I.M.S. of Smithfield Limited
Annual Report and Financial Statements
For the year ended 30 September 2024
Company Registration No. 00975191 (England and Wales)
I.M.S. of Smithfield Limited
Company Information
Director
C. Raggio
Company number
00975191
Registered office
27 Cedar Way Industrial Estate
Camley Street
London
N1C 4PD
Auditor
Moore Kingston Smith LLP
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
Bankers
NatWest Bank Plc
No. 2 Waterhouse Square
138-142 Holborn
London
EC1N 2TH
I.M.S. of Smithfield Limited
Strategic Report
For the year ended 30 September 2024
Page 1
The director presents the strategic report for the year ended 30 September 2024.
Executive Summary
IMS of Smithfield Ltd is a leading supplier of premium meat products to the catering industry, known for our commitment to quality and sustainability. Our strategic initiatives in 2023 have fortified our market position which drove significant growth and setting the stage for our ambitious future developments.
The company generated a profit before tax of £1,021,153 (2023: £1,080,980). The balance sheet remains strong and includes cash held at the year end of £1,796,707 (2023: £1,792,070).
Market Environment
The catering and foodservice industry in 2024 navigated a complex landscape characterised by supply chain volatility and heightened consumer awareness around sustainability. Despite these challenges, the sector demonstrated robust growth, fuelled by an increasing preference for ethically sourced, high-quality meat products.
Strategic Priorities
Our strategic priorities in 2024 were underpinned by three key pillars:
Sustainability Leadership: We accelerated our sustainability initiatives to reduce environmental impact and meet the growing demand for responsibly sourced products.
Operational Excellence: Preparations for our transition to a state-of-the-art factory in 2025 were a central focus, aimed at enhancing production efficiency and capacity.
Customer Centricity: We remained dedicated to delivering exceptional product quality and customer service, reinforcing our reputation as a trusted supplier.
Sustainability Initiatives
In 2024, we made significant progress in our sustainability efforts:
Ethical Sourcing: Enhanced our procurement processes to prioritize farms adhering to high animal welfare standards and sustainable practices.
Waste Management: Implemented a comprehensive waste reduction program, achieving a 20% reduction in waste compared to the previous year.
Energy Efficiency: Invested in energy-efficient technologies and renewable energy sources, significantly lowering our carbon footprint.
Carbon Accounting: We have onboarded an industry leading carbon accounting consultancy who will certify our carbon footprint (Scopes 1, 2, & 3) and develop/ spearhead strategies to help us achieve our Net Zero ambitions.
Product Development & Innovation: Development Plant-Forward product range to reduce meat consumption on key high volume protein lines and mitigate carbon emissions from the food products we supply
I.M.S. of Smithfield Limited
Strategic Report (Continued)
For the year ended 30 September 2024
Page 2
Principal risks and uncertainties
Our proactive risk management framework addresses key business risks:
Supply Chain Resilience: Strengthened relationships with suppliers to ensure a stable and reliable supply of high-quality meat products.
Regulatory Compliance: Continuously monitoring and adapting to food safety regulations and sustainability standards.
Market Adaptability: Diversifying our product offerings to respond effectively to changing market conditions and consumer preferences.
The management team at IMS of Smithfield remains confident that the business is well placed to mitigate the risks identified and take advantage of opportunities to develop the business as and when they arise.
With changing markets the company is well placed and adapting quickly to changing customer base. Our sales and marketing team are perfectly adapted to this evolving market and are able to take advantage of new opportunities. This is a significant factor for the continued success of the company.
Future Developments:
Our planned move to a state-of-the-art factory in 2025 represents a major milestone, designed to elevate our operational capabilities:
Advanced Technology: The new facility will feature cutting-edge production technologies to improve efficiency and product quality.
Sustainable Design: Incorporating sustainable building materials and energy-efficient systems to minimize environmental impact.
Enhanced Capacity: Expanding our production capacity to meet growing demand and support future growth initiatives.
Looking ahead to 2025 and beyond, we are focused on the following strategic objectives:
Sustainability Excellence: Continue to lead the industry in sustainable practices and ethical sourcing.
Seamless Factory Transition: Ensure a smooth and efficient transition to our new state-of-the-art facility with minimal operational disruption.
Market Expansion: Explore new market opportunities and expand our customer base while maintaining our commitment to quality and service.
Key Performance Indicators
Sales: £20.13m (2023: £18.71m)
Settlement discounts and commission: £149k (2023: £158k)
Gross profit and margin: £6.00m and 30% (2023: £5.43m and 29%)
Cash balances: £1.80m (2023: £1.79m)
Net assets: £2.83m (2023: £2.33m)
C. Raggio
Director
16 May 2025
I.M.S. of Smithfield Limited
Director's Report
For the year ended 30 September 2024
Page 3
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company throughout the year was that of wholesale butchers.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
R. Raggio
(Resigned 1 October 2024)
A. Raggio
(Resigned 1 October 2024)
C. Raggio
Auditor
In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
C. Raggio
Director
16 May 2025
I.M.S. of Smithfield Limited
Director's Responsibilities Statement
For the year ended 30 September 2024
Page 4
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies 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 director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.
