Company registration number 02499642 (England and Wales)
BILLINGTON FOODS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
BILLINGTON FOODS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
BILLINGTON FOODS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the period ended 1 September 2024.

Fair review of the business

The company's principal activities during the period continued to be the manufacture of branded and private label soups, sauces, pies and desserts for retail customers and the pub and restaurant food service sector.

 

BF delivered a significant turnaround in the year driven by sales volume growth and margin improvements along with operational efficiencies.  The Foodservice sector continues to be highly competitive and the business has a number of opportunities in development.

The key financial and other performance indicators during the period were as follows:

52 week period ended
52 week period ended
1 September 2024
3 September 2023
£'000
£'000
Turnover
75,788
67,960
Operating profit/(loss) (pre exceptional item)
123
(4,264)
Loss/(profit) after taxation
(31)
(3,939)
Shareholders funds
6,814
7,094
Current assets % current liabilities
79%
79%
Average number of employees
495
537
Principal risks and uncertainties

The directors meet regularly to discuss the risks facing the business, the principal risks and uncertainties facing the company are broadly competitive and legislative risks:

 

Competitive and Consumer Risks

The company operates in a competitive environment which is driven by customer and consumer tastes. Continual product innovation is conducted by the company to offer its customers high quality premium products that meet customer and consumer tastes.

 

Legislative Risks

The company’s operations are governed by UK and EU legislative requirements on food production, hygiene and safety that must be met to comply with the law. Furthermore, the company’s customers have requirements for food production, hygiene and safety standards. The company strives to be a leader in its production, hygiene and safety standards and procedures to ensure compliance with relevant laws and regulations and customer expectations.

 

Commercial Risks

The company has established a risk and financial management framework to monitor and limit normal commercial risks such as credit control, counter party exposure, customer concentration and cost control, in order to protect the company from such risks.

 

Use of Derivatives

The company uses forward foreign currency contracts and forward purchase contracts to reduce exposure to the variability of foreign exchange rates or commodity prices by fixing the rate of any material payments in a foreign currency or providing certainty to raw material prices.

BILLINGTON FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 2 -

Employees

The company has continued to follow the requirements of Health & Safety at Work Act with concern for the welfare of its employees.

 

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person.

 

The company provides employees with information about the company through internal media methods and newsletters.

 

Policy on payments to creditors

Creditors are paid in accordance with terms of business agreed with suppliers.

 

Given the nature of the company’s activities and agreed terms with suppliers, the directors have not calculated an average creditor day figure as a whole on the basis that such a statement would not be beneficial.

S172 Statement

The Board of directors consider, both individually and collectively, that they have acted in ways that they believe in good faith to be most likely to promote the success of the Company for the benefit of its shareholders as a whole in the decisions they made during the period ended 1 September 2024.

 

We recognise our people as our most important asset and aim to be a responsible employer. The health, safety and wellbeing of our people is of the highest importance. Ensuring a safe working environment is paramount in our day to day operations.

 

Customers are at the heart of everything we do. This is demonstrated in our passion for food and food development in partnership with our retail, foodservice and B2B partners.

 

We seek to develop long term partnerships with our suppliers which are mutually beneficial and ultimately deliver our customer value and a high quality product.

 

As the Board of Directors, our intention is always to behave responsibly and to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. We recognise that the maintenance of our good reputation, founded on responsible behaviour, is fundamental to our continuing ability to achieve profitable growth for the benefit of all our stakeholders in the future.

On behalf of the board

G M Blake
Director
27 May 2025
BILLINGTON FOODS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 3 -

The directors present their annual report and financial statements for the period ended 1 September 2024.

Results and dividends

The results for the period are set out on page 9.

Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

G M Blake
S G Hughes
J Sheppard
P M Allan
K Turner
A S King
Disabled persons

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

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Business relationships

For more information on stakeholder relationships and engagement, see the Section 172 (1) statement within the strategic report.

Auditor

The auditor, Mitchell Charlesworth (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The company is committed to reducing carbon emissions wherever possible and is working with The Carbon Trust to ensure that the company make optimum use of energy at all the factories. The detailed disclosure requirements of the Streamlined Energy and Carbon Reporting Requirements are covered in the report of the parent undertaking Edward Billington and Son Limited.

