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Registered number: 04612694










CELTICA FOODS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
CELTICA FOODS LIMITED
 
 
COMPANY INFORMATION


Directors
David Brian Jones 
James Nigel Owen Williams 




Registered number
04612694



Registered office
Heol Y Plas
Cross Hands Food Park

Cross Hands

Llanelli

Carmarthenshire

SA14 6SX




Independent auditor
MHA

Swansea

United Kingdom





 
CELTICA FOODS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditor's Report
6 - 9
Statement of Comprehensive Income
10
Balance Sheet
11
Statement of Changes in Equity
12
Statement of Cash Flows
13
Analysis of Net Debt
14
Notes to the Financial Statements
15 - 31


 
CELTICA FOODS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024

Introduction
 
The Directors present their strategic report for the year ended 31 October 2024.

Business review
 
The key financial highlights are as follows:



Key financial highlights

2024
2023
2022
2021
        £
        £
        £
        £

Turnover

20,296,446

17,420,155

14,699,766
 
9,558,714
 
Gross Profit (Before Labour costs)

4,981,961

4,381,680

4,332,871
 
2,921,583
 
Net profit before Tax

974,935

1,147,453

1,232,732
 
888,688
 
Gross Profit Margin (%)

25

25

29
 
31
 
Net Assets

5,146,565

4,447,752

3,614,447
 
2,651,505
 
Gearing (% of total assets)

5

7

9
 
14
 

The financial year 2023–2024 has been marked by continued growth for Celtica Foods Ltd, with turnover increasing by 16.5% compared to the previous year. This growth highlights the strength of our customer relationships and our consistent focus on quality. However, the business has encountered some cost pressures that have affected profitability. Turnover for the year rose to £20.2 million, up from £17.4 million, representing a 16.5% increase. Despite this top-line growth, profit before tax decreased from £1.1 million to £974,935, a decline of approximately 15%. The decrease in profitability is primarily due to pressure on gross margins and increased staff costs. While we have managed to maintain our gross margin from the previous year, there has been ongoing pressure from price increases in raw materials. Additionally, we have significantly increased our headcount to support growth and operational requirements and have implemented both our annual inflationary pay rise in April and in-year pay reviews to attract and retain the best talent in a competitive employment market.

Page 1

 
CELTICA FOODS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST OCTOBER 2024

Principal risks and uncertainties
 
The business is subject to certain risks which are monitored closely by the directors.
Looking ahead, the Company faces continued margin pressures due to ongoing volatility in the cost of raw materials, regulatory increases in the National Minimum Wage, and an upcoming increase in Employer National Insurance contributions. These external cost pressures will require close control of overheads and improved operational efficiencies to protect profitability. To address these challenges, the Company is actively pursuing several mitigating strategies, including the introduction of a Pension Salary Sacrifice Scheme in the new financial year to reduce the impact of rising employment costs, reviewing supply chain and production processes to identify areas for efficiency gains, and continuing to evaluate pricing strategies and product mix to sustain margin levels without compromising competitiveness.
Despite the challenges ahead, the Company remains well-positioned for continued growth. Management is confident in Celtica Foods Ltd's ability to adapt to the evolving cost environment while remaining competitive and financially resilient. Maintaining a balance between cost control and investment in people and infrastructure will be critical to sustaining long-term profitability.
The ability to maintain sales and profit margins at sufficient levels is a key risk, which will be inherently impacted by the cost of living crisis and high inflation levels. Commodity purchase prices are monitored closely by management, with selling prices adjusted where possible, taking into account the impact on end-consumer demand. Changes in overhead cost profiles are also closely monitored and action taken where possible to control such costs.
The maintenance of high food safety standards places itself at the forefront of the company strategy. The business aims to maintain the BRC AA Grade that it current holds and the directors have implemented quality assurance procedures to ensure that hygiene standards are monitored regularly.
The directors continue to recognise the company's responsibilities in relation to the environment and aim to continue maintaining systems designed to achieve increased efficiency in its use of resources.
The company relies on a close working relationship with Castell Howell Foods Limited, which is the company's main customer and controlling party.
In addition to the trading risks referred to above, the company is inherently subject to competition risks and is
ultimately reliant upon leisure sector trends and public spending.