I.M.S. Of Smithfield Limited
I.M.S. of Smithfield Limited
Independent Auditor's Report
To the Members of I.M.S. Of Smithfield Limited
Page 5
Opinion
We have audited the financial statements of I.M.S. of Smithfield Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 30 September 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.
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The director is 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.
I.M.S. Of Smithfield Limited
I.M.S. of Smithfield Limited
Independent Auditor's Report (Continued)
To the Members of I.M.S. Of Smithfield Limited
Page 6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's 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 Director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
I.M.S. Of Smithfield Limited
I.M.S. of Smithfield Limited
Independent Auditor's Report (Continued)
To the Members of I.M.S. Of Smithfield Limited
Page 7
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
I.M.S. Of Smithfield Limited
I.M.S. of Smithfield Limited
Independent Auditor's Report (Continued)
To the Members of I.M.S. Of Smithfield Limited
Page 8
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Other matters which we are required to address
The corresponding figures in the financial statements of I.M.S. of Smithfield Limited were not audited as the company did not require a statutory audit under the Companies Act 2006 in the prior year.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
I.M.S. Of Smithfield Limited
I.M.S. of Smithfield Limited
Independent Auditor's Report (Continued)
To the Members of I.M.S. Of Smithfield Limited
Page 9
Amanda Settle
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
16 May 2025
Chartered Accountants
Statutory Auditor
Betchworth House
57-65 Station Road
Redhill
Surrey
RH1 1DL
I.M.S. of Smithfield Limited
Statement of Comprehensive Income
For the year ended 30 September 2024
Page 10
2024
2023
Notes
£
£
Turnover
2
20,129,134
18,712,155
Cost of sales
(14,128,431)
(13,277,591)
Gross profit
6,000,703
5,434,564
Administrative expenses
(4,970,421)
(4,341,131)
Operating profit
3
1,030,282
1,093,433
Interest receivable and similar income
623
Interest payable and similar expenses
(9,752)
(12,453)
Profit before taxation
1,021,153
1,080,980
Taxation
7
(285,203)
(271,172)
Profit for the financial year
735,950
809,808
The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.
I.M.S. of Smithfield Limited
Balance Sheet
As at 30 September 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
428,830
321,130
Current assets
Stock
9
492,969
386,580
Debtors
10
3,512,150
3,107,798
Cash at bank and in hand
3,289,677
1,792,070
7,294,796
5,286,448
Creditors: amounts falling due within one year
11
(4,616,614)
(2,898,866)
Net current assets
2,678,182
2,387,582
Total assets less current liabilities
3,107,012
2,708,712
Creditors: amounts falling due after more than one year
12
(208,242)
(323,542)
Provisions for liabilities
14
(93,869)
(55,719)
Net assets
2,804,901
2,329,451
Capital and reserves
Called up share capital
16
9,000
10,000
Capital redemption reserve
1,000
Profit and loss reserves
2,794,901
2,319,451
Total equity
2,804,901
2,329,451
The financial statements were approved by the board of directors and authorised for issue on 16 May 2025 and are signed on its behalf by:
C. Raggio
Director
Company Registration No. 00975191
I.M.S. of Smithfield Limited
Statement of Changes in Equity
For the year ended 30 September 2024
Page 12
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
10,000
-
1,509,643
1,519,643
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
809,808
809,808
Balance at 30 September 2023
10,000
2,319,451
2,329,451
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
735,950
735,950
Purchase of own shares
-
-
(260,500)
(260,500)
Redemption of shares
16
1,000
1,000
Reduction of shares
16
(1,000)
-
(1,000)
Balance at 30 September 2024
9,000
1,000
2,794,901
2,804,901
I.M.S. Of Smithfield Limited
I.M.S. of Smithfield Limited
Statement of Cash Flows
For the year ended 30 September 2024
Page 13
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,278,529
927,873
Interest paid
(9,752)
(12,453)
Income taxes paid
(234,220)
(32,530)
Net cash inflow from operating activities
2,034,557
882,890
Investing activities
Purchase of tangible fixed assets
(161,773)
(22,827)
Interest received
623
Net cash used in investing activities
(161,150)
(22,827)
Financing activities
Redemption of shares
(260,500)
Repayment of bank loans
(100,000)
(100,000)
Payment of finance leases obligations
(15,300)
(37,825)
Net cash used in financing activities
(375,800)
(137,825)
Net increase in cash and cash equivalents
1,497,607
722,238
Cash and cash equivalents at beginning of year
1,792,070
1,069,832
Cash and cash equivalents at end of year
3,289,677
1,792,070
I.M.S. of Smithfield Limited
Notes to the Financial Statements
For the year ended 30 September 2024
Page 14
1
Accounting policies
Company information
I.M.S. of Smithfield Limited is a private company limited by shares incorporated in England and Wales. The registered office is 27 Cedar Way Industrial Estate, Camley Street, London, N1C 4PD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the invoiced value of goods and services provided net of value added tax and discounts allowed.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Short leasehold land & buildings
Straight line over the period of the lease
Plant and machinery
10% reducing balance
Fixtures and fittings
10% and 20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stock
Stock are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and at bank.
