Company Registration No. 09524715 (England and Wales)
Ridgeway Foods Limited
Annual report and financial statements
for the year ended 30 September 2024
Ridgeway Foods Limited
Company information
Director
James Corbett
(Appointed 21 November 2024)
Company number
09524715
Registered office
Church Farm
Church Lane
Hatherton
Cannock
Staffordshire
WS11 1RR
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Ridgeway Foods Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
Ridgeway Foods Limited
Strategic report
For the year ended 30 September 2024
1
The director presents the strategic report for the year ended 30 September 2024.
Fair review of the business
Recent rapid inflation has presented an unexpected and unparalleled risk to all businesses in the UK. Global events have caused increased costs of certain inputs such as animal feed and electricity costs. The company operates in an industry that has seen these costs increase quickly and at a significant rate. The company has implemented a variety of measures to reduce exposure to these risks to its supply chain and customers in order to mitigate impact to the business. These have been successful in allowing the business to navigate these challenging times and work with customers to strengthen its supply chain.
Principal risks and uncertainties
The relationship with our customers is continually monitored and the directors are confident in the relationships that they have throughout the supply chain. A further challenge to the business is the ability to meet the demands of customers by having the correct supply to meet their demands.
The volatility of commodity prices, particularly wheat, is a constant challenge for the company, mitigated by strong relationships with the customers and suppliers.
The company ensures that a thorough review of the workplace is carried out with any relevant actions taken so as to provide a safe working environment for all our employees.
Cash flow risk
The company’s activities expose it primarily to the financial risks of changes in interest rates. The company does not use any derivative financial instruments.
Credit risk
The company’s principal financial assets are trade and other receivables.
The company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. Trade debtors are managed in respect of credit and cash flow by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long term and short term debt finance. The company meets its day-to-day working capital requirements through a bank loan which is secured over the fixed assets of the group. The current economic conditions create uncertainty particularly over the level of demand for the company’s products and the availability of bank finance in the foreseeable future.
Key performance indicators
Given the straightforward nature of the company’s operations, the directors are of the opinion that analysis using KPIs, other than the financial results set out on pages 9, 10 and 11 and discussed above, is not necessary for an understanding of the development, performance or position of the business.
Ridgeway Foods Limited
Strategic report (continued)
For the year ended 30 September 2024
2
Going concern
The company has net assets of £13.0m and net current assets of £7.9m. The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current facilities. The company has a strong balance sheet and has reviewed its future borrowing needs, and no matters have been drawn to its attention to suggest that adequate finance will not be available on an ongoing basis on acceptable terms.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
James Corbett
Director
29 January 2025
Ridgeway Foods Limited
Director's report
For the year ended 30 September 2024
3
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company is that of poultry farming and the packaging and marketing of eggs.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Richard Corbett
(Resigned 21 November 2024)
Pamela Corbett
(Resigned 21 November 2024)
James Corbett
(Appointed 21 November 2024)
Future developments
The company recognises it operates in a dynamic and changing industry and believes it is well equipped going forward.
Auditor
The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management.
Ridgeway Foods Limited
Director's report (continued)
For the year ended 30 September 2024
4
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
James Corbett
Director
29 January 2025
Ridgeway Foods Limited
Independent auditor's report
To the members of Ridgeway Foods Limited
5
Opinion
We have audited the financial statements of Ridgeway Foods Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the statement of financial position, 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:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Ridgeway Foods Limited
Independent auditor's report (continued)
To the members of Ridgeway Foods Limited
6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Ridgeway Foods Limited
Independent auditor's report (continued)
To the members of Ridgeway Foods Limited
7
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the director, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with director and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas
which might involve non-compliance with laws and regulations or fraud. We enquired of management
whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any
actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls
by testing the appropriateness of journal entries and identifying any significant transactions that were
unusual or outside the normal course of business. We assessed whether judgements made in making
accounting estimates gave rise to a possible indication of management bias. At the completion stage of the
audit, the engagement partner’s review included ensuring that the team had approached their work with
appropriate professional scepticism and thus the capacity to identify non-compliance with laws and
regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Ridgeway Foods Limited
Independent auditor's report (continued)
To the members of Ridgeway Foods Limited
8
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.