BILLINGTON FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

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.

Strategic report

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 the company’s strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the Strategic Report on pages 1 and 2.

On behalf of the board
G M Blake
Director
27 May 2025
BILLINGTON FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BILLINGTON FOODS LIMITED
- 5 -
Opinion

We have audited the financial statements of Billington Foods Limited (the 'company') for the period ended 1 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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:

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.

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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

BILLINGTON FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BILLINGTON FOODS LIMITED
- 6 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

BILLINGTON FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BILLINGTON FOODS LIMITED
- 7 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the Statement of Comprehensive Income, (ii) revenue recognition, (iii) understatement of creditors, (iv) the valuation and impairment of stock, (v) the valuation and impairment of fixed assets, and (vi) the going concern status . In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These include food hygiene, BRC regulations and customer compliance audits.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

BILLINGTON FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BILLINGTON FOODS LIMITED
- 8 -

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 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.

Philip Griffiths
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
27 May 2025
Accountants
Statutory Auditor
Suites C, D, E & F
14th Floor, The Plaza
100 Old Hall Street
Liverpool
England
L3 9QJ
BILLINGTON FOODS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 9 -
Period
Period
ended
ended
1 September
3 September
2024
2023
Notes
£
£
Turnover
3
75,788,091
67,960,291
Cost of sales
(64,395,605)
(59,128,739)
Gross profit
11,392,486
8,831,552
Distribution costs
(3,475,879)
(3,053,074)
Administrative expenses
(7,793,594)
(10,042,883)
Operating profit/(loss)
4
123,013
(4,264,405)
Interest receivable and similar income
8
28,477
-
0
Interest payable and similar expenses
9
(93,042)
(627,434)
Profit/(loss) before taxation
58,448
(4,891,839)
Tax on profit/(loss)
10
(89,000)
953,000
Loss for the financial period
(30,552)
(3,938,839)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BILLINGTON FOODS LIMITED
BALANCE SHEET
AS AT
1 SEPTEMBER 2024
01 September 2024
- 10 -
1 September 2024
3 September 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
248,603
291,211
Tangible assets
13
17,994,748
18,700,051
Investments
14
301
301
18,243,652
18,991,563
Current assets
Stocks
16
11,016,307
11,175,119
Debtors
17
21,874,306
22,417,904
Cash at bank and in hand
7,327
75,044
32,897,940
33,668,067
Creditors: amounts falling due within one year
18
(41,471,061)
(42,801,547)
Net current liabilities
(8,573,121)
(9,133,480)
Total assets less current liabilities
9,670,531
9,858,083
Provisions for liabilities
Deferred tax liability
20
2,857,000
2,764,000
(2,857,000)
(2,764,000)
Net assets
6,813,531
7,094,083
Capital and reserves
Called up share capital
22
3,240,000
3,240,000
Share premium account
120,000
120,000
Profit and loss reserves
3,453,531
3,734,083
Total equity
6,813,531
7,094,083
The financial statements were approved by the board of directors and authorised for issue on 27 May 2025 and are signed on its behalf by:
S G Hughes
Director
Company registration number 02499642 (England and Wales)
BILLINGTON FOODS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 4 September 2022
3,240,000
120,000
7,672,922
11,032,922
Period ended 3 September 2023:
Loss and total comprehensive income
-
-
(3,938,839)
(3,938,839)
Balance at 3 September 2023
3,240,000
120,000
3,734,083
7,094,083
Period ended 1 September 2024:
Loss and total comprehensive income
-
-
(30,552)
(30,552)
Dividends
11
-
-
(250,000)
(250,000)
Balance at 1 September 2024
3,240,000
120,000
3,453,531
6,813,531
BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information

Billington Foods Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cunard Building, Water Street, Liverpool, Merseyside, L3 1EL.

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 under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Edward Billington and Son Limited. These consolidated financial statements are available from its registered office, 2nd Floor, Cunard Building, Liverpool, Merseyside, L3 1EL.

