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Company Registration Number 00228917























CRANSTONS QUALITY BUTCHERS LIMITED





FINANCIAL STATEMENTS





 31 JULY 2024
























img2c64.png

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

COMPANY INFORMATION


Directors
P J Cranston 
R J Cranston 
Mrs E S Cranston 
Mrs M R Cranston 
M J Jones (resigned 7 March 2024)
D J Law 
Mrs M C Wilson 
Mrs J E Silburn 




Company secretary
R J Cranston



Registered number
00228917



Registered office
Ullswater Road

Penrith

Cumbria

CA11 7EH




Independent auditors
Armstrong Watson Audit Limited

James Watson House

Montgomery Way

Rosehill

Carlisle

Cumbria

CA1 2UU





 
CRANSTONS QUALITY BUTCHERS LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 26


 
CRANSTONS QUALITY BUTCHERS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Introduction
 
The directors present their strategic report for the year ended 31 July 2024.

Business review
 
Cranstons turnover and gross margin both increased versus the prior year as the business delivered improved performance having successfully navigated through the challenges brought on by inflation and the cost-of-living crisis.
The directors remain committed to the importance of making and selling quality products in well-maintained and managed shops that are easily accessible to customers. They are focused on a continued growth path in the future managed on a prudent basis. Investment in retail units will be on-going throughout the coming year. Expansion of the business will be delivered in a sustainable way, with long term goals in mind.
At the end of the year the company had shareholder funds of approximately £6.2m (2023 5.8m).

Principal risks and uncertainties
 
The principal risks to any food company are customer loyalty and engagement, the maintenance of food hygiene standards, along with a reliable supply chain. The directors are committed to maintaining high food hygiene standards and to ensuring that supply of key materials is consistent and secure. Our customer numbers continue to grow, supported by continuous investment in the shops, product quality and development.
Food price inflation remains a risk, albeit that food and energy commodity markets are currently more stable than for several years. Labour costs continue to increase and will do so again in 2025 following the budget changes announced in October 2024. Selling prices are constantly reviewed to ensure that margins are maintained, while balancing this with provided a competitive offer to customers.

Future development

As the business continues its trajectory of incremental turnover growth, an on-going programme of investment is in place across the shops and production facilities to underpin this over the coming years.

Financial key performance indicators
 
Turnover increased by 5.5% (2023 - 5.4%)
Gross Profit Margin was 50.3% (2023 - 48.6%)
The company can manage its affairs with the above basic KPI's, no other KPI's are relevant to business decisions.


This report was approved by the board on 23 April 2025 and signed on its behalf.



................................................
P J Cranston
Director

Page 1

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024

The directors present their report and the financial statements for the year ended 31 July 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 judgments and accounting estimates that are reasonable and prudent;

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.

Directors

The directors who served during the year were:

P J Cranston 
R J Cranston 
Mrs E S Cranston 
Mrs M R Cranston 
M J Jones (resigned 7 March 2024)
D J Law 
Mrs M C Wilson 
Mrs J E Silburn 

Future developments

Crantsons hope to continue to provide high quality food to the local area and expand when it is expedient to do so.

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 2

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Post balance sheet events

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

Auditors

The auditorsArmstrong Watson Audit Limitedwill 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 J Cranston
Director

Date: 23 April 2025

Page 3

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CRANSTONS QUALITY BUTCHERS LIMITED
 

Opinion


We have audited the financial statements of Cranstons Quality Butchers Limited (the 'Company') for the year ended 31 July 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 31 July 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


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.


Page 4

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CRANSTONS QUALITY BUTCHERS LIMITED (CONTINUED)


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 2, 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 5

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CRANSTONS QUALITY BUTCHERS 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence,   capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, such    as the Health & Safety at Work Act 1974, Food Hygiene Regulations and Companies Act 2006;
• we identified the laws and regulations applicable to the company through discussions with directors and    other management;
• we assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management; and
• identified laws and regulations were communicated within the audit team regularly and the team remained   alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their    knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected     relationships; and
• tested journal entries to identify unusual transactions; and
• tested the operating effectiveness of key controls over purchase cycles on a sample basis.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management as to actual and potential litigation and claims.


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 6

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CRANSTONS QUALITY BUTCHERS 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.





