Company registration number SC298811 (Scotland)
CAKE DECOR LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
CAKE DECOR LTD
COMPANY INFORMATION
Directors
A Downs
U Osmundsen
T Osmundsen
C Louwerse
D Harvey
Company number
SC298811
Registered office
2 Little Drum Road
Orchardton Woods
Cumbernauld
Glasgow
G68 9LH
Auditor
Azets Audit Services
6th Floor, Bank House
8 Cherry Street
Birmingham
United Kingdom
B2 5AL
CAKE DECOR LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 25
CAKE DECOR LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the period ended 31 December 2024.
Fair review of the business
The company's key financial indicators during the year were as follows:
9 months ended
Year ended
31 December 2024
31 March 2024
£
£
Turnover
20,491,914
22,465,962
Total operating profit
2,688,526
1,547,839
Profit after tax
1,808,605
945,265
Shareholders' funds
5,331,888
10,479,560
The business saw an annualised sales increase of 22% during the year arising from both increasing volume and number of retailers, whilst achieving an associated increase in the operating profit of 74%, due largely to control of and driving economies of scale with respect to both direct and fixed costs.
Principal risks and uncertainties
The directors have identified the following risks as those significant to the future prospects of the business: loss of a key supplier, loss or economic failure of a key customer, contamination and product recall. The directors consider that the company has rigorous controls in place to mitigate these risks as far as it is possible to do so.
Supply Chain and Inflation
Company procurement resources plan ahead to establish raw material requirements and secure deliveries as well as to negotiate improved bulk pricing terms. In respect to input prices, these are monitored closely and selling prices adjusted appropriately.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before new accounts are accepted. Internal controls are in place to ensure all customer balances are continually monitored and the board closely oversees credit provided by the company to its customers.
Interest rate risk
The company has interest bearing liabilities. Interest bearing liabilities are inter-group borrowing facilities and finance lease agreements on which interest is charged at a floating and fixed rates respectively.
Liquidity and cash flow risk
Through the retention of profits and use of group treasury facilities the company has sufficient available funds for operations and planned expansions. Any new debt finance would have to be approved by the board of directors before it was taken on. Cash flow is closely monitored and appropriate facilities are available through Orkla Food Ingredients AS treasury.
CAKE DECOR LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators
The directors prepare forecasts and budgets that are monitored for variance through management accounts on a monthly basis to maintain and predict the profitability and cashflow of the business.
The company also monitors
- Customer service
- Quality
- Productivity
The directors remain satisfied with the overall financial performance during the period and believe the company remains in a strong financial position.
A Downs
Director
21 July 2025
CAKE DECOR LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the period ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the manufacture, supply and distribution of cake decorations.
Results and dividends
The results for the period are set out on page 8.
Dividends of £6,956,277 were paid and declared during the period (year ended 31 March 2024: £nil).
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
A Downs
U Osmundsen
T Osmundsen
C Louwerse
D Harvey
S Morrow
(Resigned 13 April 2024)
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going Concern
The directors, after making enquiries and having considered the company's business, its financial plans and
the facilities available to finance the business, have a reasonable expectation that the company has adequate
resources to continue in operational existence for the foreseeable future. The directors have received
confirmation from Orkla Food Ingredients AS, that it will provide ongoing financial support if required to the extent
necessary to enable the Company to meet its financial liabilities as the fall due for a period of twelve months
from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern
basis in preparing the financial statements.
On behalf of the board
A Downs
Director
21 July 2025
CAKE DECOR LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
CAKE DECOR LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CAKE DECOR LTD
- 5 -
Opinion
We have audited the financial statements of Cake Decor Ltd (the 'company') for the period ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the finanical 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 FRS 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 company’s affairs as at 31 December 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The 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.
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 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.