1.2
Going concern

At the time of approving the financial statementstrue, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future with the ongoing support of group companies. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade and settlement discounts.

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.

BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.

Amortisation 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:

Software
10%-33% per annum
Trademarks
20 years
1.5
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 provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements
Over the lease term
Plant and machinery
Up to 20 years
Fixtures, fittings & equipment
Up to 10 years
Motor vehicles
Up to 7 years

No depreciation is charged against assets held in Assets Under Construction until they are brought in to use.

 

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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
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 is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less tax.

 

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax is measured on an undiscounted basis at the rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the Balance Sheet date.

1.13
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.

1.14
Retirement benefits

Contributions in respect of defined contribution pension schemes are charged to the Profit and Loss Account when they become payable.

BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.15
Leases

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.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Related parties

Details of transactions with fellow group undertakings where control is wholly within the group are not disclosed in these accounts as they are included in the consolidated accounts of Edward Billington and Son Limited.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of fixed assets

The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by the directors when determining the residual values for plant, machinery and equipment. When determining the residual value management assesses the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Recoverability of debtors

Bad debts are recognised where there are indicators of non-recoverability, and appropriate action has been taken to recover the debt unsuccessfully. When assessing recoverability, the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual groups of customers.

Slow moving and obsolete stocks

Stock provisions are recognised where there are indicators of recoverable value being lower than cost. In establishing the level of provisioning required, management consider discontinued lines, slow moving or obsolete stock, and use by date data from the stock system.

BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Impairment of fixed assets and investments

Where an indication of impairment exists, the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.

3
Turnover and other revenue

An analysis of the company's turnover (all within the United Kingdom) is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
75,788,091
67,960,291
2024
2023
£
£
Other revenue
Interest income
28,477
-
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the period is stated after charging/(crediting):
£
£
Exchange gains
(12,945)
(10,409)
Depreciation of owned tangible fixed assets
1,613,289
1,700,538
Loss on disposal of tangible fixed assets
12,308
14,311
Amortisation of intangible assets
47,069
47,069
Operating lease charges
1,531,309
1,243,388

Remuneration paid to the company's auditor for services other than the statutory audit of the company are not analysed in these accounts, since the consolidated accounts of the ultimate parent undertaking, Edward Billington and Son Limited are required to disclose non-audit fees on a consolidated basis.

5
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
27,000
31,000
BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 19 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2024
2023
Number
Number
Production
414
440
Administration
73
89
Sales
8
8
Total
495
537

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
14,643,592
14,619,538
Social security costs
1,341,898
931,631
Pension costs
852,018
667,035
16,837,508
16,218,204
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
419,214
408,847
Company pension contributions to defined contribution schemes
84,004
73,253
503,218
482,100

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
161,718
158,987
Company pension contributions to defined contribution schemes
27,408
24,662
BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
7
Directors' remuneration
(Continued)
- 20 -

Directors' emoluments stated above reflects 3 directors (2023 - 3 directors) employed and remunerated by the company. The other directors are employed and remunerated by the ultimate parent undertaking and recharged where appropriate.

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
28,477
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest payable to group undertakings
93,042
627,434
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(59,000)
(1,068,000)
Adjustments in respect of prior periods
55,000
(135,000)
Total current tax
(4,000)
(1,203,000)
Deferred tax
Origination and reversal of timing differences
93,000
29,000
Adjustment in respect of prior periods
-
0
221,000
Total deferred tax
93,000
250,000
Total tax charge/(credit)
89,000
(953,000)
BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
10
Taxation
(Continued)
- 21 -

