IRIS Accounts Production v25.1.3.33 10670248 Board of Directors 1.10.23 30.9.24 30.9.24 Medium entities manufacturer of other food products. true false true true false false true false These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Ordinary F shares 10.00000 Ordinary J shares 10.00000 Ordinary K shares 10.00000 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REGISTERED NUMBER: 10670248 (England and Wales)









Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 September 2024

for

Blends Flavours & Colours Limited

Blends Flavours & Colours Limited (Registered number: 10670248)






Contents of the Financial Statements
for the Year Ended 30 September 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


Blends Flavours & Colours Limited

Company Information
for the Year Ended 30 September 2024







DIRECTORS: Mr M D Rowark
Mr M R Rowark





REGISTERED OFFICE: Blends House
Overbrook Lane
Knowsley
Prescot
Merseyside
L34 9FB





REGISTERED NUMBER: 10670248 (England and Wales)





AUDITORS: Harts Limited
Chartered Accountants and Statutory Auditors
Westminster House
10 Westminster Road
Macclesfield
Cheshire
SK10 1BX

Blends Flavours & Colours Limited (Registered number: 10670248)

Strategic Report
for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

The principal activity of the company in the year under review was that of manufacturer of other food products.

REVIEW OF BUSINESS
Blends Flavours & Colours Ltd operates from Blends House on Overbrook Lane. Prior to October 2018, the flavour side of the business was incorporated together with the commodity business under Blends Ltd. We chose to separate the two entities for clarity.

We are a British Retail Consortium (BRC) accredited company and achieved an AA grade certificate in January 2024. We enjoy a growing role in blending and co-packing for well-known brands, and continue to focus our efforts in growth of these areas, as well as innovation and project management.

We have seen year on year turnover growth since the company was separated into two entities in October 2018 and we foresee considerable growth to continue over the next 12 months. Our employee number total is currently 98.

We continue to invest in our packing and NPD departments and we see the future of the business aligned to this strategy.

PRINCIPAL RISKS AND UNCERTAINTIES
Price increases have continued for another year, which has impacted on our overall Gross Profit margin. This is definitely an area of uncertainty, but will continue to monitor this and adapt our business accordingly to keep ahead of the curve.

ANALYSIS OF DEVELOPMENT AND PERFORMANCE
We continue to target Retailers along with new and growing flavour markets.

We have recruited in many areas of the business, adding employees to the Engineering, Technical and Production teams.
We operate the canning line on a 24/7 basis however we have improved efficiencies on the bottling line resulting in a reduction of shift patterns.

The quality of our employees contributes to the success of Blends. We will continue to invest in them in training and development. We ensure that opportunities are given to our employees, to progress within the business, and will support them in this path.

KPI Analysis
Sales were up by 9.61%

2024- £16,322,162
2023 - £14,890,812

Gross Profit for the financial year has achieved 41.98%, as opposed to 41.52% the previous year.

FUTURE DEVELOPMENT AND RESEARCH
Our plans for the coming year are to update our NPD facilities and add capability further in order to cope with the growing demand. End of line equipment is currently being discussed that align.

ON BEHALF OF THE BOARD:





Mr M R Rowark - Director


26 June 2025

Blends Flavours & Colours Limited (Registered number: 10670248)

Report of the Directors
for the Year Ended 30 September 2024

The directors present their report with the financial statements of the company for the year ended 30 September 2024.

DIVIDENDS
The total distribution of dividends for the year ended 30 September 2024 was £88,501 (2023: £96,050).

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

Mr M D Rowark
Mr M R Rowark

Other changes in directors holding office are as follows:

Mr P W Rowark ceased to be a director after 30 September 2024 but prior to the date of this report.

