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Registered number: 01328083












COMMUNITY FOODS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

 

COMMUNITY FOODS LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 5
Directors' report
 
6 - 9
Independent auditor's report
 
10 - 13
Income statement
 
14
Statement of comprehensive income
 
15
Statement of financial position
 
16
Statement of changes in equity
 
17
Notes to the financial statements
 
18 - 37


 

COMMUNITY FOODS LIMITED
 
COMPANY INFORMATION


Directors
Martin Rome 
David Lewis 
Tracy Kane 
Colin Smyth 
Mustafa Yasar 
Trevor Shaul 
Huseyin Yaylagul 




Registered number
01328083



Registered office
Community House
29 - 31 Eastways

Witham

Essex

England

CM8 3YQ




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Bankers
Barclays Corporate
1 Churchill Place

London

E14 5HP




Solicitors
Clyde & Co LLP
The St Botolph Building

138 Houndsditch

London

EC3A 7AR




Page 1

 

COMMUNITY FOODS LIMITED
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 29 MARCH 2025

Introduction
 
The directors present the strategic report for the period ended 29 March 2025.

Business review
 
The company has been able to continue the strong performance experienced in the final months of the previous financial year.
Early on in the year, the procurement team was able to secure a range of raw materials at competitive prices as the industry entered a period of significant inflation, resulting in an increase in gross margin profit from £10,731,438 in 2024 to £13,151,837 in 2025.
These circumstances have helped the company to deliver an above budget performance, with increased revenue in 2025 to £86,856,655 from £76,800,288 in 2024. The senior team has been further strengthened during the year with the appointment of new heads of department in Technical and Ingredients.
Due to the companies trading performance, finances have been further supported by our banking partner, Praetura Corporate Finance with an additional £6m being provided. This enabled the company to deliver excellent levels of service throughout the all important Christmas and Easter trading periods.
Under the ownership of Vesta SA, the company has been able to pursue new opportunities whilst being able to enjoy the security of supply in a challenging environment.
The company has continued to invest in the UK site and personnel to enhance competitiveness and efficiency.
The company remains well placed to grow and prosper in the year ahead, whereby we look to grow revenue, and diversify our product offering with a renewed focus on NPD and valued added products. 

Going Concern
The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks. The directors considered the impact of the current environment on the business for the next 12 months, and the longer term, and deem that the position of the business is well placed to continue its growth trajectory. 
The directors have produced forecasts which suggest that the company will continue to operate with sufficient liquidity and will meet its financial covenant obligations with its lenders.
The directors believe that the company is well placed to manage its financing and other business risks satisfactorily and have a reasonable expectation that the company will have adequate resources to continue in operation for at least 12 months from the signing date of these financial statements. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
Principal risks and uncertainties
The directors have assessed the main risks facing the company as being credit risk, liquidity and cash flow risk and an exposure to foreign exchange currency movements:
Credit risk
The company’s principal financial assets are trade receivables and the recoverability of trade receivable balances represents the principal risk facing the business.
Trading account limits are set for all customers based on a combination of payment history and third-party credit agencies in order to manage credit risk. Credit limits are reviewed by management on an ongoing basis and in conjunction with current receivables age profiling and an ongoing monitoring of receivables collection history. The business currently insures all of its receivables book through a leading market insurer.

Page 2

 

COMMUNITY FOODS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

Principal risks and uncertainties (continued)
 
Liquidity and cash flow risk
The company seeks to manage liquidity and cash flow risk by arranging sufficient working capital finance facilities which are in place to enable the company to meet foreseeable requirements.
The company's policy throughout the period had been to achieve this objective through management's day-to-day involvement in business decisions.
Currency risk
The company is also exposed to translation and transaction foreign exchange risk. The company enters into forward exchange contracts including cashflow hedging arrangements with its bankers in order to protect the business against adverse currency movement in both GBP/USD and other currency pairings.
Foreign exchange differences on retranslation of these liabilities are taken to the statement of comprehensive Income.
Food Safety Risk
Food safety is a key operational risk that could have significant reputational, legal, and financial consequences for the company. We are committed to maintaining the highest standards of food safety and compliance across all areas of our business. To mitigate this risk, we implement rigorous quality assurance procedures, including regular supplier audits, employee training, and adherence to recognised food safety standards. We continuously monitor regulatory developments and maintain robust traceability systems to ensure rapid response in the event of a safety concern. These measures help protect our consumers, brand integrity, and long-term operational resilience.