David Harper (Senior statutory auditor)
  
Armstrong Watson Audit Limited
 
James Watson House
Montgomery Way
Rosehill
Carlisle
Cumbria
CA1 2UU

23 April 2025
Page 7

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024

2024
2023
Note
£
£

  

Turnover
 4 
16,139,142
15,298,644

Cost of sales
  
(8,021,896)
(7,866,864)

Gross profit
  
8,117,246
7,431,780

Administrative expenses
  
(7,984,288)
(6,852,208)

Other operating income
 5 
10,115
30,406

Operating profit
 6 
143,073
609,978

Interest receivable and similar income
 10 
117,096
107,242

Interest payable and similar expenses
 11 
-
(11,183)

Profit before tax
  
260,169
706,037

Tax on profit
 12 
(129,781)
(218,391)

Profit for the financial year
  
130,388
487,646

Other comprehensive income for the year
  

Surplus on revaluation of tangible fixed assets
  
272,035
-

Other comprehensive income for the year
  
272,035
-

Total comprehensive income for the year
  
402,423
487,646

The notes on pages 13 to 26 form part of these financial statements.

Page 8

 
CRANSTONS QUALITY BUTCHERS LIMITED
REGISTERED NUMBER: 00228917

BALANCE SHEET
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
4,039,375
3,766,002

Investment property
  
295,000
-

  
4,334,375
3,766,002

Current assets
  

Stocks
 16 
606,498
558,411

Debtors: amounts falling due within one year
 17 
488,076
720,177

Cash at bank and in hand
 18 
2,711,451
2,347,010

  
3,806,025
3,625,598

Creditors: amounts falling due within one year
 19 
(1,586,878)
(1,300,174)

Net current assets
  
 
 
2,219,147
 
 
2,325,424

Total assets less current liabilities
  
6,553,522
6,091,426

Provisions for liabilities
  

Deferred tax
 20 
(363,689)
(304,016)

  
 
 
(363,689)
 
 
(304,016)

Net assets
  
6,189,833
5,787,410


Capital and reserves
  

Called up share capital 
 21 
12,571
12,571

Share premium account
 22 
22,120
22,120

Revaluation reserve
 22 
387,532
115,497

Capital redemption reserve
 22 
22,377
22,377

Profit and loss account
 22 
5,745,233
5,614,845

  
6,189,833
5,787,410


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 April 2025.




................................................
P J Cranston
Director

The notes on pages 13 to 26 form part of these financial statements.

Page 9
 

 
CRANSTONS QUALITY BUTCHERS LIMITED


 

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



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


£
£
£
£
£
£



At 1 August 2022
12,571
22,120
22,377
115,497
6,127,199
6,299,764



Comprehensive income for the year


Profit for the year
-
-
-
-
487,646
487,646



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(1,000,000)
(1,000,000)





At 1 August 2023
12,571
22,120
22,377
115,497
5,614,845
5,787,410



Comprehensive income for the year


Profit for the year
-
-
-
-
130,388
130,388


Surplus on revaluation of other fixed assets
-
-
-
272,035
-
272,035

Total comprehensive income for the year
-
-
-
272,035
130,388
402,423



At 31 July 2024
12,571
22,120
22,377
387,532
5,745,233
6,189,833



The notes on pages 13 to 26 form part of these financial statements.

Page 10
 
CRANSTONS QUALITY BUTCHERS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
130,388
487,646

Adjustments for:

Depreciation of tangible assets
429,079
391,654

Loss on disposal of tangible assets
4,605
(189)

Interest paid
-
11,183

Interest received
(117,096)
(107,242)

Taxation charge
129,782
218,391

(Increase) in stocks
(48,087)
(321)

Decrease/(increase) in debtors
232,101
(266,072)

Increase in creditors
345,756
59,902

Corporation tax (paid)
(129,161)
(174,473)

Net cash generated from operating activities

977,367
620,479


Cash flows from investing activities

Purchase of tangible fixed assets
(730,022)
(368,077)

Sale of tangible fixed assets
-
2,500

Interest received
117,096
107,242

Net cash from investing activities

(612,926)
(258,335)

Cash flows from financing activities

Dividends paid
-
(1,000,000)

Interest paid
-
(11,183)

Amounts introduced by members
-
98,883

Net cash used in financing activities
-
(912,300)

Net increase/(decrease) in cash and cash equivalents
364,441
(550,156)

Cash and cash equivalents at beginning of year
2,347,010
2,897,166

Cash and cash equivalents at the end of year
2,711,451
2,347,010


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,357,491
2,950,179

Bank overdrafts
(646,040)
(603,169)

2,711,451
2,347,010


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2024




At 1 August 2023
Cash flows
At 31 July 2024
£

£

£

Cash at bank and in hand

2,347,010

364,441

2,711,451

Debt due within 1 year

(110,411)

74,121

(36,290)


2,236,599
438,562
2,675,161

The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

1.