MATTERS COVERED IN THE STRATEGIC REPORT
As permitted by S414c(11) of Companies Act 2006, the director has elected to disclose information, required to be in the director's report by schedule 7 of the 'Large and Medium-sized Companies, and Groups (Accounts and Reports) Regulation 2008, in the Strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Blends Flavours & Colours Limited (Registered number: 10670248)

Report of the Directors
for the Year Ended 30 September 2024


AUDITORS
The auditors, Harts Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr M R Rowark - Director


26 June 2025

Report of the Independent Auditors to the Members of
Blends Flavours & Colours Limited

Opinion
We have audited the financial statements of Blends Flavours & Colours Limited (the 'company') for the year ended 30 September 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Blends Flavours & Colours Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are the Companies Act 2006, Health and Safety and general food regulations.

We understood how Blends Flavours and Colours Limited is complying with those frameworks by making inquiries of management responsible for company legislation and certification procedures.

We corroborated our enquiries through discussion with the Directors to identify any non-compliance with laws and regulations.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by discussion with directors to understand where its considered there was a susceptibility to fraud. We considered the controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud.

To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify and unusual or unexpected relationships; investigated the rationale behind significant or unusual transactions; and tested journal entries to identify unusual transactions.


Report of the Independent Auditors to the Members of
Blends Flavours & Colours Limited

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 enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Material misstatement that arises due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations that could materially impact the financial statements. Taking into accounts our understanding of the Company, our procedures involved enquires of management and focussed testing as appropriate with consideration to risk assessment.

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 Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 Taylor BFP FCA (Senior Statutory Auditor)
for and on behalf of Harts Limited
Chartered Accountants and Statutory Auditors
Westminster House
10 Westminster Road
Macclesfield
Cheshire
SK10 1BX

26 June 2025

Blends Flavours & Colours Limited (Registered number: 10670248)

Income Statement
for the Year Ended 30 September 2024

30.9.24 30.9.23
Notes £    £   

TURNOVER 5 16,322,162 14,890,812

Cost of sales (9,470,260 ) (8,708,627 )
GROSS PROFIT 6,851,902 6,182,185

Administrative expenses (6,723,563 ) (6,483,083 )
128,339 (300,898 )

Other operating income - 787,849
OPERATING PROFIT 7 128,339 486,951

Interest receivable and similar income 9 4,523 1,488
132,862 488,439

Interest payable and similar expenses 10 (281,274 ) (302,182 )
(LOSS)/PROFIT BEFORE TAXATION (148,412 ) 186,257

Tax on (loss)/profit 11 27,847 8,975
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (120,565 ) 195,232

Blends Flavours & Colours Limited (Registered number: 10670248)

Other Comprehensive Income
for the Year Ended 30 September 2024

30.9.24 30.9.23
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (120,565 ) 195,232


OTHER COMPREHENSIVE INCOME
Revaluation in year 979,813 100,000
Income tax relating to other comprehensive
income

(241,718

)

-
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

738,095

100,000
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

617,530

295,232

Blends Flavours & Colours Limited (Registered number: 10670248)

Balance Sheet
30 September 2024

30.9.24 30.9.23
Notes £    £   
FIXED ASSETS
Tangible assets 13 7,841,051 7,191,775

CURRENT ASSETS
Stocks 14 2,925,141 2,363,531
Debtors 15 3,953,419 4,177,657
Cash at bank and in hand 143,640 64,787
7,022,200 6,605,975
CREDITORS
Amounts falling due within one year 16 (10,673,447 ) (9,680,625 )
NET CURRENT LIABILITIES (3,651,247 ) (3,074,650 )
TOTAL ASSETS LESS CURRENT LIABILITIES 4,189,804 4,117,125

CREDITORS
Amounts falling due after more than one
year

17

(2,770,138

)

(3,485,775

)

PROVISIONS FOR LIABILITIES 21 (259,287 ) -
NET ASSETS 1,160,379 631,350

CAPITAL AND RESERVES
Called up share capital 22 50 50
Revaluation reserve 23 725,154 (12,941 )
Retained earnings 23 435,175 644,241
SHAREHOLDERS' FUNDS 1,160,379 631,350

The financial statements were approved by the Board of Directors and authorised for issue on 26 June 2025 and were signed on its behalf by:





Mr M R Rowark - Director


Blends Flavours & Colours Limited (Registered number: 10670248)

