identify the boundary of compliance (i.e. financial or operational control)
•  Determine the scope of report (i.e. Scope One, Two, Three)
•  Identify the assets to be included within the scope (i.e. buildings, vehicles)
•  Identify a suitable metric for the intensity ratio
•  Collate the data from all sources
•  Audit the data sufficiency, relevance and quality
•  Detail any assumptions or estimations made
•  Determine steps taken to improve efficiency
•  Collate into the annual report detail
•  Obtain sign off from primary contact and board level senior officer
The scope for reporting includes the requirements of scope one and two of a carbon footprint as defined under the Green House Gas Protocol Corporate Standard (https://ghgprotocol.org /corporate-standard ). The inclusion in this scope is:
Scope One
•  Imported natural gas
•  Owned and leased transport (diesel and petrol)
Scope Two
•  Imported electricity
Wider sources as defined as scope three are voluntary for reporting under SECR are excluded from reporting.
All fuels have been converted from their raw units of measure to kWh using industry standard conversion factors sourced from UK Government Department for Business, Energy and Industrial Strategy (BEIS).
There are no assumptions or estimations made.

We have engaged a specialist consultancy firm to manage our approach to the Energy Savings Opportunity Scheme (ESOS III) and will look to implement energy saving measures as a result of the findings. 

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Page 6

 
WENZELS THE BAKERS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024

Post balance sheet events

As set out in note 32, Post balance sheet events, HMRC issued a winding-up petition against the company which was subsequently withdrawn. 
Discussions between the company and HMRC remain ongoing and the directors are confident the matter will be resolved with the liability settled in the forthcoming months, having already made several payments towards the liability.
As set out in note 2.2, Going concern the directors have reviewed the company's detailed financial forecasts and cash flows and consider that the company will have the necessary resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least 12 months from the date these financial statements were approved.
Accordingly, they continue to adopt the going concern basis in preparing these financial statements.

Auditors

The auditorsAdler Shine LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





P Wenzel
Director

Date: 29 April 2025

Page 7

 
WENZELS THE BAKERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS LIMITED
 

Opinion


We have audited the financial statements of Wenzels The Bakers Limited (the 'company') for the period ended 7 April 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, 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 7 April 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 8

 
WENZELS THE BAKERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 9

 
WENZELS THE BAKERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:
We obtained an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements. 
We obtained an understanding in this regard through discussions with management and the application of our cumulative audit knowledge and experience of this sector. The key laws and regulations we considered in this context included the Companies Act 2006 and applicable tax legislation.
We considered the nature of the industry and sector, control environment and business performance.
We discussed mattered amongst the audit team regarding how and where fraud might occur in the financial statements and the potential indicators of fraud.
We address the risk of fraud arising from management override of journals by performing audit procedures which included, but were not limited to, the test of journals, enquiries of management, reviewing accounting estimates for evidence of bias, and evaluation the business rationale of any significant transactions which appeared unusual or outside the normal course of business.


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 Auditors' Report.


Page 10

 
WENZELS THE BAKERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WENZELS THE BAKERS 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 Auditors' 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.





Alexander Chrysaphiades FCA (Senior Statutory Auditor)
for and on behalf of
Adler Shine LLP
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF

29 April 2025
Page 11

 
WENZELS THE BAKERS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 7 APRIL 2024

2024
2023
Note
£
£

  

Turnover
 4 
68,287,068
61,431,678

Cost of sales
  
(25,151,705)
(24,747,633)

Gross profit
  
43,135,363
36,684,045

Distribution costs
  
(38,028,659)
(32,377,637)

Administrative expenses
  
(2,201,427)
(2,120,494)

Other operating income
 5 
238,478
241,776

Operating profit
 6 
3,143,755
2,427,690

Interest receivable and similar income
 10 
51,158
59,600

Interest payable and similar expenses
 11 
(231,242)
(87,632)

Profit before tax
  
2,963,671
2,399,658

Tax on profit
 12 
(899,257)
(754,930)

Profit for the financial period
  
2,064,414
1,644,728

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 37 form part of these financial statements.

Page 12

 
WENZELS THE BAKERS LIMITED
REGISTERED NUMBER: 06080714

BALANCE SHEET
AS AT 7 APRIL 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
-
-

Tangible assets
 15 
13,989,657
12,863,518

Investments
 16 
40
40

  
13,989,697
12,863,558

Stocks
 17 
383,600
350,418

Debtors: amounts falling due within one year
 18 
8,455,808
9,145,513

Cash at bank and in hand
 19 
138,256
1,208,242

  
8,977,664
10,704,173

Creditors: amounts falling due within one year
 20 
(10,653,624)
(8,139,952)

Net current (liabilities)/assets
  
 
 
(1,675,960)
 