Section 172(1) Statement
 
The board of directors of Community Foods Limited, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the company having regard to its stakeholders in the decisions taken during the financial period ended on 29 March 2025.

Shareholders
The company’s shareholders are vital to the future success of the business providing support when needed to aid business growth and the generation of sustainable returns.

Customer and clients
The board of directors regularly review client relationships to ensure they are acting in the best interests of the company and its stakeholders. The company continuously strives for new ways to add value to its client engagements.

Employees
The company’s people, including its employees, contractors and consultants, are key to its success both individually and collaboratively as a team. The company engages with its staff through regular meetings, including formal partnership meetings, and briefings. The directors have implemented policies and procedures and provide training to ensure that staff understand their obligation to act with integrity, due skill, care and diligence as well as paying due regard to the interests of clients and the requirement to treat them fairly.

Page 3

 

COMMUNITY FOODS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

Suppliers
The directors aim to act responsibly and fairly in how the company engages with its suppliers and service providers. The company considers its suppliers as important business partners to its strategic success.

Government regulators
The directors believe it is of utmost importance to behave responsibly, to operate with high standards of business conduct and lead by example. The company therefore acts in a transparent and cooperative way with all government bodies.

Community and the environment
Given the nature of the company’s operations, the impact of its operations on the community and environment is considered.
The company has now adopted scope 3 carbon reporting and is working with its suppliers of services and materials to further improve the supply chain wherever possible. During the course of the year a substantial amount of the companies sales are now collected on a “backhaul” basis, vastly improving vehicle utilisation.

Key performance indicators
 
Gross profit
For the period under review, a gross profit of £13,151,837 (15%) was achieved compared to £10,731,438 in the prior year (14%).
Operating profit
For the period under review, the operating profit was £3,960,412 (2024: £1,638,919).
Inventories
Inventories are not only perishable with a defined life but tie up working capital. Inventories have increased to £12,877,516 from £10,539,785 in the previous period. This increase in inventory levels was primarily due to enable the business to service its customers at the right optimum service levels.
Headcount
The head count increased slightly compared with prior period, 166 in the current period compared to 153 in the prior period.
Shareholders’ funds
Shareholders’ funds have increased to £5,840,960 from £3,796,721 in the previous period.
The Board and management look forward to continuing the path of profitability and growth, as it looks to invest in new initiatives.

Page 4

 

COMMUNITY FOODS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025


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



Martin Rome
Director

Date: 14 June 2025

Page 5

 

COMMUNITY FOODS LIMITED

DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 MARCH 2025

The directors present their report and the financial statements for the period ended 29 March 2025.

Principal activity

The principal activity in the period under review continued to be that of merchanting food products for retail and manufacture.

Directors

The directors who served during the period were:

Martin Rome 
David Lewis 
Tracy Kane 
Colin Smyth 
Mustafa Yasar 
Trevor Shaul 
Huseyin Yaylagul 

Results and dividends

The profit for the period, after taxation, amounted to £3,049,986 (2024 - £276,884).

A dividend of £1,000,725 (2024: £nil) was declared and paid in the financial year.

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the period. These provisions remain in force at the reporting date.

Auditor

The auditor, Blick Rothenberg Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Matters covered in the Strategic report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, as required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Streamlined energy and carbon report

In accordance with the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 the company’s greenhouse gas emission and energy use are set out below:





Page 6

 

COMMUNITY FOODS LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

Period
ended
29 March
Period
ended
30 March
2025
2024
kgCO2e
kgCO2e

Emissions of CO2 equivalent


Scope 1
59,620
72,020

Scope 2
192,450
186,110

Scope 3
12,040
10,970

Total emissions
264,110
269,100


Intensity ratio

Emission intensity per metric tonne finished goods for the year 15.7kg (2024 - 16.9kg).
 