David Sedgwick
Senior Statutory Auditor
For and on behalf of Saffery LLP
29 January 2025
Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Ridgeway Foods Limited
Statement of comprehensive income
For the year ended 30 September 2024
9
2024
2023
Notes
£
£
Turnover
3
3,411,565
11,669,253
Cost of sales
(2,913,938)
(10,439,418)
Gross profit
497,627
1,229,835
Administrative expenses
(1,806,927)
(1,006,083)
Other operating income
683,703
271,621
Operating (loss)/profit
4
(625,597)
495,373
Interest payable and similar expenses
6
(87,390)
(112,589)
(Loss)/profit before taxation
(712,987)
382,784
Tax on (loss)/profit
7
552,379
(Loss)/profit for the financial year
(712,987)
935,163
The income statement has been prepared on the basis that all operations are continuing operations.
Ridgeway Foods Limited
Statement of financial position
As at 30 September 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
5,929,018
7,675,733
Current assets
Stocks
9
4,342
3,466
Debtors
10
6,598,596
7,433,512
Cash at bank and in hand
3,300,231
2,531,503
9,903,169
9,968,481
Creditors: amounts falling due within one year
11
(2,015,181)
(1,989,667)
Net current assets
7,887,988
7,978,814
Total assets less current liabilities
13,817,006
15,654,547
Creditors: amounts falling due after more than one year
12
(842,266)
(1,966,820)
Net assets
12,974,740
13,687,727
Capital and reserves
Called up share capital
16
1
1
Profit and loss reserves
12,974,739
13,687,726
Total equity
12,974,740
13,687,727
The financial statements were approved by the board of directors and authorised for issue on 29 January 2025 and are signed on its behalf by:
..............................
James Corbett
Director
Company Registration No. 09524715
Ridgeway Foods Limited
Statement of changes in equity
For the year ended 30 September 2024
11
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
1
12,752,563
12,752,564
Year ended 30 September 2023:
Profit and total comprehensive income
-
935,163
935,163
Balance at 30 September 2023
1
13,687,726
13,687,727
Year ended 30 September 2024:
Loss and total comprehensive income
-
(712,987)
(712,987)
Balance at 30 September 2024
1
12,974,739
12,974,740
Ridgeway Foods Limited
Notes to the financial statements
For the year ended 30 September 2024
12
1
Accounting policies
Company information
Ridgeway Foods Limited is a private company limited by shares incorporated in England and Wales. The registered office is Church Farm, Church Lane, Hatherton, Cannock, Staffordshire, WS11 1RR.
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 £1.
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:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Ridgeway Group Limited. These consolidated financial statements are available from its registered office, Church Farm, Hatherton, Cannock, Staffordshire WS11 1RR.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover 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 discounts, settlement discounts and volume rebates.
Revenue from the sale of eggs 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.
Other income consists of rental income received and receivable.
Ridgeway Foods Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
13
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Buildings
Between 2.5% and 15% straight line
Plant and equipment
Between 10% and 33.3% straight line
20% reducing balance
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price in the normal course of business 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 the profit or loss. Reversals of impairment losses are also recognised in the profit or loss.
Biological assets are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise of the purchase cost and any additional costs incurred through transportation and rearing.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Ridgeway Foods Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
14
1.8
Financial instruments
The company has applied 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 statement of financial position 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, 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.
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.
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.
Ridgeway Foods Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
15
Basic financial liabilities
Basic financial liabilities, including creditors, 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. 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.
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.
1.9
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.
1.10
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 income statement 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.
Ridgeway Foods Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
16
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
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.