Financial instruments

The company's principal financial instruments comprise bank balances, loans, trade creditors and debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.
Loans are provided by financial institutions. The interest rates on loans are variable, but the monthly repayments are fixed. The company manages liquidity risk by ensuring there are sufficient funds to meet the repayments.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit risk. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The company is exposed to price risk as a result of its operations, in particular fluctuations in meat prices. The company manages price risk by reviewing the price of goods with various suppliers ensuring that they are receiving a competitive price and that price increases are passed onto the customer. The company also reviews the market prices to ensure that they remain competitive.

Page 2

 
CELTICA FOODS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST OCTOBER 2024

Going Concern

The company is in a strong financial position at the balance sheet date and projected ongoing trading levels and profitability has been reviewed by the directors. Management utilise rolling projection models, as sensitised for various economic uncertainties and anticipated customer demand.
Projected profitability and cash flow for the remainder of the financial year to October 2025 and beyond are considered to be satisfactory and the directors consider the company to be a going concern.


This report was approved by the board on 14 July 2025 and signed on its behalf.



James Nigel Owen Williams
Director

Page 3

 
CELTICA FOODS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024

The directors present their report and the financial statements for the year ended 31 October 2024.

Directors' responsibilities statement

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

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


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

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company in the year under review was that of the processing of meat and the sale of meat products.

Dividends

No dividends will be distributed for the year ended 31 October 2024.

Results

The profit for the year, after taxation, amounted to £698,813 (2023 - £833,305).

Directors

The directors who served during the year were:

David Brian Jones 
James Nigel Owen Williams 

Disclosure in the strategic report

Included in the company's strategic report is a review of the business, details in relation to the risk management policies in respect of financial instruments and a description of the principal risks and uncertainties facing the company.

Page 4

 
CELTICA FOODS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST OCTOBER 2024

Disclosure of information to auditor

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

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

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 14 July 2025 and signed on its behalf.
 





James Nigel Owen Williams
Director

Page 5

 
CELTICA FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED
 

Opinion


We have audited the financial statements of Celtica Foods Limited (the 'Company') for the year ended 31st October 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31st October 2024 and of its profit 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 6

 
CELTICA FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 7

 
CELTICA FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Enquiry of management and those charged with governance around actual, potential or suspected litigation,  claims, non-compliance with applicable laws and regulations and fraud. 
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Enquiry of entity staff in compliance functions and external advisors to identify any instances of non-compliance with laws and regulations. 
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness; 
- evaluating the business rationale of significant transactions outside the normal course of business; and
- An assessment of the methodologies used in order to calculate the estimate/provision at the year end for evidence of bias.
- The accounting policy was checked to the financial reporting standards where necessary and confirmed to be appropriate;
- Reviewing accounting estimates for bias;
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud;
- Discussions with management over any potential or suspected fraud.
- Performing audit work over the recognition of revenue on dispatch of goods occurring at the year end to provide assurance over cut-off;
- Performing substantive tests of detail over the completeness/existence of income within the financial system;
- Performing audit work on the design and implementation of key controls around the recording of income.


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


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


Page 8

 
CELTICA FOODS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Rachel Doyle ACA (Senior Statutory Auditor) 
  
for and on behalf of
MHA
 
Date:

14 July 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542). 
 
Page 9

 
CELTICA FOODS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£

  

Turnover
  
20,296,446
17,420,155

Cost of sales
  
(18,150,455)
(15,268,947)

Gross profit
  
2,145,991
2,151,208

Administrative expenses
  
(1,273,663)
(1,125,750)

Other operating income
 5 
137,075
156,650

Operating profit
 6 
1,009,403
1,182,108

Interest payable and similar expenses
 8 
(34,468)
(34,655)

Profit before tax
  
974,935
1,147,453

Tax on profit
 9 
(276,122)
(314,148)

Profit for the financial year
  
698,813
833,305

Other comprehensive income for the year
  

Total comprehensive income for the year
  
698,813
833,305

The notes on pages 15 to 31 form part of these financial statements.