Period
ended
29 March
Period
ended
30 March
2025
2024
kWh
kWh

Energy consumption


Scope 1
292,692
350,956

Scope 2
929,495
898,775

Scope 3
51,840
47,212

Total energy consumption
1,274,027
1,296,943

Quantification and reporting methodology
Reporting has taken into account all activities undertaken at our site in Witham, Essex, where Community has full financial control.
The reporting timescale is from April 2024 to March 2025, in line with our financial year.
All emissions data was calculated using the UK Government’s Emissions Factor Database 2023. There are no omissions from the mandatory reporting scope.

Measures taken to improve energy efficiency
The focus of our 24/254 financial year has been:
Improving communication to staff around our environmental responsibilities and commitments - using internal newsletters, video screens and site visits to illustrate the measures we action as a company.
Data gathering for our scope 3 reporting has been a process of continual improvement. This year we have been able to use more in-depth data specific to our customers, which in turn delivers a more robust view of our impact rather than relying on industry averages.

Page 7

 

COMMUNITY FOODS LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

Development and performance

The directors intend to continue Community Foods Limited as a merchant of food products for the retail and manufacture for the foreseeable future. The directors aim to maintain management policies and to undertake continual investment to identify and develop opportunities for new and existing product offerings to grow market share further.

Financial instruments

In order to manage its exposure to foreign exchange risk, the company enters into foreign exchange forward contracts. Some of these have been treated as cash flow hedges.

Statement of directors' responsibilities

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Page 8

 

COMMUNITY FOODS LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

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





Martin Rome
Director

Date: 14 June 2025

Page 9

 

COMMUNITY FOODS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COMMUNITY FOODS LIMITED
 FOR THE PERIOD ENDED 29 MARCH 2025

Opinion


We have audited the financial statements of Community Foods Limited (the 'company') for the period ended 29 March 2025, which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 29 March 2025 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 10

 

COMMUNITY FOODS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COMMUNITY FOODS LIMITED (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

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 reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 11

 

COMMUNITY FOODS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COMMUNITY FOODS LIMITED (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

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.


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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;  
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's wholesale and retail business sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;  and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we: 

performed analytical procedures to identify any unusual or unexpected relationships; 
tested a sample of journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the company’s legal advisors.
Page 12

 

COMMUNITY FOODS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COMMUNITY FOODS LIMITED (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2025

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.





Thomas Dickinson (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
16 June 2025
Page 13

 

COMMUNITY FOODS LIMITED
 
INCOME STATEMENT
FOR THE PERIOD ENDED 29 MARCH 2025

Period ended
29 March
Period
ended
30 March
2025
2024
Note
£
£

  

Turnover
 4 
86,856,655
76,800,288

Cost of sales
  
(73,704,818)
(66,068,850)

Gross profit
  
13,151,837
10,731,438

Administrative expenses
  
(9,191,425)
(8,896,691)

Exceptional item
     5 
-
(195,828)

Operating profit
 6 
3,960,412
1,638,919

Interest payable and similar expenses
 9 
(1,310,426)
(1,362,035)

Profit before tax
  
2,649,986
276,884

Tax on profit
 10 
400,000
-

Profit for the financial period
  
3,049,986
276,884

The income statement has been prepared on the basis that all operations are continuing operations.
Operating profit excluding exceptional costs was £3,960,412 (2024: £1,834,747).