CAKE DECOR LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CAKE DECOR LTD
- 6 -
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, 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.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
CAKE DECOR LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CAKE DECOR LTD
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Tom Mullard ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
6th Floor, Bank House
8 Cherry Street
Birmingham
United Kingdom
B2 5AL
CAKE DECOR LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 8 -
Period
Year
ended
ended
31 December
31 March
2024
2024
Notes
£
£
Turnover
2
20,491,914
22,465,962
Cost of sales
(12,676,011)
(14,846,522)
Gross profit
7,815,903
7,619,440
Administrative expenses
(5,127,377)
(6,075,601)
Other operating income
2
4,000
Operating profit
5
2,688,526
1,547,839
Interest receivable and similar income
2
22,851
14,658
Interest payable and similar expenses
6
(281,538)
(288,432)
Profit before taxation
2,429,839
1,274,065
Tax on profit
7
(621,234)
(328,800)
Profit for the financial period
1,808,605
945,265
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CAKE DECOR LTD
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
31 December 2024
31 March 2024
Notes
£
£
£
£
Fixed assets
Tangible assets
9
3,332,067
3,558,502
Current assets
Stocks
10
2,684,551
2,837,498
Debtors
11
5,972,302
11,111,353
Cash at bank and in hand
3,089,505
1,518,135
11,746,358
15,466,986
Creditors: amounts falling due within one year
12
(4,022,382)
(7,992,098)
Net current assets
7,723,976
7,474,888
Total assets less current liabilities
11,056,043
11,033,390
Creditors: amounts falling due after more than one year
13
(5,227,242)
Provisions for liabilities
Deferred tax liability
15
496,913
553,830
(496,913)
(553,830)
Net assets
5,331,888
10,479,560
Capital and reserves
Called up share capital
17
32,090
32,090
Share premium account
216,320
216,320
Profit and loss reserves
5,083,478
10,231,150
Total equity
5,331,888
10,479,560
The financial statements were approved by the board of directors and authorised for issue on 21 July 2025 and are signed on its behalf by:
A Downs
Director
Company Registration No. SC298811
CAKE DECOR LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 10 -
Share capital (note 17)
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2023
32,090
216,320
9,285,885
9,534,295
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
945,265
945,265
Balance at 31 March 2024
32,090
216,320
10,231,150
10,479,560
Period ended 31 December 2024:
Profit and total comprehensive income for the period
-
-
1,808,605
1,808,605
Dividends
8
-
-
(6,956,277)
(6,956,277)
Balance at 31 December 2024
32,090
216,320
5,083,478
5,331,888
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Cake Decor Ltd is a private company limited by shares incorporated in Scotland. The registered office is 2 Little Drum Road, Orchardton Woods, Cumbernauld, Glasgow, G68 9LH.
1.1
Reporting period
These accounts are for the 9-month period from 1 April 2024 to 31 December 2024. The comparatives are for the year ended 31 March 2024. Therefore the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable. The current accounting period was shortened so that the period end of 31 December aligns with the remainder of the Orkla ASA group.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
Cake Decor Ltd is a subsidiary of Orkla ASA and the results of Cake Decor Ltd are included in the consolidated financial statements of Orkla ASA which are available from PO Box 423, Skoyen, N-0213 Oslo, Norway.
1.3
Going concern
The directors, after making enquiries and having considered the company's business, its financial plans andtrue
the facilities available to finance the business, have a reasonable expectation that the company has adequate
resources to continue in operational existence for the foreseeable future. The directors have received
confirmation from Orkla Food Ingredients AS, that it will provide ongoing financial support if required to the extent necessary to enable the Company to meet its financial liabilities as they fall due for a period of twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
1.4
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.
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Turnover from the sale of goods is recognised when the goods are delivered to the customer. Turnover from the supply of goods represents the value of goods provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due.
Where the contract has only been partially completed at the balance sheet date, turnover represents the value of the service provided to date based on a proportion of the total contract value. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on cost
Property improvements
10% on cost
Plant and equipment
10% on cost
Fixtures and fittings
15% on cost
Motor vehicles
25% reducing balance
Office equipment
35% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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.
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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, 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.
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.
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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.
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.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.17
Accounting estimates and judgements
Certain critical accounting judgements in applying the Company's accounting policies are described below.
The Company does not have any critical accounting estimates or judgements to disclose this financial period.
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 16 -
2
Turnover and other revenue
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Turnover analysed by geographical market
United Kingdom
18,586,020
21,068,199
Europe
1,905,894
1,397,763
20,491,914
22,465,962
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Other revenue
Interest income
22,851
14,658
Grants received
-
4,000
Turnover in the current and prior periods all relates to the sale of goods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
Period ended
Year ended
31 December 2024
31 March 2024
Number
Number
Production
61
64
Administrative