 
2,564,221

Total assets less current liabilities
  
12,313,737
15,427,779

Creditors: amounts falling due after more than one year
 21 
(1,512,982)
(1,881,571)

Provisions for liabilities
  

Deferred tax
 25 
(2,382,265)
(2,077,132)

Net assets
  
8,418,490
11,469,076


Capital and reserves
  

Called up share capital 
 26 
1,000
1,000

Profit and loss account
 27 
8,417,490
11,468,076

  
8,418,490
11,469,076


Page 13

 
WENZELS THE BAKERS LIMITED
REGISTERED NUMBER: 06080714
    
BALANCE SHEET (CONTINUED)
AS AT 7 APRIL 2024

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




P Wenzel
Director

Date: 29 April 2025

The notes on pages 19 to 37 form part of these financial statements.

Page 14

 
WENZELS THE BAKERS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 7 APRIL 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
1,000
12,323,348
12,324,348


Comprehensive income for the year

Profit for the year
-
1,644,728
1,644,728

Dividends: Equity capital
-
(2,500,000)
(2,500,000)



At 8 April 2023
1,000
11,468,076
11,469,076


Comprehensive income for the period

Profit for the period
-
2,064,414
2,064,414

Dividends: Equity capital
-
(5,115,000)
(5,115,000)


At 7 April 2024
1,000
8,417,490
8,418,490


The notes on pages 19 to 37 form part of these financial statements.

Page 15

 
WENZELS THE BAKERS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 7 APRIL 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial period
2,064,414
1,644,728

Adjustments for:

Depreciation of tangible assets
2,560,030
1,914,737

Interest paid
231,242
87,632

Interest received
(51,158)
(59,600)

Taxation charge
899,257
754,930

(Increase) in stocks
(33,180)
(69,610)

Decrease/(increase) in debtors
685,833
(421,668)

Increase in creditors
1,447,014
859,255

Corporation tax received/(paid)
-
(1,690,645)

Net cash generated from operating activities

7,803,452
3,019,759

Cash flows from investing activities

Purchase of tangible fixed assets
(3,692,169)
(3,946,864)

Sale of tangible fixed assets
6,000
90,000

Interest received
51,158
59,600

HP interest paid
(90,803)
(57,023)

Net cash from investing activities

(3,725,814)
(3,854,287)

Cash flows from financing activities

New secured loans
-
1,943,709

Repayment of loans
(618,210)
-

Repayment of/new finance leases
246,431
244,551

Dividends paid
(5,115,000)
(2,500,000)

Interest paid
(140,439)
(30,609)

Net cash used in financing activities
(5,627,218)
(342,349)
Page 16

 
WENZELS THE BAKERS LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 7 APRIL 2024


2024
2023

£
£



Net (decrease) in cash and cash equivalents
(1,549,580)
(1,176,877)

Cash and cash equivalents at beginning of period
1,208,242
2,385,119

Cash and cash equivalents at the end of period
(341,338)
1,208,242


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
138,256
1,208,242

Bank overdrafts
(479,594)
-

(341,338)
1,208,242


The notes on pages 19 to 37 form part of these financial statements.

Page 17

 
WENZELS THE BAKERS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 7 APRIL 2024




At 8 April 2023
Cash flows
At 7 April 2024
£

£

£

Cash at bank and in hand

1,208,242

(1,069,986)

138,256

Bank overdrafts

-

(479,594)

(479,594)

Debt due after 1 year

(1,256,464)

599,687

(656,777)

Debt due within 1 year

(687,245)

17,480

(669,765)

Finance leases

(1,429,480)

(246,431)

(1,675,911)


(2,164,947)
(1,178,844)
(3,343,791)

The notes on pages 19 to 37 form part of these financial statements.

Page 18

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

1.


General information

Wenzels the Bakers Limited is a private company limited by shares registered in England and Wales. Its principal place of business and registered office address is Sunley House, Old's Approach, Watford, WD18 9TB.

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.

The company's functional and presentational currency is Sterling (£), shown in these financial statements rounded to the nearest £1.

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

Going concern

As set out in note 32, Post balance sheet events, HMRC issued a winding-up petition against the company which was subsequently withdrawn.  
The directors have prepared detailed financial forecasts and cash flows looking at the next 12 months from the date of approval of these financial statements. In developing these forecasts, the directors have made assumptions based upon their view of the current and future economic conditions that are expected to prevail over the forecast period.
The directors estimate that the cash held by the company, together with anticipated additional new finance and cash generated from operating activities, will be sufficient to support the current forecasted activities of the company. In addition, the company is in discussions with its bankers to secure an additional £2m loan which will support the company with its future activities.
In addition, the directors have reviewed the company's operations and made strategic changes to both the group structure and the management board, so as to ensure the company's future operations are aligned with expectations, ambitions and targets.
The directors therefore consider that the company will have the necessary resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. 
Accordingly, they continue to adopt the going concern basis in preparing these financial statements.