Page 14

 

COMMUNITY FOODS LIMITED

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 MARCH 2025

Period ended
29 March
Period ended
30 March
2025
2024
£
£


Profit for the financial period

  

3,049,986
276,884

Other comprehensive income
  


Cash flow hedges loss arising in the period
  
(5,022)
(269,148)

Total comprehensive income for the period
  
3,044,964
7,736

Page 15


 
REGISTERED NUMBER:01328083
COMMUNITY FOODS LIMITED

STATEMENT OF FINANCIAL POSITION
AS AT 29 MARCH 2025

29 March
30 March
2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 12 
86,539
133,051

Tangible assets
 13 
2,570,256
2,383,814

Investments
 14 
1,001
1,001

Total fixed assets
  
2,657,796
2,517,866

Current assets
  

Inventories
 15 
12,877,516
10,539,785

Trade and other receivables
 16 
16,737,597
15,470,527

Cash at bank and in hand
 17 
2,714,332
1,126,686

Total current assets
  
32,329,445
27,136,998

Total assets
  
34,987,241
29,654,864


Equity
  

Called up share capital 
 20 
71,000
71,000

Capital contribution reserves
 21 
5,240,825
5,240,825

Capital redemption reserve
 21 
59,000
59,000

Hedging reserve
 21 
(537,081)
(532,059)

Retained earnings
 21 
1,007,216
(1,042,045)

Total equity
  
5,840,960
3,796,721

Current liabilities
  

Trade and other payables
 18 
29,146,281
25,858,143

Total equity and liabilities
  
34,987,241
29,654,864


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Martin Rome
Director

Date: 14 June 2025

The notes on pages 18 to 37 form part of these financial statements.

Page 16

COMMUNITY FOODS LIMITED


 
  
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 MARCH 2025



Called up share capital
Capital redemption reserve
Hedging
reserve
Capital
contribution
reserves
Profit and loss account
Total equity


£
£
£
£
£
£



At 26 March 2023
71,000
59,000
(262,911)
-
(1,318,929)
(1,451,840)



Comprehensive income for the period


Profit for the period
-
-
-
-
276,884
276,884


Cash flow hedges losses
-
-
(269,148)
-
-
(269,148)

Total comprehensive income for the period
-
-
(269,148)
-
276,884
7,736


Contributions for the period
-
-
-
5,240,825
-
5,240,825





At 31 March 2024
71,000
59,000
(532,059)
5,240,825
(1,042,045)
3,796,721



Comprehensive income for the period


Profit for the period
-
-
-
-
3,049,986
3,049,986


Cash flow hedges losses
-
-
(5,022)
-
-
(5,022)

Total comprehensive income for the period
-
-
(5,022)
-
3,049,986
3,044,964


Dividends: Equity capital
-
-
-
-
(1,000,725)
(1,000,725)



At 29 March 2025
71,000
59,000
(537,081)
5,240,825
1,007,216
5,840,960



The notes on pages 18 to 37 form part of these financial statements.

Page 17
 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

1.


General information

Community Foods Limited is a company limited by shares incorporated in England and Wales. The registered office is Community House, 29-31 Eastways, Witham, Essex, England, CM8 3YQ. The principal activity of the company is merchanting food products for retail and manufacture.

The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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

The following principal accounting policies have been applied:

  
2.2

Exemption from preparing consolidated financial statements

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 the results of 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:
 
Section 7 Statement of Cash Flows – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 Financial Instruments – paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
Section 12 Other Financial Instruments – paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A and;
Section 33 Related Party Disclosures – Compensation for key management personnel.

The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking and is included in the consolidated accounts of the parent company, Community Foods (Holdings) Limited, a company incorporated in England. The consolidated financial statements of Community Foods (holdings) Limited are available from its registered office at Community House, 29-31 Eastways, Witham, Essex, England, CM8 3YQ.

Page 18

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

2.Accounting policies (continued)

 
2.3

Going concern

The directors have prepared detailed budgets, cashflow forecasts and covenant forecasts. At the time of approving the financial statements, the directors expect that the company will have adequate resources to continue in operational existence for the foreseeable future, being a period of 12 months from the date of approval of these financial statements. The underlying profitability of the business and the continued financial support from the ultimate parent company Vesta TARIM A.S. of Turkey, of which the directors have received confirmation that Vesta intended to support the company for at least one year after these financial statements are signed, has allowed the director to continue to adopt the going concern basis of accounting in preparing the financial statements.  