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
Page 15
1.7
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
The pension scheme of the company is funded by the company at rates determined by the company. Such contributions are held in trustee administered funds completely independent of the company's finances. The contributions made by the company are charged against profits on an accruals basis.
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
Page 16
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Turnover
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
47,188
39,638
Depreciation of tangible fixed assets held under finance leases
6,885
16,150
Operating lease charges
429,269
451,468
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,850
22,950
For other services
All other non-audit services
15,000
7,500
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 17
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
78
78
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,360,849
2,056,139
Social security costs
232,915
200,025
Pension costs
44,245
33,236
2,638,009
2,289,400
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
268,265
207,816
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
145,811
93,476
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
247,053
237,000
Deferred tax
Origination and reversal of timing differences
38,150
34,172
Total tax charge
285,203
271,172
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
7
Taxation
(Continued)
Page 18
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,021,153
1,080,980
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
255,288
237,816
Tax effect of expenses that are not deductible in determining taxable profit
19,000
11,251
Permanent capital allowances in excess of depreciation
(27,235)
3,502
Deferred tax adjustments
38,150
18,603
Taxation charge for the year
285,203
271,172
8
Tangible fixed assets
Short leasehold land & buildings
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 October 2023
174,414
758,902
229,231
1,162,547
Additions
126,383
35,390
161,773
At 30 September 2024
174,414
885,285
264,621
1,324,320
Depreciation and impairment
At 1 October 2023
159,412
497,908
184,097
841,417
Depreciation charged in the year
1,071
33,851
19,151
54,073
At 30 September 2024
160,483
531,759
203,248
895,490
Carrying amount
At 30 September 2024
13,931
353,526
61,373
428,830
At 30 September 2023
15,002
260,994
45,134
321,130
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
8
Tangible fixed assets
(Continued)
Page 19
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
61,965
68,850
9
Stock
2024
2023
£
£
Stock
492,969
386,580
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,093,446
2,613,412
Other debtors
245,373
326,073
Prepayments and accrued income
173,331
168,313
3,512,150
3,107,798
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
100,000
100,000
Obligations under finance leases
13
15,300
15,300
Trade creditors
1,863,220
1,614,931
Corporation tax
249,833
237,000
Other taxation and social security
59,895
48,526
Other creditors
1,698,150
107,066
Accruals and deferred income
630,216
776,043
4,616,614
2,898,866
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 20
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
191,667
291,667
Obligations under finance leases
13
16,575
31,875
208,242
323,542
The loan is secured with a fixed and floating charge over all property and undertakings of the company.
13
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
15,300
15,300
In two to five years
16,575
31,875
31,875
47,175
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
93,869
55,719
2024
Movements in the year:
£
Liability at 1 October 2023
55,719
Charge to profit or loss
38,150
Liability at 30 September 2024
93,869
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 21
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,245
33,236
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,000
10,000
9,000
10,000
On 29 February 2024, the company cancelled 1,000 Ordinary shares of £1 each and bought back those shares for an aggregate amount of £260,500.
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
416,384
416,384
Between two and five years
32,209
438,074
448,593
854,458
Operating lease rentals paid in the year were £416,384 (2023: £451,468).
18
Related party transactions
Remuneration of key management personnel
Key management personnel are considered to be the directors and their remuneration is disclosed in note 6.
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
18
Related party transactions
(Continued)
Page 22
Other information
Included within other debtors is £100,000 ( 2023- £nil) due from C Raggio, a director of the company. This balance is interest free and repayable on demand.
Included within other debtors is £nil (2023- £175,000) due from M Raggio, a relative of the director. This balance is interest free and repayable on demand.
19
Events after the reporting date
On 1 October 2024, 3,384 £1 ordinary shares were repurchased by the company at total consideration of £1,996,560 and the shares have been cancelled following the re-purchase.
On 23 February 2025 the company entered into a 15 year operating lease for new premises. The initial annual rent of £272,756 will be payable from 23 August 2025. The existing premises lease will be terminated.
20
Ultimate controlling party
The ultimate controlling party is C Raggio by virtue of his shareholding.
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
735,950
809,808
Adjustments for:
Taxation charged
285,203
271,172
Finance costs
9,752
12,453
Investment income
(623)
Depreciation and impairment of tangible fixed assets
54,073
55,788
Movements in working capital:
(Increase)/decrease in stock
(106,389)
1,259
Increase in debtors
(404,352)
(493,739)
Increase in creditors
1,704,915
271,132
Cash generated from operations
2,278,529
927,873
I.M.S. of Smithfield Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 23
22
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,792,070
1,497,607
3,289,677
Borrowings excluding overdrafts
(391,667)
100,000
(291,667)
Obligations under finance leases
(47,175)
15,300
(31,875)
1,353,228
1,612,907
2,966,135
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