Page 19

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 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 lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

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

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

Page 20

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

2.Accounting policies (continued)

 
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 profit or loss 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 period comprises current and deferred tax. Tax is recognised in profit or loss 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

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 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.

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as set out below.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Straight line over the life of the lease
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
15% reducing balance

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
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 profit or loss.

 
2.15

Debtors

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

Page 22

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

 
2.17

Creditors

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

 
2.18

Provisions for liabilities

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

 
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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs 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 receivables due with the operating cycle fall into this category of financial instruments.
Page 23

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)


Other financial assets

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

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 profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments 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 payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.

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

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


Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are
Page 24

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

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.

 
2.20

Dividends

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


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 
The key assumptions and other key sources of uncertainty that have a significant effect on the amount recognised in the financial statements are described below:
Stock valuation
Stock is included at the lower of cost and net realisable value. The directors have reviewed the stock obsolescence policy and are satisfied that stock is fairly valued at the period end. 
Recoverability of debtors
Judgements have been made on the recoverability of trade debtors and the valuation of provisions and the directors are satisfied that the debtors are recoverable. 
Tangible and intangible fixed assets
Judgements have been made in relation to the lives of tangible and intangible assets. In particular, the valuation and the useful economic life and residual values of fixtures and fittings and motor vehicles. The directors have concluded that the asset values and residual values are appropriate.

Page 25

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

4.


Turnover

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


2024
2023
£
£

Sale of bakery products
68,287,068
61,431,678


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Rental Income
238,478
238,564

Sundry income
-
3,212

238,478
241,776



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
2,560,030
1,914,737

Pension contributions
313,490
297,533

Operating lease charges
4,158,907
3,153,898

Fees payable to the company's auditor for the audit of the company's financial statements
35,000
33,000


7.


Auditors' remuneration

During the period, the company obtained the following services from the company's auditors and their associates:


2024
2023
£
£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements
35,000
33,000

Fees payable to the company's auditors and their associates in respect of:

All non-audit services
36,300
34,800
Page 26

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

8.


Employees

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


2024
2023
£
£

Wages and salaries
22,423,156
19,733,631

Social security costs
1,573,438
1,494,525

Cost of defined contribution scheme
313,778
297,533

24,310,372
21,525,689


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


        2024
        2023
            No.
            No.







Management
17
15



Admin
17
16



Bakery
134
138



Retail
1,019
923

1,187
1,092


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
583,534
561,261

Company contributions to defined contribution pension schemes
7,023
8,795

590,557
570,056


The highest paid director received remuneration of £94,789 (2023 - £87,466).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2023 - £2,191).

Page 27

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
51,158
59,600

51,158
59,600


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
131,959
5,300

Finance leases and hire purchase contracts
90,803
57,023

Other interest payable
8,480
25,309

231,242
87,632


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
590,253
196,129

Adjustments in respect of previous periods
3,871
(36,084)

Total current tax
594,124
160,045

Deferred tax


Origination and reversal of timing differences
305,133
594,885

Total deferred tax
305,133
594,885


Taxation on profit on ordinary activities
899,257
754,930
Page 28

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024
 
12.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,963,671
2,399,658


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
740,918
455,935

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
23,722
4,813

Capital allowances for period/year in excess of depreciation
(175,218)
(264,909)

Adjustments to tax charge in respect of prior periods
3,871
(36,084)

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
6,254
290

Short term timing difference leading to an increase (decrease) in taxation
299,710
594,885

Total tax charge for the period/year
899,257
754,930


13.


Dividends

2024
2023
£
£


Interim dividends
5,115,000
2,500,000

Page 29

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

14.


Intangible assets




Goodwill

£



Cost


At 8 April 2023
500,000



At 7 April 2024

500,000



Amortisation


At 8 April 2023
500,000



At 7 April 2024

500,000



Net book value



At 7 April 2024
-



At 7 April 2023
-



Page 30

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

15.


Tangible fixed assets





Short-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 8 April 2023
1,425,983
891,822
19,271,794
21,589,599


Additions
166,537
178,716
3,346,916
3,692,169


Disposals
-
(6,000)
-
(6,000)



At 7 April 2024

1,592,520
1,064,538
22,618,710
25,275,768



Depreciation


At 8 April 2023
704,269
449,373
7,572,439
8,726,081


Charge for the period on owned assets
128,104
160,795
1,891,759
2,180,658


Charge for the period on financed assets
-
9,689
369,683
379,372



At 7 April 2024

832,373
619,857
9,833,881
11,286,111



Net book value



At 7 April 2024
760,147
444,681
12,784,829
13,989,657



At 7 April 2023
721,714
442,449
11,699,355
12,863,518




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Short leasehold
760,147
721,714


Page 31

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

           15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£


Fixtures and fittings
2,665,133
2,696,777

Motor vehicles
221,184
182,814

2,886,317
2,879,591


16.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 8 April 2023
40



At 7 April 2024
40


17.