Ridgeway Foods Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
17
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of property, plant and equipment
Where there are indicators of impairment of property, plant and equipment, the directors carry out an internal assessment of the fair value of the property at the year end date and determine whether an impairment is required.
3
Turnover and other revenue
All of the company's turnover was earned from UK customers.
5
Employees
The average monthly number of persons employed by the company during the year was:
2024
2023
Number
Number
Production
7
50
Administration
1
1
8
51
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
459,520
1,081,255
Social security costs
64,329
127,802
Pension costs
6,672
22,987
530,521
1,232,044
18
6
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
87,390
112,589
19
7
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(552,379)
The actual charge/(credit) for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(712,987)
382,784
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
(178,247)
84,251
Tax effect of expenses that are not deductible in determining taxable profit
92,375
19,158
Change in unrecognised deferred tax assets
(246,162)
(953,517)
Permanent capital allowances in excess of depreciation
332,034
249,724
Tax rate changes affecting deferred tax
48,005
Taxation charge/(credit) for the year
-
(552,379)
8
Tangible fixed assets
Buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
8,195,846
18,249,000
103,619
26,548,465
Additions
40,000
40,000
Disposals
(10,000)
(10,000)
At 30 September 2024
8,235,846
18,239,000
103,619
26,578,465
Depreciation and impairment
At 1 October 2023
1,787,172
17,004,708
80,852
18,872,732
Depreciation charged in the year
208,896
446,027
10,569
665,492
Impairment losses
1,119,242
1,119,242
Eliminated in respect of disposals
(8,019)
(8,019)
At 30 September 2024
3,115,310
17,442,716
91,421
20,649,447
Carrying amount
At 30 September 2024
5,120,536
796,284
12,198
5,929,018
At 30 September 2023
6,408,674
1,244,292
22,767
7,675,733
The Directors carried out an impairment review as at the year end. An impairment has subsequently been recognised on a site held by the company. The impairment has been recognised within administrative expenses.
20
9
Stocks
2024
2023
£
£
Sundry stocks
4,342
3,466
4,342
3,466
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
503,013
637,440
Other debtors
5,072,809
5,784,850
Prepayments and accrued income
34,638
23,086
5,610,460
6,445,376
Deferred tax asset (note 15)
988,136
988,136
6,598,596
7,433,512
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
13
564,706
564,725
Trade creditors
131,097
232,563
Taxation and social security
25,902
17,849
Other creditors
130,500
1,169
Accruals and deferred income
1,162,976
1,173,361
2,015,181
1,989,667
12
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
13
423,529
988,235
Accruals and deferred income
418,737
978,585
842,266
1,966,820
21
13
Loans and overdrafts
2024
2023
£
£
Bank loans
988,235
1,552,941
Bank overdrafts
19
988,235
1,552,960
Payable within one year
564,706
564,725
Payable within one to five years
423,529
988,235
The bank loans are repayable in quarterly instalments, incurring interest rates of between 2.25% and 2.35% above LIBOR. They are secured by fixed charges over the land and buildings of the company through an omnibus guarantee.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,672
22,987
15
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:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated Capital Allowance
464,884
464,884
Tax losses
523,252
523,252
988,136
988,136
There were no deferred tax movements in the year.
The deferred tax balance is expected to reverse over the course of the next 3-5 years.
Finance Bill 2021 increased the rate of corporation tax from 19% to 25% as of 1 April 2023. As this is the substantively enacted rate at the year end, deferred tax has been recorded at 25%.
16
Share capital
2024
2023
Issued and fully paid
1 Ordinary share of £1
1
1
22
17
Related party transactions
During the period, sales to and purchases from entities under mutual control were £2,151,095 (2023: £1,928,070) and £898,030 (2023: £1,264,155) respectively. At the year-end £5,059,729 was due from these entities (2023: £5,652,959).
18
Controlling party
The company is a wholly owned subsidiary of its parent company, Ridgeway Group Limited. Group accounts are available from Companies House.
The ultimate controlling party is James Corbett by virtue of his shareholding.
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