General information

Cranstons Quality Butchers Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office and principal place of business is Ullswater Road, Penrith, Cumbria, CA11 7EH.
The financial statements are prepared in Pound Sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are round to the nearest £.

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

The following principal accounting policies have been applied:

 
2.2

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.

 
2.3

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.

 
2.4

Interest income

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

Page 13

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

2.Accounting policies (continued)

 
2.5

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.

 
2.6

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.

 
2.7

Current and deferred taxation

The tax expense for the year 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.

 
2.8

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.

Page 14

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either the straight line method or the reducing balance method, depending on the asset type.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Short-term leasehold property
-
10% straight line
Plant and machinery
-
10-20% straight line
Motor vehicles
-
25% reducing balance
Other fixed assets
-
33% straight line

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.

 
2.9

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.10

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.

 
2.11

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.

 
2.12

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.

Page 15

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

2.Accounting policies (continued)

 
2.13

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.

 
2.14

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.

 
2.15

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.

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.

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 payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is
Page 16

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

2.Accounting policies (continued)


2.15
Financial instruments (continued)

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.

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and investments in ordinary shares.

 
2.16

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.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements require management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences 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 amount of assets and liabilities within the next financial year are discussed below.
(a) 
Stock provision
The Company holds raw materials and finished goods for sale. Stocks are held at the lower of cost and net realisable value. The assessment of net realisable value requires estimation regarding the future sale proceeds less the costs incurred to sell. The Company reviews slow moving stock items in determining net realisable values. The Company recognises the risk of stock obsolescence and the related potential impact on stock carrying values. Stocks are assessed at each reporting date for impairment and estimates based on a review of sale activity in the period are used in determining the level of stock provision provided.

Page 17

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

4.


Turnover

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


2024
2023
£
£

Cash sales
14,977,831
14,149,033

Credit sales
949,875
961,758

Rebate
211,436
187,853

16,139,142
15,298,644


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
16,139,142
15,298,644



5.


Other operating income

2024
2023
£
£

Other operating income
10,115
30,406



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
212,535
209,526


7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
11,500
13,000
Page 18

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

8.


Employees

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


2024
2023
£
£

Wages and salaries
5,233,179
4,312,007

Social security costs
452,754
351,501

Cost of defined contribution scheme
127,529
112,750

5,813,462
4,776,258


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


        2024
        2023
            No.
            No.







Sales
148
140



Production
62
55



Administration
14
15

224
210


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
949,963
387,735

Company contributions to defined contribution pension schemes
38,732
43,886

988,695
431,621


During the year retirement benefits were accruing to 5 directors (2023 - 8) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £334,025 (2023 - £83,181).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £9,074).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
117,096
107,242

Page 19

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

11.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
-
11,183


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
70,948
218,391

Adjustments in respect of previous periods
(839)
-


70,109
218,391


Total current tax
70,109
218,391

Deferred tax


Origination and reversal of timing differences
59,672
-

Total deferred tax
59,672
-


Tax on profit
129,781
218,391
Page 20

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

2024
2023
£
£


Profit on ordinary activities before tax
260,169
706,037


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
65,042
176,509

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,562
-

Non-qualifying depreciation
12,293
-

Adjustments to tax charge in respect of prior periods
(818)
-

Deferred tax on revaluation of property
51,723
-

Other differences leading to an increase (decrease) in the tax charge
(21)
41,882

Total tax charge for the year
129,781
218,391


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends paid
-
1,000,000

Page 21
 


 
CRANSTONS QUALITY BUTCHERS LIMITED


 

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


14.