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 19

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

2.Accounting policies (continued)

 
2.6

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the income statement over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 20

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Land and buildings - leasehold
-
remaining life of the lease
Plant and machinery
-
10% - 25% per annum straight line
Fixtures, fittings & equipment
-
25% per annum straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

  
2.13

Inventories

Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, inventories are assessed for impairment. If inventories is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 21

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

2.Accounting policies (continued)


2.15

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 

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. 
 
The company’s policies for its major classes of financial assets and financial liabilities are set out below. 

Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

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

Page 22

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

2.Accounting policies (continued)




Financial instruments (continued)

Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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 and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

  
2.16

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Page 23

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

2.Accounting policies (continued)

  
2.17

Derivatives

The company enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

Hedge accounting

The company designates certain hedging instruments, including derivatives, embedded derivatives and non-derivatives, as either fair value hedges or cash flow hedges. At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair value or cash flows of the hedged item.

Cash flow hedges

The effective portion of changes in fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods in which the hedged item affects profit or loss or when the hedging relationship ends.

Hedge accounting is discontinued when the company revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time is reclassified to profit or loss when the hedged item is recognised in profit or loss. When a forecast transaction is no longer expected to occur, any gain or loss that was recognised in other comprehensive income is reclassified immediately to profit or loss.

Page 24

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

2.Accounting policies (continued)

 
2.18

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
 
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

  
2.19

Employee benefits

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.

  
2.20

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 25

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

3.


Judgements in applying accounting policies 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.
Significant judgement and estimates
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Deferred tax assets
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 which requires significant judgements including profit forecast based on the promotional, competitive and economic environment.
Inventory provisions
The company estimates the net realisable value of the goods held for resale based on the condition and ageing of the goods. Management also take into consideration the current and future expected sales performance that may have an effect on the value of goods sold. An impairment provision is made where the net realisable value is estimated to be lower than the cost.
Hedge accounting
As described in note 2, the company uses foreign currency contracts to hedge its exposure to exchange rate fluctuations. The fair value gains and losses on the hedged items are recognised through the Statement of Comprehensive Income and the Hedging Reserve represents the cumulative effective fair value gains and losses on cash flow hedges.
The hedging effectiveness assessment requires judgement to determine whether an economic relationship exists between the hedge item and the hedging instrument. The prospective hedge effectiveness test is a forward-looking evaluation of whether or not the changes in the fair value or cash flows of the hedging item are expected to be highly effective in offsetting the changes in the fair value or cash flows of the hedged item over the term of the relationship. As such this is a key source of estimation uncertainty.

Page 26

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

4.


Turnover

The whole of the turnover is attributable to the principal activity of the company, being the merchanting food products for retail and manufacture.

Analysis of turnover by country of destination:

Period ended
29 March
Period ended
30 March
2025
2024
£
£

United Kingdom
84,773,326
75,600,934

Rest of Europe
2,083,329
1,199,354

86,856,655
76,800,288



5.


Exceptional costs

Period ended
29 March
Period
ended
30 March
2025
2024
£
£


Exceptional administrative costs
-
195,828

The costs in 2024 relate to fees incurred in change-over of finance facility providers.


6.


Operating profit

The operating profit is stated after charging:

Period ended
29 March
Period
ended
30 March
2025
2024
£
£

Exchange differences
(422,947)
66,592

Fees payable to the company's auditor for the audit of the company's financial statements
46,500
55,000

Fees payable to the company's auditor for the audit of the company's financial statements - in relation to the prior period
-
12,500

Depreciation of owned property, plant and equipment
376,091
367,156

Amortisation of intangible assets
46,512
49,452

Operating lease charges
415,000
415,000

Page 27

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

7.


Employees

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


Period ended
29 March
Period
ended
30 March
2025
2024
£
£

Wages and salaries
6,868,738
5,558,184

Social security costs
640,217
573,461

Pension costs
408,350
415,311

7,917,305
6,546,956


There are no key management personnel other than the directors. Directors' remuneration is disclosed in note 8.

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


     Period ended
       29 March
     Period ended
        30 March
        2025
        2024
            No.
            No.







Management and administration
27
26



Sales and handling
139
127

166
153

Page 28

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

8.