Page 10

 
CELTICA FOODS LIMITED
REGISTERED NUMBER: 04612694

BALANCE SHEET
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 10 
3,688,389
3,439,550

  
3,688,389
3,439,550

Current assets
  

Stocks
 11 
1,853,869
1,734,073

Debtors: amounts falling due within one year
 12 
3,836,357
2,126,552

Cash at bank and in hand
  
21,312
428,445

  
5,711,538
4,289,070

Creditors: amounts falling due within one year
 13 
(3,880,522)
(2,551,233)

Net current assets
  
 
 
1,831,016
 
 
1,737,837

Total assets less current liabilities
  
5,519,405
5,177,387

Creditors: amounts falling due after more than one year
 14 
-
(444,618)

Provisions for liabilities
  

Deferred tax
  
(372,840)
(285,017)

  
 
 
(372,840)
 
 
(285,017)

Net assets
  
5,146,565
4,447,752


Capital and reserves
  

Called up share capital 
 19 
100
100

Profit and loss account
 20 
5,146,465
4,447,652

  
5,146,565
4,447,752


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 July 2025.




James Nigel Owen Williams
Director

The notes on pages 15 to 31 form part of these financial statements.

Page 11

 
CELTICA FOODS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1st November 2022
100
3,614,347
3,614,447


Comprehensive income for the year

Profit for the year
-
833,305
833,305



At 1st November 2023
100
4,447,652
4,447,752


Comprehensive income for the year

Profit for the year
-
698,813
698,813


At 31st October 2024
100
5,146,465
5,146,565


The notes on pages 15 to 31 form part of these financial statements.

Page 12

 
CELTICA FOODS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST OCTOBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
698,813
833,305

Adjustments for:

Depreciation of tangible assets
329,153
267,473

Government grants
-
(19,575)

Interest paid
34,468
34,655

Taxation charge
276,122
314,148

(Increase) in stocks
(119,796)
(112,645)

(Increase) in debtors
(1,709,805)
(821,727)

Increase in creditors
999,695
484,145

Corporation tax (paid)
(222,483)
(216,571)

Net cash generated from operating activities

286,167
763,208


Cash flows from investing activities

Purchase of tangible fixed assets
(577,992)
(273,073)

Government grants received
-
19,575

Net cash from investing activities

(577,992)
(253,498)

Cash flows from financing activities

Repayment of loans
(80,840)
(80,840)

Interest paid
(34,468)
(34,655)

Net cash used in financing activities
(115,308)
(115,495)

Net (decrease)/increase in cash and cash equivalents
(407,133)
394,215

Cash and cash equivalents at beginning of year
428,445
34,230

Cash and cash equivalents at the end of year
21,312
428,445


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
21,312
428,445

21,312
428,445


The notes on pages 15 to 31 form part of these financial statements.

Page 13

 
CELTICA FOODS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31ST OCTOBER 2024





At 1st November 2023
Cash flows
Other non-cash changes
At 31st October 2024
£

£

£

£

Cash at bank and in hand

428,445

(407,133)

-

21,312

Debt due after 1 year

(444,618)

-

444,618

-

Debt due within 1 year

(80,839)

80,839

(444,617)

(444,617)


(97,012)
(326,294)
1
(423,305)

The notes on pages 15 to 31 form part of these financial statements.

Page 14

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

1.


General information

Celtica Foods 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 below:
Registered number:   04612694
Registered office address: Heol Y Plas Cross Hands Food Park,
     Cross Hands,
     Llanelli,
     Carmarthenshire,
     SA14 6SX 
The presentation currency of the financial statements is the Pound Sterling (£).

2.Accounting policies

  
2.1

Basis of preparation

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.

  
2.2

Turnover

Turnover is the amount derived from ordinary activities and stated after trade discounts, other sales taxes and net of VAT. Revenue is recognised on the despatch of goods to customers or the provision of a service. Rental income is recognised evenly over the period to which it relates.

 
2.3

Tangible fixed assets

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

Page 15

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Freehold property
-
Straight line over 30 years
Plant and machinery
-
50% on cost, 33% on cost, 33% on reducing balance, 20% on cost, 10% on cost and 3% on cost
Fixtures and fittings
-
50% on cost, 33% on cost, 20% on cost and 10% on cost
Computer equipment
-
50% on cost, 33% on cost, 25% on cost, 20% on cost and 10% on cost

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

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

  
2.4

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost includes purchase price less discounts where applicable. In the case of manufactured goods, cost includes all direct expenditure and production overheads based on the normal level of activity. Net realisable value is based on estimated selling price. Provision is made for obsolete and slow moving items where appropriate.