The actual charge/(credit) for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
58,448
(4,891,839)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.50%)
14,612
(1,051,745)
Tax effect of expenses that are not deductible in determining taxable profit
20,600
11,000
Unutilised tax losses carried forward
(1,800)
-
0
Adjustments in respect of prior years
55,000
85,000
Depreciation on assets not qualifying for tax allowances
1,200
1,000
Adjustment to reflect effective rate of tax
(612)
6,745
Enhanced allowances
-
0
(5,000)
Taxation charge/(credit) for the period
89,000
(953,000)
11
Dividends
2024
2023
£
£
Interim paid
250,000
-
0
BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 22 -
12
Intangible fixed assets
Software
Trademarks
Total
£
£
£
Cost
At 4 September 2023
1,070,635
530,527
1,601,162
Additions - internally developed
4,461
-
0
4,461
At 1 September 2024
1,075,096
530,527
1,605,623
Amortisation and impairment
At 4 September 2023
940,332
369,619
1,309,951
Amortisation charged for the period
20,542
26,527
47,069
At 1 September 2024
960,874
396,146
1,357,020
Carrying amount
At 1 September 2024
114,222
134,381
248,603
At 3 September 2023
130,303
160,908
291,211
13
Tangible fixed assets
Leasehold improvements
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 4 September 2023
12,495,823
145,209
26,029,423
1,265,639
38,844
39,974,938
Additions
112,644
-
0
906,670
38,214
-
0
1,057,528
Disposals
-
0
-
0
(246,338)
-
0
(24,055)
(270,393)
Transfers
-
0
(145,209)
145,209
-
0
-
0
-
0
At 1 September 2024
12,608,467
-
0
26,834,964
1,303,853
14,789
40,762,073
Depreciation and impairment
At 4 September 2023
5,936,415
-
0
14,205,581
1,094,047
38,844
21,274,887
Depreciation charged in the period
192,368
-
0
1,374,917
46,004
-
0
1,613,289
Eliminated in respect of disposals
-
0
-
0
(96,796)
-
0
(24,055)
(120,851)
At 1 September 2024
6,128,783
-
0
15,483,702
1,140,051
14,789
22,767,325
Carrying amount
At 1 September 2024
6,479,684
-
0
11,351,262
163,802
-
0
17,994,748
At 3 September 2023
6,559,408
145,209
11,823,842
171,592
-
0
18,700,051
BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 23 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
301
301
15
Subsidiaries

These financial statements are separate company financial statements for Billington Foods Limited.

Details of the company's subsidiaries at 1 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Love Pies Limited
England and Wales
Ordinary
100.00
Love Puds Limited
England and Wales
Ordinary
100.00
Love Soup Limited
England and Wales
Ordinary
100.00
Moo Co (UK) Limited
England and Wales
A Ordinary
100.00
16
Stocks
2024
2023
£
£
Raw materials and consumables
3,856,367
6,796,169
Finished goods and goods for resale
7,159,940
4,378,950
11,016,307
11,175,119

Amounts recognised in cost of sales during the period in respect of stock losses and obsolescence were £215,000 (2023 £284,000).

17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
9,030,378
8,981,702
Amounts owed by group undertakings
10,662,753
11,186,173
Other debtors
1,069,150
1,165,611
Prepayments and accrued income
1,112,025
1,084,418
21,874,306
22,417,904

During the period there was an impairment loss amounting to £5,866 (2023: £4,954) recognised against trade debtors.

 

 

BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 24 -
18
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
10,040,487
8,465,488
Amounts owed to group undertakings
27,258,785
29,374,869
Other creditors
233,961
274,189
Accruals and deferred income
3,937,828
4,687,001
41,471,061
42,801,547
19
Provisions for liabilities
2024
2023
Notes
£
£
Deferred tax liabilities
20
2,857,000
2,764,000
2,857,000
2,764,000
20
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:
£
£
Accelerated capital allowances
2,857,000
2,764,000
2024
Movements in the period:
£
Liability at 4 September 2023
2,764,000
Charge to profit or loss
93,000
Liability at 1 September 2024
2,857,000
BILLINGTON FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 1 SEPTEMBER 2024
- 25 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
852,018
667,035

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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 50p each
6,480,000
6,480,000
3,240,000
3,240,000
23
Bank security

The company has provided a fixed and floating charge over all assets of the company to Barclays Bank plc.

24
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
994,341
822,845
Between two and five years
2,340,575
2,301,941
In over five years
1,124,565
1,461,935
4,459,481
4,586,721
25
Ultimate controlling party

The ultimate parent undertaking is Edward Billington and Son Limited, which is itself incorporated in England and Wales.

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