| Fruco plc |
| Strategic Report |
|
| The directors present the strategic report and financial statements for the year ended 31 December 2024 |
|
| Fair review of the business |
| The key financial highlights are that the company made a profit of £144,456 before tax on turnover of £8,972,883 compared to a profit of £133,529 on a turnover of £7,431,315 in 2023 . |
|
| The company's gross margin increased from £1,080,178 to £1,219,772. Although the company's overhead costs increased this year, cost controls remain strong, and profits remain high by historic levels. |
|
| At the end of the year, the company had a strong, liquid balance sheet, with cash at bank of £822,177 and net assets of £1,792,213. |
|
| The continuous complications of Brexit and the changes of Government policy in that regard continue to bring challenges and the lack of exports and subsequent return loads for the trucks bringing imported produce to the UK continue to test our profession. Coupled with the continued pressure of the UK supermarkets offering produce below cost price leaves the independent retailer unable to compete and this has a knock on effect down the line. Despite all this the Directors are satisfied with the results for the year and continue to actively review costs and credit control procedures. The continued development of niche products offered to clients has proved highly successful and the Directors are confident that the Company is well placed to maintain its position going forward. |
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| Principal risks and uncertainties |
| Apart from market conditions, the principal risks facing the company relate to bank balances and trade debtors. The company is reliant on the strength of its bankers for safe custody of its cash resources. Credit verification procedures are followed for trade customers backed by indemnity insurance and supported by tight credit control. The company maintains funds in foreign currencies. The directors are aware of the company's required finance and take a prudent attitude towards cash flow management. |
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| This report was approved by the board on 13 June 2025 and signed on its behalf. |
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|
| Mr Simon Lane |
| Director |
|
|
| 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 the audit: |
| ● |
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| ● |
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
|
| Matters on which we are required to report by exception |
| 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. These procedures, together with the extent to which they are capable of detecting irregularities, are detailed below: |
- Agreement of the financial statement disclosure to underlying supporting documentation; - Enquiries and confirmation of directors as to their identification of any non-compliance with laws or regulations, or any actual or potential claims; - Incorporating unpredictability into the nature, timing and extent of testing; - Evaluating the selection and application of accounting policies chosen by the company; - In relation to the risk of management override of controls, by undertaking procedures to review journal entries, assessing accounting estimates and identify and verify transactions outside of the usual course of operations, and evaluating whether there was evidence of any evidence of bias that represented a risk of material misstatements due to fraud; - Assessing the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by considering the key risks impacting the financial statements. Our audit was designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting misstatement resulting from fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. |
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| There are inherent limitations in the audit procedures performed, The further removed instances of non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of them. |
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| A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. |
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| 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. |
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|
| Daniel Valentine ACA |
| (Senior Statutory Auditor) |
| for and on behalf of |
| Begbies, Chartered Accountants |
9 Bonhill Street |
| Statutory Auditor |
London |
| 16 June 2025 |
EC2A 4DJ |
|
| Fruco plc |
| Statement of Cash Flows |
| for the year ended 31 December 2024 |
|
| Notes |
|
2024 |
|
2023 |
| £ |
£ |
| Operating activities |
| Profit for the financial year |
105,168 |
|
101,093 |
|
| Adjustments for: |
| Interest receivable |
(2,009) |
|
(671) |
| Tax on profit on ordinary activities |
39,288 |
|
32,436 |
| Depreciation |
1,141 |
|
761 |
| Amortisation of goodwill |
- |
|
515 |
| (Increase)/decrease in stocks |
(2,490) |
|
31,502 |
| Decrease/(increase) in debtors |
149,582 |
|
(99,791) |
| (Decrease)/increase in creditors |
(341,038) |
|
243,939 |
|
|
|
(50,358) |
|
309,784 |
|
| Interest received |
2,009 |
|
671 |
| Corporation tax paid |
(32,448) |
|
(27,856) |
|
| Cash (used in)/generated by operating activities |
(80,797) |
|
282,599 |
|
|
|
|
|
|
| Investing activities |
| Payments to acquire tangible fixed assets |
- |
|
(3,458) |
|
| Cash used in investing activities |
- |
|
(3,458) |
|
|
|
|
|
|
| Financing activities |
| Equity dividends paid |
(50,000) |
|
(50,000) |
|
| Cash used in financing activities |
(50,000) |
|
(50,000) |
|
|
|
|
|
|
| Net cash (used)/generated |
| Cash (used in)/generated by operating activities |
(80,797) |
|
282,599 |
| Cash used in investing activities |
- |
|
(3,458) |
| Cash used in financing activities |
(50,000) |
|
(50,000) |
|
| Net cash (used)/generated |
(130,797) |
|
229,141 |
|
| Cash and cash equivalents at 1 January 2024 |
952,974 |
|
723,833 |
| Cash and cash equivalents at 31 December 2024 |
822,177 |
|
952,974 |
|
|
|
|
|
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| Cash and cash equivalents comprise: |
| Cash at bank |
822,177 |
|
952,974 |
|
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| Fruco plc |
| Notes to the Accounts |
| for the year ended 31 December 2024 |
|
| 1 |
Summary of significant accounting policies |
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Fruco Plc is a public company limited by shares incorporated in England and Wales. The registered office is 5 Warren Court, Park Road, Crowborough, TN6 2QX. |