51
55
Total
112
119
Their aggregate remuneration comprised:
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Wages and salaries
2,799,988
3,783,002
Social security costs
277,168
357,211
Pension costs
124,048
144,787
3,201,204
4,285,000
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 17 -
4
Directors' remuneration
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Remuneration for qualifying services
194,870
298,992
Company pension contributions to defined contribution schemes
18,750
54,270
213,620
353,262
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Remuneration for qualifying services
116,124
176,500
Company pension contributions to defined contribution schemes
11,588
25,000
5
Operating profit
Period ended
Year ended
31 December 2024
31 March 2024
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
83,266
41,513
Research and development costs
5,480
17,705
Government grants
-
(4,000)
Fees payable to the company's auditor for the audit of the company's financial statements
28,000
34,000
Fees payable to the company's auditor for non-audit services
7,750
8,000
Depreciation of owned tangible fixed assets
358,614
450,856
Impairment of owned tangible fixed assets
30,000
Loss on disposal of tangible fixed assets
2,295
-
Operating lease charges
69,546
31,008
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 18 -
6
Interest payable and similar expenses
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Interest payable to group undertakings
279,130
273,018
Other interest on financial liabilities
7,426
Interest on finance leases and hire purchase contracts
2,408
7,988
281,538
288,432
7
Taxation
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Current tax
UK corporation tax on profits for the current period
40,055
Adjustments in respect of prior periods
15,487
(649)
Payment for group relief
622,609
254,309
Total current tax
678,151
253,660
Deferred tax
Origination and reversal of timing differences
(41,431)
69,994
Adjustment in respect of prior periods
(15,486)
5,146
Total deferred tax
(56,917)
75,140
Total tax charge
621,234
328,800
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Profit before taxation
2,429,839
1,274,065
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (year ended 31 March 2024: 25.00%)
607,460
318,516
Tax effect of expenses that are not deductible in determining taxable profit
13,774
5,788
Adjustments in respect of prior years
4,496
Taxation charge for the period
621,234
328,800
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 19 -
8
Dividends
Period ended
Year ended
31 December 2024
31 March 2024
£
£
Interim paid
6,956,277
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 20 -
9
Tangible fixed assets
Freehold land and buildings
Property improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Office equipment
Total
£
£
£
£
£
£
£
Cost
At 1 April 2024
1,135,618
736,936
4,149,446
292,235
97,744
202,444
6,614,423
Additions
154,726
47,133
7,946
708
210,513
Disposals
(147,799)
(97,744)
(245,543)
At 31 December 2024
1,135,618
891,662
4,048,780
300,181
203,152
6,579,393
Depreciation and impairment
At 1 April 2024
229,635
379,753
2,108,271
91,093
69,651
177,518
3,055,921
Depreciation charged in the period
17,034
53,422
245,868
28,561
1,654
12,075
358,614
Impairment losses
30,000
30,000
Eliminated in respect of disposals
(125,904)
(71,305)
(197,209)
At 31 December 2024
246,669
433,175
2,258,235
119,654
189,593
3,247,326
Carrying amount
At 31 December 2024
888,949
458,487
1,790,545
180,527
13,559
3,332,067
At 31 March 2024
905,983
357,183
2,041,175
201,142
28,093
24,926
3,558,502
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
9
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
31 December 2024
31 March 2024
£
£
Motor vehicles
28,093
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 22 -
10
Stocks
31 December 2024
31 March 2024
£
£
Raw materials and consumables
982,704
1,100,739
Finished goods and goods for resale
1,701,847
1,736,759
2,684,551
2,837,498
11
Debtors
31 December 2024
31 March 2024
Amounts falling due within one year:
£
£
Trade debtors
4,315,551
2,602,921
Corporation tax recoverable
135,201
342,412
Amounts owed by group undertakings
302,216
7,321,121
Other debtors
170,070
312,521
Prepayments and accrued income
1,049,264
532,378
5,972,302
11,111,353
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
12
Creditors: amounts falling due within one year
31 December 2024
31 March 2024
Notes
£
£
Loans from group undertakings
14
4,949,808
Trade creditors
1,598,773
1,924,279
Amounts owed to group undertakings
1,228,477
345,607
Other Taxation and social security
198,441
93,722
Other creditors
341,956
33,518
Accruals and deferred income
654,735
645,164
4,022,382
7,992,098
The £1,228,476 (31 March 2024: £345,607) included within amounts owed to group undertakings are trading balances that are unsecured, interest free and repayable on demand.
13
Creditors: amounts falling due after more than one year
2024
2024
Notes
£
£
Loans from group undertakings
14
5,227,242
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
13
Creditors: amounts falling due after more than one year
(Continued)
- 23 -
During the year, the loan counterparty was transferred from Orkla ASA to one of its subsidiary undertakings, Orkla Food Ingredients AS.
The amount is due for repayment on 15 January 2027. Interest is accrued on a monthly basis and the rate is determined every month by Orkla Food Ingredients AS as being equal to the six month interbank rate plus a margin of 1.00%, increasing on 1 May 2024 to 2.25%, plus a risk mark-up. The amount owed is unsecured.
14
Loans and overdrafts
31 December 2024
31 March 2024
£
£
Loans from group undertakings
5,227,242
4,949,808
Payable within one year
4,949,808
Payable after one year
5,227,242
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
31 December 2024
31 March 2024
Balances:
£
£
Accelerated capital allowances
500,451
557,160
Other short term timing differences
(3,538)
(3,330)
496,913
553,830
2024
Movements in the period:
£
Liability at 1 April 2024
553,830
Credit to profit or loss
(56,917)
Liability at 31 December 2024
496,913
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 24 -
16
Retirement benefit schemes
31 December 2024
31 March 2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,048
144,787
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.