Tangible fixed assets






Freehold property
Short-term leasehold property
Plant and machinery
Motor vehicles
Other fixed assets
Total

£
£
£
£
£
£



Cost or valuation


At 1 August 2023
2,858,461
117,866
7,087,449
284,865
119,635
10,468,276


Additions
-
-
586,589
121,064
22,369
730,022


Disposals
-
-
-
(25,608)
-
(25,608)


Transfers between classes
(66,446)
-
-
-
-
(66,446)



At 31 July 2024

2,792,015
117,866
7,674,038
380,321
142,004
11,106,244



Depreciation


At 1 August 2023
565,131
111,076
5,764,995
152,469
108,603
6,702,274


Charge for the year on owned assets
49,258
3,435
310,963
54,548
10,875
429,079


Disposals
-
-
-
(21,003)
-
(21,003)


Transfers between classes
(43,481)
-
-
-
-
(43,481)



At 31 July 2024

570,908
114,511
6,075,958
186,014
119,478
7,066,869



Net book value



At 31 July 2024
2,221,107
3,355
1,598,080
194,307
22,526
4,039,375



At 31 July 2023
2,293,330
6,790
1,322,454
132,396
11,032
3,766,002

Page 22
 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

           14.Tangible fixed assets (continued)




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


2024
2023
£
£

Freehold
2,221,107
2,293,331

Short leasehold
3,355
6,791

2,224,462
2,300,122



15.


Investment property


2024
2023
£
£

Revaluation reserves


Additions
295,000
-

At 31 July 2024
295,000
-



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
2023
£
£


Historic cost
66,446
66,446

Accumulated depreciation and impairments
(43,481)
(42,152)

22,965
24,294


16.


Stocks

2024
2023
£
£

Raw materials and consumables
220,606
195,305

Finished goods and goods for resale
385,892
363,106

606,498
558,411


Page 23

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

17.


Debtors

2024
2023
£
£


Trade debtors
111,112
122,545

Other debtors
19,773
53,310

Prepayments and accrued income
357,191
544,322

488,076
720,177



18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,711,451
2,347,010



19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
461,828
585,499

Corporation tax
70,948
130,000

Other taxation and social security
96,570
94,865

Other creditors
330,966
355,600

Accruals and deferred income
626,566
134,210

1,586,878
1,300,174


Page 24

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

20.


Deferred taxation




2024


£






At beginning of year
(304,016)


Charged to profit or loss
(59,673)



At end of year
(363,689)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(318,146)
(304,016)

Short term timing differences
6,180
-

Capital gains
(51,723)
-

(363,689)
(304,016)


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



12,314 (2023 - 12,314) Ordinary shares of £1.00 each
12,314
12,314
257 (2023 - 257) "A" ordinary shares of £1.00 each
257
257

12,571

12,571


Page 25

 
CRANSTONS QUALITY BUTCHERS LIMITED
 

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

22.


Reserves

Share premium account

The share premium reserve represents the difference between the par value of the issued shares and the subscription price.

Revaluation reserve

The revaluation reserve represents the amount of unrealised surplus created when fixed assets were reavlued, less any deferred tax provision. The reserve represents non-distributable funds.

Capital redemption reserve

This reserve records the value of shares that were purchased back by the company

Profit and loss account

This reserve records retained earnings and accumulated profits net of dividends.


23.


Pension commitments

The Company operates a defined contribution pension scheme. In the year ended to 31 July 2024 contributions amounting to £127,529 (2023 - £112,750) were payable by the company. At the balance sheet date the Company owed £24,720 to the scheme.


24.


Commitments under operating leases

At 31 July 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
220,000
210,000

Later than 1 year and not later than 5 years
705,000
672,500

Later than 5 years
166,667
86,667

1,091,667
969,167


25.


Related party transactions

Rent of £183,150 (2023 - £169,514) was paid to an SIPP, of which some of the directors are members, for the use of the property owned by the scheme situated at 7 Cattle Market, Hexham and at Ullswater Road, Penrith.
Sales were made to directors through the year totalling £17,662 (2023 - £19,156). Additionally,P J Cranston (director) and R J Cranston (director) agreed to loan unsecured monies to the company, repayable on demand and at an interest rate of 5% per annum, up to 1 April 2023 when no further interest was charged. Interest of £Nil (2023 - £11,183) was charged in the year.

Page 26