Bridge Cheese Ltd |
Strategic Report |
|
The directors present their strategic report for the year ended 28 September 2024. Health and safety Safety remains our top priority, our commitment to providing a safe working environment for our employees, supply chain, clients and others is paramount. Through a variety of training and development initiatives, there is a focus on raising safety standards every year. The Company continues to maintain excellent safety standards. Our site is regularly audited by Health & Safety specialists with the results of such safety audits generating improvement recommendations for revised business procedures. Bridge Cheese Ltd obtained grade AA against the BRC (British Retail Consortium) standard audit. Employees Bridge Cheese Ltd recognises that our employees are key assets of the business and, as such, invests in training courses for employees including mandatory short courses; long-term professional qualifications and apprenticeships. The investment in training ensures our employees continue to grow and develop to enable support of the business in delivering its strategic objectives. In addition to these long-term programmes, we also run mandatory training where relevant employees cover the following topics; Food Safety, Hygiene, Manual Handling, Operational / Equipment, Cleaning & Chemical Safety. |
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Health and safety |
Safety remains our top priority, our commitment to providing a safe working environment for our employees, supply chain, clients and others is paramount. Through a variety of training and development initiatives, there is a focus on raising safety standards every year. The Company continues to maintain excellent safety standards. Our site is regularly audited by Health & Safety specialists with the results of such safety audits generating improvement recommendations for revised business procedures. Bridge Cheese Ltd obtained grade AA against the BRC (British Retail Consortium) standard audit. |
|
Employees |
Bridge Cheese Ltd recognises that our employees are key assets of the business and, as such, invests in training courses for employees including mandatory short courses; long-term professional qualifications and apprenticeships. The investment in training ensures our employees continue to grow and develop to enable support of the business in delivering its strategic objectives. |
In addition to these long-term programmes, we also run mandatory training where relevant employees cover the following topics; Food Safety, Hygiene, Manual Handling, Operational / Equipment, Cleaning & Chemical Safety. |
|
Customers |
Many of Bridge Cheese's customers have been in partnership with Bridge Cheese for several years and part of Bridge Cheese's success is its ability to maintain positive working relationships with its customers. This has attracted other large clients through our positive reputation and repeat orders. Bridge Cheese places a high importance on working closely with our customers to help them deliver the highest quality standards. |
|
Suppliers |
Our supply chain is a key part of our business and Bridge Cheese ensures that it selects suppliers that can help us provide our clients with a quality product. We adopt long term, mutually rewarding, ongoing relationships with our suppliers and subcontractors. We value the huge contribution that the supply chain makes, and we work very hard to ensure that our supply chain partners are treated fairly. |
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Environment and sustainability |
The directors understand that, as well as their legal responsibility to protect the environment, there is an overriding moral responsibility for the Company to have minimal negative impact on the environment. Our aspiration is to leave a sustainable and lasting positive impact on the surrounding area from production through to delivery. |
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Bridge Cheese Ltd utilises an online reporting tool to measure its waste volumes, energy usage and carbon footprint. Using these measurements, Bridge Cheese is then able to establish targets at Company level and subsequently identify realistic measures to reduce the environmental impact of the business's operations. |
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Bridge Cheese Ltd is committed to the reduction of Greenhouse Gas (GHG) emissions related to operations across the business. To successfully deliver on this commitment, we have chosen to expand our scope of reporting. |
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Bridge Cheese is implementing changes across the business to reduce our carbon footprint, for example, we have reduced water usage through improvement in our productions process and equipment; reduced electrical usage through improved chilling processes and equipment; we promote a cycle to work scheme and provide facilities for secure and safe storage of bikes and equipment; we have reduced the carbon footprint of the laundry required for our garments; have instigated a circular economy for PPE that previously went to landfill and we have reduced our carbon footprint by consolidating delivery days of all customers in certain geographical regions. |
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Bridge Cheese is working with a specialist independent third party to ensure the manner in which carbon emissions are measured, and reported internally, is in line with industry best practice. The scope also includes internal training and guidance on carbon reduction projects that the company works on. |
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Research & Development Activities |
The Company is always looking for continuous improvements from our carbon footprint and environmental impact to our IT infrastructure and systems, to becoming paperless as well as improvements in the way we work on production lines, both from a Health & Safety perspective and a sustainability point of view. |