Statement of Changes in Equity
for the Year Ended 30 September 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 October 2022 50 545,059 (112,941 ) 432,168

Changes in equity
Dividends - (96,050 ) - (96,050 )
Total comprehensive income - 195,232 100,000 295,232
Balance at 30 September 2023 50 644,241 (12,941 ) 631,350

Changes in equity
Dividends - (88,501 ) - (88,501 )
Total comprehensive income - (120,565 ) 738,095 617,530
Balance at 30 September 2024 50 435,175 725,154 1,160,379

Blends Flavours & Colours Limited (Registered number: 10670248)

Cash Flow Statement
for the Year Ended 30 September 2024

30.9.24 30.9.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,167,588 (1,931,148 )
Interest paid (178,575 ) (174,595 )
Interest element of hire purchase payments
paid

(94,461

)

(127,587

)
Tax paid 147,012 109,275
Net cash from operating activities 1,041,564 (2,124,055 )

Cash flows from investing activities
Purchase of tangible fixed assets (68,707 ) (409,998 )
Sale of tangible fixed assets - 140,000
Interest received 4,523 1,488
Net cash from investing activities (64,184 ) (268,510 )

Cash flows from financing activities
Repayment of bank loans (391,030 ) (386,967 )
Receipt of other loans - 1,266,214
Repayment of other loans (122,897 ) -
Repayment/New finance lease obligation (301,037 ) 1,580,149
Amount introduced by directors 130,037 96,050
Amount withdrawn by directors (123,291 ) (66,162 )
Bank overdraft - (2,257 )
Equity dividends paid (88,501 ) (96,050 )
Net cash from financing activities (896,719 ) 2,390,977

Increase/(decrease) in cash and cash equivalents 80,661 (1,588 )
Cash and cash equivalents at beginning of
year

2

62,530

64,118

Cash and cash equivalents at end of year 2 143,191 62,530

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Cash Flow Statement
for the Year Ended 30 September 2024

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.9.24 30.9.23
£    £   
(Loss)/profit before taxation (148,412 ) 186,257
Depreciation charges 396,253 399,269
Loss on disposal of fixed assets 4,444 77,040
Exchange rate 36,583 -
Finance costs 281,274 302,182
Finance income (4,523 ) (1,488 )
565,619 963,260
Increase in stocks (561,610 ) (261,068 )
Decrease/(increase) in trade and other debtors 183,202 (2,586,848 )
Increase/(decrease) in trade and other creditors 980,377 (46,492 )
Cash generated from operations 1,167,588 (1,931,148 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2024
30.9.24 1.10.23
£    £   
Cash and cash equivalents 143,640 64,787
Bank overdrafts (449 ) (2,257 )
143,191 62,530
Year ended 30 September 2023
30.9.23 1.10.22
£    £   
Cash and cash equivalents 64,787 64,118
Bank overdrafts (2,257 ) -
62,530 64,118


Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Cash Flow Statement
for the Year Ended 30 September 2024

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.10.23 Cash flow At 30.9.24
£    £    £   
Net cash
Cash at bank and in hand 64,787 78,853 143,640
Bank overdrafts (2,257 ) 1,808 (449 )
62,530 80,661 143,191
Debt
Finance leases (1,598,124 ) 301,037 (1,297,087 )
Debts falling due within 1 year (2,749,821 ) 122,897 (2,626,924 )
Debts falling due after 1 year (2,133,305 ) 389,222 (1,744,083 )
(6,481,250 ) 813,156 (5,668,094 )
Total (6,418,720 ) 893,817 (5,524,903 )

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements
for the Year Ended 30 September 2024

1. STATUTORY INFORMATION

Blends Flavours & Colours Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


Although Blends flavours & colours limited registered address is at Overbrook lane, it primarily operates from Picton House, Knowsley Business Park, Kitling Rd, Knowsley, Prescot, L34 9JA.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch date.

Turnover from services is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to finalisation of work completed.


Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 10% on cost and Revaluation basis
Plant and machinery - 25% on cost, 25% on reducing balance and 20% on cost
Motor vehicles - 25% on reducing balance

Property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the revaluation reserve.

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.


Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

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

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

Government grants
Government grants are accounted for on a receivable basis.

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

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.


Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

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

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

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

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

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

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

3. ACCOUNTING POLICIES - continued

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company has the ability to trade in the future with support from the directors and other connected companies. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Cash and cash equivalents
Cash and cash equivalents 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.

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.

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


4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

Key sources of estimation uncertainty
The estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Stocks
A provision in the amount of £524,663 (2023: £191,081) for old and obsolete stock has been estimated by the directors to ensure that stock is correctly stated at the lower of cost and net realisable value.

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

Depreciation and amortisation
Depreciation and amortisation policies are reviewed annually by the board. All assets are depreciated and amortised based on their expected useful economic life and the anticipated residual value. Residual values are updated to reflect market conditions as appropriate.

5. TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

30.9.24 30.9.23
£    £   
Sale of goods 16,322,162 14,890,812
16,322,162 14,890,812

An analysis of turnover by geographical market is given below:

30.9.24 30.9.23
£    £   
United Kingdom 16,322,162 14,890,812
16,322,162 14,890,812

6. EMPLOYEES AND DIRECTORS
30.9.24 30.9.23
£    £   
Wages and salaries 3,686,501 3,357,515
Social security costs 322,619 17,350
Other pension costs 79,755 83,779
4,088,875 3,458,644

The average number of employees during the year was as follows:
30.9.24 30.9.23

Directors 3 2
Production 14 11
Administration 8 8
Sales 5 5
Cleaning 4 4
Technical/Innovation 13 17
Repack 40 44
Maintenance 13 12
100 103

30.9.24 30.9.23
£    £   
Directors' remuneration 145,420 126,554
Directors' pension contributions to money purchase schemes 1,827 1,800

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

6. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

7. OPERATING PROFIT

The operating profit is stated after charging:

30.9.24 30.9.23
£    £   
Hire of plant and machinery 198,347 194,677
Other operating leases 84,000 84,000
Depreciation - owned assets 395,629 399,270
Loss on disposal of fixed assets 4,444 77,040
Exchange rate differences 36,583 35,707

8. AUDITORS' REMUNERATION
30.9.24 30.9.23
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

15,000

12,998

9. INTEREST RECEIVABLE AND SIMILAR INCOME
30.9.24 30.9.23
£    £   
Bank interest received 2,553 123
Other interest received 1,247 1,365
Tax interest received 723 -
4,523 1,488

10. INTEREST PAYABLE AND SIMILAR EXPENSES
30.9.24 30.9.23
£    £   
Bank interest 178,575 174,595
Other interest 8,238 -
Hire purchase interest 94,461 127,587
281,274 302,182

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

11. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
30.9.24 30.9.23
£    £   
Current tax:
UK corporation tax - 77,509
(Over) Under provision in prior year (77,509 ) (182,198 )
Total current tax (77,509 ) (104,689 )

Deferred tax:
Deferred tax (36,945 ) (45,965 )
Adj. in respect of prior years 86,607 141,679
Total deferred tax 49,662 95,714

Tax on (loss)/profit (27,847 ) (8,975 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30.9.24 30.9.23
£    £   
(Loss)/profit before tax (148,412 ) 186,257
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 22%)

(37,103

)

40,977

Effects of:
Expenses not deductible for tax purposes 158 (3,916 )
Capital allowances in excess of depreciation - (58,274 )
Adjustments to tax charge in respect of previous periods (77,509 ) (182,199 )
Deferred tax movement - (45,966 )
Increase / (decrease) in pension provision - (1,936 )
Depreciation - 83,710
Loss on disposal of fixed assets - 16,949
Previously unrecognised deferred tax / prior year DT 86,607 141,680
Total tax credit (27,847 ) (8,975 )

Tax effects relating to effects of other comprehensive income

30.9.24
Gross Tax Net
£    £    £   
Revaluation in year 979,813 (241,718 ) 738,095

30.9.23
Gross Tax Net
£    £    £   
Revaluation in year 100,000 - 100,000

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

12. DIVIDENDS

The total distribution of dividends for the year ended 30 September 2024 was £88,501 (2023: £96,050).