Page 16

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

2.Accounting policies (continued)

 
2.5

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted
Page 17

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

2.Accounting policies (continued)


2.5
Financial instruments (continued)

where the effect of discounting is immaterial.

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

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

  
2.6

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

  
2.7

Current tax

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.

Page 18

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

2.Accounting policies (continued)

  
2.8

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.

  
2.9

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

  
2.10

Foreign Currencies

Assets and liabilities in foreign currencies are translated into Pound sterling at the rates of exchange ruling at the balance sheet date. Transaction 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.

  
2.11

Hire purchase and leasing commitments

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

 
2.12

Pensions

Defined contribution pension plan

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

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

Page 19

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

2.Accounting policies (continued)

 
2.13

Going concern

The directors have reviewed current and projected profitability and cash generation and concluded that the expected future trading position is satisfactory.
The company is reliant upon ongoing trading with its key customer, along with funding support from related party companies, if needed. The directors have received assurances that such trading and support will be ongoing for the foreseeable future.
The company is also reliant upon the continued support of its bankers, with regard to the continuance
of loan facilities. The company continues to service the loans and meet the loan covenants without
issue and the directors have not received any indication that the support of the company's bankers will not continue.
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 of accounting.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

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

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 20

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

IIn 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 which 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 if the revision only effects that period or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the critical judgements that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Impairment of fixed assets
Assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.
Provisions for stock
Provisions are made for slow moving and obsolete stock, based on the directors' understanding, expectations of future sales and historic trends.
Trade debtor provisions
Provisions are made for trade debtors which are potentially irrecoverable, based on based on the directors' understanding, knowledge of customers and historic trends.
Exceptional items
Where the company incurs costs or is entitled to income which the directors consider are either outside the scope of normal operating activities or unusually material to the accounts in terms of size or incidence, then such amounts are classified as exceptional items and disclosed separately on the face of the income statement and described further in a separate note to the accounts.


4.


Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.
An analysis of turnover by class of business is as follows:

2024
2023
        £
        £
Sale of goods

19,022,157

16,512,046

Contract boning

1,274,289

908,109


20,296,446

17,420,155


Page 21

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

5.


Other operating income

2024
2023
£
£

Rents receivable
137,075
137,075

Government grants
-
19,575

137,075
156,650


Other operating income relates to rental income generated from leasing space in the company's butchery depot and grant income.


6.


Operating profit

The operating profit is stated after charging/(crediting):

2024
2023
£
£

Hire of plant and machinery
29,014
22,890

Depreciation
329,153
267,782

Other operating lease rentals
6,158
16,248

Audit Fee
13,000
11,300

Auditors remuneration - other
1,800
1,700

Auditors' remuneration - taxation services
960
850

Grant income
-
(19,575)

Page 22

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
2,484,531
1,948,694

Social security costs
242,393
191,515

Other pension costs
109,045
90,262

2,835,969
2,230,471


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


        2024
        2023
            No.
            No.







Management/adminstration
12
9



Production/labour
66
45

78
54

During the year, the directors received no remuneration for their services (2023: £Nil).


8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
34,468
34,655

34,468
34,655

Page 23

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
188,299
222,482


188,299
222,482


Total current tax
188,299
222,482

Deferred tax


Origination and reversal of timing differences
87,823
91,666

Total deferred tax
87,823
91,666


Tax on profit
276,122
314,148
Page 24

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
974,935
1,147,453


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
243,734
286,863

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
103

Capital allowances for year in excess of depreciation
32,388
33,388

Impact of enhanced capital allowances
-
(72,296)

Other
-
(843)

Deferred tax calculated at future tax rates
-
66,933

Total tax charge for the year
276,122
314,148


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

10.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 November 2023
2,885,640
3,003,216
133,315
204,971
6,227,142