17
Share capital
31 December 2024
31 March 2024
31 December 2024
31 March 2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
32,090
32,090
32,090
32,090
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
18
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
31 December 2024
31 March 2024
£
£
Within one year
103,262
89,298
Between two and five years
287,283
268,531
In over five years
42,669
433,214
357,829
19
Related party transactions
Transactions with related parties
The company has taken advantage of the exemptions, available in section 33.1A and 1.12 (e) of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group and key management personnel compensation.
CAKE DECOR LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 25 -
20
Ultimate controlling party
The immediate parent company is NIC Enterprises Limited, a company incorporated in England and Wales, which holds 100% of the share capital of Cake Decor Limited.
The ultimate parent company and controlling party is Orkla ASA, a company incorporated in Norway. The accounts are included within the consolidated accounts of Orkla ASA which are publically available from Orkla ASA, P.O. Box 423, Skoyen, N-0213 Oslo, Norway.
2024-12-312024-04-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100A DownsU OsmundsenT OsmundsenC LouwerseD HarveyS MorrowSC2988112024-04-012024-12-31SC298811bus:Director12024-04-012024-12-31SC298811bus:Director22024-04-012024-12-31SC298811bus:Director32024-04-012024-12-31SC298811bus:Director42024-04-012024-12-31SC298811bus:Director52024-04-012024-12-31SC298811bus:Director62024-04-012024-12-31SC298811bus:RegisteredOffice2024-04-012024-12-31SC2988112023-04-012024-03-31SC298811core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31SC298811core:RetainedEarningsAccumulatedLosses2024-04-012024-12-31SC2988112024-12-31SC298811core:ShareCapital2024-12-31SC298811core:ShareCapital2024-03-31SC298811core:SharePremium2024-12-31SC298811core:SharePremium2024-03-31SC298811core:RetainedEarningsAccumulatedLosses2024-12-31SC298811core:RetainedEarningsAccumulatedLosses2024-03-31SC2988112024-03-31SC298811core:ShareCapital2023-03-31SC298811core:SharePremium2023-03-31SC298811core:RetainedEarningsAccumulatedLosses2023-03-31SC2988112023-03-31SC298811core:ShareCapitalOrdinaryShareClass12024-12-31SC298811core:ShareCapitalOrdinaryShareClass12024-03-31SC298811core:LandBuildingscore:OwnedOrFreeholdAssets2024-12-31SC298811core:LeaseholdImprovements2024-12-31SC298811core:PlantMachinery2024-12-31SC298811core:FurnitureFittings2024-12-31SC298811core:MotorVehicles2024-12-31SC298811core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-12-31SC298811core:LandBuildingscore:OwnedOrFreeholdAssets2024-03-31SC298811core:LeaseholdImprovements2024-03-31SC298811core:PlantMachinery2024-03-31SC298811core:FurnitureFittings2024-03-31SC298811core:MotorVehicles2024-03-31SC298811core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-03-31SC298811core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-31SC298811core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-31SC298811core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-31SC298811core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-31SC298811core:CurrentFinancialInstruments2024-12-31SC298811core:CurrentFinancialInstruments2024-03-31SC298811core:LandBuildingscore:OwnedOrFreeholdAssets2024-04-012024-12-31SC298811core:LeaseholdImprovements2024-04-012024-12-31SC298811core:PlantMachinery2024-04-012024-12-31SC298811core:FurnitureFittings2024-04-012024-12-31SC298811core:MotorVehicles2024-04-012024-12-31SC298811core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-04-012024-12-31SC298811core:UKTax2024-04-012024-12-31SC298811core:UKTax2023-04-012024-03-31SC29881112024-04-012024-12-31SC29881112023-04-012024-03-31SC298811core:LandBuildingscore:OwnedOrFreeholdAssets2024-03-31SC298811core:LeaseholdImprovements2024-03-31SC298811core:PlantMachinery2024-03-31SC298811core:FurnitureFittings2024-03-31SC298811core:MotorVehicles2024-03-31SC298811core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2024-03-31SC2988112024-03-31SC298811core:Non-currentFinancialInstruments2024-12-31SC298811core:Non-currentFinancialInstruments2024-03-31SC298811bus:OrdinaryShareClass12024-04-012024-12-31SC298811bus:OrdinaryShareClass12024-12-31SC298811bus:OrdinaryShareClass12024-03-31SC298811core:WithinOneYear2024-12-31SC298811core:WithinOneYear2024-03-31SC298811core:BetweenTwoFiveYears2024-12-31SC298811core:BetweenTwoFiveYears2024-03-31SC298811core:MoreThanFiveYears2024-12-31SC298811core:MoreThanFiveYears2024-03-31SC298811bus:PrivateLimitedCompanyLtd2024-04-012024-12-31SC298811bus:FRS1022024-04-012024-12-31SC298811bus:Audited2024-04-012024-12-31SC298811bus:FullAccounts2024-04-012024-12-31xbrli:purexbrli:sharesiso4217:GBP