13. TANGIBLE FIXED ASSETS
Freehold Plant and Motor
property machinery vehicles Totals
£    £    £    £   
COST OR VALUATION
At 1 October 2023 3,129,248 5,206,034 13,009 8,348,291
Additions - 68,707 - 68,707
Disposals - (7,140 ) - (7,140 )
Revaluations 979,813 - - 979,813
At 30 September 2024 4,109,061 5,267,601 13,009 9,389,671
DEPRECIATION
At 1 October 2023 31,678 1,115,054 9,784 1,156,516
Charge for year 18,822 375,999 808 395,629
Eliminated on disposal - (3,525 ) - (3,525 )
At 30 September 2024 50,500 1,487,528 10,592 1,548,620
NET BOOK VALUE
At 30 September 2024 4,058,561 3,780,073 2,417 7,841,051
At 30 September 2023 3,097,570 4,090,980 3,225 7,191,775

Included in the total net book value of assets was £1,518,207 in respect of assets held under finance leases.

Cost or valuation at 30 September 2024 is represented by:

Freehold Plant and Motor
property machinery vehicles Totals
£    £    £    £   
Valuation in 2021 (112,941 ) - - (112,941 )
Valuation in 2023 100,000 - - 100,000
Valuation in 2024 979,813 - - 979,813
Cost 3,142,189 5,267,601 13,009 8,422,799
4,109,061 5,267,601 13,009 9,389,671

If freehold property had not been revalued it would have been included at the following historical cost:

30.9.24 30.9.23
£    £   
Cost 3,142,189 3,142,189

Freehold property was valued on an open market basis on 24 January 2025 by CG Professional .

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

14. STOCKS
30.9.24 30.9.23
£    £   
Raw materials 2,340,113 1,946,206
Finished goods 585,028 417,325
2,925,141 2,363,531

Stocks are stated after provisions for impairments of £524,663 (2023 - £191,081).

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.9.24 30.9.23
£    £   
Trade debtors 2,771,469 3,819,275
Other debtors 900,019 107,852
Directors' current accounts 56,665 65,608
Deferred tax asset - 32,093
Prepayments 225,266 152,829
3,953,419 4,177,657

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.9.24 30.9.23
£    £   
Bank loans and overdrafts (see note 18) 389,671 391,479
Other loans (see note 18) 2,237,702 2,360,599
Hire purchase contracts (see note 19) 271,032 245,654
Trade creditors 3,859,315 3,004,480
Corporation tax (48 ) (104,689 )
Social security and other taxes 242,448 88,445
VAT 441,455 408,447
Other creditors 3,106,565 3,109,809
Directors' current accounts - 2,197
Accrued expenses 125,307 174,204
10,673,447 9,680,625

Included in creditors due within one year are the following borrowings:

- An invoice financing arrangement sets at 2% interest rate above bank base rate.

- A bank loan with a 5 year term. The loan bears interest at 2.35% above the Bank of England base rate.

- A bank loan with a 15 year term. The loan bears interest at 2.35% above the Bank of England base rate.

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
30.9.24 30.9.23
£    £   
Bank loans (see note 18) 1,744,083 2,133,305
Hire purchase contracts (see note 19) 1,026,055 1,352,470
2,770,138 3,485,775

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued

Included in creditors due after one year are the following borrowings:

- A bank loan with a 5 year term. The loan bears interest at 2.35% above the Bank of England base rate.

- A bank loan with a 15 year term. The loan bears interest at 2.35% above the Bank of England base rate.