Directors' remuneration

Period ended
29 March
Period
ended
30 March
2025
2024
£
£

Remuneration for qualifying services
789,142
791,105

Company contributions to defined contribution pension schemes
81,170
141,440

870,312
932,545


During the period retirement benefits were accruing to 6 directors (2024 - 7) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £201,836 (2024 - £210,777).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £30,746 (2024 - £30,746).


9.


Interest payable and similar expenses

Period ended
29 March
Period
ended
30 March
2025
2024
£
£


Interest on bank overdrafts, loans and other finance
1,293,589
1,290,934

Other finance charges
16,837
57,894

Interest payable to group undertakings
-
13,207

1,310,426
1,362,035


10.


Taxation


Period ended
29 March
Period
ended
30 March
2025
2024
£
£

Current tax


Current tax on profits for the year
-
-

Deferred tax


Movement in deferred tax
(400,000)
-

Total tax
(400,000)
-

Page 29

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025
 
10.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

Period ended
29 March
Period
ended
30 March
2025
2024
£
£


Profit on ordinary activities before tax
2,649,986
276,884


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
662,497
69,221

Effects of:


Non-tax deductible amortisation of goodwill and impairment
11,628
12,362

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
63,832
2,432

Capital allowances for period in excess of depreciation
(36,787)
-

Utilisation of tax losses
(701,170)
(84,015)

Deferred tax movement
(400,000)
-

Total tax charge for the period
(400,000)
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

Period ended
29 March
Period
ended 30 March
2025
2024
£
£


Ordinary shares
1,000,725
-

Page 30

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

12.


Intangible assets






Goodwill
Software
Brand
Website
Total

£
£
£
£
£



Cost


At 31 March 2024
355,917
133,004
8,000
20,667
517,588



At 29 March 2025

355,917
133,004
8,000
20,667
517,588



Amortisation


At 31 March 2024
254,237
109,233
400
20,667
384,537


Charge for the year
23,304
21,741
1,467
-
46,512



At 29 March 2025

277,541
130,974
1,867
20,667
431,049



Net book value



At 29 March 2025
78,376
2,030
6,133
-
86,539



At 30 March 2024
101,680
23,771
7,600
-
133,051



Page 31

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

13.


Tangible fixed assets







Land and buildings - leasehold
Plant and machinery
Fixtures, fittings & equipment
Total

£
£
£
£



Cost


At 31 March 2024
917,213
2,936,713
490,197
4,344,123


Additions
81,083
423,965
57,485
562,533



At 29 March 2025

998,296
3,360,678
547,682
4,906,656



Depreciation


At 31 March 2024
355,684
1,244,166
360,459
1,960,309


Charge for the year
73,946
270,005
32,140
376,091



At 29 March 2025

429,630
1,514,171
392,599
2,336,400



Net book value



At 29 March 2025
568,666
1,846,507
155,083
2,570,256



At 30 March 2024
561,529
1,692,547
129,738
2,383,814


14.


Fixed asset investments








Shares in subsidiary undertakings

£



Cost


At 31 March 2024
1,001



At 29 March 2025
1,001




Page 32

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Day+One Limited
Community House, 29-31 Eastways, Witham, Essex, England, CM8 3YQ
Dormant
Ordinary
100%
Jumble B Limited
Community House, 29-31 Eastways, Witham, Essex, England, CM8 3YQ
Dormant
Ordinary
100%


15.


Inventories

29 March
30 March
2025
2024
£
£

Finished goods and goods for resale
12,877,516
10,539,785


An impairment loss of £208,513 (2024: £289,238) was recognised in cost of sales against inventories during the period. There is no significant difference between the replacement cost of the inventories and its carrying amount.

Page 33

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

16.


Trade and other receivables


29 March
30 March
2025
2024
£
£

Due after more than one year

Other receivables
142,103
142,103

Deferred tax asset
459,247
526,467

601,350
668,570

Due within one year

Trade receivables
15,021,655
14,030,864

Amounts owed by group undertakings
134
-

Other receivables
205,135
232,829

Prepayments and accrued income
340,103
436,264

Deferred taxation
569,220
102,000

16,737,597
15,470,527


Trade receivables disclosed above are measured at amortised cost where applicable.