Additions
-
553,058
12,381
12,553
577,992



At 31st October 2024

2,885,640
3,556,274
145,696
217,524
6,805,134



Depreciation


At 1 November 2023
761,163
1,764,316
88,030
174,083
2,787,592


Charge for the year on owned assets
81,977
196,238
30,166
20,772
329,153



At 31st October 2024

843,140
1,960,554
118,196
194,855
3,116,745



Net book value



At 31st October 2024
2,042,500
1,595,720
27,500
22,669
3,688,389



At 31st October 2023
2,124,477
1,238,900
45,285
30,888
3,439,550

Freehold property with a carrying value of £2,042,500 (2023: £2,124,477) has been pledged as security for liabilities.

Page 26

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

11.


Stocks

2024
2023
£
£

Stocks
1,853,869
1,734,073

1,853,869
1,734,073



12.


Debtors

2024
2023
£
£


Trade debtors
3,398,014
1,798,938

Other debtors
403,374
178,123

Prepayments and accrued income
34,969
149,491

3,836,357
2,126,552



13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
444,617
80,839

Trade creditors
2,953,044
2,001,994

Corporation tax
188,990
223,174

Other taxation and social security
66,351
50,809

Other creditors
15,898
12,036

Accruals and deferred income
211,622
182,381

3,880,522
2,551,233


The balances above are repayable within one year and are not interest bearing with the exception of loans.

Page 27

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

14.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
-
444,618

-
444,618



15.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
444,617
80,839


444,617
80,839

Amounts falling due 1-2 years

Bank loans

-
444,618



444,617
525,457



16.

Secured debts

The following secured debts are included within creditors:

2024
2023
        £
        £
Bank loans

444,617

525,457
 

444,617

525,457
 

The bank loan is secured by way of legal charge over the company's land and buildings and by the cross guarantee and debenture referred to in note 21.

Page 28

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

17.

Provisions for liabilities

2024
2023
        £
        £
Deferred tax

372,840

285,017
 

372,840

285,017
 


18.


Deferred taxation

Deferred tax
        £

Balance at 1 November 2023

285,017

Accelerated capital allowances

87,823

Balance at 31 October 2024

372,840


The deferred tax liability set out above relates to accelerated capital allowances that are expected to reverse in line with the associated depreciation rates.


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



20.


Reserves

Retained earnings
        £
At 1 November 2023

4,447,652

Profit for the year

698,813

At 31 October 2024

5,146,465


Page 29

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024

21.


Contingent liabilities

There is a cross guarantee in favour of Barclays Bank Plc in place, between the company, Castell Howell Foods Limited and Farmfresh Fillings Limited. The total liability covered by this cross guarantee and not included within these accounts at the year end, was £2,835,000 (2023: £3,150,000). The company would be liable for this maximum sum should the lender company default.


22.


Pension commitments

The company operates a separate defined contribution pension scheme for its employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £109,045 (2023: £90,262) in the year. At the balance sheet date, outstanding contributions amounted to £15,399 (2023: £12,036) for the period.


23.


Capital Commitments

There is a capital commitment of £83,097 (2023: £101,478).
An asset that the company was committed to at the year end was subsequently sold 3 months post year end. This asset has been excluded from the capital commitment value above.


24.


Commitments under operating leases

At 31st October 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
6,158
6,158

Later than 1 year and not later than 5 years
16,934
23,092

23,092
29,250


25.


Related party disclosures

Entities with control, joint control or significant influence over the entity

2024
2023
        £
        £
Sales

18,336,197

15,826,580
 
Purchases

1,189,815

1,259,629
 
Amount due from related party

3,009,234

1,645,544
 

.

Page 30

 
CELTICA FOODS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
Other related parties

2024
2023
        £
        £
Sales

25,351

140,617
 
Purchases

703,841

465,726
 
Amount due to related party

(1,478,502)

530,282
 

During the year, a total of key management personnel compensation of £97,836 (2023 - £70,182) was paid.


26.


Controlling party

The controlling party is D B Jones.
The company's results are incorporated into the consolidated financial statements of Castell Howell Foods Limited, whose registered office is the same as the company's.

27.


Post Balance Sheet Events

The Barclays loan was re-financed after the year end with a redemption date of April 2027.

 
Page 31