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REVIEW OF BUSINESS |
GENERAL |
The company has performed well against a backdrop of challenging business conditions and market uncertainty. The company's directors believe that, with the careful management of the company's resources, the company will continue to meet its liabilities as they fall due and trade profitably. |
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FINANCIAL REVIEW |
Turnover |
Turnover increased by 2.2% to £31,199,221 |
|
Gross profit margin |
Gross profit for the year as a percentage of sales was 16.2% (2023: 10.6%). |
|
Profit after taxation |
The profit for the year after tax was £1,012,143 (2023: £968,288) |
|
Cash at bank |
The balance in hand as at 28 September 2024 was £1,377,143 (2023: £1,451,949) |
|
Shareholders' fund |
As at 28 September 2024 these stood at £3,475,183 (2023: £2,614,040) |
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Principal risks and uncertainties |
The principle risks faced by the company and its responses thereto are summarised in this analysis. Not all of these factors are within the company's control. There may be other risks and uncertainties which are unknown to the company or which may not be deemed material now which could turn out to be material in the future. However, the board regularly review these risks and their potential impact on the company. |
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Key risks and the company's response to these risks are shown below. |
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1. Financial Risk Management. |
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The company's financial instruments comprise of cash at bank, loan facility at the company's disposal. The main purpose of these financial instruments is to raise adequate finance for the company's operations, together with management of working capital. |
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The main risk arising from the company's financial instruments is liquidity risk. As can be seen from the cash flow notes in the annexed financial statements the company currently does not suffer from a liquidity problem. It alleviates this risk by agreeing credit terms with its customers and suppliers. |
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2. Foreign Currency and Price Risk |
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The company is exposed to foreign currency fluctuations, although not a significant amount of purchases are in foreign currencies. The company minimises this risk by agreeing appropriate pricing. |
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The company is exposed to a variability in the price of commodities used in the running of its business. This includes exposure to price fluctuations in ingredients purchased. The company mitigates the risk by aligning where possible price negotiations with suppliers to customer contracts. |
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3. Competitive pressure risks |
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The company operates in a highly competitive market environment and performance may suffer if there is a loss of competitiveness vis - a - vis its customers. |
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The company reviews the competitiveness of its services through regular and direct contact with customers in the market. |
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Next Phase of Growth |
The company will continue the path of organic growth by developing sustainable relationships with new customers in existing markets, developing a range of products that can be sold into new markets along with supporting existing customers to grow. Additional resources have been added where appropriate. This increase in overhead will support the growth of the business. |
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Overall strategy |
The overall strategy for the business is to continue to grow and provide great value to its shareholders. |
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Outlook |
Adverse economic conditions and uncertainty can lead to challenging market conditions which could result in pressure on all functions of the business. A medium term business plan coupled with regular forecasting allows us to pre-empt any periods of difficulty and act early. |
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Our operations remain heavily dependent on key suppliers and customers. We monitor regularly supplier service & quality levels with contingent arrangements in place where necessary. |
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The impact of Brexit has been considered on the principal risks noted above. We note that the potentials risk on the economic conditions, particularly the impact of inflation and the reduced purchasing power of pound sterling as well as the uncertainty around the availability of labour in the sector. |
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This report was approved by the board on 16 April 2025 and signed on its behalf. |
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|
Michael V Harte |
Director |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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. |
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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. |
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Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
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Opinions 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. |
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Matters on which we are required to report by exception |
Bridge Cheese Ltd |
Statement of Cash Flows |
for the period from 1 October 2023 to 28 September 2024 |
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Notes |
|
2024 |
|
2023 |
£ |
£ |
Operating activities |