18. LOANS

An analysis of the maturity of loans is given below:

30.9.24 30.9.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 449 2,257
Bank loans 389,222 389,222
Santander invoice financing 2,237,702 2,360,599
2,627,373 2,752,078

Amounts falling due between one and two years:
Bank loans - 1-2 years 389,222 389,222

Amounts falling due between two and five years:
Bank loans - 2-5 years 487,111 759,333

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 867,750 984,750

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.9.24 30.9.23
£    £   
Net obligations repayable:
Within one year 271,032 245,654
Between one and five years 1,026,055 1,257,043
In more than five years - 95,427
1,297,087 1,598,124

Non-cancellable operating leases
30.9.24 30.9.23
£    £   
Within one year 13,077 88,430

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

19. LEASING AGREEMENTS - continued

Operating lease payments recognised as an expense during the year accumulated to £84,000 (2023: £84,000).

The hire purchase creditor represents vehicles and assets finance acquired under finance lease arrangements. Interest is payable as part of the monthly repayments at various rates between 5% to 8%. The Company also has the option to acquire vehicles at the end of the respective lease terms and intends to exercise the option.

20. SECURED DEBTS

The following secured debts are included within creditors:

30.9.24 30.9.23
£    £   
Bank overdrafts 449 2,257
Bank loans 2,133,305 2,522,527
Hire purchase contracts 1,297,087 1,598,124
3,430,841 4,122,908

Bank loans and overdrafts are secured by way of a debenture including fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future.

Hire purchase creditors are secured on the assets to which they relate to.

21. PROVISIONS FOR LIABILITIES
30.9.24
£   
Deferred tax 259,287

Deferred
tax
£   
Balance at 1 October 2023 (32,093 )
Provided during year (36,945 )
Prior years adjustments 86,607
Revaluation reserve 241,718
Balance at 30 September 2024 259,287

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.9.24 30.9.23
value: £    £   
500 Ordinary F shares 10p 50 50
1 Ordinary J shares 10p - -
1 Ordinary K shares 10p - -
50 50

There are no restrictions on these shares.

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

23. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 October 2023 644,241 (12,941 ) 631,300
Deficit for the year (120,565 ) (120,565 )
Dividends (88,501 ) (88,501 )
Revaluation in year - 738,095 738,095
At 30 September 2024 435,175 725,154 1,160,329

24. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The charge to the profit and loss was £77,928 (2023: £81,979).

25. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 September 2024 and 30 September 2023:

30.9.24 30.9.23
£    £   
Mr P W Rowark
Balance outstanding at start of year (2,197 ) (2,092 )
Amounts advanced 5,245 555
Amounts repaid (1,000 ) (660 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 2,048 (2,197 )

Mr M R Rowark
Balance outstanding at start of year 11,760 30,676
Amounts advanced 49,269 11,760
Amounts repaid (17,500 ) (30,676 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 43,529 11,760

Mr M D Rowark
Balance outstanding at start of year 53,849 64,714
Amounts advanced 68,776 65,101
Amounts repaid (111,537 ) (75,966 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 11,088 53,849

Loans incur interest at 2% per anum.

Blends Flavours & Colours Limited (Registered number: 10670248)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

26. POST BALANCE SHEET EVENTS

Subsequent to the year end, the Company entered into a sale and leaseback agreement in relation to its freehold property. The transaction involved the disposal of the property to a third party and the simultaneous leaseback of the same property under a long-term operating lease arrangement.

The agreement was finalised after the balance sheet date and therefore has not been reflected in the financial statements for the year ended 30 September 2024. The transaction will be accounted for in accordance with IFRS 16 Leases in the next financial period, resulting in the recognition of a right-of-use asset and a corresponding lease liability on the Company's balance sheet.

The sale has generated a revaluation gain, which reflects the difference between the carrying value of the property and its fair value as determined through an independent valuation performed in anticipation of the transaction.

27. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mrs A Rowark and Mr M D Rowark by virtue of their majority shareholding in the company.

Nevertheless, subsequent to the year end, Blends Group Ltd acquired 100% shareholding of Blends Flavours & Colours Limited and became the ultimate parent company with the registered office address at: Blends House Overbrook Lane, Knowsley, Prescot, Merseyside, United Kingdom, L34 9FB.