Stocks

2024
2023
£
£

Finished goods and goods for resale
383,600
350,418

383,600
350,418


Stock recognised as an expense in cost of sales during the period totalled £18,907,846 (2023 - £18,727,688).

Page 32

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

18.


Debtors

2024
2023
£
£


Trade debtors
933,155
44,508

Other debtors
4,076,750
6,533,016

Prepayments and accrued income
2,487,475
1,609,561

Tax recoverable
958,428
958,428

8,455,808
9,145,513



19.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
138,256
1,208,242

Less: bank overdrafts
(479,594)
-

(341,338)
1,208,242



20.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
479,594
-

Bank loans
668,722
687,245

Trade creditors
5,688,849
4,464,709

Corporation tax
598,733
-

Other taxation and social security
1,459,399
307,394

Obligations under finance lease and hire purchase contracts
819,706
804,373

Other creditors
464,156
98,267

Accruals and deferred income
474,465
1,777,964

10,653,624
8,139,952


Page 33

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

21.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
656,777
1,256,464

Net obligations under finance leases and hire purchase contracts
856,205
625,107

1,512,982
1,881,571



22.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
668,722
687,245

Amounts falling due 1-2 years

Bank loans
656,777
709,419

Amounts falling due 2-5 years

Bank loans
-
547,045

1,325,499
1,943,709


The company is party to a loan agreement with HSBC Bank Plc ("HSBC"). HSBC holds a debenture securing this loan by way of fixed and floating charges over the company's assets.
Bank loans totalling £1,325,499 (2023 - £1,943,709) accrue interest of 2.80% per annum above the base rate.


23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
773,450
804,373

Between 1-5 years
856,205
625,107

1,629,655
1,429,480

Page 34

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

24.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
138,256
1,208,242




Financial assets measured at fair value through profit or loss comprise cash and cash equivalents.


25.


Deferred taxation




2024
2023


£

£






At beginning of year
(2,077,132)
(1,482,247)


Charged to profit or loss
(305,133)
(594,885)



At end of year
(2,382,265)
(2,077,132)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(2,388,518)
(2,077,423)

Short term timing differences
6,253
291

(2,382,265)
(2,077,132)

Page 35

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



800 (2023 - 800) A Ordinary shares of £1.00 each
800
800
200 (2023 - 200) B Ordinary shares of £1.00 each
200
200

1,000

1,000

The A and B shares rank pari-passu.



27.


Reserves

Profit and loss account

Retained earnings record the company's accumulated profits and losses and dividends up to the balance sheet date.


28.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £313,490 (2023 - £297,533). Contributions totalling £62,732 (2023 - £4,295) were payable to the fund at the balance sheet date and are included in other creditors.


29.


Commitments under operating leases

At 7 April 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
3,546,935
3,417,330

Later than 1 year and not later than 5 years
9,271,402
9,112,508

Later than 5 years
10,419,869
5,300,656

23,238,206
17,830,494

Page 36

 
WENZELS THE BAKERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 7 APRIL 2024

30.Other financial commitments

The company has access to a debenture facility which is secured on a fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery.
The company has also issued a cross guarantee in respect of a company under common control. As at the balance sheet date the company had a potential liability of £nil (2023 - £2,600,400). No provision has been made in respect of this balance as there is no indication that the company under common control will be unable to service these debts.


31.


Related party transactions

The company was charged rent of £242,000 (2023 - £242,000) by a company under common control. At the balance sheet date the company under common control owed the company £3,973,279 (2023 - £3,615,988).
During the financial period, the company paid rent to directors totalling £45,984 (2023 - £45,984). 
At the balance sheet date, £1,043 was due to (2023 - £2,823,899 due from) the directors.


32.


Post balance sheet events

On 19 March 2025, HMRC issued a winding-up petition against the company in respect of an outstanding balance due. On 26 March 2025, HMRC applied for the petition to be withdrawn and this was approved on 28 March 2025.
The company remains in open dialogue with HMRC and has made significant progress towards settling the liability, including making payments towards the outstanding liability and has sought to offset tax recoverable against the liability. 
Furthermore, the company is in advanced discussion with its bankers to secure an additional £2m loan. The finalisation of the loan is subject to final acceptance procedures, and the directors are confident that this loan will be approved.


33.


Controlling party

At the balance sheet date, the ultimate controlling party was P Wenzel, a director, by virtue of his majority shareholding in the company.
Since the balance sheet date, Wenzels Holdings Limited became the immediate parent company. P Wenzel remains the ultimate controlling party.

 
Page 37