Profit for the period |
1,012,143 |
|
968,288 |
|
Adjustments for: |
Interest receivable |
(11,944) |
|
(1,929) |
Tax on profit on ordinary activities |
329,474 |
|
275,630 |
Depreciation |
777,987 |
|
24,248 |
(Increase)/decrease in stocks |
(1,413,982) |
|
2,446,399 |
(Increase)/decrease in debtors |
(939,551) |
|
718,903 |
Increase/(decrease) in creditors |
1,864,354 |
|
(1,698,804) |
|
|
|
1,618,481 |
|
2,732,735 |
|
Interest received |
11,944 |
|
1,929 |
Corporation tax paid |
(266,657) |
|
(60) |
|
Cash generated by operating activities |
1,363,768 |
|
2,734,604 |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(1,302,037) |
|
126,450 |
Adjustment to fixed asset overhead |
25,111 |
|
(2,438) |
|
Cash (used in)/generated by investing activities |
(1,276,926) |
|
124,012 |
|
|
|
|
|
|
Financing activities |
Equity dividends paid |
(151,000) |
|
(40,000) |
Repayment of loans |
(10,648) |
|
26,041 |
|
Cash used in financing activities |
(161,648) |
|
(13,959) |
|
|
|
|
|
|
Net cash (used)/generated |
Cash generated by operating activities |
1,363,768 |
|
2,734,604 |
Cash (used in)/generated by investing activities |
(1,276,926) |
|
124,012 |
Cash used in financing activities |
(161,648) |
|
(13,959) |
|
Net cash (used)/generated |
(74,806) |
|
2,844,657 |
|
Cash and cash equivalents at 1 October |
1,451,949 |
|
(1,392,708) |
Cash and cash equivalents at 28 September |
1,377,143 |
|
1,451,949 |
|
|
|
|
|
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Cash and cash equivalents comprise: |
Cash at bank |
1,377,143 |
|
1,451,949 |
|
|
|
|
|
|
|
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Fixtures & Fittings, Tools & Equipment |
over 5 years |
|
IT Equipment |
over 3 years |
|
|
Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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|
Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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|
2 |
Analysis of turnover |
2024 |
|
2023 |
£ |
£ |
|
|
Sale of goods |
31,199,221 |
|
30,524,593 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
31,136,048 |
|
30,524,593 |
|
EU |
63,173 |
|
- |
|
|
|
|
|
|
31,199,221 |
|
30,524,593 |
|
|
|
|
|
|
|
|
|
|
3 |
Operating profit |
2024 |
|
2023 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
777,987 |
|
62,454 |
|
Carrying amount of stock sold |
23,895,619 |
|
25,555,941 |
|
|
|
|
|
|
|
|
|
|
4 |
Staff costs |
2024 |
|
2023 |
£ |
£ |
|
|
Wages and salaries |
1,270,092 |
|
828,458 |
|
Social security costs |
118,305 |
|
83,740 |
|
Other pension costs |
18,075 |
|
16,351 |
|
|
|
|
|
|
1,406,472 |
|
928,549 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
78 |
|
67 |
|
|
|
|
|
|
78 |
|
67 |
|
|
|
|
|
|
|
|
|
|
5 |
Taxation |
2024 |
|
2023 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
266,657 |
|
265,214 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
62,817 |
|
10,416 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
329,474 |
|
275,630 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
Profit on ordinary activities before tax |
1,341,617 |
|
1,243,918 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
335,404 |
|
310,980 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
985,619 |
|
2,433 |
|
Capital allowances for period in excess of depreciation |
(1,054,366) |
|
(48,199) |
|
|
Current tax charge for period |
266,657 |
|
265,214 |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
|
|
6 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Plant and machinery |
|
|
|
|
|
|
|
|
At cost |
£ |
|
Cost or valuation |
|
At 1 October 2023 |
638,269 |
|
Additions |
1,302,037 |
|
Adjustment |
(39,662) |
|
At 28 September 2024 |
1,900,644 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 October 2023 |
116,183 |
|
Charge for the period |
777,987 |
|
Adjustment |
(14,551) |
|
At 28 September 2024 |
879,619 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 28 September 2024 |
1,021,025 |
|
At 30 September 2023 |
522,086 |
|
|
|
|
|
|
|
|
|
|
|
7 |
Stocks |
2024 |
|
2023 |
£ |
£ |
|
|
Raw materials and Packaging |
2,290,311 |
|
1,266,931 |
|
Work in progress |
575,350 |
|
262,375 |
|
Finished goods and goods for resale |
285,881 |
|
208,254 |
|
|
|
|
|
|
3,151,542 |
|
1,737,560 |
|
|
|
|
|
|
|
|
|
|
8 |
Debtors |
2024 |
|
2023 |
£ |
£ |
|
|
Trade debtors |
3,023,700 |
|
2,203,161 |
|
Other debtors |
236,376 |
|
117,364 |
|
|
|
|
|
|
3,260,076 |
|
2,320,525 |
|
|
|
|
|
|
|
|
|
|
9 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
£ |
£ |
|
|
Trade creditors |
3,281,270 |
|
2,212,080 |
|
Corporation tax |
266,657 |
|
265,214 |
|
Other taxes and social security costs |
184,384 |
|
43,119 |
|
Other creditors |
44,570 |
|
6,837 |
|
Accruals and deferred income |
1,348,990 |
|
734,267 |
|
|
|
|
|
|
5,125,871 |
|
3,261,517 |
|
|
|
|
|
|
|
|
|
|
10 |
Creditors: amounts falling due after one year |
2024 |
|
2023 |
£ |
£ |
|
|
Bank loans |
15,393 |
|
26,041 |
|
|
|
|
|
|
|
|
|
|
11 |
Deferred taxation |
2024 |
|
2023 |
£ |
£ |
|
|
Accelerated capital allowances |
193,339 |
|
130,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
|
At 1 October |
130,522 |
|
120,106 |
|
Charged to the profit and loss account |
62,817 |
|
10,416 |
|
|
At 28 September |
193,339 |
|
130,522 |
|
|
|
|
|
|
|
|
|
|
|
12 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
13 |
Profit and loss account |
2024 |
|
2023 |
£ |
£ |
|
|
At 1 October |
2,613,040 |
|
1,744,752 |
|
Profit for the period |
1,012,143 |
|
968,288 |
|
Dividends |
(151,000) |
|
(100,000) |
|
|
At 28 September |
3,474,183 |
|
2,613,040 |
|
|
|
|
|
|
|
|
|
|
14 |
Dividends |
2024 |
|
2023 |
£ |
£ |
|
|
Dividends on ordinary shares (note 13) |
151,000 |
|
100,000 |
|
|
|
|
|
|
|
|
|
|
|
15 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
16 |
Legal form of entity and country of incorporation |
|
|
Bridge Cheese Ltd is a private company limited by shares and incorporated in England. |
|
|
17 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Unit 13 Stafford Park 13 |
|
Telford |
|
TF3 3AZ |