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Basis of preparation |
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The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. |
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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 £. |
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The directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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The principal accounting policies adopted are set out below. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and VAT. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer (usually on delivery to the customer), 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. |
|
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
|
Amortisation is recognised so as to write of the cost or valuation of assets less their residual value over their useful lives on the following bases: |
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Domain names |
10 years straight line |
|
|
Tangible fixed assets |
|
|
Stocks |
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Stocks are measured at the lower of cost and estimated selling price less selling costs. Cost comprises the purchase price of fruit and vegetables and all applicable expenditure. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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The tax expense represents the sum of the tax currently payable and payments due to group members in respect of group relief. |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All gains and losses are included in the profit and loss account. |
|
| 2 |
Analysis of turnover |
2024 |
|
2023 |
| £ |
£ |
|
|
Sale of goods |
8,972,883 |
|
7,431,315 |
|
|
|
|
|
|
|
|
|
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By geographical market: |
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|
UK |
8,972,883 |
|
7,431,315 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Operating profit |
2024 |
|
2023 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
1,141 |
|
761 |
|
Amortisation of intangible assets |
- |
|
515 |
|
Exchange losses/(gains) |
(140,547) |
|
(196,992) |
|
Auditors remuneration for audit and accounting services |
11,613 |
|
11,388 |
|
Carrying amount of stock sold |
6,436,339 |
|
5,411,231 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Staff costs |
2024 |
|
2023 |
|
Average number of employees during the year |
Number |
Number |
|
|
Directors |
2 |
|
2 |
|
| 5 |
Taxation |
2024 |
|
2023 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
39,276 |
|
32,436 |
|
Adjustments in respect of previous periods |
12 |
|
- |
|
|
|
|
|
|
39,288 |
|
32,436 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
39,288 |
|
32,436 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Profit on ordinary activities before tax |
144,456 |
|
133,529 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
23.5% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
36,114 |
|
31,379 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
3,162 |
|
1,057 |
|
Adjustments to tax charge in respect of previous periods |
12 |
|
- |
|
|
Current tax charge for period |
39,288 |
|
32,436 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Intangible fixed assets |
|
|
|
|
|
|
|
|
Domain name |
| £ |
|
Cost |
|
At 1 January 2024 |
5,123 |
|
At 31 December 2024 |
5,123 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 January 2024 |
5,123 |
|
At 31 December 2024 |
5,123 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2024 |
- |
|
|
|
|
|
|
|
|
|
|
Domain name is being written off in equal annual instalments over its estimated economic life of 10 years. |
|
|
| 7 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Computer equipment |
|
|
|
|
|
|
|
|
At cost |
| £ |
|
Cost or valuation |
|
At 1 January 2024 |
5,366 |
|
At 31 December 2024 |
5,366 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2024 |
2,669 |
|
Charge for the year |
1,141 |
|
At 31 December 2024 |
3,810 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2024 |
1,556 |
|
At 31 December 2023 |
2,697 |
|
|
|
|
|
|
|
|
|
|
|
| 8 |
Stocks |
2024 |
|
2023 |
| £ |
£ |
|
|
Stock in hand and transit |
32,052 |
|
29,562 |
|
|
|
|
|
|
|
|
|
|
| 9 |
Debtors |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade debtors |
547,872 |
|
736,780 |
|
Amount due from parent undertaking |
|
783,409 |
|
681,936 |
|
Other debtors |
11,975 |
|
12,861 |
|
Prepayments and accrued income |
3,998 |
|
65,259 |
|
|
|
|
|
|
1,347,254 |
|
1,496,836 |
|
|
|
|
|
|
|
|
|
|
| 10 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
| £ |
£ |
|
|
Trade creditors |
337,445 |
|
682,172 |
|
Corporation tax |
39,276 |
|
32,436 |
|
Accruals and deferred income |
34,105 |
|
30,416 |
|
|
|
|
|
|
410,826 |
|
745,024 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
50,000 |
|
50,000 |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Profit and loss account |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January 2024 |
1,687,045 |
|
1,635,952 |
|
Profit for the financial year |
105,168 |
|
101,093 |
|
Dividends |
(50,000) |
|
(50,000) |
|
At 31 December 2024 |
1,742,213 |
|
1,687,045 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Dividends |
2024 |
|
2023 |
| £ |
£ |
|
|
Dividends on ordinary shares (note 12) |
50,000 |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
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| 14 |
Parent company |
|
|
The ultimate parent company is Lane Organisation Limited (company no. 09337881). The company is incorporated in England and Wales and its registered office is 5 Warren Court, Park Road, Crowborough, TN6 2QX. The company is controlled by Mr Simon Lane by virtue of his controlling share in Lane Organisation Limited. |
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|
| 15 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
| 16 |
Legal form of entity and country of incorporation |
|
|
Fruco plc is a private company limited by shares and incorporated in England. |
|
| 17 |
Related party transactions |
|
|
The company has taken advantage of the exemption within section 33 of FRS 102 not to disclose the details of transactions with its parent company. |
|
|
During the year, the company made an advance to a director of £22,600. Interest was charged at the official rate of interest of 2.25%. The loan has been repaid in full by the year end. |