17.


Cash and cash equivalents

29 March
30 March
2025
2024
£
£

Cash at bank and in hand
2,714,332
1,126,686



18.


Trade and other payables: amounts falling due within one year

29 March
30 March
2025
2024
£
£

Other finance
14,110,653
12,034,459

Trade payables
10,653,975
11,524,444

Other taxation and social security
284,847
247,113

Derivative financial instruments
537,081
532,059

Accruals and deferred income
3,559,725
1,520,068

29,146,281
25,858,143


Amounts included in other finance relate to a trade finance facility agreement secured by charges over the assets of the company and the group.

Page 34

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

19.


Deferred taxation






2025


£






At beginning of year
628,467


Charged to profit or loss
400,000



At end of year
1,028,467

The deferred tax asset is made up as follows:

29 March
30 March
2025
2024
£
£


Tax losses carried forward
1,028,467
628,467

The closing deferred tax asset has been calculated at 25% being the substantively enacted tax rate as at the balance sheet date, on the basis that this is the rate at which those assets are expected to unwind. Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.
At 29 March 2025 a deferred tax asset of £2,574,657 (2024: £2,968,418) was not recognised in respect of tax losses, calculated at 25% being the substantively enacted tax rate as at the balance sheet date.


20.


Share capital

29 March
30 March
2025
2024
£
£
Allotted, called up and fully paid



71,000 (2024 - 71,000) Ordinary shares shares of £1.00 each
71,000
71,000

The company has one class of ordinary shares. The shareholders are entitled to receive dividends as and when declared and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.


Page 35

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

21.


Reserves

Capital redemption reserve

The capital redemption reserve records the nominal value of shares repurchased by the company.

Hedging reserve

The hedging reserve reflects the accumulated effective portion of changes in fair value of derivatives on foreign currency forward contracts that are designated and qualify as cash flow hedges. These amounts are recognised in other comprehensive income.

Capital contribution reserve

The capital contribution reserve represents the amount of capital contribution received by the company from the parent company classified as equity.

Profit and loss account

Retained earnings comprise all current and prior years retained profits and losses less dividends paid.


22.


Contingent liabilities

At 29 March 2025 and 30 March 2024 the company had no contingent liabilities.


23.


Capital commitments

At 29 March 2025 and 30 March 2024 the company had no capital commitments contracted but not provided for.


24.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held  separately from those of the company in an independently administered fund. The pension cost charge  represents contributions payable by the company to the fund and amounted £408,350 (2024: £415,311).  Contributions totalling £32,370 (2024: £4,342) were payable to the fund at the balance sheet date and  are included in payables.


25.


Commitments under operating leases

At 29 March 2025 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

29 March
30 March
2025
2024
£
£


Not later than 1 year
621,642
527,101

Later than 1 year and not later than 5 years
1,851,673
1,745,048

Later than 5 years
4,415,138
4,830,138

6,888,453
7,102,287

Page 36

 

COMMUNITY FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2025

26.


Related party transactions

The company has taken advantage of the exemption available under FRS 102 chapter 33 not to disclose transactions or balances with its parent company and wholly owned subsidiaries.
During the period the company paid rent of £415,000 (2024: £415,000) to 29-31 Eastways Limited, a company in which director Mr Martin Rome had a significant interest until 8 July 2024.  At 30 March 2025, £125,000 (2024: £125,000) advanced rent deposit paid by the company remained outstanding. In addition, £41,500 (2024: £34,583) was owed to 29-31 Eastways Limited in respect of monthly rent.


27.


Controlling party

The company's immediate parent company is Community Foods (Holdings) Limited, a company incorporated in Great Britain and registered in England and Wales.
The ultimate parent company is Vesta TARIM A.S. incorporated in Turkey.
The address of Vesta TARIM A.S. is Armutlu 85. YIl Cumhuriyet Mah., Sanayi Cad. No:88, Kemalpasa, 35737, Izmir, Turkey.

 
Page 37