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Registered number:
FOR THE YEAR ENDED 31 OCTOBER 2024
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CELTICA FOODS LIMITED
COMPANY INFORMATION
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CELTICA FOODS LIMITED
CONTENTS
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CELTICA FOODS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31ST OCTOBER 2024
The Directors present their strategic report for the year ended 31 October 2024.
The key financial highlights are as follows:
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.
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CELTICA FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST OCTOBER 2024
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.
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.
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CELTICA FOODS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST OCTOBER 2024
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.
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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.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 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.
No dividends will be distributed for the year ended 31 October 2024.
The profit for the year, after taxation, amounted to £698,813 (2023 - £833,305).
The directors who served during the year were:
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.
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CELTICA FOODS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31ST OCTOBER 2024
There have been no significant events affecting the Company since the year end.
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
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CELTICA FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED
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 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).
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.
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.
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CELTICA FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
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.
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CELTICA FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED (CONTINUED)
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.
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CELTICA FOODS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CELTICA FOODS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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CELTICA FOODS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
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CELTICA FOODS LIMITED
REGISTERED NUMBER: 04612694
BALANCE SHEET
AS AT 31 OCTOBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 31 form part of these financial statements.
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CELTICA FOODS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
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CELTICA FOODS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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
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.
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.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
2.Accounting policies (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:
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.
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.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
2.Accounting policies (continued)
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
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
2.Accounting policies (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.
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.
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.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
2.Accounting policies (continued)
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.
Expenditure on research and development is written off in the year in which it is incurred.
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.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
2.Accounting policies (continued)
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.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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.
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.
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.
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CELTICA FOODS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST OCTOBER 2024
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.
The Barclays loan was re-financed after the year end with a redemption date of April 2027.
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